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Farage: 'Mild' recession ahead 'nothing to do with Brexit'

Britain is headed for a "mild" recession, Nigel Farage has said - but denied it had anything to do with the UK's vote to leave the EU.

Nigel Farage campaigned for some 25 years for Brexit Credit: PA

The pound plummeted to its lowest level in 35 years in the immediate aftermath of the referendum result, while stock exchanges around the world suffered a slump in prices as traders panicked in the face of economic uncertainty.

But the Ukip leader, who campaigned for some 25 years for Britain to withdraw from the bloc, told the Sunday Telegraph he believed that would have happened anyway.

"There's nothing new here," he said.

"I think we are going into a mild recession anyway, completely regardless of Brexit. Our growth forecasts are down. Our public-sector borrowing is still not under control at all and everyone forgets that sterling is in a bear market, declining since July 2014."

"Increased global opportunities" await outside the single market, he added, with "no reason" why Britain would not be reaping the benefits within two years.


Brexit 'might cost City its EU passport', bank boss warns

The City of London financial centre is at risk of losing its vital 'EU passport' after Britain voted to leave the EU, a European Central Bank boss has warned.

Francois Villeroy de Galhau, ECB council member Credit: Reuters

The 'passport' is relied upon by many London-based banks as it allows them to operate across the bloc without restrictions.

Speaking to France Inter radio, ECB Governing Council member Francois Villeroy de Galhau said if Britain chooses to leave the EU's single trade market then the City will not be able to keep that privilege.

"There is a precedent, it is the Norwegian model of European Economic Area, that would allow Britain to keep access to the single market but by committing to implement all EU rules," he added.

"It would be a bit paradoxical to leave the EU and apply all EU rules but that is one solution if Britain wants to keep access to the single market."

Brexit talks should be conducted as soon as possible to avoid uncertainties, he said.

The AA: Petrol prices could rise within days

Experts have warned petrol prices could rise soon. Credit: Reuters

Petrol and diesel prices could rise within days due to the plunge in the value of the pound, according to experts.

Brian Madderson, chairman of the Petrol Retailers Association, said a rise of 2.5p per litre would be expected if the US dollar continues to trade at around 1.35 to the pound.

"I would think certainly by early to middle of next week we'll see prices moving upwards", he added.

In a statement issued on Friday, the AA also predicted an increase in prices: "Assuming that current market conditions persist over the next 10-14 days, the price of petrol at some fuel stations might be expected to rise by 2.25p a litre or £1.25 a tank."


FTSE 100 Index closes 2.7% down after 7% dip

Credit: PA

The FTSE 100 Index has closed 2.7% down, equating to more than £45 billion being wiped off the value of the UK's biggest companies, after Britain voted to leave the European Union.

The FTSE recovered from a 7% plunge following David Cameron's announcement that he would quit as Prime Minister by October following the Brexit vote.

G7 confident UK will be 'resilient' to impact of Brexit

The flags of the G7 nations. Credit: PA

The UK economy is "resilient" to the impact of the EU referendum vote, G7 finance ministers and central bank governors have said.

They said steps had been taken to "ensure adequate liquidity and to support the functioning of markets" and that they were ready to use "established liquidity instruments to that end".

"We affirm our assessment that the UK economy and financial sector remain resilient and are confident that the UK authorities are well-positioned to address the consequences of the referendum outcome," they said in a statement.

"We recognise that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability.

"We remain united and continue to maintain our solidarity as G7."

Morgan Stanley denies plan to move 2,000 jobs

Morgan Stanley says it is not moving 2,000 jobs out of the UK. Credit: Reuters

Financial services firm Morgan Stanley has denied rumours it is planning to move 2,000 investment banking jobs to Frankfurt and Dublin after the EU referendum vote.

Sources earlier told the BBC that the process was already underway.

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