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Business chief disagrees with May on EU movement

The Confederation of British Industry's director John Cridland has disagreed with Home Secretary Theresa May who has called for the reinstatement of the original free movement principles within the EU, saying people should only be allowed to move freely within the EU if they have a job waiting for them.

Theresa May has spoken out about a return to Credit: Stefan Rousseau/PA Wire/Press Association Images

The evidence shows that the vast majority of people coming from the EU to the UK come to work and benefit our economy. Our hospitals and care homes couldn't function without overseas workers... But the system must be about freedom to work, not for the minority who do not contribute, so the Government should continue to work with our European partners to make sure the rules are fit for purpose for everyone. We'd be concerned if EU workers had to be hired for a job before coming to the UK though, as this would cause issues for firms without the capacity to advertise and recruit across the whole of Europe.

– John Cridland, CBI Director General


FTSE 100 falls in opening minutes of trading

London's stock market quickly fell more than 100 points on Wednesday as traders continued to be nervous over China's economic instability.

Credit: PA Wire

Opening unchanged at 6081.34, the FTSE 100 dropped 128.22 to 5953 in the first 15 minutes of trading.

London's traders had added £47 billion back on to the value of the UK's top 100 listed companies on Tuesday after £74 billion was wiped off the index in the previous session with the FTSE 100 closing 3.09% up.

Shanghai's Stock Exchange main index closed down 1.3%, falling for the fifth day in a row.

Unstable China stock market opens with see-saw rates

Instability in the Chinese stock market continued this morning after Shanghai shares opened 0.53 per cent higher - but see-sawed its way through the following minutes.

Fears grow over the Chinese economy Credit: Reuters

Having opened slightly higher than yesterday, the benchmark Shanghai Composite Index then dropped 2.31 per cent, before rising again to 0.71 per cent, or 21.84 points - all within half an hour.

The Shenzhen Composite Index, meanwhile, was down 0.12 per cent on opening.

China cut interest rates yesterday in a bid to ease growing concerns over the state of its economy, following two days of steep drops in the market.

American stock markets suffer losses after initial revival

The Dow Jones closed down as hopes of a Wall Street revival evaporated on Tuesday with an initial rally turning into losses.

The Dow closed 205.71 points, or 1.3%, down having initially surged by more than 440 points.

The S&P 500 and the Nasdaq Composite also ended down at the closing bell as concerns about China's economy continued.


FTSE 100 closes 3.09% up after huge losses on Monday

The FTSE 100 closed 3.09% up, or 182.47 points, at 6,081.34 after yesterday's losses.

It added about £47 billion back on to the value of the UK's top 100 listed companies after £74 billion was wiped off the index in the previous session.

On Monday the FTSE 100 equalled its worst one-day fall since the global financial crisis as it plunged by 4.7% as fears over China's growth slowdown spread across the globe.

China cuts interest rates following global slump

A city worker looks at a stock ticker screen at the London Stock Exchange in the City of London. Credit: PA

China has cut interest rates for the fifth time since November in a latest effort to boost its slowing economy.

The move reassured global markets which have been rocked in recent weeks by the slowdown in the world's second biggest economy and the depreciation of the yuan - as well as plunging commodity prices.

China's central bank cut rates by 0.25 percentage points and the amount of money available for lending by reducing the minimum reserves banks are required to hold.

China crisis will push interest rate rise 'further back'

The point at which UK interest rates begin to rise will be "put even further back" as countries around the world respond to China's slowing economy, the former chairman of the Financial Services Authority has said.

Crossbench peer Lord Turner of Ecchinswell predicted the Chinese slowdown would "push back" the point where the Bank of England puts up interest rates.

Speaking on BBC Radio 4's Today Programme, he said:

I think what will happen as the inevitable consequence of the China slowdown, and the most important bit here is the very big slowdown of the economy rather than the fall in the equity prices, I think in response to that we will see that the point at which interest rates rise will be put even further back.

– Lord Turner of Ecchinswell
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