The UK has been stripped of its last AAA rating as credit agency Standard & Poor’s warned of the economic, fiscal and constitutional risks the country now faces as a result of the EU referendum result.
Growing anxiety about whether banks can withstand continued low interest rates and fears of a re-run of the 2008 financial crisis continued to stalk markets when shares fell to a three-year low and bank shares remained volatile.
The chief executive of Deutsche Bank has reassured staff that the bank is strong in the face of ongoing market turbulence.
Share prices are tumbling.
George Osborne has discovered that share prices can go down as well as up.
They were studying the snow forecasts in Davos on Friday. But the 3,000 bankers and CEOs who had flown to the Swiss ski resort for the annual gathering of the global business elite were not interested in what conditions would be like on the slopes this weekend. Rather, they were focused on the monster blizzard stalking the US.
The new year kicked off with a global stock market and commodities rout over worries about the global economic outlook and China’s economy in particular.