:00:00. > :00:09.This is Business Live from BBC News with Sally Bundock and Ben Thompson.
:00:10. > :00:12.As the UK assesses its options after last week's surprise decision
:00:13. > :00:15.to quit the European Union, we'll weigh up the economic impact
:00:16. > :00:20.Live from London, that's our top story
:00:21. > :00:42.The UK's Finance Minister, George Osborne, has been
:00:43. > :00:44.speaking in the last hour, in an attempt to ease
:00:45. > :00:50.We'll be live in London's financial district to find out.
:00:51. > :00:55.We'll take you live to Frankfurt and Sinagpore, as global investors
:00:56. > :00:57.assess what the vote could mean for them.
:00:58. > :01:00.Gold prices are up sharply as the pound sinks.
:01:01. > :01:09.And this is how it's looking in the first half hour of trade.
:01:10. > :01:14.And what difference will the vote mean for businesses day to day?
:01:15. > :01:17.We'll speak to one British exporter who voted to stay in,
:01:18. > :01:20.and ask what it means now the country is heading out.
:01:21. > :01:24.Send us your questions about the impact on travellers,
:01:25. > :01:42.Welcome to a special edition of Business Live.
:01:43. > :01:45.We're assessing the impact of Friday's historic vote -
:01:46. > :01:49.the UK's decision to leave the European Union.
:01:50. > :01:54.And after a weekend of political upset and economic fall-out -
:01:55. > :01:57.today begins the real work of negotiating an exit and finding
:01:58. > :02:02.the politicians to lead the UK through the uncertainty.
:02:03. > :02:05.This morning, UK Chancellor, the Finance Minister George Osborne,
:02:06. > :02:07.sought to calm financial markets in the wake of heavy
:02:08. > :02:14.He said the economy was in good shape to withstand the volatility
:02:15. > :02:28.ahead and to confront the challenge the country now faces.
:02:29. > :02:35.He did resist calls for an emergency budget. He says he wants to play an
:02:36. > :02:36.active role in the debate over Britain's relationship with the EU.
:02:37. > :02:39.We'll cross live to the city in just a moment, but first here's
:02:40. > :02:51.It will not be plain sailing in the days ahead. But let me be clear, you
:02:52. > :02:55.should not underestimate our resolve. We were prepared for the
:02:56. > :03:01.unexpected and we are equipped for whatever happens. We are determined
:03:02. > :03:06.that unlike eight years ago, Britain's financial system will help
:03:07. > :03:09.our country deal with any shocks and dampen them, not contribute to those
:03:10. > :03:13.shocks, or make them worse. Stephanie McGovern is
:03:14. > :03:24.at the financial heart What did traders make of what Mr
:03:25. > :03:29.Osborne had to say? Good morning. You could have heard a pin drop in
:03:30. > :03:37.the Chancellor was speaking. These guys reacting. Stuart, what has been
:03:38. > :03:43.happening? When we came in, everything felt very weak again. Mr
:03:44. > :03:46.Osborne coming out has been more supportive in terms of staying on.
:03:47. > :03:53.We don't know how long he's going to stay on for. Sterling has rallied on
:03:54. > :04:00.that. Original indications on the FTSE, we're down to three, 4%. We
:04:01. > :04:06.are now only down half a percent. They are down but not as much as you
:04:07. > :04:12.expected? Exactly that. We still look at European markets. You look
:04:13. > :04:19.at the euro stocks, a broad base of European shares, and that is up a
:04:20. > :04:25.third 1%. These Spanish elections have taken quite well. So much going
:04:26. > :04:33.on in the world, you have to keep your eyes everywhere. Thank you.
:04:34. > :04:39.Fairly calm. Of course, as we know in this game, things go up and down
:04:40. > :04:43.pretty easily at the moment. It will keep us all in a job for now!
:04:44. > :04:56.It would seem the pound is rising a little. There is a little bit of a
:04:57. > :05:02.feeling of calm in European markets. The mood where you are? A bit more
:05:03. > :05:07.of a stable tone. The same thing on the Frankfort stock exchange. You
:05:08. > :05:11.can see the financial district behind me. Some of the words that
:05:12. > :05:21.emanated from the Chancellor of Germany over the weekend, they had a
:05:22. > :05:24.much more stabilising effect. Negotiations with Britney to be
:05:25. > :05:30.carefully handled, they must not be rushed handled in a constructive
:05:31. > :05:36.manner. I'm joined by Roberto spit, a finance director. Are you
:05:37. > :05:42.reassured by what you have seen over the weekend in terms of how the
:05:43. > :05:47.process will be managed? I certainly am. We want an amicable separation.
:05:48. > :05:51.We would like to keep the economic harm to an absolute minimum. And
:05:52. > :05:56.then clearly we want to keep Britain as close to the union as possible.
:05:57. > :06:03.You concerned this contagion will spread am a bad there will be a
:06:04. > :06:07.general feeling the EU needs some sort of reform? Definitely needs a
:06:08. > :06:15.reform and we hope it will be a catalyst. There may be reasons why
:06:16. > :06:19.banks may not be able to operate fully in London. Maybe you could
:06:20. > :06:23.explain fully what they are, particularly the issue of euro
:06:24. > :06:30.clearing. There are other reasons why it is not possible to conduct
:06:31. > :06:35.negotiations outside the EU? The ECB wants superannuation. They ruled
:06:36. > :06:43.accordingly and were overruled by the European Court. The High Court.
:06:44. > :06:48.We will have that issue reopened and very likely we will have euro
:06:49. > :06:51.clearing moving into Frankfurt. Frankfurt, in terms of those
:06:52. > :06:55.operations, has an obvious pulled because the ECB is here and it
:06:56. > :07:00.manages the eurozone. But it does have a very shiny new face that it
:07:01. > :07:04.has developed over the past decade. It does have unquestionably more
:07:05. > :07:08.appeal but it is not the only game in town. Luxembourg would like some
:07:09. > :07:12.of that business as well? Everybody would get some of the business. But
:07:13. > :07:17.the clearing would come to Frankfurt. We have the biggest
:07:18. > :07:21.clearer in the eurozone, bigger than all of the other clears in all of
:07:22. > :07:26.the other countries together. Let me ask you a better deal in the offing,
:07:27. > :07:33.itself very controversial at the beginning, the deal between Deutsche
:07:34. > :07:38.and the London stock exchange. Arguments about where headquarters
:07:39. > :07:42.would be. Is that deal under threat? The industrial logic is clearly
:07:43. > :07:49.intact. We still believe it is good to have a European solution.
:07:50. > :07:54.However, it needs recalibration. Now that we know that Britain is leaving
:07:55. > :07:59.the EU, clearly some of the business will more logically be located in
:08:00. > :08:02.Frankfurt. We need recalibration. When it comes to headquarters,
:08:03. > :08:09.Frankfurt brings the majority of the value to the table. We believe it
:08:10. > :08:14.should be reconsidered. Thank you. Frankfurt is certainly poised. But
:08:15. > :08:20.there is still the open question, if Britain leaves the EU, when?
:08:21. > :08:21.Yes, everybody is asking that question. Tanya Beckett.
:08:22. > :08:26.Andrew Walker, economics correspondent, is with us.
:08:27. > :08:36.We heard reaction from the city of London. What did you make of George
:08:37. > :08:39.Osborne's speech? It is striking. Before the referendum he did warn
:08:40. > :08:44.that there might be a need for an emergency budget. It is not going to
:08:45. > :08:50.be this week but it is still very much on his mind. He talked about
:08:51. > :08:52.the need for an assessment by the Office for Budget Responsibility of
:08:53. > :08:59.the applications for the government finances. And there will need to be
:09:00. > :09:03.some adjustment, he said, in the public finances. He is not spelling
:09:04. > :09:07.out in detail what that means. But he did also say that he is
:09:08. > :09:12.determined to make sure that the progress he says has been made in
:09:13. > :09:16.managing government finances, that that is maintained. There is a
:09:17. > :09:20.suggestion there will be a need for some further tightening in
:09:21. > :09:26.government finances. It is still an open question of whether he will be
:09:27. > :09:29.the person to do it. You say he talked about the budget, but only
:09:30. > :09:34.when he was asked about it. He actually spoke for quite some time
:09:35. > :09:40.and some length about what he has done, but what Mark Carney has done
:09:41. > :09:49.to bring calm, the challenges ahead. Indeed. He mentioned three
:09:50. > :09:52.particular challenges. The first, the most immediate one, was about
:09:53. > :09:57.trying to deal with the volatility that we saw particularly on Friday.
:09:58. > :10:00.And frankly, yes, it is important for finance ministers to make
:10:01. > :10:07.reassuring noises in those circumstances. But the real levers
:10:08. > :10:11.are in the hands of central bank. Mark Carney was indicating what
:10:12. > :10:14.powers he had particularly in terms of providing support. There have
:10:15. > :10:19.been similar statements from other central banks around the world. The
:10:20. > :10:23.Swiss National bank has actually done something. But then Mr Osborne
:10:24. > :10:27.wanted to talk about the uncertainty about the new relationship, the UK
:10:28. > :10:33.will have with the rest of Europe. And then the business of deciding
:10:34. > :10:37.and negotiating what the relationship will be. Clearly he
:10:38. > :10:42.wants to have a role in it. We will see what position he does have in
:10:43. > :10:51.those important negotiations. Thank you.
:10:52. > :10:54.Some breaking news in the UK. Over the weekend here in the UK, we have
:10:55. > :10:58.had a number of departures from the shadow cabinet, from the opposition.
:10:59. > :11:04.We have got new appointments to those jobs. Shadow Foreign Secretary
:11:05. > :11:10.will be Emily Thornberry. Shadow health secretary, Diane Abbott.
:11:11. > :11:12.Shadow Education Minister secretary, Pat Glass, shadow transport
:11:13. > :11:18.secretary, Andy McDonald. Defence, Clive Lewis. And Rebecca Long Bailey
:11:19. > :11:26.shadow Chief Secretary to the Treasury. 12 members departed over
:11:27. > :11:31.the weekend. They are keen to get things back and running. A swift
:11:32. > :11:35.response this morning in terms of organising a new cabinet for the
:11:36. > :11:41.opposition party. Let's look at the Business Live home
:11:42. > :11:50.page. The key picture, George Osborne at his press conference. It
:11:51. > :11:54.also talks of the reaction to UK shares and the pound. Continuing to
:11:55. > :11:58.fall. A slight uptake in Stirling at the beginning of the trading
:11:59. > :12:03.session. Other stories out there. Companies coming out with profit
:12:04. > :12:08.warnings, like easyJet. Yes, they have talked about the risk
:12:09. > :12:11.of Brexit. It could cost them 5% in terms of revenue over the coming
:12:12. > :12:15.year. There has been a lot of debate about what it could mean for the
:12:16. > :12:20.open skies agreement, whereby airlines are free to fly anywhere
:12:21. > :12:25.within the European Union. If the UK votes to leave, question marks over
:12:26. > :12:31.that arrangement. Do take a look. ABC online. Lots of
:12:32. > :12:38.other reaction. Business leaders talking about the outcome. Let's get
:12:39. > :12:43.a sense of how Asia reacts to this. Friday was pretty grim for most of
:12:44. > :12:44.the main markets in Asia. Yes, markets closed down pretty
:12:45. > :12:46.sharply. Following Friday's post-Brexit slide
:12:47. > :12:49.of almost 8%, the Nikkei in Tokyo Our Asia Business Correspondent,
:12:50. > :13:04.Karishma Vaswani, Is this a bit of profit-taking while
:13:05. > :13:08.prices are cheap, or is this flying to somewhere that is not a European
:13:09. > :13:13.market? I think it is a bit of both. There is a sense among many traders
:13:14. > :13:17.here in Asia and investors that it is a time to take stock. There was a
:13:18. > :13:23.lot of panic on Friday because there was a sense that the actual
:13:24. > :13:27.referendum vote was not priced into the markets. Everybody was expecting
:13:28. > :13:32.a Remain vote. They got what they were not expecting, which is why you
:13:33. > :13:37.saw the major dramatic falls on shares across Asia on Friday. Japan
:13:38. > :13:41.has picked up today. Some 2%. It must be said that the strength in
:13:42. > :13:45.the Japanese yen, that is a safe haven currency, investors selling
:13:46. > :13:52.the pound and buying the end, that is bad for economic recovery. Even
:13:53. > :13:57.though we have seen some Asian markets pick we are hearing some
:13:58. > :14:01.cautionary voices from Asian leaders. The Prime Minister row of
:14:02. > :14:07.Japan, and the Chinese leader as well, talking about the impact that
:14:08. > :14:12.Brexit may have on the wider region. Although we did not see any action
:14:13. > :14:16.from the central bank in Japan, which some were expecting, we have
:14:17. > :14:22.seen action in China as far as the yen is concerned?
:14:23. > :14:26.Yes, we have seen action with regard to Chinese officials setting the
:14:27. > :14:30.midpoint lower. It is a controlled currency. They decide where the
:14:31. > :14:35.midpoint is right to be. It has now been set to its lowest levels in
:14:36. > :14:41.five and I have years. China is caught between a rock and a hard
:14:42. > :14:46.place. It needs the yuan to be cheaper so it can continue to export
:14:47. > :14:50.the way big economies in Asia do. But it doesn't wanted to be too weak
:14:51. > :14:55.because then you have a situation where Chinese investors, are wealthy
:14:56. > :14:59.people in China, get worried about the economy, worried about the
:15:00. > :15:03.economy, and start to take their money out of the markets. Capital
:15:04. > :15:07.flight, if you well. What we are seeing across Asia are concerns over
:15:08. > :15:10.how the pound's weakness is having an impact on the strength of the
:15:11. > :15:15.Japanese yen and a knock-on effect on the Chinese yuan.
:15:16. > :15:21.Still to come, what Brexit means for business.
:15:22. > :15:23.We will speak to one British exporter about
:15:24. > :15:32.the impact on her business of last week's vote to leave the EU.
:15:33. > :15:35.From the front cover on our passports to the currency
:15:36. > :15:41.we take away with us, the decision to leave the EU
:15:42. > :15:43.will have a big impact on our holidays abroad.
:15:44. > :15:45.And with the summer holidays approaching,
:15:46. > :15:47.many of us will already have our trips planned.
:15:48. > :15:52.Bob Atkinson is a travel expert from Travel Supermarket and joins us
:15:53. > :16:03.Bob, good morning to you. Good morning. First of all, let's talk
:16:04. > :16:08.money. People who have not bought euros already, wham pact on them and
:16:09. > :16:11.people going outside Europe, a lot of those countries have their
:16:12. > :16:18.currency pegged to the dollar? The first thing I would say at the
:16:19. > :16:25.moment don't panic. There is a lot of volatility in the market. Whilst
:16:26. > :16:29.we saw dramatic falls on Friday and who knows what is going to happen?
:16:30. > :16:33.If you have got a holiday planned immediately then buy the currency
:16:34. > :16:39.because you need it. You're going to need to buy your euros and buy your
:16:40. > :16:41.dollars, there is nothing you can do about the exchange rate
:16:42. > :16:45.realistically, you need to go and get the dollars and euros. If you've
:16:46. > :16:49.got a holiday further down the line what I wouldn't be doing is trying
:16:50. > :16:54.to speculate on what could happen. And the value of the pound could
:16:55. > :16:58.value. It could rise, it could stay the same and so, you know, unless
:16:59. > :17:02.you've got a crystal ball and let's face t none of us have, I would just
:17:03. > :17:06.hold on to your money and wait until you need to buy it, but I would be
:17:07. > :17:10.planning ahead to look at how can I get my best value when I do need to
:17:11. > :17:13.change my money by avoiding your things like your bank charges and
:17:14. > :17:17.knowing where to get the best rates. I'd plan ahead for that. Bob,
:17:18. > :17:21.briefly, for us, let's talk passports. A lot has been made of
:17:22. > :17:27.whether the purple passport disappears? A word on that. If
:17:28. > :17:31.you're travelling, until we have negotiated exit, everything carries
:17:32. > :17:38.on as normal. Your passport will work as normal. You will be able to
:17:39. > :17:41.use the blue channels arriving through duty-free, your health card
:17:42. > :17:45.will work and the roaming charges on your phone that have been coming
:17:46. > :17:48.down, that will stay the same. Basically, nothing changes at the
:17:49. > :17:51.moment. The only thing that consumers really need to be
:17:52. > :17:57.concerned about is about the exchange rates and monitoring what
:17:58. > :18:00.those are and buying, you know, at a time that's suitable to them.
:18:01. > :18:04.Thanks, Bob. More online. Including news about
:18:05. > :18:07.HSBC possibly losing staff. Our top story, the UK's
:18:08. > :18:11.Finance Minister George Osborne has moved to reassure global markets
:18:12. > :18:16.saying the country is ready to face the future from
:18:17. > :18:19.a position of strength. A quick look at how European
:18:20. > :18:29.markets are faring. We are still losing ground, but
:18:30. > :18:34.nothing like the serious declines we saw on Friday. Some would argue
:18:35. > :18:39.actually that that news from the UK Finance Minister or Chancellor if
:18:40. > :18:45.you prefer, has brought some calm to markets in Europe this Monday
:18:46. > :18:50.morning. The FTSE 100 down. It closed not the worse off across
:18:51. > :18:55.Europe. Actually the FTSE 100 on Friday closing up on the week, above
:18:56. > :19:01.the 6,000 level because the psychologically important level is
:19:02. > :19:09.6,000. You will see the DAX tipping into positive territory. It has been
:19:10. > :19:14.volatile as you would expect. So we've assessed the economic impact.
:19:15. > :19:17.Pampeano is an Oxford-based firm that sells leather goods both
:19:18. > :19:21.It was founded in 2007 and nearly 30% of its sales are to countries
:19:22. > :19:24.Founder Jennifer Brown was hoping for a Remain vote.
:19:25. > :19:38.Welcome to Business Live. Give us your reaction to all this as someone
:19:39. > :19:43.who started a company, you're based in the UK and you're exporting? It
:19:44. > :19:48.was disappointing news for us, we were keen that we remained. It is
:19:49. > :19:53.negative news. We purchase everything in dollars so a weak
:19:54. > :19:58.pound hits us very hard. We're about 18% down on the long-term average of
:19:59. > :20:03.the pound to the dollar. There is also the very big concern, will this
:20:04. > :20:07.have an economic, a negative economic effect for us? And so, that
:20:08. > :20:16.is really not something we want clearly. Can I break this down into
:20:17. > :20:20.two real issues, one is short-term and that's the volume volatility
:20:21. > :20:24.we're seeing on the markets. Longer term, I'm interested in whether it
:20:25. > :20:29.changes your outlook of where you might want to expand and sell to and
:20:30. > :20:33.hire staff or expand your business. Have you started to consider that?
:20:34. > :20:38.Not long-term. We have looked in close detail at the next six months
:20:39. > :20:43.and made decisions on a protect our self basis for the next six months.
:20:44. > :20:48.Beyond Christmas, this point I'm not going to try and judge what we think
:20:49. > :20:52.will happen. We've reduced our investment, halt it had wherever we
:20:53. > :20:59.can, we have put a freezing hire on and we will try and reduce our
:21:00. > :21:04.inventory so we can get through a negative period if one happens.
:21:05. > :21:08.Where do you sell to? So the UK, but as you said a moment ago, nearly 30%
:21:09. > :21:13.to Europe and 8% to the rest of the world. So in terms of your exports
:21:14. > :21:16.to Europe, I guess, you like everybody else in your position,
:21:17. > :21:20.you're waiting to hear about what is negotiated and how it will work in
:21:21. > :21:25.the future? Certainly, yes. It is difficult to tell because as I said,
:21:26. > :21:29.you know, it, the trade deal is one problem, but that will take
:21:30. > :21:35.sometime. Let's longer term. In the shorter term, will people stop
:21:36. > :21:38.buying luxury leather goods? For the six months, will people stop
:21:39. > :21:42.spending on luxury purchases, that's what really is going to affect us
:21:43. > :21:45.and our business to Europe because if the consumers aren't buying, our
:21:46. > :21:49.retailers will not buy, of course, as well. Briefly, time is against
:21:50. > :21:53.us, but I'm just interested in your priority now, what is the one thing
:21:54. > :21:58.that you must deal with now? The short-term? To reduce our operating
:21:59. > :22:01.costs and to free up cash. Thank you for coming in. We appreciate your
:22:02. > :22:04.time. Good luck. Thank you very much. With the future and how it
:22:05. > :22:09.works out for your business. In a moment we'll take a look
:22:10. > :22:12.through the business pages, but first here's a quick reminder
:22:13. > :22:22.of how to get in touch with us. The Business Live page is where you
:22:23. > :22:25.can stay ahead with all the day's breaking business news. We will keep
:22:26. > :22:29.you up-to-date with all the latest details. With insight and analysis
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:22:49. > :23:00.Business Live on TV and online whenever you need to know.
:23:01. > :23:03.Some tweets from the programme. Markets not collapsing as was
:23:04. > :23:06.expected. The pound and the FTSE finding support. Good news for those
:23:07. > :23:10.in the City and we certainly heard from a few of them at the start of
:23:11. > :23:13.the programme. He says nowhere near the lows we expected on Brexit. Is
:23:14. > :23:17.this just the calm before the storm or are we looking at markets in the
:23:18. > :23:19.UK fighting back? His view, he says, I don't think we have seen the lows
:23:20. > :23:26.quite yet. Joining us again is Jane
:23:27. > :23:35.Foley, Senior Currency Where do you think sterling is
:23:36. > :23:40.headed? I don't think we have seen the lows yet. Yes, there has been
:23:41. > :23:46.lots of speculators, lots of hedge funds. These are people that may
:23:47. > :23:50.manage our pension funds, corporate customers, their business is not
:23:51. > :23:53.foreign exchange, those guy also have stepped away and they will have
:23:54. > :23:56.tomorrow to come back and given the political uncertainties and given
:23:57. > :24:00.that we know that political unsrnity is a negative for confidence, for
:24:01. > :24:03.investment, for concernsies, there is a significant chance that we
:24:04. > :24:06.haven't seen those lows yet. For people like you, you can't really
:24:07. > :24:10.afford to be away from your desks right now, but at the same time
:24:11. > :24:15.those of you that work in the City of London or kay Nairy wharf, you're
:24:16. > :24:20.worrying about your own futures? Indeed, many of us work for banks or
:24:21. > :24:23.branches of European banks that are here on passporting rules and there
:24:24. > :24:26.is a big question mark over what will happen now? Those passporting
:24:27. > :24:29.rules, they cannot sustain the way they are if Britain comes out of the
:24:30. > :24:34.EU, what are those arrangements going to be? There is a huge amount
:24:35. > :24:38.of uncertainty. A huge amount to be negotiated by the politicians in
:24:39. > :24:41.terms of our future and whilst the uncertainty is there, it hangs over
:24:42. > :24:45.our heads. Yeah, job insecurity, significantly higher than it was a
:24:46. > :24:49.couple of days ago. And certainly, as we've just heard with your small
:24:50. > :24:52.business customer, insecurity means job insecurity for a lack of
:24:53. > :24:57.investment means job insecurity for a lot of people. You talk about
:24:58. > :25:02.hedge funds. There is a story in the Times, hedge funds wiped out by vote
:25:03. > :25:06.to leave. We knew there would be volatility, it depends on your
:25:07. > :25:10.positioning before and what City was expectingment a lot of people
:25:11. > :25:14.betting it would be a Remain vote? The bookies odds were skewed because
:25:15. > :25:18.of the bigger votes in London. London did vote to Remain. Some
:25:19. > :25:22.speculators got it wrong. In Europe, there was a sense of disbelief that
:25:23. > :25:27.the UK could ever vote to move out, many investors got it wrong. Real
:25:28. > :25:30.money and corporates were not really involved in the latest volatility
:25:31. > :25:33.over those last few days. Those people will have taken their
:25:34. > :25:38.position and stayed out. This was a very much a speculative trade. Jane,
:25:39. > :25:43.it has been good to have you with us. Thank you for coming in and
:25:44. > :25:46.thank you for your company. Dig deep online, more analysis from our team
:25:47. > :25:48.at the BBC. More on that reshuffle of the Shadow Cabinet. More later.
:25:49. > :26:14.See you soon. Bye-bye. There is plenty of rain on the
:26:15. > :26:17.horizon. Cool and blustery at times, but today, not too bad. We are in
:26:18. > :26:18.between weather