Global business news twenty four hours a day at Bloomberg dot Com, the Radio plus Global Act and on your radio. This is a Bloomberg Business Flash from Bloomberg World Headquarters. I'm Katherine Cowdery. Energy and financial shares are dragging the stock market lower as investors shy away from riskier assets. Banks are retreating for a second session, with JP, Morgan Chase and Goldman Sacks down at least two point eight percent.
Comments from Bank of England Governor Mark Karney are rekindling concerns that Britain's exit from the European Union will further way on tepid global growth. Karney warned a day of prospects for a material slowing of the economy on the developing risks from Britain's EU decision. We talked to markets every fifteen minutes throughout the trading day. Down. Industrial averages down one d twenty five point seven tenths over percent
at seventeen thousand, eight hundred twenty three. SMP five founded down seventeen points eight tenths of a percent to two thousand and eighty six. The NAZZAC is down fifty points. That's a loss of one percent. Is trading a West Texas innermediate crude oil down two dollars five cents of
barrel four point six percent at seventy four. It's about gold of eighteen dollars forty cents an ounce at thirty and the tenure treasuring at seconds with the yield of one point three seven And that's a Bloomberg business flash. You're listening to Taking Stock with Kathleen and Pin Box on Bloomberg Radio. From June the twenty three, when the electorate in the United Kingdom voted to exit the European Union, the pound sterling has lost more than twelve percent against
the US dollar. Here to tell us more about this ongoing story is David Buick. He is a market commentator for Penmir Gordon and Company and he joins us now from London. David, thank you very much for being with us. Pin Catherine, greetings to both of you. Tell us who is Teresa May and what is her vision for the future of the United Kingdom and for the Tour Party. Theresa May has just been through the first ballots to become the leader of the Conservative Party in the next
Prime Minister. She pulled over a hundred and sixty votes which is pretty much half. Her nearest rival was Andrea Ledson with sixty three, and in third place was Michael Gove, who was the old Justice Secretary with and a young fellow called Stephen Grabb come in with thirty two and Liam Fox has been eliminated with eighteen. Theresa May has
been Home Secretary for six years. She was basically very quiet at the entering the campaign, but she was a Ramoan rather than somebody wants that with We believe some kind of reservation and we have been entirely reliant in the course of the last nearly two weeks on the calming influence of our Governor of the Bank of England, Mark Karney, because the UK government has basically been moribundt.
We've had a couple of speeches from George Osborne the Chance for the Exchequer, one fairly reassuring and one quite sensible, suggesting that rather than have an austerity budget, which he was suggesting with all kinds of horrific ideas, he's come back saying you'd like to cut corporation tax down from the current level of down to fifteen or even four, with a view pin of being able to compete with all the other nations in the world for attracting overseas business.
The only country that comes close to that, of course, is the Republic of Ireland, which has a twelve and a half percent corporation tax rate. But that is a fairly small country with only about three and a half million people, so it's not exactly a huge competition for London. So David uh the immediate order of business is that as we watch UK politicians vying for that top job and get ready for the Parliament to vote and put
that person in place. Certainly, if you're Mark Carney, the immediate impact is the very weak pound and the fact that it could hit capital flows at the time when you need to fund your current account deficit, which is something like seven percent of GDP today. He mentioned that when he spoke and announced steps to help the banks len More. He also mentioned already seeing an impact on the commercial real estate market. What are the markets watching
more closely, basically what they're short of. I mean all those comments that you made, Mark Connie did make, of course he did. But what we are at the moment, unfortunately is rudderless without leadership, and markets and the community cope very well with good and bad news what they can't cope with his uncertainty, and we have had some
pretty fisce. How could I describe it best campaign fear which has turned into campaign reality, which is like serving it up like John the Baptist head of our charger. In other words, if you want to be Solomon Tomorrow or profit of doom and end up in the vortex that would despair. That's how you said about it. And in my opinion some of the rhetory from the establishment has been hysterical. And of course if you want something
to happen badly, it will do. And of course when it sees a government with which is rudderless for the period of really basically two weeks. In fact is probably longer than that because during the campaign there wasn't much sign of any intuition or any innovation at all. And of course we've seen, as Mark Carney imported pointed out today, commercial real estates turnover dropped by because investors are reluctant to invest in any country unless it shows drive zest
urvan some innovation. We've also seen the domestic housing market, which is such an important part of our economy, virtually come to a grinding halt. And today, of course, we had the p M service sector which fell below fifty, which is the red light warning that things aren't good coming down coming in about forty six. So Mark Karney's much too smooth and operator, and also much too clever
in his statesmanlike in his looks. But he would have smiled like a cheshire cat because he more or less tried to forecast this some time ago in stating very clearly that he felt it was the wrong move for the United Kingdom to come out of the European Union. So what is going to happen is that we've seen what's happened with the stock markets, which is quite clear because the FOOTE one hundred, which is based about seventy percent of the earnings are on dollar earnings and the
rest of it up another ten percent on euros. So if the pound goes down, whoopee, we do very well. But what is interesting is the foot two, which is two companies half the sort of size of the SMP five hundred. But that is much more a barometer of life in the United Kingdom. And since that faithful day, the twenty two of June, the foot see two fifty
has dropped by about eleven. That is very, very significant, and I think the foe would have dropped but for the value of the pound, which has obviously been in the favor of those people who've got equities in drug companies, tobacco companies, some banks, and various other issues. But what we need above everything else in this country is a
restoration of confidence. And it is pretty horrific thought as far as I'm concerned that it's going to be the ninth of September before we know when we have our next prime minister. David Buke eloquently put we thank you so very much for joining us from London today. He's market commentator at Panner, Gordon and Co. Talking to us about uncertainty, talking us about what the difficulty of not having a prime minister at a time when so much needs to be done. This is taking stock. I'm Caffeine
Hayes with pim Fox. This is Bloomberg coming up on taking stock. We're going to take stock of currencies. The Japanese yen gains more than one percent one oh one fifty three and also a look at the pounds, sterling and the euro against the dollar. It