Hard Brexit hit to pound, jobs and £500m float

The country swerved wildly on the Brexit “roller coaster” today as the pound took a fresh battering in currency markets, a leading recruiter warned of slumping UK profits, and a planned £500 million float was pulled.

The beleaguered pound has been at the centre of a market sell-off since ministers put Britain on a path to “hard Brexit” at the Conservative party conference and Chancellor Philip Hammond warned of a “roller coaster” ride for the UK economy during Brexit negotiations.

Today sterling lost almost a cent to $1.2279 at one stage and falling to €1.1044 against the euro, with reports that leaving the EU without a trade deal in place could cost the UK as much as £66 billion a year being the latest to unsettle investors.

A host of analysts have rushed to slash their estimates for the pound this year after the steep 15% slide for the currency against its trading rivals since Brexit.

JPMorgan said the pound could fall to €1.05 by the end of the year, hitting $1.21 against the greenback.

Deutsche Bank’s chief UK economist George Buckley said: “The question has to be how far sterling still has to go to offset the uncertainty created by Brexit?”

Although the pound’s weakness has again pushed the FTSE 100 close to all-time highs, recruiter PageGroup underlined the looming threats to the economy with figures showing a near-5% slide in UK profits for the three months immediately following the historic vote.

The company, whose UK business accounts for nearly a quarter of profits, is “cautious” over prospects “with continued uncertainty following the result of the UK referendum particularly impacting our multinational clients”.

Financial services saw the biggest hit in the UK with hiring down 14% against the same period a year ago. Firms are also steering towards more temporary hires instead of permanent positions, it added.

Pure Gym, the UK’s biggest fitness chain, pulled plans for a £500 million float weeks after it was announced.