EDITOR’S NOTE: Below is a collection of news stories regarding the recent vote in the UK to leave the European Union (aka Brexit). You can see the top stories we chose in the JLN Newsletter for June 24, 2016.
A Quick Guide to Brexit and Beyond; So what happens next?
Lisa Fleisher – Bloomberg
What just happened?
The U.K. voted 52% to 48% to leave the European Union in a referendum that revealed deep divisions within political parties, across generations and between geographic regions of the Commonwealth.
BOE to ‘Take All Necessary Steps’ Following ‘Brexit’ Vote; The Bank of England says it undertook extensive contingency planning ahead of the vote
By JASON DOUGLAS and TOM FAIRLESS – WSJ
Europe’s major central banks attempted to calm fevered financial markets in the wake of the U.K.’s shock decision to exit the European Union, pledging to flood banks with cash and deploy all the tools in their arsenals to maintain stable prices and safeguard the stability of the financial system.
What Brexit Means for the City of London; Financial and trading center will continue to thrive, says civic leader
By SIMON CLARK and ANUJ GANGAHAR – WSJ
The council of the City of London asserted Friday that there will be “no mass exit” of financial firms after the U.K.’s shock vote to leave the European Union.
Banks fear volatility but remain committed to British clients; Following a UK vote to leave the EU, banks are preparing for the expected volatility of European markets.
By Conner Guidry – The Trade
In the wake of the UK’s referendum decision to leave the EU, banks are facing significant uncertainty, both about their own operations and the wider markets.
Trading jams for retail investors as platforms report pricing issues
HARDEEP TAWAKLEY – Investment Week
Retail trading platforms, including Hargreaves Lansdown, are reporting “industry-wide” pricing issues as investors react to the UK’s decision to leave the European Union.
Asian exchanges up margins, suspend contracts amid Brexit turmoil
The Australian and Singapore exchanges raised the cash firms must pledge to cover futures trades on Friday, and trading was briefly halted in Japan’s Nikkei contracts as Asia-Pacific bourses were buffeted by volatility linked to Britain’s vote to leave the European Union.
Do the Experts Know Anything?
By Justin Fox – Bloomberg
This has been a terrible day for experts.
Economic professionals were overwhelmingly of the opinion that leaving the European Union would hurt the United Kingdom. And until a few hours ago, the consensus of public opinion experts — at least if one uses prediction markets as a proxy — was that voters would in the end decide to stay in the EU.
How Did the Bookies Get It So Wrong: Ladbrokes Tries to Explain
Dara Doyle – Bloomberg
Gambling firms had placed 90% probability on Brexit rejection; Sometimes long-shots win, Ladbrokes says as markets plunge
The result of the U.K.’s Brexit referendum defied gambling firms, which placed a 90 percent chance on the nation remaining in the European Union as the campaign drew to a close. It might just be one of the occasions where an outsider wins, Ladbrokes Plc said.
Joint statement by Donald Tusk, President of the European Council, Martin Schulz, President of the European Parliament, Mark Rutte, holder of the rotating Presidency of the Council of the EU, and Jean-Claude Juncker, President of the European Commission, on the outcome of the United Kingdom referendum
Statements and remarks 381/16 Institutional affairs
President Tusk, President Schulz and Prime Minister Rutte met this morning in Brussels upon the invitation of European Commission President Juncker. They discussed the outcome of the United Kingdom referendum and made the following joint statement:
Europe Stock Volumes Soar After Rocky Start, Suspended Dark Pool
John Detrixhe – Bloomberg
Morgan Stanley’s dark pool was said to be offline in London; Stock volatility triggered extended opening auctions
A turbulent start to the open of the London market propelled trading volume as much as 700 percent higher than normal, while at least one dark pool was suspended as investors around the globe digested U.K. voters’ decision to leave the European Union.
Insurance sector hit hard by Brexit vote; Insurance sector concerned over impact of referendum result on Lloyd’s, London’s insurance market
by: Oliver Ralph, Insurance Correspondent – FT
Shares across the insurance sector fell heavily in the wake of Britain voting to leave the EU, with many in the industry concerned about the impact of the referendum result on Lloyd’s, London’s insurance market.
Nightmare Coming True for Stock Bulls Blindsided in Brexit Shock
Joseph Ciolli, Anna-Louise Jackson – Bloomberg
Global equities plunge as Britain votes to secede from EU; Shades of Lehman as shares plunge from Tokyo to London
Global investors better pray their hedges prove more reliable than the bookmakers.
Cameron ‘huge responsibility’, Frankfurt to benefit from Brexit-Publicis
British Prime Minister David Cameron has a ‘huge responsibility’ in the outcome of Britain’s referendum on leaving the European Union and the negotiations following the vote will take years, Publicis Chief Executive Officer Maurice Levy said on Friday.
No Safety for Traders on Brexit Result Day on Liquidity Shortage
Lananh Nguyen – Bloomberg
Vanguard says currency market preparing for big price swings; Pound, yen gyrate as results show ‘Leave’ beating forecasts
Bond and currency traders seeking refuge as the results of the U.K. vote on membership in the European Union come in are finding that the world’s financial-market havens aren’t so safe.
LSE-Deutsche Boerse hangs over Brexit precipice
George Hay – Reuters
The planned 20 billion-plus pound merger between the London Stock Exchange and Deutsche Boerse is hanging over a precipice. Britons will decide on June 23 whether they want to stay in the European Union. For sceptical Deutsche Boerse shareholders, a vote to leave – which is perfectly possible – could be the final straw.
SNB Steps Into Currency Market Amid Brexit-Induced Stress
Catherine Bosley – Bloomberg
Swiss policy makers have repeatedly threatened interventions; Franc climbs most since January 2015 in reaction to U.K. vote
The Swiss National Bank waded into currency markets on Friday in reaction to Britain’s referendum on European Union membership that has upended global markets.