LONDON - Financial markets are expecting more economic turmoil tomorrow following last week's dramatic vote by the United Kingdom (UK) to quit the European Union (EU). Currencies, shares and bonds will display huge volatility as the full impact of the poll continues to sink in, with consequences for pensions, savings, commodities and house prices.
The referendum has already triggered political and financial turmoil around the world. Stock markets plummeted on Friday, with the Dow Jones industrial average dropping 3.4% in its biggest fall since August last year. The pound dropped to its lowest level since 1985, plunging more than 10% from about US copy.50 to copy.35 before a slight recovery.
Credit rating agency Moody's downgraded the UK'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". Britain and the EU haven't even begun divorce talks but they were already bickering yesterday.
EU diplomats meeting in Berlin told Britain to hurry up and trigger the formal exit process
something the UK has said won't happen for several months. French Foreign Minister Jean-Marc Ayrault said "there is a certain urgency so that we don't have a period of uncertainty, with financial consequences, political consequences". The victorious Leave campaigners have said there is no rush to trigger Article 50 of the EU's Lisbon treaty, which will begin a two-year exit process to renegotiate trade, business and political links between the UK and what will become a 27-nation bloc. Prime Minister David Cameron, who announced his resignation on Friday, said his successor, to be chosen by October, should start the process. The favourite to succeed him, former London Mayor Boris Johnson, has aid there is "no need for haste but EU leaders are saying the opposite.
LONDON - Financial markets are expecting more economic turmoil tomorrow following last week's dramatic vote by the United Kingdom (UK) to quit the European Union (EU). Currencies, shares and bonds will display huge volatility as the full impact of the poll continues to sink in, with consequences for pensions, savings, commodities and house prices. The referendum has already triggered political and financial turmoil around the world. Stock markets plummeted on Friday, with the Dow Jones industrial average dropping 3.4% in its biggest fall since August last year. The pound dropped to its lowest level since 1985, plunging more than 10% from about US copy.50 to copy.35 before a slight recovery. Credit rating agency Moody's downgraded the UK'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". Britain and the EU haven't even begun divorce talks but they were already bickering yesterday. EU diplomats meeting in Berlin told Britain to hurry up and trigger the formal exit process something the UK has said won't happen for several months. French Foreign Minister Jean-Marc Ayrault said "there is a certain urgency so that we don't have a period of uncertainty, with financial consequences, political consequences". The victorious Leave campaigners have said there is no rush to trigger Article 50 of the EU's Lisbon treaty, which will begin a two-year exit process to renegotiate trade, business and political links between the UK and what will become a 27-nation bloc. Prime Minister David Cameron, who announced his resignation on Friday, said his successor, to be chosen by October, should start the process. The favourite to succeed him, former London Mayor Boris Johnson, has aid there is "no need for haste but EU leaders are saying the opposite.
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