Bond prices rose. The yield on the 10-year Treasury note dropped to 1.37 percent, a record low.
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Two weeks after a majority of British voters declared they wanted to leave the European Union, there’s still a tremendous amount of uncertainty about how exactly that’s going to happen.
So far signals from the Bank of England are that it will seek to prop the economy up with more cuts in rates and potentially buying of government bonds, rather than erring on the side of caution to support the pound.
The stock market in United States incurred major losses on the decision of the UK to leave the European Union, but last week it rebounded by more than 3%, which gave signal to investors that underlying fundamentals of the economy have remained strong.
Former Treasury chief Kenneth Clarke, speaking candidly to former Foreign Secretary Malcolm Rifkind, described May – leader in the first voting round – as a “bloody hard woman”.
It’s also a sign of continued worry about the negative impact of Britain leaving the EU.
Stock market in Asia also slumped today; the decline there was led by a 3% drop in stocks in Tokyo.
“It will be interesting to see how global events, such as Britain’s recent vote to leave the European Union, affect these trends in the months ahead”, said David Huether, U.S. Travel’s vice president for research.
Analysts blamed warnings from the Bank of England that Brexit risks were “crystallizing” and fears about the British commercial property market.
On Tuesday, M&G Investments suspended a 4.4 billion-pound ($5.7 billion) real-estate fund there, following in the footsteps of Aviva Investors and Standard Life Investments after a number of redemption requests. Both said they stopped trading to protect other investors who wished to remain in their respective funds.
Banks and other financial firms employ more than 2 million people across Britain.
Klaus Iohannis said Friday it would take Britain two years of exit negotiations and “we will negotiate so that Romania’s interests are protected and we will look after Romanians who live and work in Britain”.
But Cameron and the rest of Britain are still reeling from the political and economic fallouts of the vote.
“Remain” supporters demonstrate in Parliament Square, London, to show their support for the European Union in the wake of the referendum decision for Britain to leave the EU, known as “Brexit”, Saturday July 2, 2016.
Top EU officials, who are wondering with whom they will negotiate, offered pointed commentary on the leaders who pushed to get Britain out of the EU – and then stepped aside.
“It’s just kind of an obvious thing – if the Federal Reserve sees a reason not to raise interest rates, the longer that goes on, the better it is for the real estate market”, Davis said. He said she knows little about foreign affairs.
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Guy Verhofstadt, the Liberal bloc leader in the EU Parliament, likened the departed leaders to “rats fleeing a sinking ship”.
