Forward or Downwards?

Legal steps seek to ensure Commons vote on Article 50.

A law firm is taking action to ensure the formal process for the UK leaving the EU is not started without an act of Parliament. Mishcon de Reya, lawyers acting for a group of business people and academics, said it would be unlawful for a prime minister to trigger Article 50 without a full debate and vote in Parliament. It comes after the UK voted to leave the EU in the 23 June referendum. The government said Parliament had "a role" to find "the best way forward". Following the referendum, David Cameron announced he would stand down as prime minister by October and would leave his replacement to trigger Article 50 of the Lisbon Treaty. Once the legal process is triggered there is a two-year time limit to negotiate an exit deal from the EU.

Rights of EU citizens living in UK sparks row.

MPs have criticised the government for not guaranteeing the rights of EU citizens to remain in the UK after the country leaves the European Union. Ministers say it would be "unwise" to fully "guarantee" EU citizens' rights without a deal for Britons abroad. Foreign Secretary Philip Hammond told the BBC a deal that "works both ways" had to be negotiated in Brexit talks. But MPs from all parties have attacked the government's stance, saying people "are not bargaining chips". It comes after Home Secretary Theresa May - who is a candidate in the Conservative Party leadership contest - said on Sunday she wanted to "guarantee the position" for EU citizens living in the UK and British citizens living in EU countries - but that it would be a factor in Brexit negotiations.

Standard Life suspends trading in UK property fund.

Standard Life Investments has suspended trading in its UK property fund blaming "exceptional market circumstances" following the EU referendum result. The fund manager said the number of investors asking to withdraw their money had increased following the vote. "The suspension was requested to protect the interests of all investors in the fund," it said in a statement. The last time Standard Life stopped investors taking their money out of the fund was during the financial crisis. The £2.9bn fund invests in a mixture of commercial real estate in the UK, including office blocks and industrial space. The move comes after Standard Life Investments, the insurer's fund management arm, wrote down the value of the fund by 5% last week, saying the Brexit vote had "negatively impacted" valuations for UK commercial property. It said the suspension would end "as soon as practicable" and it would review the decision every 28 days.

RBS boss Ross McEwan says Brexit vote 'could delay sale'.

The head of RBS has warned that the sale of the UK government's stake in the bank could be delayed for at least two more years by the Brexit vote. Chief executive Ross McEwan said the vote had been "a real hit to the bank" and would affect the government's sale of its remaining shares in the bank. He said: "This will be a setback, let's be honest. I think at least a couple of years it will be pushed back." RBS is still 73% owned by taxpayers after being bailed out eight years ago. Speaking to LBC radio in London, Mr McEwan also reiterated that RBS would move its registered headquarters from Edinburgh, if Scotland votes to leave the UK in a second independence referendum. But he added that it was effectively about "moving the plaque rather than any of our people". RBS currently has 12,000 staff working north of the border.

Business pessimism 'doubles after Brexit vote'.

UK business confidence has fallen sharply in the aftermath of the vote to leave the EU, research suggests. The share of businesses that reported feeling pessimistic about the UK economy doubled in the week after the Brexit vote. The figure jumped from 25% the week before the referendum to 49%, according to YouGov and the Centre for Economics and Business Research. Falling confidence can lead companies to pull back on investment and hiring. Scott Corfe, director at the CEBR, said that the figures, due to be published on Tuesday, indicated a "significant shock reaction" among UK businesses following the vote last month. Mr Corfe told BBC Newsnight: "Businesses are clearly spooked by the referendum result and they've reined in their intentions for capital spending. They've reined in their expectations for exports and domestic sales growth. And business confidence is a leading indicator for where the economy is heading over the coming quarters. What it suggests is that the economy is in for quite a significant slowdown over the next three to six months." The figures suggest that businesses have become more cautious in their outlook for sales and exports, as well as rethinking their investment plans.

Bank of England warns Brexit risks beginning to crystallise.

The Bank of England has warned there is evidence that risks it identified related to Brexit are emerging. In a major report it states: "There is evidence that some risks have begun to crystallise. The current outlook for UK financial stability is challenging." The Bank has eased special capital requirements for banks, potentially freeing up £150bn for lending. Eight major banks have also agreed with George Osborne to provide more lending to households and businesses. The chancellor signed a letter with Barclays, HSBC, Santander UK, Virgin Money, Metro Bank, RBS, Nationwide and Lloyds for the banks to make extra capital available in this "challenging time".

M&G and Aviva suspend property funds following Brexit vote.

M&G Investments has followed two other major finance firms and suspended trading in the UK's biggest property fund following the Brexit vote. M&G said withdrawals from its £4.4bn fund had risen markedly because of "high levels of uncertainty in the UK commercial property market" since the outcome of the referendum. Earlier, the UK's biggest insurer, Aviva, halted its £1.8bn property fund. Financial regulators have said they will reassess such property funds. Three of the biggest providers of the funds - which offer investors returns from commercial property - have now frozen trading after Standard Life suspended its £2.9bn UK property fund on Monday. Aviva and Standard Life's fund suspensions come amid widespread major falls in property-related shares since the referendum result. Housing firms Berkeley Group, Barratt Developments and Persimmon all fell more than 6% on Tuesday, while shares commercial property firm Land Securities dropped lost 3%.

[The economic news, despite the fact that Article 50 is still probably some months away, continues to be patchy at best. OK, it’s not exactly the end of the world scenario that some have said it would be but it’s still very early days and I’m sure that I’m not the only person who can spot the straws in the cold wind blowing from the financial markets. Time will, as they say, tell!]

All details above from BBC News website.