Live News Updates: Zahawi promises to end corporate tax hike next year when he becomes prime minister

In this year of significant elections, the UK has its most significant election this week, but one that is only open to a few hundred Westminster backbenchers. It’s the vote to renew the Conservative Party’s parliamentary leadership body, the Committee of 1922.

The first task for the new group of 18 backbench Tory MPs after Monday’s referendum will be to agree the rules for choosing their party’s new leader (ie the British Prime Minister). This is expected to be completed by September. A group of MPs have already thrown their hats in the ring, but these could be reduced to a shortlist of two within days, according to the FT’s parliamentary team.

The timeline for the decision on the new prime minister is important and serious as Britain’s inflation is the highest in the G7 and the country’s growth (if it grows at all) next year is expected to be the slowest, according to the IMF. There is an urgent need for someone competent to lead the country through the interim before the public can again decide their government through general elections.

A passenger boards an underground train in London. Expect more train problems © Dan Kitwood/Getty Images

In addition, the British summer of discontent continues. If anything, it’s gaining momentum. Criminal attorneys will back out on Monday for reasons explained by a legal insider in this article. With unions Aslef, representing train drivers, and TSSA, representing more than 6,000 Network Rail workers voting to go on strike, more train troubles are expected. And on Friday, a vote for industrial action for university and college union members ends in a separate row over low wages, unmanageable workloads and professional respect. This could spell further disruption for students at UK universities and colleges once this long, hot summer of unrest is over.

economic data

It’s a busy week for key economic data announcements, including inflation figures for the US, UK, France and Germany – which may give a clue as to whether cost-of-living growth is nearing a peak – as well as GDP data from China and the UK.

The Federal Reserve releases its latest Beige Book on the US economy and the rate-setting committees of New Zealand and South Korea’s central banks could raise their respective interest rates by 50 basis points. Croatia will also become the newest member of the eurozone group.

Line chart of three-year compound annual growth rate of net interest income, showing that large US banks will benefit from rising interest rates

companies

US banks will start the US earnings season this week, with record results forecast on the back of the Fed’s rate hike streak. Analysts expect JPMorgan Chase, Bank of America and Citigroup to see growth in net interest income, the difference between what banks pay depositors and what they earn on loans and other assets.

The big fear is a recession. Banks tend to be the stocks hit hardest during downturns. As trouble looms, pressure mounts to increase capital reserves in case existing loans default.

Read the full calendar for next week here

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