U.K. Becomes Rudderless, Trump’s Par for the Course: Sunday Wrap

  • Market openings jittery but far from Friday’s selloff levels
  • Spain’s Conservatives beat back anti-establishment challenge

Here are highlights of Sunday’s top breaking stories from around the world:

The U.K. heads into the work week without a functioning government to speak of. The lame-duck prime minister has no obvious successor, the leading candidate can’t understand why people don’t think all will be fine and the opposition party is abandoning ship on its recalcitrant captain as quickly as it can dive overboard (11 shadow-cabinet resignations plus one sacking). No one has a plan to deal with the consequences or define what relationships with the world will look like from now on. U.S. Secretary of State John Kerry scheduled visits to Brussels and London to mediate the timing and method of the divorce from the European Union. Openly racist and xenophobic harassment flared up in the aftermath of the vote, and some native Brits living in EU countries wondered whether they will have to break ties to their homeland.

The market openings in Asia and start of S&P 500 futures trading in the U.S. were rough though nothing close to Friday’s carnage. The pound dropped below $1.35 in early trading and the yen, while continuing its climb, didn’t come anywhere near testing 95. Middle East markets showed some contagion to start their week. The post-Brexit flight to safety added another $380 billion to the piles of government bonds with negative yields.

Spain’s caretaker prime minister and his Conservative party picked up some seats from the last election in December but not enough to break the political logjam that has left the nation without a clear ruling government. Polls showing the anti-establishment Podemos party making big gains turned out to be wrong, with Brexit acting as a “black swan” of sorts for Spanish voters.

Hillary Clinton, in a new national TV ad, blistered Donald Trump for his post-Brexit remark that the drop in the pound would be good for his Scottish golf properties, saying the remark was ... to pardon the pun, par for the course.

Saudi Arabia is hiring JPMorgan Chase, HSBC and Citigroup to arrange its first international bond sale.

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