A month on from Brexit and the effects on the economy are beginning to show, says the Guardian in a study of the present state of the nation’s finances. It’s mostly bad news: the pound is at its lowest since 1985, down 12 pc against the dollar and 9 pc against the euro – meaning holidays are more expensive than ever. The weak sterling also means that imported goods will be more expensive; last week Unilver was the first company to admit that the cost will be passed onto consumers. The FTSE 100 is up higher than pre-referendum levels, possibly because of a number of sales of UK-listed companies. The sale of chip designer ARM to a Japanese company last week is a case in point. On the plus side, unemployment is at its lowest level for more than a decade. In the three months up to the end of May, 31.7 million people were in work.
Sir Philip Green is back in the news this morning. The Times reports that the finger of blame for new strictures which will make the UK less appealing competitively can be pointed squarely at the former BHS bigwig. ‘When one individual seems greedy and irresponsible, that washes across the whole of business and damages the voice of business,’ said Sir Roger Carr, a former director of the Bank of England. MPs today published a report into the failure of BHS, blaming the collapse of the former high street chain on Green, whose knighthood is being reviewed.
The Daily Mail quibbles with the cabinet reshuffle, profiling the new Pensions minister Richard Harrington as ‘Mr Nobody’. Lamenting the passing of Baroness Altmann – who supported one of Money Mail’s campaigns – the paper accused Harrington of being ‘not even the most famous Richard Harrington.’ Damning indictment indeed.
Ryanair is to stop its expansion programme in the UK and focus on European airports over the next two years, according to the Telegraph. Michael O’Leary has said that routes from London Stansted are to be significantly reduced thanks to post-Brexit profit fears and the threat of terrorism.
Some good news from the Independent: Sainsbury's is due to create 900 new jobs in London by 2020 as part of a new super-quick delivery service. Online sales grew by nearly 9 pc last year; the new service will offer click-and-collect by 4pm or delivery after 6pm for those who order before noon. Sadiq Khan, the Mayor of London, said ‘the investment is further evidence that London is open and the best city in the world in which to do business.’
Living near a supermarket can boost the value of your home by up to nearly £40,000 according to the Sun. ‘The Waitrose effect’ shows that houses near to a branch of the luxury grocer are worth £38,666 more than those in the surrounding area. The corresponding jump in worth for Tesco is £22,000 while for Aldi it’s £1,300. Mike Songer, mortgage director of Lloyds, said ‘there is definitely a correlation between the price of your home and whether it’s close to a major supermarket or not.’