BREXIT WATCH-Latest developments in aftermath of Brexit vote
Reuters
* Graphic on Brexit impact http://graphics.thomsonreuters.com/testfiles/BREXIT-ECON/index.html LONDON, July 14 (Reuters) - Britain's June 23 referendum decision to leave the European Union has had far-reaching consequences for the world's economy, businesses, investors and politics. Following are the main developments: THURSDAY Prime Minister Theresa May tells EU Commission President Jean-Claude Juncker Britain will not rush into Brexit negotiations, tellling him by phone that London "would need some time to prepare" for talks she hoped would be "constructive and positive".
President Barack Obama calls May and reiterates the U.S. position is "not just protecting but deepening the special relationship" with Britain. She tells him Britain will remain a key partner on issues such as counter-terrorism and security.
May continues to surprise with her cabinet appointments. Greg Clark is appointed to an expanded business portfolio - Ministry for Business, Energy and Industrial Strategy.
Other shifts: Chris Grayling, May's campaign chief who had been pegged for a major post, gets Transport. Jeremy Hunt stays on at Health, despite early expectations he would not. Former May challenger Andrea Leadsom gets Environment, Fisheries and Rural Affairs where she will explain to farmers where their EU money has gone.
Secretary of State John Kerry congratulates his new counterpart, Boris Johnson, but asks for a "sensible and measured" approach to Brexit.
French Foreign Minister Jean-Marc Ayrault eschews diplomatic niceties, telling a radio station that during the referendum campaign, the pro-Brexit Johnson "lied a lot to the British people and now it is he who has his back against the wall." Johnson tells reporters Ayrault sent him a "charming letter ... saying how much he looked forward to working together and to deepening Anglo-French cooperation." He says Kerry told him during a phone call that the United States wants "more Britain abroad, a greater global profile".
"There's a massive difference between leaving the EU and our relations with Europe, which if anything I think are going to be intensified," Johnson says.
U.S. Treasury Secretary Jack Lew, calls again for flexibility from both EU and UK.
Bank of England shocks markets by keeping interest rates on hold. Sterling jumps to $1.348. BoE said it will probably cut in August.
Signs emerging of Brexit stress: 1) Thomson Reuters/IPSOS index shows British consumer confidence slumped to its lowest level since 2014 following the vote 49.4 in July vs June's 51.2.
2) London-based online money transfer business Azimo tells Reuters it is considering switching its headquarters to mainland Europe because of Brexit.
Women at the top table. As well as Amber Rudd as Home secretary and Theresa May herself, new top cabinet members include Justine Greening (Education) and Elizabeth Truss (Justice.) German Finance Minister Wolfgang Schaeuble is making soothing comments towards Britain. He says he will speak on the telephone with new Chancellor of the Exchequor Philip Hammond and he reckons Hammond's desire that London's financial institutions have access to EU market is "reasonable".
Philip Hammond makes his first comments. Suggests that he may be less aggressive on the UK budget deficit. Also says Britain will come out of the EU single market but work on new trading deal as partner.
IMPORTANT DATES AHEAD: - July 14: First Bank of England policy meeting after vote - July 21: European Central Bank policy meeting - Aug. 4: Bank of England policy meeting, economic forecasts - Sept. 16: Informal EU summit in Bratislava - Sept. 25-28: UK Labour Party conference - October TBA: Italian constitutional reform referendum - Oct. 2: Re-run of Austrian presidential election - Oct. 2-5: UK Conservative Party conference - Oct. 13-15: Scottish National Party conference - Oct. 20-21: Formal EU summit in Brussels PREVIOUS - July 13 Theresa May is appointed Prime Minister and immediately begins making appointments to key ministries. Former London Mayor and Brexit campaign leader Boris Johnson is appointed foreign minister while fellow "Leave" activist David Davis is made head of a specially-created department for negotiating an exit from the European Union. "Remain" campaigners Philip Hammond and Amber Rudd are appointed finance and interior minister respectively.
In first remarks made outside her new Downing Street residence, May says Britain will forge a bold international role outside the European Union. She says she will fight inequalities between rich and poor.
A lot of attention will be on the balance of "Remain" and "Leave" ministers as the cabinet list emerges, May wants more women in her cabinet in senior positions, which may threaten the chances of some of Cameron's old guard. Former finance minister George Osborne, for instance, did not appear to have received any senior position.
Earlier in the day, before submitting his resignation to the Queen, outgoing prime minister Cameron had taken final questions in parliament. Lots of joking and smiles, but some serious discussion. He says he wants EU citizens in Britain to be able to stay and that the only reason he can see why they couldn't would be if EU does not guarantee rights for Britons there.
About-faces and sudden changes are de rigeur in Britain these days. The latest is in expectations for action by the Bank of England at its monetary policy meeting on Thursday. A Reuters poll on July 5 found only 19 out of 52 economists expected a change; the same poll today found 39 of 60 seeing 25 basis point cut to 0/25 percent tomorrow. More stimulus seen later.
U.S. Treasury Secretary Jack Lew has again called on Britain and the EU to show flexibility in their Brexit negotiations. Washington did not want Britain to leave and now wants to be sure that its allies don't get into a debilitating struggle.
Twitter flurry breaks out as John McDonnell, shadow finance minister for Britain's opposition Labour Party, filmed using F-word to describe "useless" people challenging his boss, Jeremy Corbyn.
Bankers at a meeting in London say Philip Hammond, seen in line to be next British finance minister, told everyone he would fight for continued access in EU's single market for Britain's dominant financial services industry. A key issue, tied to freedom of movement and of quite some interest to rivals like Paris and Frankfurt.
Opposition leader Jeremy Corbyn has learnt he faces more than one challenger for his job as head of the Labour Party with an announcement from MP Owen Smith. Smith, Corbyn's former work and pensions policy chief, will vie with Angela Eagle, a former minister under then-prime minister Gordon Brown.
Labour's ruling council said on Tuesday that Corbyn must be allowed on the ballot to face his challengers. The vote will be taken by grassroots members, many of whom are believed to favour Corbyn, who has lost support among fellow Labour members of Parliament. The fear among some is that this will split the Labour Party.
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