A new PM may move into Downing Street today but the fallout from the Brexit vote is apparently amplifying on a daily basis.
A new survey from Credit Suisse makes for grim reading for any business leader. It says corporate sentiment in the UK has “deteriorated out of all recognition” after the leave vote.
Hiring plans have fallen sharply, with nearly half of those surveyed saying they would postpone decisions in the UK and almost 25% saying they will cut jobs, it emerged.
Bank of England's response may be more than market expects
And as the Bank of England's monetary policy committee meets tomorrow, Credit Suisse predicts that its response to the current state of play may be to provide more stimulus than the market expects.
It expects 45 basis point cut to interest rates and £75bn of quantitative easing.
Beneficiaries of Brexit..
But there could be some who benefit from Brexit and City broker Peel Hunt runs through companies in covers, which it believes will do so, particularly exporters and overseas earners, which are benefitting from the weak pound.
In the consumer world, it notes Hilton Foods (LON:HFG) and Devro (LON:DVO) are key overseas earners, with Devro benefiting from both transactions and translation.
Dairy Crest (LON:DCG) now sells whey in Euros and will also benefit from higher milk prices. Games Workshop (LON:GAW) is a UK manufacturer with the majority of sales overseas, it says.
In Media, Next 15 and Cello Group (LON:CLL) will benefit from weaker sterling. ITV’s (LON:ITV) attraction to an overseas acquirer should have increased, says the broker.
In the housing and building sector, plumbers' merchant Wolseley plc (LON:WOS and engineer Keller Group PLC (LON:KLR) are predominately overseas earners.
Big housebuilder shares subsiding
Speaking of housing, the big home builders are down in the dumps today, with four names in top five Footsie laggards, after Barrett Developments plc (LON:BDEV) struck a cautious tone in its results to June statement.
It said the outlook for the industry was less clear and it had reduced its risk by actions such as reassessing land approvals while it monitors the market. Barratt shares lost over 4% to 396.2p.
Berkeley Group Holdings PLC (LON:BKG) lost 3.23% to 2,605p, while Taylor Wimpey (LON:TW.) shed 2.2% to 142.10p.
Property fund suspension lifted
In a sign of a softening of the Brexit mood, however, fund manager giant Aberdeen Asset Management (LON: ADN) today lifted the suspension of its £3.2bn UK property fund.
It means traders can once more access their cash, if wanted, and the fund will resume trading.
Over £18bn of UK commercial property funds aimed at retail investors was frozen last week following a wave of redemption requests.
Chief executive Martin Gilbert in a statement. "The market may take time to find its level but I have no doubt that property will continue to play an important part in investors' portfolios."