Britain&#39;s opposition Labour party plunged into turmoil today and the prospect of Scottish independence drew closer, ahead of a showdown with EU leaders over the country&#39;s seismic vote to leave the bloc. 
 
Two days after Prime Minister David Cameron resigned over his failure to keep Britain in the European Union, Labour leader Jeremy Corbyn faced a revolt by his lawmakers who called for him, too, to quit. 
 
US secretary of state John Kerry will also fly first to Brussels and then on to London on Monday, amid dismay in Washington over Britain&#39;s decision. 
 
European leaders have called for a swift divorce amid fears of a domino-effect of exit votes in eurosceptic member states that could imperil the integrity of the 28-country alliance. 
 
Britain&#39;s political world is in disarray, while two new polls today showed a surge in support for independence in Scotland, where voters defied the national mood and chose to stay in the EU. 
 
European leaders meet on Monday to discuss the result, which wiped $2.1 trillion from global equity markets Friday amid fears of a new threat to the global economy. 
 
German Chancellor Angela Merkel will host French President Francois Hollande, Italian Prime Minister Matteo Renzi and EU President Donald Tusk for talks in Berlin. 
 
Cameron is then due to attend a summit of EU leaders on Tuesday to explain Britain&#39;s decision. 
 
Britons cast aside warnings of isolation and economic disaster to vote 52 percent to 48 percent in favour of quitting the EU in Thursday&#39;s referendum. 
 
The historic vote, fought on the battlefronts of the economy and immigration, exposed deep divisions in the country that politicians are scrambling to respond to. 
 
Cameron has said he will stay on until a successor is found from within his governing Conservative party, which could take until October, at which point the new prime minister will launch the EU exit negotiations. 
 
But EU foreign ministers on Saturday urged Britain not to delay, with France&#39;s Jean-Marc Ayrault directly calling on Cameron to go quickly. 
 
&quot;A new prime minister must be designated, that will take a few days but there is a certain urgency,&quot; he told AFP. 
 
German Chancellor Angela Merkel said Britain&#39;s exit talks should not &quot;drag on forever&quot; but said that until they were completed, Britain would remain a fully-fledged EU member. 
 
&quot;There is no reason to be nasty in the negotiations. We have to follow the rules of the game,&quot; she said. 
 
Labour revolt 
 
Likely candidates to succeed Cameron, including Brexit campaigner and former London mayor Boris Johnson, began sounding out support over the weekend. 
 
The referendum decision has also lit a fuse under disgruntled members of the Labour party, many of whom have been unhappy with Corbyn&#39;s leadership since he took office last September. 
 
Support for leaving the European Union was strong across northern England, the Midlands and Wales, including many areas that traditional vote Labour. 
 
The party leadership had campaigned to stay in the EU, but critics accuse Corbyn of failing to reach out to working-class voters drawn in by the &quot;Leave&quot; camp&#39;s anti-establishment rhetoric. 
 
After a symbolic vote of no confidence on Friday against Corbyn, he sacked foreign affairs spokesman Hilary Benn late Saturday for challenging his leadership. 
 
Hours later, health spokeswoman Heidi Alexander quit, and media reports suggested several other colleagues were poised to join her.&nbsp; 
 
&quot;I do not believe you have the capacity to shape the answers our country is demanding,&quot; Alexander wrote in her resignation letter. 
 
But allies of the veteran socialist said he had no plans to step down. &quot;He&#39;s not going anywhere,&quot; finance spokesman John McDonnell told BBC television. 
 
The motion of no confidence is expected to be discussed at a meeting of the parliamentary Labour party on Monday. 
 
Any challenger would need the support of 20 percent of the party&#39;s 229 MPs and it would then be put to party members. 
 
Boost for Scottish independence&nbsp; 
 
As Westminster politicians bickered, Scotland appeared to be moving closer towards independence, just two years after they voted by 55 per cent to stay in the UK. 
 
&quot;The UK that Scotland voted to stay in in 2014 does not exist any more,&quot; First Minister and Scottish National Party leader Nicola Sturgeon told BBC television Sunday. 
 
Scots had defied the national trend and voted to remain in the European Union, and the prospect of being taken out against their will has boosted the nationalist cause. 
 
Two polls today support for independence at 59 percent and 52 percent respectively. 
 
Sturgeon has said a second independence referendum was now &quot;highly likely&quot;, and a meeting of her cabinet on Saturday agreed to start drawing up the necessary legislation. 
 
&quot;This is not going to be a re-run of the 2014 referendum. The context and the circumstances have changed dramatically,&quot; she told the BBC. 
 
Across Britain, more than three million Britons signed up to a rapidly-growing petition on an official government website pleading for a new vote. 
 
The number of signatories far surpassed the 100,000 required for a proposal to be discussed in the House of Commons. A committee will consider the motion on Tuesday.&nbsp; 
 
(AFP)

Scots defied the national mood and voted to stay on in EU. The 'leave' sentiment was strong in northern England, Midlands and Wales

Britain's opposition Labour party plunged into turmoil today and the prospect of Scottish independence drew closer, ahead of a showdown with EU leaders over the country's seismic vote to leave the bloc. Two days after Prime Minister David Cameron resigned over his failure to keep Britain in the European Union, Labour leader Jeremy Corbyn faced a revolt by his lawmakers who called for him, too, to quit. US secretary of state John Kerry will also fly first to Brussels and then on to London on Monday, amid dismay in Washington over Britain's decision. European leaders have called for a swift divorce amid fears of a domino-effect of exit votes in eurosceptic member states that could imperil the integrity of the 28-country alliance. Britain's political world is in disarray, while two new polls today showed a surge in support for independence in Scotland, where voters defied the national mood and chose to stay in the EU. European leaders meet on Monday to discuss the result, which wiped $2.1 trillion from global equity markets Friday amid fears of a new threat to the global economy. German Chancellor Angela Merkel will host French President Francois Hollande, Italian Prime Minister Matteo Renzi and EU President Donald Tusk for talks in Berlin. Cameron is then due to attend a summit of EU leaders on Tuesday to explain Britain's decision. Britons cast aside warnings of isolation and economic disaster to vote 52 percent to 48 percent in favour of quitting the EU in Thursday's referendum. The historic vote, fought on the battlefronts of the economy and immigration, exposed deep divisions in the country that politicians are scrambling to respond to. Cameron has said he will stay on until a successor is found from within his governing Conservative party, which could take until October, at which point the new prime minister will launch the EU exit negotiations. But EU foreign ministers on Saturday urged Britain not to delay, with France's Jean-Marc Ayrault directly calling on Cameron to go quickly. "A new prime minister must be designated, that will take a few days but there is a certain urgency," he told AFP. German Chancellor Angela Merkel said Britain's exit talks should not "drag on forever" but said that until they were completed, Britain would remain a fully-fledged EU member. "There is no reason to be nasty in the negotiations. We have to follow the rules of the game," she said. Labour revolt Likely candidates to succeed Cameron, including Brexit campaigner and former London mayor Boris Johnson, began sounding out support over the weekend. The referendum decision has also lit a fuse under disgruntled members of the Labour party, many of whom have been unhappy with Corbyn's leadership since he took office last September. Support for leaving the European Union was strong across northern England, the Midlands and Wales, including many areas that traditional vote Labour. The party leadership had campaigned to stay in the EU, but critics accuse Corbyn of failing to reach out to working-class voters drawn in by the "Leave" camp's anti-establishment rhetoric. After a symbolic vote of no confidence on Friday against Corbyn, he sacked foreign affairs spokesman Hilary Benn late Saturday for challenging his leadership. Hours later, health spokeswoman Heidi Alexander quit, and media reports suggested several other colleagues were poised to join her. "I do not believe you have the capacity to shape the answers our country is demanding," Alexander wrote in her resignation letter. But allies of the veteran socialist said he had no plans to step down. "He's not going anywhere," finance spokesman John McDonnell told BBC television. The motion of no confidence is expected to be discussed at a meeting of the parliamentary Labour party on Monday. Any challenger would need the support of 20 percent of the party's 229 MPs and it would then be put to party members. Boost for Scottish independence As Westminster politicians bickered, Scotland appeared to be moving closer towards independence, just two years after they voted by 55 per cent to stay in the UK. "The UK that Scotland voted to stay in in 2014 does not exist any more," First Minister and Scottish National Party leader Nicola Sturgeon told BBC television Sunday. Scots had defied the national trend and voted to remain in the European Union, and the prospect of being taken out against their will has boosted the nationalist cause. Two polls today support for independence at 59 percent and 52 percent respectively. Sturgeon has said a second independence referendum was now "highly likely", and a meeting of her cabinet on Saturday agreed to start drawing up the necessary legislation. "This is not going to be a re-run of the 2014 referendum. The context and the circumstances have changed dramatically," she told the BBC. Across Britain, more than three million Britons signed up to a rapidly-growing petition on an official government website pleading for a new vote. The number of signatories far surpassed the 100,000 required for a proposal to be discussed in the House of Commons. A committee will consider the motion on Tuesday. (AFP)

UK's split with EU boosts Scottish nationalists

Seven members of Britain&#39;s opposition Labour Party said on Sunday they had withdrawn support for the leadership of Jeremy Corbyn, plunging the party into crisis in the wake of Britain&#39;s vote to leave the European Union. 
 
Corbyn sacked Hilary Benn as Labour&#39;s foreign policy chief today after he said he had lost confidence in the leadership. Gloria de Piero, Heidi Alexander, Lucy Powell and Ian Murray all announced they were withdrawing support and stepping down from Corbyn&#39;s &#39;shadow cabinet&#39;. 
 
Sky News television reported that Lilian Greenwood and Kerry Mccarthy had also resigned. 
 
Several said in statements that they doubted Corbyn&#39;s ability to lead the party to victory in the country&#39;s next parliamentary election. 
 
A vote must take place within months after Conservative Prime Minister David Cameron announced on Friday he would step down by October after Britain voted to leave the European Union. 
 
(Reuters)

Gloria de Piero, Heidi Alexander, Lucy Powell and Ian Murray announced they were withdrawing support and resigning from shadow cabinet

Seven members of Britain's opposition Labour Party said on Sunday they had withdrawn support for the leadership of Jeremy Corbyn, plunging the party into crisis in the wake of Britain's vote to leave the European Union. Corbyn sacked Hilary Benn as Labour's foreign policy chief today after he said he had lost confidence in the leadership. Gloria de Piero, Heidi Alexander, Lucy Powell and Ian Murray all announced they were withdrawing support and stepping down from Corbyn's 'shadow cabinet'. Sky News television reported that Lilian Greenwood and Kerry Mccarthy had also resigned. Several said in statements that they doubted Corbyn's ability to lead the party to victory in the country's next parliamentary election. A vote must take place within months after Conservative Prime Minister David Cameron announced on Friday he would step down by October after Britain voted to leave the European Union. (Reuters)

Seven of Labour withdraw support from Corbyn

One of the key &quot;Leave&quot;&nbsp;campaigners in Britain`s European Union (EU) membership referendum, Boris Johnson, has won the backing of Justice minister Michael Gove to replace David Cameron as prime minister, a newspaper has reported. 
 
Gove reportedly called Johnson by telephone on Saturday to say he would back him for the leadership of the ruling Conservative Party, The Sunday Times said. 
 
After voters in the referendum took the historic decision to back the &quot;Leave&quot; campaign which was led by Johnson and Gove, Cameron announced on Friday that he would step down as prime minister by October. Cameron had urged voters to stay in the bloc. 
 
The Sunday Times said interior minister Theresa May was expected to enter the leadership contest in the coming days and was likely to get support from allies of Cameron who see her as the best candidate to take on Johnson, a former London mayor. 
 
May supported the &quot;Remain&quot; campaign but took a lower profile than Cameron and finance minister George Osborne, whose hopes of becoming the party`s next leader took a big blow with the outcome of the referendum.&nbsp; 
 
(Reuters)&nbsp; 
&nbsp;

Theresa May was expected to enter the leadership contest and was likely to get support from allies of Cameron, reports suggest

One of the key "Leave" campaigners in Britain`s European Union (EU) membership referendum, Boris Johnson, has won the backing of Justice minister Michael Gove to replace David Cameron as prime minister, a newspaper has reported. Gove reportedly called Johnson by telephone on Saturday to say he would back him for the leadership of the ruling Conservative Party, The Sunday Times said. After voters in the referendum took the historic decision to back the "Leave" campaign which was led by Johnson and Gove, Cameron announced on Friday that he would step down as prime minister by October. Cameron had urged voters to stay in the bloc. The Sunday Times said interior minister Theresa May was expected to enter the leadership contest in the coming days and was likely to get support from allies of Cameron who see her as the best candidate to take on Johnson, a former London mayor. May supported the "Remain" campaign but took a lower profile than Cameron and finance minister George Osborne, whose hopes of becoming the party`s next leader took a big blow with the outcome of the referendum. (Reuters)

Boris Johnson wins justice minister's backing to replace Cameron as PM

Turmoil unleashed by Britain&#39;s vote to leave the EU engulfed the opposition Labour Party, while policymakers as far away as China, Japan and South Korea fretted today over the threat to global financial stability, hours before markets reopen. 
 
In the oldest parliamentary democracy, three million Britons have signed a petition calling for a re-run of Thursday&#39;s referendum that split the nation, and one opinion poll showed a strong majority of Scots now want to break with the United Kingdom rather than with the European Union. 
 
Labour&#39;s left-wing leader Jeremy Corbyn sacked his foreign policy chief as the party plunged into open conflict. 
 
His health chief responded by resigning, calling for a new leader and reflecting accusations among pro-EU lawmakers that Corbyn&#39;s failure to win over traditional Labour voters had played a major role in the referendum result. 
 
Sacked foreign affairs spokesman Hilary Benn also called for Corbyn, who was elected last year largely by Left-wing party members and supporters, to go. &quot;He is a good and decent man but he is not a leader,&quot; Benn told BBC television. 
 
The 52-48 per cent referendum vote marked the biggest blow since World War II to the European project of forging greater unity across the continent. 
 
Sterling fell as much as 10 per cent against the Dollar on Friday to levels last seen in 1985, while world stocks saw more than $2 trillion wiped off their value. The weekend gave some respite from the turmoil, but with markets opening shortly in Asia, anxiety is growing. 
 
Prime Minister David Cameron resigned on Friday after Britons ignored his passionate appeals to stay in the EU, but left formally notifying Brussels of Britain&#39;s exit to his successor, who is unlikely to be in office for about three months. That signals a long period of limbo. 
 
Chinese Finance Minister Lou Jiwei said the vote &quot;will cast a shadow over the global economy&quot;. 
 
&quot;It&#39;s difficult to predict now,&quot; he said at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. &quot;The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view.&quot; 
 
Japan likewise fretted over the effect on the global currency market and contemplated official action. &quot;Speculative, violent moves have extremely negative effects,&quot; said Tomomi Inada, policy chief of the ruling LDP party. &quot;If necessary, the government should not hesitate to respond, including currency intervention,&quot; Nikkei daily quoted him as saying. 
 
Prime Minister Shinzo Abe has tried to engineer a weaker Yen to encourage exports to help revive the Japanese economy. But after initial success, investors have sought safety in the Yen this year due to stock market turmoil and now the Brexit vote, pushing the currency back up. 
 
No respite 
 
South Korea&#39;s finance minister also said he feared international markets will remain volatile throughout negotiations on the British exit. 
 
The United States, which during campaigning made clear it wanted Britain to stay in the EU, also showed signs of unease. 
 
Secretary of state John Kerry will meet EU foreign policy chief Frederica Mogherini in Brussels and British Foreign Minister Philip Hammond in London on Monday. 
 
The visit is largely meant to offer symbolic reassurance at a critical juncture for Europe, but a senior US official said Kerry would also stress the importance of other members not following Britain&#39;s lead and further weakening the EU. 
 
Despite the international expressions of concern, respite from the uncertainty is unlikely for months, at the very least. 
 
Cameron has offered to stay on as a caretaker, but he has refused to invoke Article 50 of the EU&#39;s Lisbon Treaty, which allows for two years of exit negotiations. Instead he left that job to his successor, who is due to be elected by his Conservative Party sometime before its annual conference in October. 
 
Only after the new leader has invoked can work on thrashing out Britain&#39;s new relationship with the bloc begin. The man widely tipped as the next prime minister is former London mayor Boris Johnson, the most prominent member of the campaign to leave the EU. 
 
No lying down 
 
Signs are growing that not all the 16 million Britons who voted to stay in the EU are willing to take the result lying down. Many flocked to back an online petition demanding a second vote, with signatures exceeding three million today morning, more than double the figure the previous afternoon. 
 
The petition, posted on Parliament&#39;s website before the referendum, said there should be another vote if the outcome was close on a turnout of less than 75 per cent - three points above Thursday&#39;s figure. 
 
It will have to be considered for debate by lawmakers, but has no legal force and its backers compare with the 17.4 million who voted &quot;leave&quot;. 
 
The referendum has also re-energised support for Scotland, which voted overwhelmingly to remain in the EU, to break away from the United Kingdom instead. 
 
An opinion poll in The Sunday Post said 59 per cent of respondents backed independence, rocketing from 45 per cent of votes cast in a referendum in 2014. 
 
Scottish first minister Nicola Sturgeon has said a fresh independence referendum is possible 
 
&quot;My challenge now as first minister is to work out how I best protect Scotland&#39;s interests, how I try to prevent us being taken out of the EU against our will with all of the deeply damaging and painful consequences that that will entail,&quot; she told the BBC&#39;s Andrew Marr show.&nbsp; 
 
(Reuters)

The 52-48% referendum vote marked the biggest blow since World War II to the European project forging unity across the continent

Turmoil unleashed by Britain's vote to leave the EU engulfed the opposition Labour Party, while policymakers as far away as China, Japan and South Korea fretted today over the threat to global financial stability, hours before markets reopen. In the oldest parliamentary democracy, three million Britons have signed a petition calling for a re-run of Thursday's referendum that split the nation, and one opinion poll showed a strong majority of Scots now want to break with the United Kingdom rather than with the European Union. Labour's left-wing leader Jeremy Corbyn sacked his foreign policy chief as the party plunged into open conflict. His health chief responded by resigning, calling for a new leader and reflecting accusations among pro-EU lawmakers that Corbyn's failure to win over traditional Labour voters had played a major role in the referendum result. Sacked foreign affairs spokesman Hilary Benn also called for Corbyn, who was elected last year largely by Left-wing party members and supporters, to go. "He is a good and decent man but he is not a leader," Benn told BBC television. The 52-48 per cent referendum vote marked the biggest blow since World War II to the European project of forging greater unity across the continent. Sterling fell as much as 10 per cent against the Dollar on Friday to levels last seen in 1985, while world stocks saw more than $2 trillion wiped off their value. The weekend gave some respite from the turmoil, but with markets opening shortly in Asia, anxiety is growing. Prime Minister David Cameron resigned on Friday after Britons ignored his passionate appeals to stay in the EU, but left formally notifying Brussels of Britain's exit to his successor, who is unlikely to be in office for about three months. That signals a long period of limbo. Chinese Finance Minister Lou Jiwei said the vote "will cast a shadow over the global economy". "It's difficult to predict now," he said at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. "The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view." Japan likewise fretted over the effect on the global currency market and contemplated official action. "Speculative, violent moves have extremely negative effects," said Tomomi Inada, policy chief of the ruling LDP party. "If necessary, the government should not hesitate to respond, including currency intervention," Nikkei daily quoted him as saying. Prime Minister Shinzo Abe has tried to engineer a weaker Yen to encourage exports to help revive the Japanese economy. But after initial success, investors have sought safety in the Yen this year due to stock market turmoil and now the Brexit vote, pushing the currency back up. No respite South Korea's finance minister also said he feared international markets will remain volatile throughout negotiations on the British exit. The United States, which during campaigning made clear it wanted Britain to stay in the EU, also showed signs of unease. Secretary of state John Kerry will meet EU foreign policy chief Frederica Mogherini in Brussels and British Foreign Minister Philip Hammond in London on Monday. The visit is largely meant to offer symbolic reassurance at a critical juncture for Europe, but a senior US official said Kerry would also stress the importance of other members not following Britain's lead and further weakening the EU. Despite the international expressions of concern, respite from the uncertainty is unlikely for months, at the very least. Cameron has offered to stay on as a caretaker, but he has refused to invoke Article 50 of the EU's Lisbon Treaty, which allows for two years of exit negotiations. Instead he left that job to his successor, who is due to be elected by his Conservative Party sometime before its annual conference in October. Only after the new leader has invoked can work on thrashing out Britain's new relationship with the bloc begin. The man widely tipped as the next prime minister is former London mayor Boris Johnson, the most prominent member of the campaign to leave the EU. No lying down Signs are growing that not all the 16 million Britons who voted to stay in the EU are willing to take the result lying down. Many flocked to back an online petition demanding a second vote, with signatures exceeding three million today morning, more than double the figure the previous afternoon. The petition, posted on Parliament's website before the referendum, said there should be another vote if the outcome was close on a turnout of less than 75 per cent - three points above Thursday's figure. It will have to be considered for debate by lawmakers, but has no legal force and its backers compare with the 17.4 million who voted "leave". The referendum has also re-energised support for Scotland, which voted overwhelmingly to remain in the EU, to break away from the United Kingdom instead. An opinion poll in The Sunday Post said 59 per cent of respondents backed independence, rocketing from 45 per cent of votes cast in a referendum in 2014. Scottish first minister Nicola Sturgeon has said a fresh independence referendum is possible "My challenge now as first minister is to work out how I best protect Scotland's interests, how I try to prevent us being taken out of the EU against our will with all of the deeply damaging and painful consequences that that will entail," she told the BBC's Andrew Marr show. (Reuters)

British EU exit turmoil alarms Asia, rocks Labour opposition

&nbsp;Tens of thousands of people took to the streets of London today for an annual parade celebrating gay and transgender rights, with many expressing concerns as Britain gears up to part ways with the European Union after Thursday&#39;s referendum. 
 
One of the attendees, Andrew Bailey, said that even though the EU&#39;s human rights charter is incorporated into British laws he was worried that a great deal could now change. 
 
&quot;We are really worried about the future here. We have rights, we have a great celebration here and we have the apparent solidarity of this government. We need to have the EU support as well,&quot; he said. 
 
Another attendee, Sue Underwood, was more optimistic. 
 
&quot;I think I am looking at a positive outcome ... It is just going to be a hard few years I think but I am hoping it will be good at the end of it,&quot; she said. 
 
Britain is under pressure to set out a quick timetable for a divorce from the European Union, with European Commission President Jean-Claude Juncker saying he wanted to begin negotiating immediately. 
 
London&#39;s 43rd Pride Festival also saw some attending to show solidarity with the Lesbian, Gay, Bisexual, Transgender&nbsp;(LGBT) community in Orlando, Florida, where a gunman killed 49 in a gay nightclub on June 12, the deadliest mass shooting in modern US history. 
 
(Reuters)

Many are worried that things might change now that Britain is parting ways with the European Union

Tens of thousands of people took to the streets of London today for an annual parade celebrating gay and transgender rights, with many expressing concerns as Britain gears up to part ways with the European Union after Thursday's referendum. One of the attendees, Andrew Bailey, said that even though the EU's human rights charter is incorporated into British laws he was worried that a great deal could now change. "We are really worried about the future here. We have rights, we have a great celebration here and we have the apparent solidarity of this government. We need to have the EU support as well," he said. Another attendee, Sue Underwood, was more optimistic. "I think I am looking at a positive outcome ... It is just going to be a hard few years I think but I am hoping it will be good at the end of it," she said. Britain is under pressure to set out a quick timetable for a divorce from the European Union, with European Commission President Jean-Claude Juncker saying he wanted to begin negotiating immediately. London's 43rd Pride Festival also saw some attending to show solidarity with the Lesbian, Gay, Bisexual, Transgender (LGBT) community in Orlando, Florida, where a gunman killed 49 in a gay nightclub on June 12, the deadliest mass shooting in modern US history. (Reuters)

Thousands take to London's streets for annual gay pride parade

The European Union&#39;s founding states said Saturday they want Britain to begin leaving the union &quot;as soon as possible&quot; as France urged a new British Prime Minister to take office quickly. 
 
German Foreign Minister Frank-Walter Steinmeier, hosting the six original states of the European Union in Berlin, said they were in agreement that London must not wait to start the complex procedure of extracting itself from the bloc. 
 
&quot;We join together in saying that this process must begin as soon as possible so we don&#39;t end up in an extended limbo period, but rather can focus on the future of Europe and the work toward it.&quot; 
 
His French counterpart Jean-Marc Ayrault said it was urgent David Cameron, who on Friday said he would resign by October, clear the way for new leadership to manage the transition out of the union. 
 
&quot;A new prime minister must be designated, that will take a few days,&quot; he told reporters at the crisis talks after Britain&#39;s shock referendum to quit the EU. 
 
In announcing his resignation, Cameron said it should be his successor who leads the negotiations under Article 50 of the EU&#39;s Lisbon Treaty which sets out a two-year timeframe to leave. 
 
However, Steinmeier, Ayrault, the Netherlands&#39; Bert Koenders, Italy&#39;s Paolo Gentiloni, Belgium&#39;s Didier Reynders and Luxemburg&#39;s Jean Asselborn stressed in the German capital that time was of the essence. 
 
&quot;We understand and respect the result (of the referendum) and understand that Britain is now concentrating on Britain&quot;, Steinmeier said, flanked by the other ministers. 
 
&quot;But London has a responsibility toward more than just Britain. We must now be allowed to focus on the future of Europe and that means that after the decision taken in Britain, the process by which we negotiate Britain&#39;s exit must begin.&quot; 
 
(AFP)

European leaders insist Britain begin exit process quickly to avoid 'extended limbo period'

The European Union's founding states said Saturday they want Britain to begin leaving the union "as soon as possible" as France urged a new British Prime Minister to take office quickly. German Foreign Minister Frank-Walter Steinmeier, hosting the six original states of the European Union in Berlin, said they were in agreement that London must not wait to start the complex procedure of extracting itself from the bloc. "We join together in saying that this process must begin as soon as possible so we don't end up in an extended limbo period, but rather can focus on the future of Europe and the work toward it." His French counterpart Jean-Marc Ayrault said it was urgent David Cameron, who on Friday said he would resign by October, clear the way for new leadership to manage the transition out of the union. "A new prime minister must be designated, that will take a few days," he told reporters at the crisis talks after Britain's shock referendum to quit the EU. In announcing his resignation, Cameron said it should be his successor who leads the negotiations under Article 50 of the EU's Lisbon Treaty which sets out a two-year timeframe to leave. However, Steinmeier, Ayrault, the Netherlands' Bert Koenders, Italy's Paolo Gentiloni, Belgium's Didier Reynders and Luxemburg's Jean Asselborn stressed in the German capital that time was of the essence. "We understand and respect the result (of the referendum) and understand that Britain is now concentrating on Britain", Steinmeier said, flanked by the other ministers. "But London has a responsibility toward more than just Britain. We must now be allowed to focus on the future of Europe and that means that after the decision taken in Britain, the process by which we negotiate Britain's exit must begin." (AFP)

EU founding states urge Britain to begin leaving 'as soon as possible'

Talks on Britain leaving the European Union must be carried out quickly to limit uncertainty, ECB Governing Council member Francois Villeroy de Galhau said today, adding London&#39;s financial centre was at risk of losing its prized &quot;EU passport&quot;. 
 
Banks based in London rely on a so-called EU passport to operate across the bloc&#39;s capital market unhindered. Some banks have said they would shift operations to the euro zone if Britain left the EU. 
 
The City of London will not be able to keep that passport if Britain leaves the EU&#39;s single market of trade in goods and services, Villeroy told France Inter radio. 
 
&quot;There is a precedent, it is the Norwegian model of European Economic Area, that would allow Britain to keep access to the single market but by committing to implement all EU rules,&quot; he said. 
 
&quot;It would be a bit paradoxical to leave the EU and apply all EU rules, but that is one solution if Britain wants to keep access to the single market.&quot; 
 
Central banks are efficiently dealing with the fallout of Thursday&#39;s UK vote to leave the EU, said Villeroy, who is also governor of the French central bank, adding: &quot;The euro is a solid currency.&quot; 
 
&quot;What happened on Thursday is bad news, first of all for Britain,&quot; he said. &quot;Of course there will be negative consequences for the European economy but there will be much more limited than the negative consequences all experts forecast for the UK economy.&quot; 
 
Brexit does not put the French economy at any risk of contracting in the next quarters, he said, confirming past growth forecasts of at least 1.4 per cent for 2016. 
 
(Reuters)

Some London-based banks have said they would shift operations to the euro zone if Britain left the EU

Talks on Britain leaving the European Union must be carried out quickly to limit uncertainty, ECB Governing Council member Francois Villeroy de Galhau said today, adding London's financial centre was at risk of losing its prized "EU passport". Banks based in London rely on a so-called EU passport to operate across the bloc's capital market unhindered. Some banks have said they would shift operations to the euro zone if Britain left the EU. The City of London will not be able to keep that passport if Britain leaves the EU's single market of trade in goods and services, Villeroy told France Inter radio. "There is a precedent, it is the Norwegian model of European Economic Area, that would allow Britain to keep access to the single market but by committing to implement all EU rules," he said. "It would be a bit paradoxical to leave the EU and apply all EU rules, but that is one solution if Britain wants to keep access to the single market." Central banks are efficiently dealing with the fallout of Thursday's UK vote to leave the EU, said Villeroy, who is also governor of the French central bank, adding: "The euro is a solid currency." "What happened on Thursday is bad news, first of all for Britain," he said. "Of course there will be negative consequences for the European economy but there will be much more limited than the negative consequences all experts forecast for the UK economy." Brexit does not put the French economy at any risk of contracting in the next quarters, he said, confirming past growth forecasts of at least 1.4 per cent for 2016. (Reuters)

ECB's Villeroy: Brexit talks must be quick, City of London at risk of losing 'EU passport'

The S&amp;P 500 turned negative for the year-to-date on Friday as Wall Street suffered its largest selloff in 10 months after Britain&#39;s decision to leave the European Union caught traders wrong-footed. 
 
In the busiest trading volume for a single session in nearly five years, financial stocks led the decline on the S&amp;P 500 with a 5.4 per cent drop - the largest for the sector since November 2011. 
 
The S&amp;P 500 lost all the year&#39;s gains and suffered its largest decline since late August last year. 
 
Equity futures neared an 11-month high to start the overnight session as markets wrongly bet that the &quot;Remain&quot; camp would prevail in Britain&#39;s referendum, but sold off sharply as the results showed otherwise - even triggering a market stop put in place to curtail volatility. 
 
The decline during regular market hours seemed more orderly, and the S&amp;P managed to close in the area of what analysts called significant technical support, near 2,040. 
 
Still, many expect the next weeks to remain volatile. 
 
The CBOE Volatility index ended up 49 percent at 25.76, its highest level since Feb. 11 - when equities hit their lows of the year. 
 
&quot;The market has really not fully digested the second-order impacts of this,&quot; said Stephen Auth, chief investment officer at Federated Investors in New York. 
 
&quot;We are keeping our clients in dividend stocks and on a defensive strategy,&quot; he said. &quot;That&#39;s the story until we reach better risk-reward levels,&quot; which Auth said could be near the S&amp;P 500&#39;s February low near 1,830. 
 
High-dividend-paying utilities were the only S&amp;P 500 sector to end the day in the black, with a meagre 0.09 percent gain. 
 
The Dow Jones industrial average fell 611.21 points, or 3.39 percent, to 17,399.86, the S&amp;P 500 lost 76.02 points, or 3.6 percent, to 2,037.3, and the Nasdaq Composite dropped 202.06 points, or 4.12 percent, to 4,707.98. 
 
Many market participants, however, saw the broad-based decline as an opportunity for investors on the sidelines to gradually increase their stock holdings. 
 
&quot;What I see going to happen is the Federal Reserve will not raise rates in 2016, that is off the table and a market positive,&quot; said Doug Cote, chief market strategist at Voya Investment Management in New York. 
 
&quot;If you have cash on the sidelines it could be a buying opportunity but I wouldn&#39;t be changing (bonds-stocks) allocations right now,&quot; he said, adding he expects other major central bank&#39;s policies to also give the market support. 
 
The weekly declines in the S&amp;P 500 and Dow industrials, both off 1.6 percent, were the largest since February, and the Nasdaq&#39;s 1.9 percent drop was marginally lower than the previous week&#39;s. 
 
The relatively less severe weekly decline points to an unravelling of trades put in place after polls last weekend showed increasing momentum for the &quot;Remain&quot; camp in the British referendum. 
 
Traders were closely following moves in currencies, calling them the contagion mechanism between markets. The pound tumbled to near $1.32, its lowest level since 1985, before bouncing back to a loss of 8 percent at $1.3678. 
 
The decline came on fears the Britons&#39; decision to leave the EU could hurt investment and usher in many months of both political and economic uncertainty. 
 
&quot;Expect weaker investment and thereby slower economic growth to persist during the 2-3 year negotiations to leave the European Union,&quot; Deutsche Bank economists said in a Friday note. 
 
Volume in U.S. exchanges hit 15.3 billion as the trade-heavy reconstitution of the Russell indexes crossed at the market close. It was the highest volume since August 2011 according to Bats Global Markets and compares with the daily average of 6.8 billion over the last 20 trading sessions. 
 
Declining issues outnumbered advancing ones on the NYSE by a 5.47-to-1 ratio, and on the Nasdaq, a 5.20-to-1 ratio favoured decliners. 
 
The S&amp;P 500 posted 28 new 52-week highs and 12 new lows; the Nasdaq recorded 33 new highs and 107 new lows. 
 
(Reuters) 
&nbsp;

Financial stocks led the decline on the S&P 500 with a 5.4 per cent drop, the largest for the sector since November 2011

The S&P 500 turned negative for the year-to-date on Friday as Wall Street suffered its largest selloff in 10 months after Britain's decision to leave the European Union caught traders wrong-footed. In the busiest trading volume for a single session in nearly five years, financial stocks led the decline on the S&P 500 with a 5.4 per cent drop - the largest for the sector since November 2011. The S&P 500 lost all the year's gains and suffered its largest decline since late August last year. Equity futures neared an 11-month high to start the overnight session as markets wrongly bet that the "Remain" camp would prevail in Britain's referendum, but sold off sharply as the results showed otherwise - even triggering a market stop put in place to curtail volatility. The decline during regular market hours seemed more orderly, and the S&P managed to close in the area of what analysts called significant technical support, near 2,040. Still, many expect the next weeks to remain volatile. The CBOE Volatility index ended up 49 percent at 25.76, its highest level since Feb. 11 - when equities hit their lows of the year. "The market has really not fully digested the second-order impacts of this," said Stephen Auth, chief investment officer at Federated Investors in New York. "We are keeping our clients in dividend stocks and on a defensive strategy," he said. "That's the story until we reach better risk-reward levels," which Auth said could be near the S&P 500's February low near 1,830. High-dividend-paying utilities were the only S&P 500 sector to end the day in the black, with a meagre 0.09 percent gain. The Dow Jones industrial average fell 611.21 points, or 3.39 percent, to 17,399.86, the S&P 500 lost 76.02 points, or 3.6 percent, to 2,037.3, and the Nasdaq Composite dropped 202.06 points, or 4.12 percent, to 4,707.98. Many market participants, however, saw the broad-based decline as an opportunity for investors on the sidelines to gradually increase their stock holdings. "What I see going to happen is the Federal Reserve will not raise rates in 2016, that is off the table and a market positive," said Doug Cote, chief market strategist at Voya Investment Management in New York. "If you have cash on the sidelines it could be a buying opportunity but I wouldn't be changing (bonds-stocks) allocations right now," he said, adding he expects other major central bank's policies to also give the market support. The weekly declines in the S&P 500 and Dow industrials, both off 1.6 percent, were the largest since February, and the Nasdaq's 1.9 percent drop was marginally lower than the previous week's. The relatively less severe weekly decline points to an unravelling of trades put in place after polls last weekend showed increasing momentum for the "Remain" camp in the British referendum. Traders were closely following moves in currencies, calling them the contagion mechanism between markets. The pound tumbled to near $1.32, its lowest level since 1985, before bouncing back to a loss of 8 percent at $1.3678. The decline came on fears the Britons' decision to leave the EU could hurt investment and usher in many months of both political and economic uncertainty. "Expect weaker investment and thereby slower economic growth to persist during the 2-3 year negotiations to leave the European Union," Deutsche Bank economists said in a Friday note. Volume in U.S. exchanges hit 15.3 billion as the trade-heavy reconstitution of the Russell indexes crossed at the market close. It was the highest volume since August 2011 according to Bats Global Markets and compares with the daily average of 6.8 billion over the last 20 trading sessions. Declining issues outnumbered advancing ones on the NYSE by a 5.47-to-1 ratio, and on the Nasdaq, a 5.20-to-1 ratio favoured decliners. The S&P 500 posted 28 new 52-week highs and 12 new lows; the Nasdaq recorded 33 new highs and 107 new lows. (Reuters)

Largest selloff in 10 months on Wall Street after Brexit

Moody&#39;s Investors Service cut Britain&#39;s credit rating outlook to &quot;negative&quot; on Friday, saying the vote to pull out of the European Union could hurt its economic prospects. 
 
While retaining the country&#39;s overall rating at a high &quot;Aa1&quot;, Moody&#39;s said after the Brexit vote that it expects the country&#39;s growth to slow, economic policy-making to suffer and the country&#39;s finances to weaken while it struggles through the details of the breakup. 
 
&quot;During the several years in which the UK will have to renegotiate its trade relations with the EU, Moody&#39;s expects heightened uncertainty, diminished confidence and lower spending and investment to result in weaker growth,&quot; it said. 
 
&quot;Over the longer term, should the UK not be able to secure a favorable alternative trade arrangement with the EU and other countries, the UK&#39;s growth prospects would be materially weaker than currently expected.&quot; 
 
During the talks with the European Union on how to structure future political, economic and trade relations, Moody&#39;s believes that many investment and spending decisions in the country will be put on hold. 
 
Much depends on the future trade relationship between Britain and the EU. Currently trade is completely open between the two. 
 
Moody&#39;s also said that the change in government that will come with the resignation of Prime Minister David Cameron will create uncertainty over the country&#39;s financial discipline. 
 
It said that Britain&#39;s savings from not having to contribute to the EU budget will not compensate for the negative effects of lower growth. 
 
(AFP)

Country's overall rating stays at a high 'Aa1'

Moody's Investors Service cut Britain's credit rating outlook to "negative" on Friday, saying the vote to pull out of the European Union could hurt its economic prospects. While retaining the country's overall rating at a high "Aa1", Moody's said after the Brexit vote that it expects the country's growth to slow, economic policy-making to suffer and the country's finances to weaken while it struggles through the details of the breakup. "During the several years in which the UK will have to renegotiate its trade relations with the EU, Moody's expects heightened uncertainty, diminished confidence and lower spending and investment to result in weaker growth," it said. "Over the longer term, should the UK not be able to secure a favorable alternative trade arrangement with the EU and other countries, the UK's growth prospects would be materially weaker than currently expected." During the talks with the European Union on how to structure future political, economic and trade relations, Moody's believes that many investment and spending decisions in the country will be put on hold. Much depends on the future trade relationship between Britain and the EU. Currently trade is completely open between the two. Moody's also said that the change in government that will come with the resignation of Prime Minister David Cameron will create uncertainty over the country's financial discipline. It said that Britain's savings from not having to contribute to the EU budget will not compensate for the negative effects of lower growth. (AFP)

Britain's credit rating outlook cut to 'negative'

Just days after voting to leave the European Union, more than 1.5 million Britons and UK residents had signed a petition calling for a second vote, forcing lawmakers to at least consider a debate on the issue. 
 
The petition on the British parliament website was posted before the June 23 referendum, saying the government should hold another plebiscite on EU membership if the support for Leave or Remain in a referendum is less than 60 per cent based on a turnout of under 75 per cent of electors. 
 
The result on Thursday saw 52 per cent of voters back a British exit on a turnout of 72 per cent of eligible voters. 
 
Since then, the petition -- which only British citizens or UK residents have the right to sign -- was proving so popular that by 1417 GMT today, 1,580,220 people had signed it with the number rising quickly. 
 
It appeared to be rising at a rate of around 1,000 signatures a minute at one point. 
 
Most of those who signed were based in areas where support for staying in the EU was strongest such as London, the website indicated. 
 
Parliament has to consider a debate on any petition which attracts more than 100,000 signatures. 
 
Prime Minister David Cameron, who said on Friday he would resign after leading the failed campaign to keep Britain in the EU, has previously said there would be no second referendum. 
 
(Reuters)

The British Parliament has to consider a debate on any petition which attracts more than 100,000 signatures

Just days after voting to leave the European Union, more than 1.5 million Britons and UK residents had signed a petition calling for a second vote, forcing lawmakers to at least consider a debate on the issue. The petition on the British parliament website was posted before the June 23 referendum, saying the government should hold another plebiscite on EU membership if the support for Leave or Remain in a referendum is less than 60 per cent based on a turnout of under 75 per cent of electors. The result on Thursday saw 52 per cent of voters back a British exit on a turnout of 72 per cent of eligible voters. Since then, the petition -- which only British citizens or UK residents have the right to sign -- was proving so popular that by 1417 GMT today, 1,580,220 people had signed it with the number rising quickly. It appeared to be rising at a rate of around 1,000 signatures a minute at one point. Most of those who signed were based in areas where support for staying in the EU was strongest such as London, the website indicated. Parliament has to consider a debate on any petition which attracts more than 100,000 signatures. Prime Minister David Cameron, who said on Friday he would resign after leading the failed campaign to keep Britain in the EU, has previously said there would be no second referendum. (Reuters)

More than 1.5 million and rising sign UK petition for new EU referendum

Game of Thrones, the hit HBO cable TV series that is partly filmed in Northern Ireland, will not suffer due to Britain&#39;s decision to leave the European Union, the cable network said on Friday, aiming to quash speculation that the lavishly produced show would lose EU funding. 
 
Britons voted on Thursday to leave the European Union, a decision that economists and government leaders say clouds growth prospects for the world&#39;s fifth-largest economy and could dim its attraction for investors. 
 
The result could also discourage Hollywood studios and cable networks to film shows and movies in Britain, in part because the country would no longer have access to European subsidies. 
 
The series received support from the EU&#39;s European Regional Development Fund in its early years, HBO confirmed, but the fund has provided no support for the past few seasons. 
 
&quot;We do not anticipate that the result of the EU referendum will have any material effect on HBO producing Game of Thrones,&quot; the network, a unit of Time Warner Inc, said in a statement. 
 
As results from Britain&#39;s historic referendum came in overnight, speculation spread online that the decision would hurt HBO&#39;s most-watched series, which had as many as 20 million viewers per episode last season. 
 
The show continues to receive funding from the UK, including from Northern Ireland Screen (NIS), which provides government support for local businesses. 
 
NIS issued a statement on Friday saying the organisation &quot;does not use monies provided from European-funded programmes.&quot; 
 
A majority of voters in Northern Ireland, one of four &quot;nations&quot; that comprise the United Kingdom, cast ballots for remaining in the EU. 
 
The Emmy-winning Game of Thrones, based on George R. R. Martin&#39;s A Song of Ice and Fire books, tells the epic fantasy tale of a multi-generational struggle for control of the Iron Throne and rule over the Seven Kingdoms. 
 
The show, now in its sixth season, has a budget of $10 million per episode, according to Entertainment Weekly. 
 
(Reuters)

Northern Island Screen, which funds the show, said that the organisation does 'not use monies provided from European-funded programmes'

Game of Thrones, the hit HBO cable TV series that is partly filmed in Northern Ireland, will not suffer due to Britain's decision to leave the European Union, the cable network said on Friday, aiming to quash speculation that the lavishly produced show would lose EU funding. Britons voted on Thursday to leave the European Union, a decision that economists and government leaders say clouds growth prospects for the world's fifth-largest economy and could dim its attraction for investors. The result could also discourage Hollywood studios and cable networks to film shows and movies in Britain, in part because the country would no longer have access to European subsidies. The series received support from the EU's European Regional Development Fund in its early years, HBO confirmed, but the fund has provided no support for the past few seasons. "We do not anticipate that the result of the EU referendum will have any material effect on HBO producing Game of Thrones," the network, a unit of Time Warner Inc, said in a statement. As results from Britain's historic referendum came in overnight, speculation spread online that the decision would hurt HBO's most-watched series, which had as many as 20 million viewers per episode last season. The show continues to receive funding from the UK, including from Northern Ireland Screen (NIS), which provides government support for local businesses. NIS issued a statement on Friday saying the organisation "does not use monies provided from European-funded programmes." A majority of voters in Northern Ireland, one of four "nations" that comprise the United Kingdom, cast ballots for remaining in the EU. The Emmy-winning Game of Thrones, based on George R. R. Martin's A Song of Ice and Fire books, tells the epic fantasy tale of a multi-generational struggle for control of the Iron Throne and rule over the Seven Kingdoms. The show, now in its sixth season, has a budget of $10 million per episode, according to Entertainment Weekly. (Reuters)

Season 7 is coming, HBO says Brexit won't affect 'Game of Thrones' production

With early returns indicating a close result and prompting big swings in the value of sterling, oil prices fell after voting ended in a UK referendum on whether to stay in the European Union (EU). 
 
While U.S. crude was down 35 cents at $49.76 a barrel at 0001 GMT; Brent crude was down 27 cents at $50.64 a barrel.&nbsp; 
On Thursday, both contracts rose sharply, rallying on optimism the Britons would vote to stay in Europe. 
 
Pertinently, the first few official results on Friday put the &#39;Brexit&#39; campaign ahead, although opinion polls suggest that the vote will end in a victory for the &#39;remain&#39; campaign.&nbsp; 
 
Also, with results in from the first five of 382 voting districts, those in favour of ending Britain&#39;s 43-year membership had a small lead, but it was too early to discern a reliable trend. 
 
Sterling slumped to $1.4475, having earlier hit a high for the year at $1.5022. The euro turned tail to hit $1.1324 and the yen recouped early losses to stand at 104.96 per dollar. 
 
(Reuters)&nbsp;

Albeit, opinion polls have suggested that the vote will end in a victory for the 'remain' campaign

With early returns indicating a close result and prompting big swings in the value of sterling, oil prices fell after voting ended in a UK referendum on whether to stay in the European Union (EU). While U.S. crude was down 35 cents at $49.76 a barrel at 0001 GMT; Brent crude was down 27 cents at $50.64 a barrel. On Thursday, both contracts rose sharply, rallying on optimism the Britons would vote to stay in Europe. Pertinently, the first few official results on Friday put the 'Brexit' campaign ahead, although opinion polls suggest that the vote will end in a victory for the 'remain' campaign. Also, with results in from the first five of 382 voting districts, those in favour of ending Britain's 43-year membership had a small lead, but it was too early to discern a reliable trend. Sterling slumped to $1.4475, having earlier hit a high for the year at $1.5022. The euro turned tail to hit $1.1324 and the yen recouped early losses to stand at 104.96 per dollar. (Reuters)

Oil prices fall after as first few results put 'Brexit' ahead

Oil prices slumped by more than six per cent on Friday after Britain voted to leave the European Union, raising fears of a broader economic slowdown that could reduce demand for oil. 
 
Financial markets have been worried for months about what Brexit, or a British exit from the European Union, would mean for Europe&#39;s future, but were clearly not fully factoring in the risk of a leave vote. 
 
British Prime Minister David Cameron, who campaigned to remain in the EU, said he would stand down by October. 
 
Brent crude was down $1.90 at $49.01 a barrel. US crude was down $1.90 at $48.21 a barrel. 
 
Earlier in the day, both contracts were down by more than $3, or over six per cent, the biggest intra-day declines for both since April 18, when a meeting of top global oil producers failed to agree on an output freeze. 
 
Sterling sank 10 per cent in value to its weakest since the mid-1980s. The FTSE 100 fell more than eight per cent at the open, with banks among the hardest hit. 
 
&quot;In the interim, it&#39;s down for everything from equities to oil. Bad economies in the UK and Europe are not good for oil and there could be a domino effect on other economies in Asia,&quot; said IHS oil analyst Victor Shum. 
 
Some analysts said oil could face further downward pressure. 
 
&quot;Our view is that we have not yet seen the low oil price of the day with Brent likely to trade down towards $45 or lower before we have seen the worst of it,&quot; Bjarne Schieldrop, chief commodity analyst at SEB, said in note to clients. 
 
The vote to break with Europe is set to usher in deep uncertainty over trade and investment and fuel the rise of anti-EU movements across the continent. 
 
&quot;Today, it&#39;s all about sentiment and everybody looking at each and saying &#39;what&#39;s next?&#39;&quot; said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam. 
 
&quot;It will be interesting how we trade next week, because then the first impact is behind us and at some point the market should return to look at fundamentals again,&quot; Cleef added. 
 
Analysts have said that once the market refocuses on fundamentals, oil was likely to fall, given abundant stocks around the world are shrinking very slowly despite large production outages in countries like Nigeria. 
 
(Reuters)

Brent crude was down $1.90 a barrel while US crude was down $1.90 a barrel

Oil prices slumped by more than six per cent on Friday after Britain voted to leave the European Union, raising fears of a broader economic slowdown that could reduce demand for oil. Financial markets have been worried for months about what Brexit, or a British exit from the European Union, would mean for Europe's future, but were clearly not fully factoring in the risk of a leave vote. British Prime Minister David Cameron, who campaigned to remain in the EU, said he would stand down by October. Brent crude was down $1.90 at $49.01 a barrel. US crude was down $1.90 at $48.21 a barrel. Earlier in the day, both contracts were down by more than $3, or over six per cent, the biggest intra-day declines for both since April 18, when a meeting of top global oil producers failed to agree on an output freeze. Sterling sank 10 per cent in value to its weakest since the mid-1980s. The FTSE 100 fell more than eight per cent at the open, with banks among the hardest hit. "In the interim, it's down for everything from equities to oil. Bad economies in the UK and Europe are not good for oil and there could be a domino effect on other economies in Asia," said IHS oil analyst Victor Shum. Some analysts said oil could face further downward pressure. "Our view is that we have not yet seen the low oil price of the day with Brent likely to trade down towards $45 or lower before we have seen the worst of it," Bjarne Schieldrop, chief commodity analyst at SEB, said in note to clients. The vote to break with Europe is set to usher in deep uncertainty over trade and investment and fuel the rise of anti-EU movements across the continent. "Today, it's all about sentiment and everybody looking at each and saying 'what's next?'" said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam. "It will be interesting how we trade next week, because then the first impact is behind us and at some point the market should return to look at fundamentals again," Cleef added. Analysts have said that once the market refocuses on fundamentals, oil was likely to fall, given abundant stocks around the world are shrinking very slowly despite large production outages in countries like Nigeria. (Reuters)

Oil prices dive after Britain votes to leave EU

Scotland sees its future in the European Union (EU) despite Britain&#39;s vote to leave, first minister Nicola Sturgeon said today, raising the spectre of a new Scottish independence vote and the possible dissolution of the United Kingdom. 
 
Scotland voted by a margin of 62 per cent to 38 per cent to remain in the EU in a referendum on Thursday that put it at odds with Britain as a whole, which voted 52-48 in favour of Leave. 
 
&quot;Scotland has delivered a strong, unequivocal vote to remain in the EU, and I welcome that endorsement of our European status,&quot; said Sturgeon, head of the Scottish National Party. 
 
Former first minister Alex Salmond explicitly said Scotland is now likely to push for a second independence referendum after the conditions spelled out in the SNP manifesto before re-election in May appeared to have been met. 
 
One key reason Scots rejected independence in a referendum almost three years ago was because independence meant leaving the EU too. After Thursday&#39;s vote, the question is whether some Scots who wavered but eventually voted to stick with the UK in 2014, may now prefer to join the secessionists. 
 
Splitting Scotland from the UK would end three centuries of shared history, upending another successful economic relationship shortly after the now-impending divorce between Britain and the EU. 
 
Most voters in Northern Ireland also voted to remain and Irish nationalist leaders there called for a poll on leaving the United Kingdom and uniting with Ireland. 
 
Calling a new Scottish vote would not be quick or simple and the SNP, marked by caution since Sturgeon took over as leader, would want to first ensure a new vote could be won. 
 
Where the last Scottish independence campaign fell down is considered to be the economic argument; a new Scotland was then projected to stick with its old currency, the pound, and was underpinned by an oil price then over $100 but which is now roughly a half of that level. 
 
Sturgeon would have to build a robust economic independence strategy to convince those emotionally persuaded in 2014 but not economically so. 
 
She would also have to make sure that the maelstrom around Britain&#39;s EU exit does not sweep away some of the support the SNP currently has. 
 
There are other big factors hindering a divorce. One may fear that a lightweight EU, without Britain, is a less attractive partner for Scotland, which sends two thirds of its output to the rest of the UK. 
 
Another rests on concerns about what a border between England and Scotland would do to both security and the economy. 
 
&quot;It could be that in the panic that ensues after a British exit, some people might want to stick with what we still have,&rdquo; said an SNP lawmaker speaking on condition of anonymity. 
 
Polls do not indicate that support for secession has changed much since 2014, but there are several other factors, beyond leaving the EU, which mean that could change. 
 
The biggest is Sturgeon herself, a skilled politician, highly rated by both political friends and foes. 
 
With approval ratings of 60 percent among Scots according to pollster Yougov, she is a convincing messenger for independence which she told Reuters last week she &quot;desperately&quot; wants. 
 
Yet Sturgeon needed to play it cautiously for &quot;good reason,&quot; said Anand Menon of think tank UK in a Changing Europe. 
 
&quot;Nicola Sturgeon knows that if Scotland is independent and England is out of the EU, you have an external EU border between Scotland and England. An external border means the prospects of terrorists, its means the prospect of different regulations, and trade will be obstructed,&quot; Menon said. 
 
Many voters remain sceptical but acknowledge the departure of Britain from the EU shone a new light on the issue. 
 
&quot;The SNP will have to come back with a better argument for independence in a European context to convince me,&quot; said Catherine, a 41-year-old operations manager from Aberdeen. 
 
&quot;If they come back with some real proper facts and figures I would think about it. We&rsquo;re a small country, we definitely don&rsquo;t want to be on our own.&quot; 
 
(Reuters)

It voted 62 to 38% to remain, is now likely to push for a second independence referendum which could mean the dissolution of the UK

Scotland sees its future in the European Union (EU) despite Britain's vote to leave, first minister Nicola Sturgeon said today, raising the spectre of a new Scottish independence vote and the possible dissolution of the United Kingdom. Scotland voted by a margin of 62 per cent to 38 per cent to remain in the EU in a referendum on Thursday that put it at odds with Britain as a whole, which voted 52-48 in favour of Leave. "Scotland has delivered a strong, unequivocal vote to remain in the EU, and I welcome that endorsement of our European status," said Sturgeon, head of the Scottish National Party. Former first minister Alex Salmond explicitly said Scotland is now likely to push for a second independence referendum after the conditions spelled out in the SNP manifesto before re-election in May appeared to have been met. One key reason Scots rejected independence in a referendum almost three years ago was because independence meant leaving the EU too. After Thursday's vote, the question is whether some Scots who wavered but eventually voted to stick with the UK in 2014, may now prefer to join the secessionists. Splitting Scotland from the UK would end three centuries of shared history, upending another successful economic relationship shortly after the now-impending divorce between Britain and the EU. Most voters in Northern Ireland also voted to remain and Irish nationalist leaders there called for a poll on leaving the United Kingdom and uniting with Ireland. Calling a new Scottish vote would not be quick or simple and the SNP, marked by caution since Sturgeon took over as leader, would want to first ensure a new vote could be won. Where the last Scottish independence campaign fell down is considered to be the economic argument; a new Scotland was then projected to stick with its old currency, the pound, and was underpinned by an oil price then over $100 but which is now roughly a half of that level. Sturgeon would have to build a robust economic independence strategy to convince those emotionally persuaded in 2014 but not economically so. She would also have to make sure that the maelstrom around Britain's EU exit does not sweep away some of the support the SNP currently has. There are other big factors hindering a divorce. One may fear that a lightweight EU, without Britain, is a less attractive partner for Scotland, which sends two thirds of its output to the rest of the UK. Another rests on concerns about what a border between England and Scotland would do to both security and the economy. "It could be that in the panic that ensues after a British exit, some people might want to stick with what we still have,” said an SNP lawmaker speaking on condition of anonymity. Polls do not indicate that support for secession has changed much since 2014, but there are several other factors, beyond leaving the EU, which mean that could change. The biggest is Sturgeon herself, a skilled politician, highly rated by both political friends and foes. With approval ratings of 60 percent among Scots according to pollster Yougov, she is a convincing messenger for independence which she told Reuters last week she "desperately" wants. Yet Sturgeon needed to play it cautiously for "good reason," said Anand Menon of think tank UK in a Changing Europe. "Nicola Sturgeon knows that if Scotland is independent and England is out of the EU, you have an external EU border between Scotland and England. An external border means the prospects of terrorists, its means the prospect of different regulations, and trade will be obstructed," Menon said. Many voters remain sceptical but acknowledge the departure of Britain from the EU shone a new light on the issue. "The SNP will have to come back with a better argument for independence in a European context to convince me," said Catherine, a 41-year-old operations manager from Aberdeen. "If they come back with some real proper facts and figures I would think about it. We’re a small country, we definitely don’t want to be on our own." (Reuters)

Divided Kingdom? Scotland says its future lies in the EU

Executives at&nbsp;Asian&nbsp;automakers with factories in Britain, largely set up to export to the European Union, say they could slow investments in Britain or pause them for now, after the country voted to leave the 28-nation bloc.

Automakers, including Toyota &nbsp;and Nissan, had been among the manufacturers that have warned that a period of uncertainty would follow a Brexit vote, as trade and labour deals with Europe are renegotiated. Most on Friday estimated it could take around two years.

Toyota and Nissan had said in the run-up to the vote that continued membership of the European Union was preferable for their operations: a vote to leave would create new challenges for an industry that employs some 800,000 people in Britain.

&quot;We don&#39;t have any choice but to be more cautious with our investment decisions, including moves like whether to produce a new or significantly redesigned vehicle model in the UK,&quot; said one official at a global automaker with manufacturing capacity in Britain, speaking on condition of anonymity.

Tata Motors&#39; Jaguar Land Rover is Britain&#39;s largest carmaker, followed by Nissan, which has been in Britain for three decades and makes 475,000 cars a year in the country, most of them for export inside the European Union and beyond.

Sunderland in northern England, where Nissan has its operations, was among the constituencies that surprised pundits by voting to leave. 
 
&quot;Big question for automakers, is what kind of trade deals with the EU would be negotiated. That is the big unknown,&quot; a second executive at a global automaker said.

&nbsp;

TARIFF-FREE EXPORTS

Exports from Britain to the European Union are free of tariffs and duties. Toyota has said duties under new trading deals could be as much as 10 per cent, hitting either prices or margins, and denting sales.

Toyota produced about 190,000 cars in Britain last year. Of that, 75 per cent went to the European Union. Only 10 per cent was shipped and sold within Britain.

South Korea&#39;s auto association said it was worried a departure could revive a 10-per cent tariff on exports of passenger vehicles to UK -- unless a separate deal is negotiated.

&nbsp;&quot;This could inevitably undermine the price competitiveness of South Korean automakers in UK, as opposed to Japanese and German rivals which have production bases there,&quot; said Kim Tae-nyen, vice president at the Korea Automobile Manufacturers Association (KAMA).

Aside from Toyota, Tata and Nissan, others manufacturing in Britain include BMW, GM and Honda.

Honda produces around 140,000 vehicles per year, including the CR-V crossover SUV and Civic sedan at its plant in Swindon. Half of its production is exported to the EU.

Some industry officials have said the exit even raises the prospects of those automakers moving Britain-based manufacturing capacity elsewhere in the EU bloc.

For now, officials said efforts would turn to lobbying hard for better trade deals.

&quot;Obviously, trading deals to be worked out subsequently could be a worse situation than we have now, or better, or all the same. We don&rsquo;t know, and that&rsquo;s the problem,&quot; said the second executive.

(Reuters)

According to Toyota and Nissan, Britain's exit will create new challenges for the industry that employs 800,000 people in Britain

Executives at Asian automakers with factories in Britain, largely set up to export to the European Union, say they could slow investments in Britain or pause them for now, after the country voted to leave the 28-nation bloc. Automakers, including Toyota and Nissan, had been among the manufacturers that have warned that a period of uncertainty would follow a Brexit vote, as trade and labour deals with Europe are renegotiated. Most on Friday estimated it could take around two years. Toyota and Nissan had said in the run-up to the vote that continued membership of the European Union was preferable for their operations: a vote to leave would create new challenges for an industry that employs some 800,000 people in Britain. "We don't have any choice but to be more cautious with our investment decisions, including moves like whether to produce a new or significantly redesigned vehicle model in the UK," said one official at a global automaker with manufacturing capacity in Britain, speaking on condition of anonymity. Tata Motors' Jaguar Land Rover is Britain's largest carmaker, followed by Nissan, which has been in Britain for three decades and makes 475,000 cars a year in the country, most of them for export inside the European Union and beyond. Sunderland in northern England, where Nissan has its operations, was among the constituencies that surprised pundits by voting to leave. "Big question for automakers, is what kind of trade deals with the EU would be negotiated. That is the big unknown," a second executive at a global automaker said. TARIFF-FREE EXPORTS Exports from Britain to the European Union are free of tariffs and duties. Toyota has said duties under new trading deals could be as much as 10 per cent, hitting either prices or margins, and denting sales. Toyota produced about 190,000 cars in Britain last year. Of that, 75 per cent went to the European Union. Only 10 per cent was shipped and sold within Britain. South Korea's auto association said it was worried a departure could revive a 10-per cent tariff on exports of passenger vehicles to UK -- unless a separate deal is negotiated. "This could inevitably undermine the price competitiveness of South Korean automakers in UK, as opposed to Japanese and German rivals which have production bases there," said Kim Tae-nyen, vice president at the Korea Automobile Manufacturers Association (KAMA). Aside from Toyota, Tata and Nissan, others manufacturing in Britain include BMW, GM and Honda. Honda produces around 140,000 vehicles per year, including the CR-V crossover SUV and Civic sedan at its plant in Swindon. Half of its production is exported to the EU. Some industry officials have said the exit even raises the prospects of those automakers moving Britain-based manufacturing capacity elsewhere in the EU bloc. For now, officials said efforts would turn to lobbying hard for better trade deals. "Obviously, trading deals to be worked out subsequently could be a worse situation than we have now, or better, or all the same. We don’t know, and that’s the problem," said the second executive. (Reuters)

Asian car makers fret over uncertainty ahead after Brexit vote

World stocks headed for one of the biggest slumps on record on Friday, as a decision by Britain to leave the European Union triggered eight per cent falls for Europe&#39;s biggest bourses and a record plunge for Sterling. 
 
Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from all the major central banks. 
 
Risk assets were scorched as investors fled to the traditional safe-harbours of top-rated government debt, Japanese Yen and gold. 
 
Billions were wiped from share values as Europe saw London&#39;s FTSE drop six per cent in early deals, Germany&#39;s and France&#39;s CAC 40 slump 7.5 and nine per cent and Italian and Spanish markets plunge more than 11 per cent. 
 
Britain&#39;s big banks took a $130 billion battering with Lloyds and Barclays plunging as much as 30 per cent. EMINI S&amp;P 500 futures were down four per cent and Japan&#39;s Nikkei ended down 7.9 per cent. 
 
The British Pound collapsed no less than 18 US cents, easily the biggest fall in living memory, to hit its lowest since 1985. The Euro, in turn, slid 3.2 per cent to $1.1012 as investors feared for its very future. 
 
Having campaigned to keep the country in the EU, British Prime Minister David Cameron confirmed he would step down. 
 
Results showed a 51.9/48.1 per cent split for leaving, setting the UK on an uncertain path and dealing the largest setback to European efforts to forge greater unity since World War Two. 
 
Sterling sank a staggering 10 per cent at one point and was last at $1.3582, having carved out a range of $1.3228 to $1.5022. The fall was even larger than during the global financial crisis and the currency was moving two or three cents in the blink of an eye. 
 
&quot;It&#39;s an extraordinary move for financial markets and also for democracy,&quot; said co-head of portfolio investments of London-based currency specialist Millennium Global Richard Benson. 
 
&quot;The market is pricing interest rate cuts from the big central banks and we assume there will be a global liquidity add from them in the next few hours,&quot; he added. 
 
The shockwaves affected all asset classes and regions. 
 
The safe-haven Yen sprang higher to stand at 102.15 per Dollar, having been as low as 106.81 at one stage. The Dollar peak decline of four per cent was the largest since 1998. 
 
That prompted warnings from Japanese officials that excessive forex moves were undesirable. Indeed, traders were wary in case global central banks chose to step in to calm the volatility. 
 
The Bank of England said it would take all necessary steps to shield Britain&#39;s economy. A source told Reuters it was in touch with other major central banks. The Bank of Japan governor Haruhiko Kuroda added his bank was also ready to provide liquidity if needed to ensure market stability. 
 
Other currencies across Asia and in eastern Europe as it woke up suffered badly on worries that alarmed investors could pull funds out of emerging markets. Poland, where many of the eastern Europeans in Britain come from, saw its Zloty slump five per cent. 
 
Recession fears 
Europe&#39;s natural safety play, the 10-year German government bond, surged to send its yields tumbling back into negative territory and a new record low. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan slid almost five per cent, while Shanghai stocks lost 1.1 per cent. 
 
Financial markets have been gripped for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe&#39;s stability. 
 
&quot;Obviously, there will be large spill-over effects across all global economies if the &#39;Leave&#39; vote wins. Not only will the UK go into recession, Europe will follow suit,&quot; was the gloomy prediction of Matt Sherwood, head of investment strategy at fund manager Perpetual in Sydney. 
 
Investors duly stampeded to sovereign bonds, with US Treasury futures jumping over 2 points in an extremely rare move for Asian hours. 
 
Yields on the cash note fell 24 basis points to 1.49 per cent, the steepest one-day drop since 2009 and the lowest yield since 2012. 
 
As investors sought safer assets, the rally even extended to UK bonds, despite ratings agency Standard and Poor&#39;s warning it would likely downgrade the country&#39;s triple A rating if it left the EU. 
 
Yields on benchmark 10-year gilts fell 27 basis points to 1.108 per cent. 
 
Across the Atlantic, investors were pricing in even less chance of another hike in US interest rates given the Federal Reserve had cited a British exit from the EU as one reason to be cautious on tightening. 
 
&quot;It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table,&quot; Mike Baele, managing director with the private client reserve group at US Bank in Portland, Oregon. 
 
Fed funds futures were even toying with the chance that the next move could be a cut in US rates. 
 
Commodities likewise swung lower as a Brexit would be seen as a major threat to global growth. US crude shed $3.00 to $47.11 a barrel in erratic trade while Brent fell as much as six per cent to $47.83 before clawing back to $48.18. 
 
Industrial metal copper sank three per cent but gold galloped more than six per cent higher thanks to its perceived safe haven status. 
 
(Reuters)

The British Pound hits its lowest since 1985, the Euro slides 3.2 per cent while Sterling sinks by 10 per cent

World stocks headed for one of the biggest slumps on record on Friday, as a decision by Britain to leave the European Union triggered eight per cent falls for Europe's biggest bourses and a record plunge for Sterling. Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from all the major central banks. Risk assets were scorched as investors fled to the traditional safe-harbours of top-rated government debt, Japanese Yen and gold. Billions were wiped from share values as Europe saw London's FTSE drop six per cent in early deals, Germany's and France's CAC 40 slump 7.5 and nine per cent and Italian and Spanish markets plunge more than 11 per cent. Britain's big banks took a $130 billion battering with Lloyds and Barclays plunging as much as 30 per cent. EMINI S&P 500 futures were down four per cent and Japan's Nikkei ended down 7.9 per cent. The British Pound collapsed no less than 18 US cents, easily the biggest fall in living memory, to hit its lowest since 1985. The Euro, in turn, slid 3.2 per cent to $1.1012 as investors feared for its very future. Having campaigned to keep the country in the EU, British Prime Minister David Cameron confirmed he would step down. Results showed a 51.9/48.1 per cent split for leaving, setting the UK on an uncertain path and dealing the largest setback to European efforts to forge greater unity since World War Two. Sterling sank a staggering 10 per cent at one point and was last at $1.3582, having carved out a range of $1.3228 to $1.5022. The fall was even larger than during the global financial crisis and the currency was moving two or three cents in the blink of an eye. "It's an extraordinary move for financial markets and also for democracy," said co-head of portfolio investments of London-based currency specialist Millennium Global Richard Benson. "The market is pricing interest rate cuts from the big central banks and we assume there will be a global liquidity add from them in the next few hours," he added. The shockwaves affected all asset classes and regions. The safe-haven Yen sprang higher to stand at 102.15 per Dollar, having been as low as 106.81 at one stage. The Dollar peak decline of four per cent was the largest since 1998. That prompted warnings from Japanese officials that excessive forex moves were undesirable. Indeed, traders were wary in case global central banks chose to step in to calm the volatility. The Bank of England said it would take all necessary steps to shield Britain's economy. A source told Reuters it was in touch with other major central banks. The Bank of Japan governor Haruhiko Kuroda added his bank was also ready to provide liquidity if needed to ensure market stability. Other currencies across Asia and in eastern Europe as it woke up suffered badly on worries that alarmed investors could pull funds out of emerging markets. Poland, where many of the eastern Europeans in Britain come from, saw its Zloty slump five per cent. Recession fears Europe's natural safety play, the 10-year German government bond, surged to send its yields tumbling back into negative territory and a new record low. MSCI's broadest index of Asia-Pacific shares outside Japan slid almost five per cent, while Shanghai stocks lost 1.1 per cent. Financial markets have been gripped for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe's stability. "Obviously, there will be large spill-over effects across all global economies if the 'Leave' vote wins. Not only will the UK go into recession, Europe will follow suit," was the gloomy prediction of Matt Sherwood, head of investment strategy at fund manager Perpetual in Sydney. Investors duly stampeded to sovereign bonds, with US Treasury futures jumping over 2 points in an extremely rare move for Asian hours. Yields on the cash note fell 24 basis points to 1.49 per cent, the steepest one-day drop since 2009 and the lowest yield since 2012. As investors sought safer assets, the rally even extended to UK bonds, despite ratings agency Standard and Poor's warning it would likely downgrade the country's triple A rating if it left the EU. Yields on benchmark 10-year gilts fell 27 basis points to 1.108 per cent. Across the Atlantic, investors were pricing in even less chance of another hike in US interest rates given the Federal Reserve had cited a British exit from the EU as one reason to be cautious on tightening. "It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table," Mike Baele, managing director with the private client reserve group at US Bank in Portland, Oregon. Fed funds futures were even toying with the chance that the next move could be a cut in US rates. Commodities likewise swung lower as a Brexit would be seen as a major threat to global growth. US crude shed $3.00 to $47.11 a barrel in erratic trade while Brent fell as much as six per cent to $47.83 before clawing back to $48.18. Industrial metal copper sank three per cent but gold galloped more than six per cent higher thanks to its perceived safe haven status. (Reuters)

World stocks in free fall as UK votes to exit EU

Bank of England governor Mark Carney said on Friday the central bank was ready to provide 250 billion Pounds ($345.93 billion) of additional funds to support financial markets after Britain voted to leave the European Union. 
 
&quot;We are well prepared for this. Her Majesty&#39;s Treasury and the Bank of England have engaged in extensive contingency planning and the Chancellor and I have remained in close contact, including through the night and this morning,&quot; he said. 
 
Carney also said the central bank will consider whether to take additional policy responses in the coming weeks. 
 
&quot;In the future we will not hesitate to take any additional measures required to meet our responsibilities as the United Kingdom moves forward,&quot; he said. 
 
Global financial markets plunged as results from Thursday&#39;s referendum showed a near 52-48 per cent split for leaving. 
 
(Reuters)

Her Majesty's Treasury and the central bank have been planning a contingency scheme, says Mark Carney

Bank of England governor Mark Carney said on Friday the central bank was ready to provide 250 billion Pounds ($345.93 billion) of additional funds to support financial markets after Britain voted to leave the European Union. "We are well prepared for this. Her Majesty's Treasury and the Bank of England have engaged in extensive contingency planning and the Chancellor and I have remained in close contact, including through the night and this morning," he said. Carney also said the central bank will consider whether to take additional policy responses in the coming weeks. "In the future we will not hesitate to take any additional measures required to meet our responsibilities as the United Kingdom moves forward," he said. Global financial markets plunged as results from Thursday's referendum showed a near 52-48 per cent split for leaving. (Reuters)

Bank of England to supply 250 billion Pounds to help markets after Brexit vote

Shocked chief executives from Mumbai to Denver woke up on Friday to face tough decisions over how to respond to Britain&#39;s vote to leave the European Union. 
 
In Britain itself, businesses as diverse as engineering group Rolls-Royce, drugs giant AstraZeneca, housebuilders and makers of Scotch whisky were braced for disruption in the short and long term as the pound plunged to its lowest level since 1985. 
 
Big business - with a very few exceptions - has been strongly in favour of remaining in the world&#39;s biggest trading bloc, primarily because of ease of access to 500 million European consumers. 
 
&quot;The weeks and months ahead are going to be a nervy time for business leaders,&quot; Simon Walker, director general of British business lobby the Institute of Directors, said on Friday. 
 
Jaguar Land Rover, Britain&#39;s biggest carmaker, has estimated its annual profit could shrink by $1.4 billion by 2020 if Britain returns to World Trade Organization rules for trade with Europe. 
 
Shares in the company&#39;s owner, India&#39;s Tata Motors, slumped more than 10 per cent. 
 
Makers of Scotch whisky, who export about 90 per cent of what they produce, have stressed the importance of the EU, which swallows about a third of those exports, but also the clout EU membership gives in negotiations with fast-growing markets such as India, which has a 150 per cent tariff on imported spirits. 
 
Some investors warned of a coming British or even global recession as sterling collapsed to hit its lowest since 1985, while FTSE futures fell 8 per cent. 
 
The president of Japan&#39;s Nippon Steel &amp; Sumitomo Metal, the world&#39;s second-largest steelmaker, said the vote was extremely disappointing. &quot;We are greatly concerned for the negative impact this will have, not only on Britain and the EU but also on the global economy,&quot; said Kosei Shindo. 
 
Martin Sorrell, the boss of the world&#39;s biggest advertising group WPP, said: &quot;This decision will create tremendous uncertainty, which will slow economic activity and decision making.&quot; 
 
Sterling headache 
Big swings in sterling will be a headache for some international companies, with a fall in the currency hitting profits earned in Britain. 
 
International companies with sizeable sterling exposure include Denver-based Molson Coors, owner of Carling beer, which is heavily reliant on the UK. 
 
Aside from market access, streamlining of regulations within the EU has made life simpler. 
 
Pharmaceutical companies, for example, enjoy a one-stop shop in the form of the European Medicines Agency - based in London - which approves new drugs for all EU countries, while the EU&#39;s open airspace deals have fostered a surge in air travel and common policies on agriculture and food safety have allowed for smoother supply chains and richer eating. 
 
Companies in those sectors have fretted that Britain outside the bloc would disrupt the regulatory landscape. 
 
&quot;This creates immediate challenges for future investment, research and jobs in our industry in the UK,&quot; said Mike Thompson, CEO of the Association of the British Pharmaceutical Industry. 
 
AstraZeneca said it was concerned for the competitiveness of the British life sciences industry and would work to ensure patient access to medicines, amid worries that leaving the EU could delay drug approvals. 
 
Access to workers is another important factor for companies. Automotive industry executives, who are heavily reliant on exports, ranked tapping a skilled workforce a close second to accessing EU markets in a survey on reasons to remain in March. 
 
Ahead of the vote, some British-based multinationals such as Diageo, Unilever and Rolls-Royce had expressed their support for &quot;Remain&quot; directly to employees, although most stopped short of this. 
 
Government figures show 12.6 per cent of Britain&#39;s economic output is linked to exports to the EU&#39;s 27 other members, for whom only 3.1 per cent of output is linked to exports to Britain. And 80 per cent of British businesses trading overseas do so with the EU. 
 
The Confederation of British Industry has estimated there could be between 550,000 and 950,000 fewer jobs by 2020 in the event of Brexit. 
 
For banks, a huge concern has been the threat that financial institutions based in London could lose their EU &quot;passports&quot;, or the automatic right to sell services across the bloc under single low-cost system. That has made bank shares particularly volatile in the run-up to the referendum. 
 
Brexit uncertainty has also helped push British merger and acquisition activity this year at its lowest as a proportion of global activity since records began in 1980. 
 
(Reuters)

Big business wanted to remain in the world's biggest trading bloc because of ease of access to 500 million European consumers

Shocked chief executives from Mumbai to Denver woke up on Friday to face tough decisions over how to respond to Britain's vote to leave the European Union. In Britain itself, businesses as diverse as engineering group Rolls-Royce, drugs giant AstraZeneca, housebuilders and makers of Scotch whisky were braced for disruption in the short and long term as the pound plunged to its lowest level since 1985. Big business - with a very few exceptions - has been strongly in favour of remaining in the world's biggest trading bloc, primarily because of ease of access to 500 million European consumers. "The weeks and months ahead are going to be a nervy time for business leaders," Simon Walker, director general of British business lobby the Institute of Directors, said on Friday. Jaguar Land Rover, Britain's biggest carmaker, has estimated its annual profit could shrink by $1.4 billion by 2020 if Britain returns to World Trade Organization rules for trade with Europe. Shares in the company's owner, India's Tata Motors, slumped more than 10 per cent. Makers of Scotch whisky, who export about 90 per cent of what they produce, have stressed the importance of the EU, which swallows about a third of those exports, but also the clout EU membership gives in negotiations with fast-growing markets such as India, which has a 150 per cent tariff on imported spirits. Some investors warned of a coming British or even global recession as sterling collapsed to hit its lowest since 1985, while FTSE futures fell 8 per cent. The president of Japan's Nippon Steel & Sumitomo Metal, the world's second-largest steelmaker, said the vote was extremely disappointing. "We are greatly concerned for the negative impact this will have, not only on Britain and the EU but also on the global economy," said Kosei Shindo. Martin Sorrell, the boss of the world's biggest advertising group WPP, said: "This decision will create tremendous uncertainty, which will slow economic activity and decision making." Sterling headache Big swings in sterling will be a headache for some international companies, with a fall in the currency hitting profits earned in Britain. International companies with sizeable sterling exposure include Denver-based Molson Coors, owner of Carling beer, which is heavily reliant on the UK. Aside from market access, streamlining of regulations within the EU has made life simpler. Pharmaceutical companies, for example, enjoy a one-stop shop in the form of the European Medicines Agency - based in London - which approves new drugs for all EU countries, while the EU's open airspace deals have fostered a surge in air travel and common policies on agriculture and food safety have allowed for smoother supply chains and richer eating. Companies in those sectors have fretted that Britain outside the bloc would disrupt the regulatory landscape. "This creates immediate challenges for future investment, research and jobs in our industry in the UK," said Mike Thompson, CEO of the Association of the British Pharmaceutical Industry. AstraZeneca said it was concerned for the competitiveness of the British life sciences industry and would work to ensure patient access to medicines, amid worries that leaving the EU could delay drug approvals. Access to workers is another important factor for companies. Automotive industry executives, who are heavily reliant on exports, ranked tapping a skilled workforce a close second to accessing EU markets in a survey on reasons to remain in March. Ahead of the vote, some British-based multinationals such as Diageo, Unilever and Rolls-Royce had expressed their support for "Remain" directly to employees, although most stopped short of this. Government figures show 12.6 per cent of Britain's economic output is linked to exports to the EU's 27 other members, for whom only 3.1 per cent of output is linked to exports to Britain. And 80 per cent of British businesses trading overseas do so with the EU. The Confederation of British Industry has estimated there could be between 550,000 and 950,000 fewer jobs by 2020 in the event of Brexit. For banks, a huge concern has been the threat that financial institutions based in London could lose their EU "passports", or the automatic right to sell services across the bloc under single low-cost system. That has made bank shares particularly volatile in the run-up to the referendum. Brexit uncertainty has also helped push British merger and acquisition activity this year at its lowest as a proportion of global activity since records began in 1980. (Reuters)

From beer to drugs to cars: Global business laments EU vote

Most people in Gibraltar are British citizens with British passports and a majority voted for Britain's continued membership in the EU

Spain will seek co-sovereignty on Gibraltar following Britain's vote to leave the European Union, acting foreign minister Jose Manuel Garcia-Margallo said on Friday, saying the vote completely changed the outlook on the future of the peninsula. The small peninsula off the South coast of Spain, a British Overseas Territory since 1713 and known to its 30,000 residents as "the Rock", is a major point of contention in Anglo-Spanish relations. "It`s a complete change of outlook that opens up new possibilities on Gibraltar not seen for a very long time. I hope the formula of co-sovereignty - to be clear, the Spanish flag on the Rock - is much closer than before," he said. A spokesman for Gibraltar's government declined to comment on the Brexit vote and referred to previous statements made on how co-sovereignty had already been rejected by around 99 per cent of Gibraltarians in a previous local referendum. Spain will push for Gibraltar to stay out of any general negotiations with the European Union following Britain's exit from the bloc and will aim for bilateral talks to seek co-sovereignty and eventually Spanish control of the peninsula, Garcia-Margallo said. Gibraltar voted overwhelmingly in favour of Britain remaining in the European Union on a large turnout in the first result of the EU referendum vote count on Thursday evening. The majority of those living in Gibraltar are British citizens with British passports, although thousands of Spaniards cross from mainland Spain to work on the peninsula every day. Spain's acting Prime Minister Mariano Rajoy said on Friday that Britain's vote to leave the EU would not affect the rights of these Spanish workers, who he said would be able to continue to move freely between the two territories. Spain itself is facing an election on Sunday, its second in six months after an inconclusive vote in December. Polls forecast a fragmented result with no clear winner, potentially leading to weeks of negotiations over the formation of a coalition government. (Reuters)?

Spain to seek co-sovereignty on Gibraltar after Brexit

When Barack Obama stood on the hallowed ground of Hiroshima on Friday to pay tribute to the victims of 1945 nuclear devastation, the Group of Seven (G7) countries were making a last-ditch effort to persuade Britain to remain in the European Union. So worried is the G7 about Brexit that the issue dominated the final declaration of the elite bloc&#39;s two-day summit in the Japanese peninsula of Ise-Shima. 
 
Obama himself has been at pains to explain to Britain that the country will have a brighter future if it stayed in the European bloc. But if it exited, the consequences could be harsh. Not only this, he is on record warning the UK voters that if they choose to abandon the EU, their country should forget any fresh trade deal with the United States for at least a decade. &quot;The UK is going to be in the back of the queue,&quot; Obama said during his visit to Britain in April, arguing that Washington&#39;s focus is on negotiating with big blocs rather than an individual country. 
 
The panic button 
 
The UK is holding a referendum on June 23 to decide its future in the European Union. And that has triggered panic among Britain&#39;s allies, trade partners, political leaders, economists and business honchos worldwide. 
 
At G7, the leaders were unanimous in their opinion that a &#39;Leave&#39; vote in the UK would pose a &quot;serious threat to global growth.&quot; Any such move would reverse the trend towards greater global trade and investment, and the jobs they create, they said. Hours before the G7 declaration, Japanese Prime Minister Shinzo Abe warned that a crisis on the scale of Lehman Brothers was staring at the global economy. 
 
What does the EU think? 
 
Although in public, the EU leaders have been urging Britain to remain in the union, privately Germany, France, Italy, and Belgium -- core members -- are said to be preparing for a life after the probable divorce. Post-Brexit, the EU could stress on closer integration with tighter security and defence collaboration. 
 
The EU leaders, however, fear that Brexit is bound to encourage separatist sentiments in other block states. 
 
Why does Britain want to go separate ways? 
 
&#39;Love Europe, Leave EU&#39;, one of the online campaigners for an exit vote, argues that way back in 1975, the British public voted &#39;yes&#39; to a free trade deal with Europe and not for a &#39;United States of Europe&#39;. The present union, it argues, crushes democracy and &quot;in the process creates a class of politicians clearly in it for themselves&quot;. 
 
Many believe that Britain&#39;s political and economic clout has diminished ever since it joined the group, and that by standing alone the country can reclaim its glorious past. 
 
Another campaign, Leave Vote, says it&#39;s time for Britain to spend its money on domestic priorities like the National Health Service not the EU. It claims that EU costs Britain &pound;350 million a week and that since 1973, the country has sent over half a trillion pounds to the union. In return, the Euro skeptics believe, Britain has only run a massive trade deficit with Germany, France and nearly every other European country. 
 
So then why bother with Schengen system, common currency and EU regulations when these are clearly failing in securing economic growth, the Leave vote campaigners argue. 
 
Another of UK&#39;s biggest concerns is rapidly growing immigration from the EU and unemployment for its citizenry. Last year, Britain saw inflows of 1,84,000 EU and 1,88,000 non-EU citizens. &#39;Leave&#39; vote supporter argue that being a part of EU prevents Britain from bringing in skilled workers from outside the bloc. 
 
What do opinion polls predict? 
 
Recent polls in the UK suggest that most people support staying on with the EU. Prime Minister David Cameron is leading a campaign for this and his government has stressed upon the negative fallouts of leaving EU. 
 
A recent poll released by YouGov says that university degree holders or those aged below 30 are most likely to vote stay in the EU. Northern Ireland and Scotland are the regions that are likely to vote for staying in the union, while with almost two-thirds of respondents the Midlands is expected to cast a &#39;Leave&#39; vote. 
 
How will Britain be affected if Brexit happens? 
 
If voters did decide to part ways with the economic bloc, its first casualty will be hundreds and thousands of migrant workers. Most of them are from Eastern Europe, who are currently employed and live in the UK. The borders will be resurrected again and visa regimes will again kick in. 
 
The UK, too, is not expected to get away unscathed. IMF managing director Christine Lagarde indicated that Brexit may hit the British economy much harder than its supporters expect. She said the effect may range from &quot;pretty bad to very, very bad&quot;. 
 
A poll, carried out by Ipsos Mori for the Observer, says nearly 9 out of 10 economists believe an exit from the European Union will have negative consequences for the UK economy. The economists argue that a Brexit will hit both gross domestic product and household incomes. 
 
Four-fifths of Britain&#39;s major companies have taken steps to hedge against the risk that a vote to leave the European Union will knock more than 10 per cent off the value of sterling, a poll of almost 800 of Britain&#39;s top 1,000 companies showed on Wednesday. 
 
The British Pound is also expected to take a hit. The Bank of England, the central bank of the UK, says Brexit will hit the economy with pound falling and mortgage rates rising. Some analysts also fear that a Brexit vote will reignite calls for independence in Scotland and Northern Ireland as these regions may like to stay with the EU. 
 
Several former Nato and US foreign affairs chiefs have red-flagged the idea of Brexit, warning Britain&#39;s national security and place in the world order would be severely damaged. Writing in different UK papers, these experts said that by leaving the union, Britain would not only lose its international clout but also &quot;give succour to the West&#39;s enemies&quot;. 
 
Let Britons decide for themselves 
 
The EU, UK, and the world at large may be on tenterhooks over the outcome of the historic referendum, but we must presume that the British people will use their vote judiciously as it will shape the future of their country for decades to come. The way the world has been handling its affairs, it seems that boundaries are becoming omnipresent than what we would have imagined a few decades ago of a globalized, unified world.

Many believe that Britain's political and economic clout has diminished ever since it joined the group

When Barack Obama stood on the hallowed ground of Hiroshima on Friday to pay tribute to the victims of 1945 nuclear devastation, the Group of Seven (G7) countries were making a last-ditch effort to persuade Britain to remain in the European Union. So worried is the G7 about Brexit that the issue dominated the final declaration of the elite bloc's two-day summit in the Japanese peninsula of Ise-Shima. Obama himself has been at pains to explain to Britain that the country will have a brighter future if it stayed in the European bloc. But if it exited, the consequences could be harsh. Not only this, he is on record warning the UK voters that if they choose to abandon the EU, their country should forget any fresh trade deal with the United States for at least a decade. "The UK is going to be in the back of the queue," Obama said during his visit to Britain in April, arguing that Washington's focus is on negotiating with big blocs rather than an individual country. The panic button The UK is holding a referendum on June 23 to decide its future in the European Union. And that has triggered panic among Britain's allies, trade partners, political leaders, economists and business honchos worldwide. At G7, the leaders were unanimous in their opinion that a 'Leave' vote in the UK would pose a "serious threat to global growth." Any such move would reverse the trend towards greater global trade and investment, and the jobs they create, they said. Hours before the G7 declaration, Japanese Prime Minister Shinzo Abe warned that a crisis on the scale of Lehman Brothers was staring at the global economy. What does the EU think? Although in public, the EU leaders have been urging Britain to remain in the union, privately Germany, France, Italy, and Belgium -- core members -- are said to be preparing for a life after the probable divorce. Post-Brexit, the EU could stress on closer integration with tighter security and defence collaboration. The EU leaders, however, fear that Brexit is bound to encourage separatist sentiments in other block states. Why does Britain want to go separate ways? 'Love Europe, Leave EU', one of the online campaigners for an exit vote, argues that way back in 1975, the British public voted 'yes' to a free trade deal with Europe and not for a 'United States of Europe'. The present union, it argues, crushes democracy and "in the process creates a class of politicians clearly in it for themselves". Many believe that Britain's political and economic clout has diminished ever since it joined the group, and that by standing alone the country can reclaim its glorious past. Another campaign, Leave Vote, says it's time for Britain to spend its money on domestic priorities like the National Health Service not the EU. It claims that EU costs Britain £350 million a week and that since 1973, the country has sent over half a trillion pounds to the union. In return, the Euro skeptics believe, Britain has only run a massive trade deficit with Germany, France and nearly every other European country. So then why bother with Schengen system, common currency and EU regulations when these are clearly failing in securing economic growth, the Leave vote campaigners argue. Another of UK's biggest concerns is rapidly growing immigration from the EU and unemployment for its citizenry. Last year, Britain saw inflows of 1,84,000 EU and 1,88,000 non-EU citizens. 'Leave' vote supporter argue that being a part of EU prevents Britain from bringing in skilled workers from outside the bloc. What do opinion polls predict? Recent polls in the UK suggest that most people support staying on with the EU. Prime Minister David Cameron is leading a campaign for this and his government has stressed upon the negative fallouts of leaving EU. A recent poll released by YouGov says that university degree holders or those aged below 30 are most likely to vote stay in the EU. Northern Ireland and Scotland are the regions that are likely to vote for staying in the union, while with almost two-thirds of respondents the Midlands is expected to cast a 'Leave' vote. How will Britain be affected if Brexit happens? If voters did decide to part ways with the economic bloc, its first casualty will be hundreds and thousands of migrant workers. Most of them are from Eastern Europe, who are currently employed and live in the UK. The borders will be resurrected again and visa regimes will again kick in. The UK, too, is not expected to get away unscathed. IMF managing director Christine Lagarde indicated that Brexit may hit the British economy much harder than its supporters expect. She said the effect may range from "pretty bad to very, very bad". A poll, carried out by Ipsos Mori for the Observer, says nearly 9 out of 10 economists believe an exit from the European Union will have negative consequences for the UK economy. The economists argue that a Brexit will hit both gross domestic product and household incomes. Four-fifths of Britain's major companies have taken steps to hedge against the risk that a vote to leave the European Union will knock more than 10 per cent off the value of sterling, a poll of almost 800 of Britain's top 1,000 companies showed on Wednesday. The British Pound is also expected to take a hit. The Bank of England, the central bank of the UK, says Brexit will hit the economy with pound falling and mortgage rates rising. Some analysts also fear that a Brexit vote will reignite calls for independence in Scotland and Northern Ireland as these regions may like to stay with the EU. Several former Nato and US foreign affairs chiefs have red-flagged the idea of Brexit, warning Britain's national security and place in the world order would be severely damaged. Writing in different UK papers, these experts said that by leaving the union, Britain would not only lose its international clout but also "give succour to the West's enemies". Let Britons decide for themselves The EU, UK, and the world at large may be on tenterhooks over the outcome of the historic referendum, but we must presume that the British people will use their vote judiciously as it will shape the future of their country for decades to come. The way the world has been handling its affairs, it seems that boundaries are becoming omnipresent than what we would have imagined a few decades ago of a globalized, unified world.

UK's exit from the European Union is certainly not a step forward

Reacting to Britain&rsquo;s exit from the European Union (EU) on Friday, right-wing Members of Parliament (MP) in France and Netherland have also given a call for referendum.&nbsp; 
 
Hailing Britain&#39;s decision, French far-right leader Marine Le Pen took to micro blogging site to share her views. &quot;Victory for Freedom! As I have been asking for years we must now have the same referendum in France and EU countries,&quot; the National Front (FN) leader tweeted. 
 
The eurosceptic, anti-immigration FN has accused the EU of suffering a &quot;democratic deficit&quot; and has long urged all members of the bloc to follow Britain&#39;s example. 
 
The Brexit vote is likely to fire up eurosceptic populists across the bloc, with Dutch far-right MP Geert Wilders also calling for an EU referendum in his own country following the result. 
 
Fears are high that a domino effect could see other countries following in Britain`s footsteps, threatening the core of the European project. 
 
&quot;France has possibly a thousand more reasons to want to leave the EU than the English,&quot; Le Pen said at a gathering of far-right parties in Vienna last Friday. 
 
Le Pen has accused the EU of pursuing closer integration &quot;against our will&quot;. 
 
She says the union is responsible for high eurozone unemployment and has failed to keep out &quot;smugglers, terrorists (and) economic migrants&quot;. 
 
Dutch far-right MP also calls for NExit&nbsp; 
Shortly after Britain voted for a Brexit, Dutch anti-Islam MP Geert Wilders called for the Netherlands to hold a referendum on whether to leave the EU.&nbsp; 
 
&quot;The Dutch people deserve a referendum as well. The Party for Freedom consequently demands a referendum on NExit, a Dutch EU exit,&quot; Wilders said in a statement. 
 
With 374 out of 382 regional results declared in Britain, there were 16.8 million votes for &quot;Leave&quot; and 15.7 million for &quot;Remain&quot;, making it mathematically impossible for &quot;Remain&quot; to win. 
 
&quot;We want to be in charge of our own country, our own money, our own borders, and our own immigration policy,&quot; Wilders said in a statement.&nbsp;If I become prime minister, there will be a referendum in the Netherlands on leaving the European Union as well. Let the Dutch people decide,&rdquo; he was quoted saying.&nbsp; 
 
The Netherlands, which currently holds the rotating presidency of the EU, held a referendum earlier this year on whether to back closer cooperation between the EU and Ukraine. Turnout was low, but over 60 per cent voted against the deal. 
 
Elections are not due in the Netherlands until next year, but since last year polls have consistently shown support for the Freedom Party (PVV) climbing on the back of the refugee crisis.&nbsp; 
 
Although it is has slipped back in recent months, the last polls from May showed Wilders&#39; party would win the largest support gaining some 31 seats in the 150-seat party, more than doubling its current 15 seats. 
 
The statement sent by Wilders&#39; PVV said that recent polls showed a majority of Dutch people were in favour of holding a referendum, and that most would vote to leave. 
 
(AFP)&nbsp;

Fears are high that a domino effect could see other countries following in Britain's footsteps, threatening the core of the European project

Reacting to Britain’s exit from the European Union (EU) on Friday, right-wing Members of Parliament (MP) in France and Netherland have also given a call for referendum. Hailing Britain's decision, French far-right leader Marine Le Pen took to micro blogging site to share her views. "Victory for Freedom! As I have been asking for years we must now have the same referendum in France and EU countries," the National Front (FN) leader tweeted. The eurosceptic, anti-immigration FN has accused the EU of suffering a "democratic deficit" and has long urged all members of the bloc to follow Britain's example. The Brexit vote is likely to fire up eurosceptic populists across the bloc, with Dutch far-right MP Geert Wilders also calling for an EU referendum in his own country following the result. Fears are high that a domino effect could see other countries following in Britain`s footsteps, threatening the core of the European project. "France has possibly a thousand more reasons to want to leave the EU than the English," Le Pen said at a gathering of far-right parties in Vienna last Friday. Le Pen has accused the EU of pursuing closer integration "against our will". She says the union is responsible for high eurozone unemployment and has failed to keep out "smugglers, terrorists (and) economic migrants". Dutch far-right MP also calls for NExit Shortly after Britain voted for a Brexit, Dutch anti-Islam MP Geert Wilders called for the Netherlands to hold a referendum on whether to leave the EU. "The Dutch people deserve a referendum as well. The Party for Freedom consequently demands a referendum on NExit, a Dutch EU exit," Wilders said in a statement. With 374 out of 382 regional results declared in Britain, there were 16.8 million votes for "Leave" and 15.7 million for "Remain", making it mathematically impossible for "Remain" to win. "We want to be in charge of our own country, our own money, our own borders, and our own immigration policy," Wilders said in a statement. If I become prime minister, there will be a referendum in the Netherlands on leaving the European Union as well. Let the Dutch people decide,” he was quoted saying. The Netherlands, which currently holds the rotating presidency of the EU, held a referendum earlier this year on whether to back closer cooperation between the EU and Ukraine. Turnout was low, but over 60 per cent voted against the deal. Elections are not due in the Netherlands until next year, but since last year polls have consistently shown support for the Freedom Party (PVV) climbing on the back of the refugee crisis. Although it is has slipped back in recent months, the last polls from May showed Wilders' party would win the largest support gaining some 31 seats in the 150-seat party, more than doubling its current 15 seats. The statement sent by Wilders' PVV said that recent polls showed a majority of Dutch people were in favour of holding a referendum, and that most would vote to leave. (AFP)

In wake of Brexit, right-wing MPs in France, Netherland call for referendum

With 51.9 per cent of the voters in the UK referendum voting for Brexit, the EU economy will have to gear up for massive changes

The European Union's chief concerns over Britain's vote to leave the group are political, but losing its second-largest economy will have a huge economic impact as well. Below are some of the main economic risks and benefits for the EU's remaining 27 members. BUDGET/ECONOMY Other members will have to fill in at least some of the shortfall from a lack of its contributions. Britain's total contribution to the EU budget for 2016 has been set at 19.4 billion euros ($21.4 billion), including its rebate and customs duties. It receives about 7 billion euros, mainly agricultural and regional subsidies, leaving a gap to fill of just over 5 per cent of the total EU budget. Germany, the EU's largest member, would inevitably have to provide the most extra cash. Germany's Ifo institute estimates that would be 2.5 billion euros. UniCredit says there would be manageable negatives for the euro zone, with a trade impact, a financial flight to safety and uncertainty possibly leading to tighter financial conditions and postponed investment. It would revise down its 2017 forecast for GDP to 0.5-1.0 per cent from the current 1.6 per cent. TRADE The rest of the European Union has a trade surplus of around 100 billion euros in goods with Britain, while Britain exports some 20 billion euros more in services than it imports, the same gap as for financial services. Many economists forecast Brexit would at least temporarily reduce UK growth, uncertainty hitting domestic demand and weakening the pound, with a resultant impact on EU goods exports to Britain, which make up some 2.6 per cent of rest-EU GDP in 2014. A UK "demand shock", linked also to a possible reintroduction of import tariffs, of 10 per cent could lead to a reduction of rest-EU GDP by 0.26 per cent. Brexit campaigners say the EU would want to agree a free trade deal with Britain even if the country left the bloc. However, Oliver Schulz, an economist at Citi, reasons that could play more into the hands of the EU given there tends to be more focus in trade deals on goods than on services, and financial services in particular. Switzerland, where financial services are a larger share of GDP than in Britain, has no general access to EU financial service markets and runs a financial services trade deficit with the bloc. The EU's main service export to Britain, tourism, is unlikely to be affected. INVESTMENT The United Kingdom is consistently the largest recipient of foreign direct investment in the European Union, according to UNCTAD data, with an average of some $56 billion per year in the 2010-2014 period. EU partners supply just under half of this. Some 72 per cent of investors in an EY study in 2015 cited access to the European single market as important to the UK's attractiveness to FDI. There is a risk some FDI would be diverted to other EU countries if Britain lost access to the EU single market. MIGRATION One of the main arguments for Brexit campaigners is to limit migration of workers from other EU countries, even though both Norway and Switzerland have had to accept free movement of people in return for access to EU internal markets. If Britain did cap immigration, it could have a negative impact on eastern European countries, from which some 1.2 million workers were in Britain in late 2015. The impact could be most acute in the countries with the most citizens in Britain - Poland (853,000 in 2014), Romania (175,000) and Lithuania (155,000). By contrast, other affluent western European countries, such as Germany, could as a result see higher inflows of EU migrants. This might be beneficial economically, if politically difficult. IRELAND, BENELUX HIT HARDEST? Research by the Bertelsmann Foundation sought to break down the impact by country and determined that the impact of a "soft exit" could be worse in Ireland than in Britain, based on their degree of trade dependence on Britain. The Benelux countries and Sweden would take the next biggest hits, while the impact on Germany would be very limited given that its auto and other manufacturing sectors have many other markets. The Belgian region of Flanders will suffer a 2.5 per cent decline in GDP, according to its premier Geert Bourgeois, who believes his region would be hit hardest after Ireland. DYNAMIC EFFECTS The Bertelsmann study also looks into "dynamic effects", such as a potential loss of productivity because a decreased openness to trade reduces international competition and lowers the incentive to improve competitiveness. With dynamic effects, the long-term impact on German GDP would range between 0.3 and 2 per cent below the value if Britain remained in the European Union. (Reuters)

From trade to migration: how Brexit may hit the EU economy

&nbsp; 
David Cameron said he would resign as the Prime Minister of the UK by October after Britons voted in a referendum to leave the European Union. The UK should aim to have a new PM in place by October, he added. 
 
&quot;I do not think it would be right for me to be the captain that steers our country to its next destination,&quot; he said outside his Downing Street office. 
 
He voiced concerns about the future of ties with the Eurppean Union. &ldquo;Now that the decision has been taken to leave, we need to find the best way,&rdquo; he said, adding that the UK must prepare for full negotiations with the EU on matters of business, finance and travel ties. 
 
(With inputs from Reuters)

The people have spoken and their will needs to be respected, he says while highlighting the need to open negotiations with the EU

David Cameron said he would resign as the Prime Minister of the UK by October after Britons voted in a referendum to leave the European Union. The UK should aim to have a new PM in place by October, he added. "I do not think it would be right for me to be the captain that steers our country to its next destination," he said outside his Downing Street office. He voiced concerns about the future of ties with the Eurppean Union. “Now that the decision has been taken to leave, we need to find the best way,” he said, adding that the UK must prepare for full negotiations with the EU on matters of business, finance and travel ties. (With inputs from Reuters)

The Brexit effect: UK PM David Cameron to step down by October

Britain is expected to submit an application to leave the European Union (EU) following Thursday&#39;s referendum, after which it would have two years to negotiate an exit. Below are possible consequences for Britain and the EU of a Brexit. 
 
ECONOMY 
 
Britain would no longer be subject to EU budget rules, which limit a government&#39;s budget deficit to 3 per cent of Gross Domestic Product (GDP) and public debt to 60 per cent of GDP.&nbsp;It could therefore run whatever budget shortfall it wants without admonishment from the European Commission and other EU ministers. It would also be free from the Commission&#39;s monitoring and advice on future actions. 
 
FINANCE 
 
Financial services firms based in Britain, from banks to clearing houses and funds, could lose their money-spinning EU &quot;passports&quot;, which allows them to sell services across the 28-nation bloc with low costs and a single set of rules. 
 
The passporting system has contributed to making London one of the world&#39;s most important financial centres. UK has been a gateway to European financial market for Non-EU banks based in UK.&nbsp;Some American, Japanese and other non-European banks that have European headquarters in London have said they would consider moving parts of their business inside the European Union, in the event of a BREXIT. 
 
Capital Requirement regulations is legislated through Financial Conduct Authority Handbook and Prudential Regulation Authority Handbook. BREXIT would not likely cause any immediate change in these requirements, however, a certain divergence might be expected in the future. 
 
Individuals and Corporates are covered under EU&#39;s insolvency regulations. This is relevant to banks in their dealings with their borrowers with operations in Member States of EU. Unless replaced by an alternative agreement with the EU or individual EU Member State, banks lending to such borrowers who take enforcement proceedings and/or institute insolvency proceedings in the UK, may find themselves exposed to the risk of competing insolvency proceedings being commenced in one or more other jurisdictions and of not being able to rely on the primacy of the UK proceedings. 
 
Market volatility has caused concerns among borrowers for being exposed to lending risks. 
 
BREXIT would have an impact on capital market instruments.&nbsp;The bond instruments issued in UK, may be amended by borrowers given the conditions in UK post BREXIT. Amendments in syndicate agreements would be costly and ineffective as decisions would be delayed and inadequate. 
 
TRADE 
 
The rest of the EU has a trade surplus in goods of about 100 billion Euros ($110 billion) with Britain, while Britain exports some 20 billion Euros in services than it imports, principally due to financial services. 
 
BREXIT campaigners say if would be in the EU&#39;s interest to agree a free trade deal with Britain even if it leaves the bloc. 
 
However, there tends to be more of a focus on goods than services in free trade deals. Switzerland, where financial services are a larger share of GDP than in Britain, has no general access to EU financial service markets and runs a financial services trade deficit with the bloc. 
 
COMPETITION 
 
British companies acquiring EU peers would still need approval from the UK competition watchdog and the European Commission, resulting in more legal costs and the risk that each delivers a different ruling. 
 
Britain will have a free hand to aid ailing companies or industries without fear of EU action but it will also not be able to oppose subsidies granted by EU governments to their own national champions. 
 
ENERGY 
 
Leaving the EU could make UK energy infrastructure investment costlier and delay new projects at a time when the country needs to plug a looming electricity supply gap. 
 
The uncertainty after BREXIT could make energy investors demand higher returns for the risk of less favourable conditions. Oil and gas majors, BP and Shell are among energy companies who warned about the potential downside. 
 
CLIMATE 
 
Britain is the second-largest emitter of greenhouse gases in Europe and its utilities are among the largest buyers of carbon permits in the EU Emission Trading System (ETS). 
 
Although most analysts believe Britain will remain in the cap-and-trade scheme, the vote is viewed as bearish for the market as Britain would no longer be able to drive tough reforms to drive up the price. 
 
BREXIT would also disrupt the bloc&#39;s plans to share out the burden of its Paris climate change pledge. 
 
The environmentally minded also worry that EU climate targets would be less ambitious without British leadership to balance against more reluctant member states such as coal-dependent Poland. 
 
AVIATION 
 
A BREXIT could call into question EU agreements on open airspace that have granted the region&#39;s airlines unlimited access to the skies of fellow member states, benefiting both UK and EU airlines. 
 
It would also affect transatlantic routes because of the EU-U.S. Open Skies agreement, which gives British airlines unlimited flying rights to the United States. 
 
FOREIGN POLICY 
 
Along with France, Britain is the leading foreign policy power in the EU, boasting a large military and close ties with the United States. After a BREXIT, Washington has made clear it will be less interested in London as an ally because of a perceived loss of influence. 
 
Britain would no longer be bound by joint EU positions, for instance on economic sanctions against Russia. Britain would remain a member of NATO. 
 
JUSTICE AND HOME AFFAIRS 
 
Britain has multiple exemptions from justice and home affairs policies, notably not being part of bloc&#39;s Schengen zone of free travel. 
 
It is not clear what restrictions Britain might place on foreign arrivals. The EU has vowed to respond in kind. 
 
Britain currently recognises other EU members&#39; arrest warrants, exchanges police information, including personal data, and is a member of the bloc&#39;s police agency Europol.&nbsp;Its future involvement, including access to EU databases, could diminish, meaning less cooperation on policing and fighting crime. 
 
DEMANDS BY STAKEHOLDERS 
 
With the impact of BREXIT on several sectors of UK, Britain&#39;s biggest banks have put forward their list of demands to the politicians. 
 
1. Exit from the EU should be made smoothly over time, so there is no change over time 
 
2. UK should negotiate to attain a mechanism similar to the passport regime, so that UK operating firms have access to continental market 
 
3. Promote competitiveness of London financial market implying that the UK politicians should promote a level playing field in global financial regulation, throwing the UK fully into a leading role in the G20, Financial Stability Board, Basel Committee, World Bank and International Monetary Fund. It also means slashing red tape. 
 
4. Banks and finance firms are keen to ensure that the finance sector is not cut off from the international jobs market. This implies that Britain should press the case for continued access to skilled talent from the EU and the rest of the world in order to boost the UK&rsquo;s competitiveness. The banks are also lobbying for accommodating immigration rules. 
 
IMPACT OF BREXIT ON MARKET 
 
Australia lost $56 billion in a day after BREXIT result was clear. 
 
Asian stocks are dumped as Global economic conditions remain uncertain. 
 
Wall Street and British Sterling also observed a slump.&nbsp; 
 
For markets, BREXIT signals failure of monetary policy and change in political attitude that may encourage governments around the world pursue more inward-looking policies,thus, restricting free flow of trade and finance.&nbsp; 
 
(With inputs from Reuters)

With BREXIT, there would be impact on several sectors such as Economy, Finance, Trade, Aviation, Energy, Climate etc.

Britain is expected to submit an application to leave the European Union (EU) following Thursday's referendum, after which it would have two years to negotiate an exit. Below are possible consequences for Britain and the EU of a Brexit. ECONOMY Britain would no longer be subject to EU budget rules, which limit a government's budget deficit to 3 per cent of Gross Domestic Product (GDP) and public debt to 60 per cent of GDP. It could therefore run whatever budget shortfall it wants without admonishment from the European Commission and other EU ministers. It would also be free from the Commission's monitoring and advice on future actions. FINANCE Financial services firms based in Britain, from banks to clearing houses and funds, could lose their money-spinning EU "passports", which allows them to sell services across the 28-nation bloc with low costs and a single set of rules. The passporting system has contributed to making London one of the world's most important financial centres. UK has been a gateway to European financial market for Non-EU banks based in UK. Some American, Japanese and other non-European banks that have European headquarters in London have said they would consider moving parts of their business inside the European Union, in the event of a BREXIT. Capital Requirement regulations is legislated through Financial Conduct Authority Handbook and Prudential Regulation Authority Handbook. BREXIT would not likely cause any immediate change in these requirements, however, a certain divergence might be expected in the future. Individuals and Corporates are covered under EU's insolvency regulations. This is relevant to banks in their dealings with their borrowers with operations in Member States of EU. Unless replaced by an alternative agreement with the EU or individual EU Member State, banks lending to such borrowers who take enforcement proceedings and/or institute insolvency proceedings in the UK, may find themselves exposed to the risk of competing insolvency proceedings being commenced in one or more other jurisdictions and of not being able to rely on the primacy of the UK proceedings. Market volatility has caused concerns among borrowers for being exposed to lending risks. BREXIT would have an impact on capital market instruments. The bond instruments issued in UK, may be amended by borrowers given the conditions in UK post BREXIT. Amendments in syndicate agreements would be costly and ineffective as decisions would be delayed and inadequate. TRADE The rest of the EU has a trade surplus in goods of about 100 billion Euros ($110 billion) with Britain, while Britain exports some 20 billion Euros in services than it imports, principally due to financial services. BREXIT campaigners say if would be in the EU's interest to agree a free trade deal with Britain even if it leaves the bloc. However, there tends to be more of a focus on goods than services in free trade deals. Switzerland, where financial services are a larger share of GDP than in Britain, has no general access to EU financial service markets and runs a financial services trade deficit with the bloc. COMPETITION British companies acquiring EU peers would still need approval from the UK competition watchdog and the European Commission, resulting in more legal costs and the risk that each delivers a different ruling. Britain will have a free hand to aid ailing companies or industries without fear of EU action but it will also not be able to oppose subsidies granted by EU governments to their own national champions. ENERGY Leaving the EU could make UK energy infrastructure investment costlier and delay new projects at a time when the country needs to plug a looming electricity supply gap. The uncertainty after BREXIT could make energy investors demand higher returns for the risk of less favourable conditions. Oil and gas majors, BP and Shell are among energy companies who warned about the potential downside. CLIMATE Britain is the second-largest emitter of greenhouse gases in Europe and its utilities are among the largest buyers of carbon permits in the EU Emission Trading System (ETS). Although most analysts believe Britain will remain in the cap-and-trade scheme, the vote is viewed as bearish for the market as Britain would no longer be able to drive tough reforms to drive up the price. BREXIT would also disrupt the bloc's plans to share out the burden of its Paris climate change pledge. The environmentally minded also worry that EU climate targets would be less ambitious without British leadership to balance against more reluctant member states such as coal-dependent Poland. AVIATION A BREXIT could call into question EU agreements on open airspace that have granted the region's airlines unlimited access to the skies of fellow member states, benefiting both UK and EU airlines. It would also affect transatlantic routes because of the EU-U.S. Open Skies agreement, which gives British airlines unlimited flying rights to the United States. FOREIGN POLICY Along with France, Britain is the leading foreign policy power in the EU, boasting a large military and close ties with the United States. After a BREXIT, Washington has made clear it will be less interested in London as an ally because of a perceived loss of influence. Britain would no longer be bound by joint EU positions, for instance on economic sanctions against Russia. Britain would remain a member of NATO. JUSTICE AND HOME AFFAIRS Britain has multiple exemptions from justice and home affairs policies, notably not being part of bloc's Schengen zone of free travel. It is not clear what restrictions Britain might place on foreign arrivals. The EU has vowed to respond in kind. Britain currently recognises other EU members' arrest warrants, exchanges police information, including personal data, and is a member of the bloc's police agency Europol. Its future involvement, including access to EU databases, could diminish, meaning less cooperation on policing and fighting crime. DEMANDS BY STAKEHOLDERS With the impact of BREXIT on several sectors of UK, Britain's biggest banks have put forward their list of demands to the politicians. 1. Exit from the EU should be made smoothly over time, so there is no change over time 2. UK should negotiate to attain a mechanism similar to the passport regime, so that UK operating firms have access to continental market 3. Promote competitiveness of London financial market implying that the UK politicians should promote a level playing field in global financial regulation, throwing the UK fully into a leading role in the G20, Financial Stability Board, Basel Committee, World Bank and International Monetary Fund. It also means slashing red tape. 4. Banks and finance firms are keen to ensure that the finance sector is not cut off from the international jobs market. This implies that Britain should press the case for continued access to skilled talent from the EU and the rest of the world in order to boost the UK’s competitiveness. The banks are also lobbying for accommodating immigration rules. IMPACT OF BREXIT ON MARKET Australia lost $56 billion in a day after BREXIT result was clear. Asian stocks are dumped as Global economic conditions remain uncertain. Wall Street and British Sterling also observed a slump. For markets, BREXIT signals failure of monetary policy and change in political attitude that may encourage governments around the world pursue more inward-looking policies,thus, restricting free flow of trade and finance. (With inputs from Reuters)

Consequences of BREXIT

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Brexit, News on Brexit, stories on Brexit, articles on Brexit, Brexit stories at Wion, Brexit news, Brexit latest news

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