Friday, June 24, 2016

Britain Votes to "Brexit" from the EU - Prime Minister David Cameron Resigns

Holy turmoil in the markets, Batman!

From the Times:

Britain has voted to leave the European Union, a historic decision sure to reshape the nation’s place in the world, rattle the Continent and rock political establishments throughout the West.
Not long after the vote tally was completed, Prime Minister David Cameron, who led the campaign to remain in the bloc, appeared in front of 10 Downing Street to announce that he planned to step down by October, saying the country deserved a leader committed to carrying out the will of the people.
The stunning turn of events was accompanied by a plunge in the financial markets, with the value of the British pound and stock prices in Asia plummeting.
The margin of victory startled even proponents of a British exit. The “Leave” campaign won by 52 percent to 48 percent. More than 17.4 million people voted in the referendum on Thursday to sever ties with the European Union, and about 16.1 million to remain in the bloc....
Britain will become the first country to leave the 28-member bloc, which has been increasingly weighed down by its failures to deal fully with a succession of crises, from the financial collapse of 2008 to a resurgent Russia and the huge influx of migrants last year.
In response, Martin Schulz, the president of the European Parliament, said the assembly would hold an emergency session on Tuesday to address the decision by British voters.
It was a remarkable victory for the country’s anti-Europe forces, which not long ago were considered to have little chance of prevailing.
Financial markets, which had been anticipating that Britain would vote to stay in, started plunging before the vote tally was complete, putting pressure on central banks and regulators to take steps to guard against a spread of the damage.
Economists had predicted that a vote to leave the bloc could do substantial damage to the British economy, but Mark Carney, the head of the Bank of England, sought to address those concerns on Friday, saying the bank had made extensive contingency plans and had taken “all the necessary steps” to prepare.
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