The Week That Was- 29th February 2016
London mayor Boris Johnson this week announced his support for a British exit from the EU. This comes at a time when big business in the City has been throwing its weight behind the ‘Stay’ campaign, emphasizing that Brexit may be potentially disastrous. 6 of PM David Cameron’s 29 senior ministers also announced that they would be backing Brexit on February making Britian’s membership of the EU more precarious than ever.
After agreeing with Russia to freeze oil output, subject to agreement with other major producers, Saudi oil minister Ali al Naimi ruled out the possibility of such an occurrence citing lack of trust among producers. Internationally traded Brent crude dropped $1.33 a barrel to $33.35 on these remarks, while the US marker slid $1.54 a barrel to $31.85.
Donald Trump and Hilary Clinton secured victories in the Nevada caucuses earlier this week. Having won three of the four contests for a Republican nomination so far, Trump is now a frontrunner for a Republican ticket. New Jersey governor Chris Christie also threw his support behind Trump days before super Tuesday when 12 more states will vote.
The London Stock Exchange group and Deutsche Bourse announced that they were in talks to merge. This comes on the heels of consolidation in the industry with NASDAQ agreeing to buy Chi-X Canada, Intercontinental Exchange (ICE) purchasing Interactive Data and Deutsche Börse snapping up 360T last year.