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Bond yields fell to record lows on Friday after the announcement by Bank of England governor Mark Carney that he is preparing to unleash another round of monetary stimulus in the hope of containing the economic fallout of the UK’s decision to leave the EU. Over the past week investors rushed to safe havens, with outflows of more than $20bn from equity funds for the week ending on Wednesday.
Sterling fell in the wake of Mr Carney’s comments and is down 0.1 per cent on Friday at $1.3287, not far above the 30-year trough of $1.3118 hit at the start of the week.
As governments and markets digest Brexit fallout, European cities have begun a charm offensive to attract London-based international finance groups. Paris, Frankfurt, Dublin and Luxembourg are among the leading contenders.
Meanwhile, Britain’s political upheaval continues, with war erupting among leading Brexit campaigners after frontrunner Boris Johnson pulled out of the race to be the next UK prime minister. Mr Johnson and former ally Michael Gove had been a powerful duo at the head of the campaign to take Britain out of the EU. But the decision by Mr Gove to launch a rival bid for the leadership of the Conservative party undermined Mr Johnson’s ticket. There are now five candidates for the premiership, in a contest that could widen the divide with Brussels over the terms of the UK’s divorce from the union.
In the news
Tesla self-driving car death A car that was driving itself has been involved in a fatal crash for the first time, after a person at the wheel of one of Tesla Motors’ electric cars that was operating under its own control was killed in the US. (FT)
Nigeria-China deal Nigeria has signed provisional energy infrastructure agreements with Beijing worth $80bn, in a sign of China’s willingness to bolster Africa’s largest economy as it confronts its worst economic crisis in decades. (FT)
Hewlett-Packard settlement victory Oracle has been ordered to pay more than $3bn in damages over its decision some years ago to stop making software for HPE’s high-performance servers built on Intel’s Itanium chip. (Business Insider)
Sony reset? Chief executive Kazuo Hirai says the Japanese electronics and entertainment group is “still halfway” to making a full comeback. (NAR)
Australia’s record growth The country has notched up a quarter of a century without a recession, a record that has pushed living standards to among the highest in the world. (FT)
It’s a big day for
Puerto Rico The US territory is expected to meet a Friday payment deadline for $2bn worth of debt after emergency legislation for a restructuring was passed by the Senate this week. (FT)
Food for thought
Meet art prodigy Autumn de Forest The 14-year-old has sold $7m of paintings after her father discovered her talent when she was five. Now they’re keen to develop the brand. (FT)
War, on drugs Mushrooms, cannabis and “panzer chokolade” — throughout history, those going into battle have used drugs to get in the mood. (Aeon)
Sleeping rough in San Francisco The city at the centre of a decade-long tech bomb has the highest rate of unsheltered homeless people in the US. (Mother Jones)
Sidewalk gridlock Foot traffic has slowed to a shuffle along many of the pavements that have cemented New York’s reputation as a world-class walking city, as more people than ever live and work in the city and tourism surges. (NYT)
Brexit Down Under Many Australians are concerned about the impact of the Brexit vote and its implications as they prepare to go to the polls this weekend. (BBC)
Video of the day
Businesses are riding a tide of uncertainty after Britain’s vote to leave the EU. The FT’s comment editor Frederick Studemann, business editor Sarah Gordon and private equity investor Edmund Truell discuss the challenges and opportunities that Brexit presents to businesses and the City of London. (FT)