Crisis revisited
On Monday shares in the majority-government-owned bank RBS slumped to their lowest level since January 2009 - just months after its taxpayer-backed bailout. The shares hit 153p in the aftermath of the EU referendum result, meaning they were down nearly 40 per cent on the back of the poll. It wasn't the only bank to endure a tough time on the markets this week, though, with trading in RBS and Barclays shares being briefly suspended on 27 June after a rapid drop of 8 per cent triggered a circuit break mechanism. European bank shares were not spared, either, with the wider European sector shedding 20 per cent of its value on Friday and continuing to slide through Monday's session. Trading steadied on Tuesday and Wednesday as markets regained some of their losses, but confidence in the banking sector is shaky.
Gilt ridden
Record lows
Benchmark UK government bonds fell through the 1 per cent mark last week to hit record lows. At one point, 10-year government debt yielded just 0.93 per cent, which, with yields moving inversely to prices, means investors kept buying what they generally see as a safe haven in spite of its hefty price tag. Yields were 0.96 per cent at the time of writing. Such debt in Germany also had its yields pushed down to as low as -0.085 per cent, while 10-year Spanish yields also dropped to 1.54 per cent after prime minister Mariano Rajoy extended his party's lead in elections there.
Low blow
Price wars
The cut-throat grocery market saw sales in the UK fall for the first time since January in the 12 weeks to 21 June, to £25.4bn, as competition continued to squeeze prices. And what's worse is the rate at which sales are declining for the big four - Tesco, Sainsbury's, Asda and Morrison - with each losing market share compared with the similar period last year. The combined share of discount retailers Lidl and Aldi hit a record high of 10.5 per cent, with almost three-fifths of Britons - 58 per cent - visiting one of the two retailers in the past 12 weeks.
VW deal
Compensation offered
The German motor giant is attempting to draw a line under the emissions scandal that engulfed the company last year by offering "substantial compensation" to affected VW owners in the US as part of a settlement worth $15.3bn (£11.4bn) agreed with US authorities. As part of this, a little more than $10bn has been set aside to buy back affected cars, thought to number up to 475,000, while VW will also make a $2.7bn payment to help tackle air pollution and also invest $2bn in promoting alternative vehicle technologies. It has agreed in court to pay $603m to 44 US states and other territories against other claims raised around the emissions scandal.
Hargreaves hit
Leave backer nurses losses
The unintended consequences of the Leave vote are widespread. Prominent Leave backer Peter Hargreaves, who was the biggest individual donor to the campaign after giving £3.2m, saw the value of his holding in wealth management specialist Hargreaves Lansdown fall sharply in the two trading days after the Brexit result was confirmed. Mr Hargreaves, who retains a stake of around 30 per cent in the company he founded, saw the value of his holding fall around 24 per cent, equivalent to paper losses of £400m, in the aftermath of the result.
The next domino?
Italy concerns
The pressure on the weaker parts of the eurozone is unlikely to relent in a hurry and speculation is growing that Italy's banking sector is going to require a multibillion-euro injection to steady itself. Bank shares across Europe dived in the aftermath of the UK's decision to leave the European Union and, with Italy's banking sector already creaking under the weight of bad debt and shaky sentiment, the Italian government is believed to be preparing to pump up to €40bn in to support the sector.
Higher purchase
Debt up
UK consumers appeared to be hitting their straps in the run-up to the EU referendum as borrowing soared. Consumer credit expanded rapidly in May, with the amount borrowed on credit cards, personal loans and overdrafts up 9.9 per cent on the same month in 2015, which represented the sharpest monthly rise for more than 10 years. Meanwhile, mortgage lending continued to expand, with 67,042 mortgages approved in May, up from 66,205 in April.
