Monday, 11 July: At present there aren’t many things we are certain of, except perhaps just continued uncertainty. Monday has at least cleared up who will be the next PM, after Andrea Leadsom withdrew leaving only Theresa May. David Cameron will step aside on Wednesday and this will at the very least drive focus on the ‘small’ matter of negotiating our divorce from the EU. May herself was part of the Remain camp although she has declared ‘Brexit means Brexit’. For now it seems the formal separation won’t be until next year, it will be something May will not rush. What we can be certain of in the coming Brexit negotiations will be more curveballs, referendum 2.0 gathering demand and more mixed messages from Europe on what we can and can’t do.
The markets continued momentum from Friday’s rally and we were led from the Nikkei 225 closing 3.74% higher in the early hours. Japanese machinery orders however showed investment was losing steam with the major headwinds being a strong yen and weak demand harming corporate profits. Although Friday’s job numbers from the US was enough to bolster the markets across Asia. The S&P 500 reached record highs on Monday and the NASDAQ broke 5000. Oil continued to struggle however as we neared two month lows back around the $46.50 mark.
Domestically the FTSE 100 closed 1.4% higher, and the FTSE 250 ended 3.27% less shackled from oil price pain. Burberry shares jumped 8% as the luxury fashion house announced they would replace Christopher Bailey as CEO with Marco Gobbetti, who currently runs French luxury label Celine. Bailey will however remain as chief creative officer, a role he held before also taking on the role of CEO two years ago. Gobbetti will join the Group in 2017. Shares closed the day little over 4% higher.