Theories abound as to what may become of the United Kingdom once the dust settles from the island-nation’s historic vote, which sent the country’s economy into a tailspin as the value of the British pound dropped to levels not seen since 1985.
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Many European officials fear the United Kingdom vote will play into the hands of the far right and left and fuel calls for referendums in other countries.
The vote spooked financial markets because the British economy has become deeply intertwined with the European continent.
The Remain camp didn’t even try to talk up the EU’s virtues, but merely to threaten doom if it lost – while denouncing Leave voters as racist and xenophobic.
After meeting with her cabinet she said “we will seek to enter into immediate discussions” with the rest of the EU.
Federal Reserve Chair Janet Yellen had twice warned that a Brexit “could have consequences in turn for the USA economic outlook”, and last night’s historic vote certainly put an end to any speculation on a pending a rate hike.
The UK voted by 52 percent to 48 percent to leave the European Union yesterday, and David Cameron has announced he will step down as PM by October.
The favourite to succeed him, London Mayor Boris Johnson, has said there is “no need for haste” – but European Union leaders are saying the opposite.
In Friday’s statement after the stunning outcome of the vote, Obama highlighted the US relationship with the European Union, saying the EU “has done so much to promote stability, stimulate economic growth, and foster the spread of democratic values and ideals across the continent and beyond”.
“I would like to get started immediately”, he said.
German Foreign Minister Frank-Walter Steinmeier also said negotiations on a British exit, or Brexit, should begin “as soon as possible” and added that “intensive European discussions” are needed.
Luxembourg Foreign Minister said he hoped there would be no “cat and mouse” game.
“There must be clarity”, Asselborn told reporters.
“But after the British decision we mustn’t lapse into depression and inactivity”.
The Dow fell as much as 538.27 points and the S&P 500 dropped as much as 58.49 points in the first minutes of morning trading.
On the financial front, the global stock markets including those based in London, New York, Mumbai, Karachi, Hong Kong and Tokyo plummeted, and 200 billion sterling pounds were wiped off in just a few hours from London’s FTSE Stock Exchange alone.
Credit rating agency Moody’s downgraded the U.K.’s economic outlook from stable to negative, saying Britain faces “a prolonged period of uncertainty. with negative implications for the country’s medium-term growth outlook”. But a series of crises have shaken British confidence in the EU.
Other losers include Labour Party Leader Jeremy Corbyn, who was roundly criticized for his “half-hearted” support of remaining in the EU.
“But the British people have made a very clear decision to take a different path, and as such I think the country requires fresh leadership to take it in this direction”.
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“We have the depth of skills, knowledge and experience that’s hard to replicate”, Mr Lyons, who backed the Leave camp, told the BBC.
