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Summary

  1. Aviva suspends dealings in property fund
  2. Bank of England frees up to £150bn for bank lending in Brexit plan
  3. FTSE 100 turns positive after Bank of England action
  4. Sterling falls more than 1%
  5. Shares in housebuilders suffer further falls

Live Reporting

By Tom Espiner

All times stated are UK

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  1. Good night

    That's all from the Business Live page for tonight. See you again tomorrow from 06:00 for more business news.

  2. 'Unambiguous' that City jobs will be lost

    Video content

    Video caption: British banker: it is unambiguous that jobs will be lost from the City
  3. Wall Street closes down

    Wall Street stocks closed down after investors faced continued uncertainty in Europe and tumbling oil prices weighed on energy shares.

    The Bank of England said the outlook for Britain's financial stability after the 23 June vote to leave the European Union was "challenging" and said it would lower the amount of capital that banks were required to hold in reserve to allow them to keep lending.

    The Dow Jones industrial average closed down 109.92 points, or 0.61%, to 17,839.45, the S&P 500 lost 14.47 points, or 0.69%, to 2,088.48 and the Nasdaq Composite dropped 39.67 points, or 0.82%, to 4,822.90. 

  4. Bonds in UK, US and Germany hit new lows

    US government bonds, like those in the UK and Germany, have now hit fresh lows as investors rush to buy perceived safe haven assets. 

    The 30-year US Treasury yield hit a new low earlier, as did the 10-year German bond. 

  5. Brexit 'is Lehman moment' for European banks

    European banks are going through a real-life stress test following the UK's Brexit vote, according to Mark Gilbert of Bloomberg Views.

    "Deutsche Bank, which once hadfalsepretensions to be Europe's contender on the global investment banking stage, is now worth just €17bn."

    "When the biggest bank in Europe's biggest economy, with annual revenue of about €37bn, is worth about the same as Snapchat - a messaging app that generated just $59m of revenue last year - you know something's wrong."

  6. Is the cost of borrowing at record lows?

    Reality Check

    Stephen Crabb saying: The price of borrowing is at record lows … it’s one of the significant policy levers a developed economy has to improve productivity.

    The claim: The cost of borrowing for the UK government is at record low levels. The government should take advantage of this to improve the UK's economic performance. 

    Reality Check verdict: The yield on UK government bonds has been falling to record lows, making borrowing cheaper, despite the recent cut in the UK's credit ratings. Borrowing to invest has the potential to reduce the need for future borrowing, but that's not guaranteed and it could further damage the UK's credit. 

    Read the full Reality Check here.

    Chart showing UK bond yields
  7. Goldman forecasts second leg of weakness for pound

    After taking a hit from the Brexit vote, the pound is in for a second leg of weakness against the dollar and the euro due to the Bank of England's policy response, Goldman Sachs analysts have predicted.

    Goldman Sachs UK economist Andrew Benito expects the Bank of England to cut interest rates by 0.25% at its August policy meeting.

  8. Pledge to Scots business after EU vote

    David Mundell and Nicola Sturgeon

    Holyrood and Westminster politicians give reassurances to Scotland's business community during a series of meetings following the Brexit vote.

    Pledge to Scots business after EU vote

    David Mundell and Nicola Sturgeon

    Holyrood and Westminster politicians give reassurances to Scotland's business community during a series of meetings following the Brexit vote.

    Read more
    next
  9. EU's Moscovici doubts UK will go through with corporate tax cut

    Pierre Moscovici, European commissioner for Economic and Financial Affairs, Taxation and Customs

    Britain's plan to cut corporation tax to less than 15% is a bad idea, EU Economic Affairs Commissioner Pierre Moscovici has said.

    He also doubts it will take place.

    Chancellor George Osborne announced the cut on Monday in an attempt to cushion the shock of Britain's vote to leave the European Union.

    "Dropping to 15% doesn't look to me like a good initiative to be getting involved in... and that would be a considerable loss of receipts for the British Treasury at a time when there is already a deficit that is much too high," Mr Moscovici told Radio Classique in France.

  10. 'Unambiguous' that City jobs will be lost

    The World at One

    BBC Radio 4

    Video content

    Video caption: British banker: it is unambiguous that jobs will be lost from the City

    Jobs will be lost from the City as a result of Brexit, says Peter Sands, British banker and former Standard Chartered group chief executive.

    Mr Sands says this is partly because "passporting", the ability to do business across Europe, will be restricted.

  11. Blackberry to stop making Classic smartphone

    BlackBerry will stop making its Classic smartphone, less than two years after launching it.

    Ralph Pini, the company's chief operating officer and general manager for devices, said the Classic had surpassed the average lifespan for a smartphone in today's market.

  12. 'A grim day to be a challenger bank'

    Shares in UK challenger banks dropped quite precipitously after the Brexit vote, and they dropped again today after property fund suspensions by Aviva and M&G.

    "Shawbrook's shares closed down 14.2%, while Virgin Money was down 14%, OneSavings was down 11.6% and Aldermore down 9.5%," City AM reported.  

  13. McDonald's wins 'Mc' case

    McDonald's logo

    McDonald's has won a case which could prevent other food or drinks companies using the prefixes "Mc" or "Mac" for one of their products.

    The US fast-food giant had been trying to stop Singapore's Future Enterprises from registering MACCOFFEE as a European Union trade mark. 

    The General Court of the European Union ruled in its favour, saying: "The repute of McDonald's trade marks makes it possible to prevent the registration, for foods or beverages, of trademarks combining the prefix "Mac" or "Mc" with the name of a foodstuff of beverage." 

    The judgment comes eight years after Future Enterprises of Singapore won permission to register the MACCOFFEE trademark in the EU. 

  14. Wall Street falls as global growth concerns resurface

    Traders work on the floor of the New York Stock Exchange

    Wall Street is lower as oil prices slide more than 4% and tepid US data adds to investor concerns over global growth.

    New orders for US factory goods fell in May after weak demand for transportation and defence goods.

    The Commerce Department said new orders for manufactured goods declined 1% after two months of increases.

    "People are going to be cautious. They are still keeping an eye on the UK and probably don't want to over commit here," said John Callany, chief economic strategist at LPL Financial in Boston.

    The Dow Jones industrial average was down 113.92 points, or 0.63%, at 17,835.45, the S&P 500 was down 16.03 points, or 0.76%, at 2,086.95 and the Nasdaq Composite was down 48.16 points, or 0.99%, at 4,814.46.

  15. Finance first?

    Theresa May

    London's financial industry must be protected and it must retain its competitive edge in any negotiations to leave the EU, according to Home Secretary, Theresa May.  

    Ms May - a frontrunner to replace Prime Minister David Cameron - told the London Evening Standard newspaper: "We need to maintain the City of London and the advantages that the City has."

    "Ensuring that we can continue to get the right deal for the UK in terms of financial services is part of the negotiation," she added. 

  16. FBI recommends no charges against Hillary Clinton over emails

    Hillary Clinton

    The FBI has announced it will not recommend criminal charges against Hillary Clinton over her use of private email while she was secretary of state.

    FBI Director James Comey said "no reasonable prosecutor" would pursue a case, but said the likely Democratic presidential nominee was "extremely careless" with classified information.

    Mrs Clinton had said no classified emails were sent from her account.

    However, FBI found more than 100 classified emails on the servers.

    Read more here.

  17. M&G suspends £4.4bn property fund

    M&G has followed Aviva and Standard Life to become the third institutional investor to suspend dealing in its commercial property fund following outflows after the Brexit vote.

    Quote Message: M&G Investments announces a temporary suspension of trading in the shares of the M&G Property Portfolio and its feeder fund. Investor redemptions in the Fund have risen markedly because of the high levels of uncertainty in the UK commercial property market since the outcome of the European Union referendum. Redemptions have now reached a point where M&G believes it can best protect the interests of the funds’ shareholders by seeking a temporary suspension in trading."