The daily business briefing: June 24, 2016
The UK votes to leave the EU, U.S. stock futures dive after Brexit vote, and more
1. Britain votes to exit the EU
The UK voted Thursday to leave the European Union, sending the British pound and global stocks plunging. Prime Minister David Cameron, who led the campaign to stay in the 28-nation trading bloc, announced that he would resign by October after the "Leave" campaign won by an unexpectedly strong 52 percent to 48 percent. European Council President Donald Tusk called for resisting "hysterical reactions" as the UK prepares for a two-year process of leaving the EU. Leading Brexit advocates said the vote restored UK independence after the EU's mishandling of the financial crisis and a mass influx of refugees.
2. U.S. stocks head for sharp drop after Brexit vote
U.S. stock futures plummeted early Friday after the UK voted to leave the European Union. Dow Jones Industrial Average futures plunged by as much as 700 points before regaining some of the losses, but remained down by 485 points, or 2.7 percent, suggesting a sharp decline at the start of trading. S&P 500 futures were down even more, falling 80 points or 3.7 percent, with Nasdaq-100 futures falling by 3.9 percent. A day earlier markets had rallied as the last polls before the referendum suggested voters would reject the Brexit.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. VW agrees to pay $10 billion to owners of cars affected by emissions scandal
Volkswagen has agreed to pay more than $10 billion to settle with nearly 500,000 U.S. customers affected by its diesel emissions cheating scandal, The Wall Street Journal reported Thursday. The company, which has admitted installing software capable of sidestepping diesel emissions tests, will pay owners at least $5,100 on top of the cost of buying back the vehicles or repairing them to make them compliant with environmental regulations.
4. Nation's biggest banks pass Fed stress test
The 33 largest U.S. financial institutions passed the Federal Reserve's annual stress test, the Fed announced Thursday. The passing marks indicate that the banks, including JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo, all hold more capital than they did a year ago, boosting their ability to survive another financial crisis. The tests were created after the financial and housing crisis of 2008 and 2009, during which the federal government had to bail out many financial institutions.
USA Today The Associated Press
5. Jobless claims fall
The number of Americans filing for unemployment benefits fell last week by 18,000 to 259,000, near a 43-year low touched in April. Economists had expected first-time claims to fall only to 270,000. The four-week moving average of claims — a better indicator of the health of the labor market — fell by 2,250 to 267,000, its lowest level since April. The latest figures show that the disappointing May jobs report "greatly exaggerated the extent to which the trend in employment growth is weakening," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
Kendrick Lamar vs. Drake: how real is the feud?
In the spotlight Beef between Californian rapper and Canadian hip-hop star goes 'nuclear' with diss tracks full of serious allegations
By Harriet Marsden, The Week UK Published
-
Eurovision 2024: how is politics playing out in Sweden?
Today's big question World's most popular song contest 'has always been politically charged' but 'this year perhaps more so than ever'
By The Week UK Published
-
'Trump's Tahoe tryst'
Today's Newspapers A roundup of the headlines from the US front pages
By The Week Staff Published
-
The daily business briefing: January 24, 2024
Business Briefing The S&P 500 sets a third straight record, Netflix adds more subscribers than expected, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 23, 2024
Business Briefing The Dow and S&P 500 set fresh records, Bitcoin falls as ETF enthusiasm fades, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 22, 2024
Business Briefing FAA recommends inspections of a second Boeing 737 model, Macy's rejects Arkhouse bid, and more
By Harold Maass, The Week US Published
-
Geopolitics and the economy in 2024
Talking Point The West is banking on a year of falling inflation. Don't rule out a shock
By The Week UK Published
-
The daily business briefing: January 19, 2024
Business Briefing Macy's to cut 2,350 jobs, Congress averts a government shutdown, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 18, 2024
Business Briefing Shell suspends shipments in the Red Sea, December retail sales beat expectations, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 17, 2024
Business Briefing Judge blocks JetBlue-Spirit merger plan, Goldman Sachs beats expectations with wealth-management boost, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 16, 2024
Business Briefing Boeing steps up inspections on 737 Max 9 jets, Zelenskyy fights for world leaders' attention at Davos, and more
By Harold Maass, The Week US Published