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World markets shudder after Brexit vote

Friday, June 24, 2016 - 01:50

World stocks head for one the biggest slumps on record as a decision by Britain to leave the European Union trigger 8 percent falls for Europe's biggest bourses and a record plunge for sterling.As David Pollard reports, the slide in stocks wiped about 650 billion euros ($726 billion) off the market value of Europe's listed shares.

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A new dawn for Britain, say the Brexit victors. But a dark day for David Cameron, who is to stand down. SOUNDBITE (English) BRITISH PRIME MINISTER, DAVID CAMERON, SAYING: "The British people have made a very clear decision to take a different path. And as such, I believe the country requires fresh leadership to take it in a new direction." If that means uncharted waters - then the Bank of England keen for a firm hand on the tiller. SOUNDBITE (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "The Bank of England will not hesitate to take additional measures, as required, as markets adjust, and as the UK economy moves forward." Including, said Carney, the promise of an extra 250 billion pounds of extra liquidity as a backstop. But it may take more than promises to stop a market rout. Sterling: suffering one of its biggest ever falls. Bank shares leading European stocks towards one of their worst-ever sell-offs. 100 billion pounds wiped off British shares. Gold on its biggest rally in seven years in a flight to safe havens. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "Overall, the market is taking this very, very negatively if only for the fact that once again, once again in so many years we've face-slammed ourselves into yet another crisis .... It's shell shock, I think, is what we're dealing with right now." For other traders, a reaction as much emotional as financial. As Britain's now former partners in Europe woke to the news. (SOUNDBITE) (German) BAADER BANK HEAD OF CAPITAL MARKETS ANALYSIS, ROBERT HALVER, SAYING: "Brexit is here. I reacted this morning at 4 am, with a word I can't repeat now. It's terrible that Britain is leaving, because they've opened a door for the many populist parties in EU countries to say they want to do the same." The final results from the referendum vote narrow - but clear. Something few would say about the UK's place in the world economy

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World markets shudder after Brexit vote

Friday, June 24, 2016 - 01:50