Reuters - Video

Edition: US | UK | IN | CN | JP

video Video

Bernanke steps into the spotlight
Bernanke steps into the spotlight - 02:13
The official royal wedding guest list revealed
The official royal wedding guest list revealed - 01:23
Shuttle astronauts arrive at Cape Canaveral
Shuttle astronauts arrive at Cape Canaveral - 01:18
Waiting for Bernanke
Waiting for Bernanke - 01:51
Hospital staff flee border fighting
Hospital staff flee border fighting - 01:10
Thousands at Sai Baba funeral
Thousands at Sai Baba funeral - 01:03
Al Qaeda releases hostage messages
Al Qaeda releases hostage messages - 01:43
Obama calls birth controversy \
Obama calls birth controversy "distracting" - 05:29
Three blasts hit Kirkuk
Three blasts hit Kirkuk - 01:25
Protests intensify in Yemen
Protests intensify in Yemen - 01:24
Border clashes displace thousands
Border clashes displace thousands - 01:50
S&P Credit Rating Warning Helpful - Lister
S&P Credit Rating Warning Helpful - Lister - 00:53

Financial stocks reel under Brexit impact

Monday, June 27, 2016 - 01:47

Shares in UK banks plunged again as fears over the fallout from Britain's decision to leave the European Union sparked earnings downgrades and sell-offs by shell-shocked investors. As Sonia Legg reports, Europe's banks weren't immune from Brexit anxiety either.

▲ Hide Transcript

▶ View Transcript

HSBC may move 1,000 staff from London to Paris if Britain leaves the European single market, that's according to some media reports. It all added to the pressure on European bank stocks as markets opened on Monday. Barclays, Lloyds and Royal Bank of Scotland, seeing further falls of 18, 10 and 23 percent respectively. The STOXX Europe 600 bank index hit its lowest since June 2012, raising yet more questions about the impact of a Brexit on London's mightily financial sector. (SOUNDBITE) (English) IHS GLOBAL INSIGHT, DIRECTOR OF SOVEREIGN RISK, JAN RANDOLPH, SAYING: "The regulatory regime will swing back over to the euro zone and the City of London will no longer have a voice in that regime. We may lose certain passport rights in terms of selling euro-based products into what is the largest market in the continent." Britain's European Commissioner for Financial Services resigned over the weekend. Jonathan Hill's position untenable outside the EU, even though his new regulations have helped strengthen the European banking sector. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "Authorities have done much good work to improve and increase the resilience of the global financial system. Banks in the UK have something like ten times the capital that they had in 2007, 2008." UK banks weren't the only ones to suffer. Numerous continental lenders including Spain's Bankia, Credit Suisse and Italy's Unicredit had their earnings expectations downgraded by analysts - the worry, rising political risk and less chance of lower equity costs. Italy's government says it's now looking at options to try and prop up the country's bank stocks.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Close

Financial stocks reel under Brexit impact

Monday, June 27, 2016 - 01:47

Featured Videos

Chimpanzees can understand rock, paper, scissors

Chimpanzees can understand rock, paper, scissors

Chimpanzees can understand rock, paper, scissors, Japanese primatologists show
Bladerunners - UK lawnmowers in 12-hour endurance race

Bladerunners - UK lawnmowers in 12-hour endurance race

Drivers donned their suits and climbed into their cockpits at the weekend for a 12-hour endurance race with a difference: they weren't driving rallying cars, but lawnmowers
The highs and lows of Macron's first 100 days

The highs and lows of Macron's first 100 days

French President Emmanuel Macron heads into the summer break faced with falling popularity ratings after tough debates in parliament over labour reform and a public ethics law, a standoff with the military and cuts to housing assistance
The vending machine helping fight against HIV

The vending machine helping fight against HIV

An innovative vending machine for HIV tests being piloted in Britain aims to help in the fight to end the epidemic
London's underground mail rail re-opens after 14 years

London's underground mail rail re-opens after 14 years

A never seen before underground mail network is set to open to the public in London, 14 years after it closed down