The British pound fell around 1 percent against the euro and the dollar in Monday morning trading following prime minister Theresa May's announcement that she would launch the EU exit procedure in March 2017 at the latest, and suggested the UK could completely leave the single market.
The pound has been waning on the currency markets, now dropping to a three-year low against the euro amid concerns that Mrs May will opt for a "hard Brexit" and leave the single market.
The announcement that Britain would begin the formal process of leaving the EU by triggering Article 50 in March 2017 also caused sterling to hit a three-month low against the US dollar.
Across Europe, Germany's Dax was up 1% and the Cac 40 in France rose 0.3%.
In UK stocks, oil majors were in the ascendency after the price of oil broke above the 50 US dollars a barrel mark after the Opec cartel said it had reached a deal last week to stabilise the market by slashing output.
Royal Dutch Shell B rose nearly 3% or 57.5p to 2054.5p after B rent crude climbed 1.1% to 50.73 US dollars a barrel. Rival BP was also 7.6p ahead at 457.7p.
There’s no secret about why either. Britain’s referendum decision to leave the European Union throws a large pall of uncertainty over the British economy. A British exit from the EU would throw scores of trade deals into doubt and could potentially disrupt the economy for some time to come.
Large car manufacturers like Nissan and Jaguar land rover have bough expressed concerned at the UK leaving the single market .
Nissan Chief Executive Carlos Ghosn said last week that he could scrap new investment in Britain's largest car plant unless the country pledged to pay such compensation.
The trade association for UK carmakers has backed a warning from the boss of Nissan that Brexit threatens Britain’s vehicle manufacturing industry.
The Society of Motor Manufacturers and Traders echoed his warning and said Theresa May’s government should step in to preserve the mainly foreign-owned industry. SMMT estimates about 814,000 people rely on the sector for employment.
Jaguar Land Rover boss Ralf Speth says some European customers are telling showroom staff they no longer want British cars.Speaking at the Paris Motor Show, Speth said JLR’s European sales team have reported customers turning their noses up at British cars after the vote to leave the EU. “They have the very first customers in their showrooms [who] clearly highlight that they don’t want to buy British products any more,” he said.Dr Ralf Speth, chief executive of JLR, also joined senior figures at rival firms in warning that a hard Brexit would damage the car industry, which supports around 800,000 jobs.
Only last month The Japanese government released a worrying report on why it would be mistake for the UK, to leave the European Union.
Royal Institution of Chartered Surveyors
Construction companies said UK infrastructure and housebuilding projects will be at risk if skilled builders from the EU are not allowed to remain in the country after Brexit.
Brexit is having an effect on international FinTech firms in the U.K. Singapore firm WB21 Pte is taking its operations from its head office in London to Berlin and is citing Britain’s decision to leave the EU as the clincher in its decision to relocate, according to The Wall Street Journal.
Companies operating in the U.K. are permitted to relocate to Europe to continue to have access to the EU single market, and cities such as Dublin, Frankfurt and Paris are courting firms. KPMG estimated that 75 percent of U.K. firms will move operations from the U.K. to Europe.
From the outset, Berlin focused on startups in London, and the economics ministry set up an office to contact and lobby companies in London immediately after the Brexit vote.
Six other companies will relocate to Berlin, including BrickVest Ltd, web design company MBJ London Ltd. and Swissbank Ltd. Talks are ongoing with another 40 companies about possible relocation. So far, however, many firms are delaying a decision and awaiting the outcome of negotiations between the U.K. and the EU. Those negotiations have not yet started, but subjects to be addressed are trade, taxation, labor laws and infrastructure.
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