The FTSE’s slump was its biggest one-day fall since the collapse of Lehman Brothers in October 2008.
After the announcement early Friday morning that the United Kingdom voted 52 percent to 48 percent to leave the European Union, markets all over the world reacted by going into steep decline.
The vote found London, Scotland, and Northern Ireland overwhelmingly for remaining in the EU, but the rest of England and Wales voted strongly for what has been dubbed “Brexit,” for “British exit.”
Before the results were even final, the British pound already slumped to its lowest rate in over 30 years, as its rate against the dollar fell almost 10 percent.
Governor Mark Carney says the BoE has ‘extensive contingency plans’ to handle Britain’s decision to leave the EU, as shares slide across the globe ECB: We’ll provide liquidity if needed Mark Carney promises action if needed FTSE 100 tumbles at the open, but has recovered a little Pound plunges to $1.33 in huge selloff The Brexit vote is already causing problems for some holidaymakers in Greece, according to this tweet from the island of Kos. Hot on the heels of the Bank of England, the European Central Bank has promised to provide extra liquidity to protect the financial world.
In a brief statement, the ECB said it was closely monitoring financial markets and is in close contact with other central banks. Central banks are expected to use ‘swap lines’ to share currency with each other so that, for example, a British bank isn’t short of euros.
Prime Minister David Cameron is to step down by October after the UK voted to leave the European Union.
Speaking outside 10 Downing Street, he said he would attempt to “steady the ship” over the coming weeks and months but that “fresh leadership” was needed.
The PM had urged the country to vote Remain but was defeated by 52% to 48% despite London, Scotland and Northern Ireland backing staying in.
UKIP leader Nigel Farage hailed it as the UK’s “independence day”.
The pound fell to its lowest level against the dollar since 1985 as the markets reacted to the results. “The British people have voted to leave the European Union and their will must be respected,” said Mr Cameron. “The will of the British people is an instruction that must be delivered.” project fear The Leave campaign argued during a bitter four-month referendum campaign that the only way Britain could “take back control” of its own affairs would be to leave the EU.
The PM says he fought “head, heart and soul” but that Britain now needs a new leader to oversee negotiations to leave the EU. Cameron Resigns After UK Votes To Leave EU The British people have voted to leave the European Union after a historic referendum in which they rejected the advice of the main Westminster party leaders and instead took a plunge into the political unknown.
Results from across the country suggesting the Brexit camp were on the brink of declaring a referendum victory saw sterling down 10% against the dollar The value of sterling slumped to a 31-year low on currency markets and was on course for its biggest one-day loss in history as panicking investors contemplated the prospect of a vote to leave the European Union.
Live Bank of England promises £250bn to calm markets after Brexit vote – live updates
Governor Mark Carney says the BoE has ‘extensive contingency plans’ to handle Britain’s decision to leave the EU, as shares slide across the globe
Results from across the country suggesting the Brexit camp was on the brink of declaring a referendum victory led to sterling reversing initial gains to leave the pound down more than 10% at $1.33, compared with $1.50 just after polling stations closed. That was the lowest since 1985. The pound was down more than 7% against the euro. The FTSE’s slump was its biggest one-day fall since the collapse of Lehman Brothers in October 2008.
Feel free to leave a comment. We would like to know what you think. If you liked the post hit the like button below. Thanks!!!