The Financial Stability Oversight Council – which includes the heads of the U.S. Treasury, Securities and Exchange Commission and Federal Reserve – “noted that the U.S. financial system continues to function in an orderly manner, and that the Council will continue to monitor ongoing developments”, according to a summary released after a phone call among members.
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The Brits’ collective decision to leave the European Union, rendered in a national referendum Thursday, sent shivers through financial markets worldwide, and global markets plunged. Certainly their options for working elsewhere in Europe will be affected. Hong Kong’s Hang Seng index tumbled 4.7 percent to 19,894.12 and Australia’s S&P/ASX 200 fell 3.6 percent to 5,093.40.
Adding to US concerns is the threat by Scottish nationalists to mount a new referendum on independence for Scotland, where almost two-thirds of voters voted to stay in the EU. He praised Britons who he said “took back control of their country” by voting to leave the European Union. The non-British, minority and Central European immigrants living in England right now are not shocked, since they were taking the brunt of the anti-immigrant rhetoric ever since the Conservative Party took over in 2015. In February it traded as low as $1.39.
Marine Le Pen, president of France’s conservative National Front party, declared the referendum’s results a “victory for freedom”, adding “As I have been demanding for years, it is now necessary to hold the same referendum in France and the European Union countries”. It was the biggest drop for USA stocks since September. Some of those officials may not survive the change of leadership or further British political upheavals that could be spurred by the vote.
A “Vote to leave” campaigner holds a placard on May 25, 2016, in Bolton, England. The statement came with global markets diving as investors reacted with alarm to the historic vote.
Banks have the most to lose in Britain’s departure from the European Union as they do a lot of cross-border activity, which is facilitated in the European Union, which has no borders, tariffs, or limits on the movement money and people.
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The people of the United Kingdom have voted to withdraw from the European Union, and politicians in the U.S. are drawing parallels between that historical move and economic and political dissatisfaction back home. “I hope the formula of co-sovereignty – to be clear, the Spanish flag on the Rock – is much closer than before”, he said. But it then suffered its biggest fall in years, plummeting from about $1.50 to nearly $1.40 as results began to show stronger-than-expected support for quitting the bloc. “High demand for government debt pulls down interest rates.” the Post explains. Gold is now on a five-day losing streak. Since then it has gone down 2.7 percent to $1,263 an ounce. “And if Britain votes for Brexit, they could go even lower”. Those stocks are similar to bonds: they tend to be stable and pay out a lot of cash. He also stressed the special USA ties to the United Kingdom, and then added a point on many minds.
