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Tuesday HeadlinesBack

David Cameron to chair final cabinet as UK prime minister cameron and may image
Chancellor George Osborne has vowed to create a “more outward-looking, global-facing Britain” following the UK vote to leave the David Cameron will chair his final cabinet meeting as prime minister as Theresa May prepares to take over.
Mrs. May had been expecting a nine-week Conservative leadership race, but rival Andrea Leadsom withdrew on Monday.
Mr. Cameron will tender his resignation to the Queen on Wednesday, leaving Mrs. May, home secretary since 2010, to appoint her own ministerial team. Mrs. May said she was “honoured and humbled” to be taking over and pledged to make a success of the UK’s EU exit.


The Financial Times

China car sales buck fears of slowdown
Car sales in China have bucked fears of a slowdown during the first six months of this year, partly due to rising demand for sport utility vehicles. Passenger vehicle unit sales reached 1.78m in June, up 17.7 per cent compared with the same month last year, and only 0.5 per cent lower than in May, according to the China Association of Automobile Manufacturers. A summer lull in car purchases last year meant that unit sales fell during this period, fueling concerns that the Chinese vehicle market, the largest globally, was following the country’s economy into a slowdown.


The Guardian

Motorists consultation launched to prepare the UK for driverless cars driverless car
A planned shake-up of motor insurance rules and changes to the highway code have been unveiled by the government in preparation for the arrival of driverless cars on UK roads. While fully autonomous cars are not expected to be in use in the UK for perhaps another decade, ministers said they wanted to act now to ensure that Britain “leads the way” in developing driverless technology. But this automotive revolution is throwing up a number of challenges. For example, if a partly automated vehicle crashes into another car, who is to blame – the “driver” or the manufacturer? Meanwhile, the highway code – the driver’s bible first published in 1931 – will probably have to be updated because, when remote control parking becomes commonplace, drivers will be routinely breaching rule 160 which states that when the car is moving, “you should drive with both hands on the wheel where possible”. A number of companies are working on driverless cars, including Google and a long list of car makers such as Rolls-Royce, Nissan, Toyota and Audi.


IMF warns Italy of two-decade-long recession
The fragile state of Italian banks in the fraught post-Brexit financial climate has been highlighted by the International Monetary Fund, in a stark warning that the Eurozone’s third biggest economy will have suffered for almost two decades before it starts to recover the ground lost since the 2008 financial crash. Italian banks suffered fresh heavy losses on Monday as the European Union insisted that Matteo Renzi’s centre-left government abide by state-aid rules that limit Rome’s scope to provide help to banks burdened by the non-performing loans (NPLs) caused by economic stagnation.


The Daily Telegraph

Why is the Bank of England expected to cut interest rates, and what does it mean for you? bank of england image
The Bank of England is expected to slash interest rates this week, in the wake of the Brexit vote. The widely-expected move could help to stave off a recession, while knocking the value of the pound. The decision could also have implications for your ability to get a mortgage, as well as your savings and pension. Last month’s referendum result has clouded the outlook for the British economy. That uncertainty – which is centred on the UK’s trading relationships – is thought to be putting off investment, as firms and households are not sure exactly how the economy could be affected. This uncertainty is likely to weigh on economic activity, and it is feared that Britain could fall back into a recession. We won’t know if that is the case for many months, if not years, but policymakers would prefer to act in advance of a downturn, rather than after one has begun. One way in which the MPC could intervene is by slashing interest rates.


The Daily Express

Brexit spending extravaganza! Consumers have been splashing the cash after the Referendum
Consumers have been on a bumper spending extravaganza in the wake of the Referendum decision to leave the European Union, according to new figures. Barclaycard data showed that shoppers spent more in the week after the EU referendum – though there were also signs of they were becoming cautious. Between June 24 and June 30, there was a 2.14 percent increase in consumer spending compared with the previous week, suggesting that many shoppers avoided a knee-jerk reaction to the Brexit vote, the report said. The figures fly in the face of Remain doom-mongers who said a Leave vote would see consumers withdraw from the market place.


Posted by Paul Carpenter on 12/07/2016