The debtor is slave to the lender and once again this has been made apparent as global markets tumble after vote for Brexit.
The S&P plunged below the 2000 level, the biggest drop since its August crash and the DOW is nearing a 1000 point plunge. In other words, everything is fine and improving as expected. Meanwhile, the EU is having problems of its own as reported below.
Trading in several of Britain’s biggest firms was suspended amid fresh stock market turmoil.
Barclays and Royal Bank of Scotland were among those whose stock was frozen after a sudden drop.
Automatic circuit breakers kick in when a company’s share price falls – or rises – by more than 8%.
All trading in its shares are suspended for five minutes to try to take the heat out of the situation.
Shares in some of the UK’s biggest builders – Taylor Wimpey, Barratt and Berkeley Group – were also put on hold, along with budget airline easyJet and Legal & General.
However, the tactic failed to stop a further slide in their share prices.
Barclays remained down nearly 13%, and RBS by more than 15%.
The firm said it will take a £28million hit following two months of turbulence and said that Brexit would have a negative impact on the airline.
It said: “The operating environment for all European airlines in May and June has been extremely challenging.
“These incidents, together with the EgyptAir tragedy, resulted in some drop off in consumer demand leading to lower yield and have impacted third quarter profit before tax by approximately £28million and have had a negative impact on third quarter revenue per seat.”
On Brexit , easyJet said that it anticipates economic and consumer uncertainty this summer and, as a result, revenue in the second half will be down by “at least a mid-single digit percentage”.
The pound fell to its lowest level against the dollar for 31 years today – outstripping the three-decade low it reached on Friday.
Sterling dropped just below $1.32 for the first time since 1985 despite George Osborne trying to stabilise the markets after Brexit .
Only last Thursday the pound was worth more than $1.50 – but since the first Brexit -backing results rolled in its value has slid.
More than £15billion was wiped off the value of the UK’s 100 biggest firms this morning, despite George Osborne’s appeal for calm .
By 10am, the FTSE 100 was down 62 points at 6075.
The wider FTSE 250 – seen as a better measure of UK-based firms – also tumbled.
The pound fell to a new low, down 2.7% at $1.3308, and falling 1.8% against the euro.
But as Boris Johnson left his home this morning, with the markets falling, he told waiting reporters : “I think it’s very good news that the Chancellor has come and said some reassuring things to the markets.
“It’s clear now Project Fear is over. There’s not going to be an emergency budget. People’s pensions are safe, the pound is stable, the markets are stable, very good news.”
He stood by predictions Britain faces a recession and years of brutal austerity on the back of the Brexit vote, but parked his proposed Emergency Budget of tax rises and spending cuts until a new Prime Minister is in place this autumn.
In a gloomy statement, the Chancellor said: “I do not resile from any of the concerns I expressed during the campaign.
“It is inevitable that Britain’s economy is going to have to adjust.”
Mr Osborne said he “agreed with” reports published by the Treasury earlier this year which predicted a £30bn black hole in the public finances and an economic hit that will leave households £4,300-a-year worse off on average over the long term.
The Chancellor said firms are already delaying investment decisions and hiring new staff due to the massive uncertainty triggered by the shock referendum result last week.
“It is already evident some firms are pausing their decisions to invest or hire people. This will have an effect on the economy and the public finances,” he said.