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 17 (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: July 17 What will happen to the thousands of Britons living and working in Spain and elswehere in Europe as Brexit rewrites the rule books, and to those EU citizens living in Britain? We'll sort something out, said Brexit minister David Davis.
"I want to see a generous settlement for the people here already because they didn't pick this circumstance," Davis told Sky News. "We want to do that at the same time as we get a similarly generous settlement for British citizens living in the EU." But he declined to guarantee the rights of EU citizens. The many EU migrants living and working in Britain was a main point of issue for advocates of Britain leaving the bloc.
Meanwhile Scottish leader Nicola Sturgeon floated the idea of Scotland remaining in the EU whilst England and Wales exited.
Though the idea would appear to be legally and politically impossible, Sturgeon said: "When you are in unchartered territory you have effectively a blank sheet of paper in front of you then you have an opportunity to think things that may have been previously unthinkable." Sturgeon also has a second independence referendum for Scotland in her sights.
Australian Prime Minister Malcolm Turnbull told Britain's new Prime Minister Theresa May he would like to see the two countries strike a free trade deal as soon as possible. That, however, cannot happen until Britain leaves the EU.
International Trade Secretary Liam Fox, the Brexiteer now in charge of renegotiating Britain's commercial ties, told the Sunday Times he would soon travel to the United States to ensure that Britain was not at the back of the queue in trade talks, as President Barack Obama had suggested before the vote.
He said was "scoping" about a dozen free trade deals outside the EU to be ready for when Britain leaves.
Signs of Brexit stress: 1) Global funds tracker EPFR - says the value of UK funds' assets under management has dropped by more than $40 billion, or 8.2 percent, in the three weeks since the Brexit vote. Four-fifths of it was because of currency depreciation.
2) British construction output fell sharply in May during the run-up to the EU vote. The Office for National Statistics says construction output, which makes up 6 percent of the economy, fell 2.1 percent in May compared with April.
3) Slovakia's finance ministry reckons Brexit will cut Slovak economic growth by 0.1-0.2 percentage points this year and by up to 0.3 percentage points next year. Britain is Slovakia's seventh biggest trade partner, with cars making up almost half of its exports.
4) Berwin Leighton Paisner, 84-year-old City of London law firm, has frozen pay and bonuses until November because of Brexit uncertainty. It specialises in commercial real estate.
IMPORTANT DATES AHEAD: - 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 15 Prime Minister Theresa May is seeking to assuage Scots fears about being dragged out of EU by the English voters. She says she will not invoke Article 50 to start divorce until a "UK approach" had been agreed.
But she and Scottish First Minister Nicola Sturgeon are clearly not on same page. May says the Scots have had their vote on independence already and said 'no'; Sturgeon says it is inconceivable that a British PM could block as Scottish referendum if the Scottish parliament approves one.
July 14 Prime Minister Theresa May tells EU Commission President Jean-Claude Juncker Britain will not rush into Brexit negotiations, telling 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.
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.
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