tv Sky News Simulcast of Brexit Vote FOX Business June 24, 2016 1:00am-4:01am EDT
sunni 1:00 in the morning friday morning on the east coast june the 24th on the east coast it is 1:00 in the morning and we bring you the news. it's extraordinary what is happening the last five or six hours. the british have voted to leave the european union. we believe it to be about a three-point margin of victory for the leave count. they are leaving. this is a profound event in britain and in europe and indeed on the financial markets around the world. we open up in about eight and a half hours time in new york. the dow jones average ob down about 700 points. s&p down 100 and nasdaq down 228. when you start talking percentage terms you know that you are way down. nigel farage is the guy who was one of the leaders of the ex-account.
listen, please. the repercussions have been immediate. that was from earlier. nigel faraj did something extraordinary. 15 minutes after the polls closed he emerged and i remember these were the latest that the leave campaign that he emerged and basically conceded. he appears to save the state campaign will enjoy a narrow victory and then he walked away. now about an hour or two later when he realized that the vote was going the other way he came out and i'm quoting here i dare to dream dawn is coming on an independent uk. sort of chilling phraseology there but that is what he said total reversal. he is not doing well in the public eye as of today. i want to roll a sound bite and this is from president obama when he visited england about
two or two and a half weeks ago, three weeks ago maybe. he was trying to persuade the brits tuesday so listen to this for us minute. >> i think it's fair to say that maybe at some point down the line there might need a uk u.s. trade agreement but is not going to happen anytime soon because there focuses in negotiating with the big block and the european union to get a trade agreement on and the uk is going to be in the back of the queue. >> that did not go down well. the back of the queue. that's a british expression. the person would normally say in america needs back of the line but the setback of the queue as if he'd been prompted by britain's prime minister to say something about british politics. i think there was a great deal of resentment there and proper powell is still with us from the economist. let in for punishment that he is so our president did not do well trying to persuade the brits to
say did the? >> it was a bit of a flop but it's worth noting -- stuart: this is a revolution that has happened here. >> people do like to get quite excited about it. it's the most influential country in the world. stuart: i've got that a maybe i'm stretching a point here but there's a parallel between the issues discussed in the relevant issues in the election in britain today and the issues which we will be voting on here in november of this year. there are parallels. there are great considerable similarities. we can agree on that, can't wait? >> is a very good point because politics has completely shifted. used to be left and right. we have now got something more and would looking and outward looking so anti-immigration and anti-free trade and so forth
that are public and democrats label look at trump and look at the uk and other national -- france. there is a whole new trend in world politics. stuart: to think that's a dangerous trend? >> it's always dange you leave democracy up to the people that frankly what we are seeing here is a move towards nationalist democracy and that's not going to make the elite happy. in fact it's going to confound the elite and the one thing that has predictive value as time after time the elites in the u.s. and the elites in the uk messed with the people were saying. they weren't listening. if i were trump if i were running i would try to figure out what does this mean for business and what does this mean for our campaign? things have changed. >> with the smugness. a while back ... ago the economist ran a piece about how
referendums are not are a good idea because guess what the people get to vote and if you read about populism in today's press all the assorted elites talk about populism as the scary tom. what does it mean comment means from the people so i have to say i think there are some parallels. i think that trump could kind of take some energy from this and i think he will. >> here's the parallel. a protest vote strong showing in northern england for the working class people from your guys neck of the woods. >> which is kind of extraordinary because not only did the labour party not get the working-class vote for them that actually voted for the other side which is a key point of what we are talking about which is a huge shift in politics. >> i think we do agree on this. there has been a profound shift. you could say toward the populist right if you would
like, say what you like as a parallel between what happened in britain today and last night and what is happening here in america and trump is the commonality in the populism is the commonality between the two. immigration is the commonality of issues just like the elites as the commonality between the two would desire to run your own country, run your own culture. it's ours and we will run it. there's a strong desire for that. you guys at the economist missed it. >> we followed it really closely packed what is interesting is the buk is going to be the test case. they have to go to europe to persuade them to give them a better deal. the primary focus of europe right now is to keep together. they don't want to be the european union so they will be in any decent mind to offer any concessions to the uk can find itself actually baking any number of states to complete a deal with the uk to play ball.
they could find themselves on their knees to slovenia and that's not taking back control. >> what if england decides they want to be part of the eea or have some sort of serious arrangement would you prefer that to a total dissolution of any ties? >> and adjusting point and a lot of people have raised this as a middle ground. the difficulty is that you are in the ea you have to subscribe to the rules of the eu and that means also paying your dues. the problem is if you are in and the eu you are just on the receiving end so that's less democracy. that we have word coming from germany did german 10 year bond hit a record low. >> for the benefit of viewers who don't follow finance for a closely when a country has a negative interest rate rate when
you lend money to the government you don't get it all back. you don't get interest back and in fact they keep the peace of your money confiscation. that's a negative interest rate and that this moment time somewhere around seven gillian dollars worth of wants paying no interest in fact uk the issuer to keep some of your money was an extraordinary deal. and listen to this, this just came in. the yield on america's 10 year treasury has come all the way down to 1.45%. if you know anything about finance that is extraordinary development. i was on the air yesterday morning, thursday morning on the fox business network. the yield on that 10 year treasury was 1.74%. it is now 1.45%. that's a catastrophe. >> here is what is happening and we are hearing from walter training house about one third
of liquidity has been removed from eu bonds so it sees a lockup in trading in european bonds the rash is toward the tenure of u.s. treasure. senequa we have on various markets responded to the bridges vote is a spiraling down. oil prices are now down 6%. the dow jones, the yield on the treasury is astonishing, 1.45%. the dow jones average will be done around 700 points at the opening bell. if you were goldman sachs partner this is a spiraling down >> it's a race to the bottom. i think if negative interest rates were broadway show what a close a long time ago because everyone does like it was going to happen in sovereign debt is basically turning into an insurance policy. i've will give you a dollar, protected and you give me 99 cents back when it's done and that is a wrong tilt.
that's the wrong way to go in and wendy particularly if you were in asia or japan that's going to be difficult on your economy. if you can't take money at a 1.25% r. wing. that if you can't borrow that make money with it tells you you have no faith in the underlying economy. why we need to do something much more strategic to get away from monetary policy and get the fiscal poly and start making this a country that works again. >> erase a good point about how central banks respond to that. their bluff has been called so they will have to come out with some sort of statement and they will have to respond. >> it's interesting because they're not many parallels between this and 2008. in 2008 just about this point that lehman weekend if you will
people set in the central bank we have these risks understood than under control. that's what they have been saying so far. i think we have a demonstration tomorrow morning that they are not quite as in control as they say. stuart: that is scary stuff because when you are looking at declines like this in central banks which i don't think they have got they have got any tools in the toolbox to deal with this if i'm not mistaken. i don't know what they could do about this. >> by corporate bonds. stuart: the european market is going to buy corporate bonds? >> this will be a helicopter situation that they will dump money on it and frankly it's not going to make a difference. whoever says wait for your four days this bill is going to have to pass. >> what do we know about circuit breaker's? it could be imposed on wall street. >> you see it the board towards
5% proven a breakthrough by% of market. you say we have to take a positive deal peace out this happen before when we had circuit rakers enacted. in other words they don't want a ricochet ball itself budget cord swing open so and they invoke the circuit breaker what happened was i don't think they fix this problem. the dts went haywire and when the e.t. is went haywire there were many crashes because it couldn't price the underlying stock. was difficult for traders to do that so we could see an even worse than what we are looking at right now. >> no one really makes a market. you don't have an orderly book so it's an exacerbate her. let me give you some news, the german 10 year bond yield is going to fall by the biggest daily amount since the 2012 euros on debt crisis so they are
falling further into negative interest rates where you lend money to the government and you don't get it all back. >> i don't know what on earth the central bank can do on a friday morning. i just don't know what you can do. is that helicopter money and you chuck it all over the place? >> the interesting question is just how liquidity and how money moves so much faster and it's such greater quantities than in the past. if you discuss this tonight, the canadian dollar had very little impact. how does -- has the regulation kept up? stuart: is 1:13 eastern time a.m. on friday.
a lot of our viewers our viewers a look at this program right now and thinking in eight hours time the stock arcade opens in the financial markets will be opening up. should we be really really concerned about a very nasty, dirty carabbus open because it looks like it's going to happen. >> we will have a couple of early warnings. if you think about in australia there are a couple of stocks that trade in australia and the the london exchange and they will open. if they open horribly that will cast a very long shadow. stuart: how do you stop the downward spiral? >> you have to do that trade paz. we saw happen in august of 2015 almost a year ago and they try to do an orderly open and it didn't work. some of the stocks, when the etf started going haywire falling deeper the indices were indicating that's when the s&p
reaching out to nasdaq seeing how what can we fix this problem? that is a concern. stuart: but that 8% down on the average in japan nearly 5% am on the hang seng in hong kong and 3% in the singapore straits times. if i'm if you are and i'm an investor i'm worried. >> isn't this why some people -. >> you don't trade it. you don't respond when it drops. stuart: you watch and you worry about. we will be back at 9:00 this morning with all the news. i'm not going to go to commercial break that i'm going to give young robert powell a chance to speak for the elites. go ahead. >> i'm glad i wore a tie. if you think about the stocks being down in the stock market looks quite terrifying the reality is you might have a trading opportunity here.
this is not going to be fundamentally significant for the macroeconomic picture in the wider world. it is an opportunity if you have a medium term is -- if you have a strong stomach. stuart: what you were saying is maybe can pick up a bargain or two. >> by the way eu in england are wondering where to go with their money at every crisis we have had recently where they end up as in the united states stock market so i think this is dramatic and it's fast-moving but i don't do gets going to last. stuart: but you could see a turnaround. you could have a turnaround. >> the one thing i would urge any investor, do not panic now. this is one of those black swan events. the computers are pricing this and you have to let the computers were down there would be raped by used to be had. if you start to see our wonderful companies trading way down i would think seriously
about it. cheryl: you might want to focus on domestic companies because what is worrying people of course is that eu economic aspects also in england and to the extent we have companies doing business in the u.s. those are horribly looking good right now. stuart: 20% of our exports are to the eu and of that 20% as to the uk so i agree if your point. i don't think it's going to effect is that much for the strong dollar is not great for our industrials. we tend to do better on the export side with the weak dollar so i grant that point that relative value will be tilting our way. stuart:stuart: marriages recapie so far because it's been an extraordinary night. we went on the air at 11:00 eastern time p.m. on thursday night. that would be two hours and 17 minutes ago. when we went on the air the story was all about the british vote. how would it turn out?
we were getting results from the scotland and now london. they were getting the results and what emerged was a win or the leave camp and that's been confirmed. the leave has one. the story then transferred from out the vote itself but to the politics of it. what is prime minister cameron going to do? we focused on that a while no we start to see the financial markets just tumbling all across the world and that is now the story because in eight hours time wall street opens up it's going to be a serious downward shift for the stock market, very big downward shift indeed and that's where we are with the story right now. all eyes are on the financial markets, how are investors going to react to the next extraordinary event last night? this morning. let me get that one right. by the way we understand that david cameron the prime minister is going to speak and he will
speak before the british stock market opens. we are expecting him to speak maybe an hour from now, and our behalf. i don't know what is going to say obviously but he will make some kind of statement before the markets opening. it if that's the truth to the story we are now all about the run into reaction because it is going to be extreme. cheryl: we have senior conservative lawmakers in england and great britain who can't leave due to the conservative saying now that british prime minister cameron should stay on to provide reassurance to scotland and ireland. stuart: i'm interested in the parallels. ambassador john bolton, knew he is is there and he is listening. he is shaking his head. what's up now, john? >> thank you stewart. i think we need to understand causality here when we look at what's happening in the market. certainly the knee-jerk
explanation is the brexit vote but in fact what is being purged out here in these losses that we are going to see is the delusion that no country could ever leave the european union, the mindset of so many business and financial leaders was so fixed that they were making bets, pricing the main voting had been for sustained period of time. it's just wrong and sadly they are going to lose a lot of money but in the slightly longer term i think the opportunities for britain's britons as the guy of the pound goes down their export attractiveness goes up. people just need to have a better recognition of what is possible and i think now they need to have a less theological view. one of the slogans was you must always keep the bicycle moving forward meaning any problem with european integration assault by
more integration. that's 40-year-old formula is finished now that's a decision understand. don't buy the eu religion come up by a financial reality. stuart: john we have a member of nazi editorial board but a senior administrator at the -- he has been with us for the best part of an hour now. i want to know why you people in the elites, how did you get it so wrong? you didn't see this coming. >> it's an interesting question because in reality the europe project was coming to a close anyway. about the only ones with belgium but the european guinean hasn't come up with a replace a model and this is the one area we haven't touched on. it might be our right.
but what about the rest of europe? they seem so uncertain. >> i don't know what the format would be for be for breaking up but there are so many political parties in the big countries in europe who wants some kind of change in the european relationship makes me think the european relationship is not going to work. >> get monetary policy which is basically supposed to be one for all but the one created a fiscal policy and in fact they set rules for fiscal policy such as uld run and so forth that no one abided by it and there was no penalty when people broke the rule. >> here's the problem. stuart: are you getting groggy at 1:22 a.m.? >> that may have a drink of water. now i lost my train of thought.
stuart: i've ask a guy webster who has been hanging on waiting to get into this conversation he is news for us. what if us. what have you got ashley? >> is very interesting i'll link the local media everybody is saying we are in chartered territory and we don't know what happens from here but it certainly is in a stark were playing against the political stavich meant much like we are seeing in the united states. some of the repercussions are interesting. we could ultimately see the breakup of the united kingdom has already we have -- wanting to eradicate the border because northern ireland voted strongly to stay in the eu. they do not want to give leave to eu and now scotland is tipping and saying we could have referendum on getting out of the uk sooner rather than later so already people are staking their claim and trying to react to what has been a shocking result. there's also the possibility being talked about that this
boat comes together in brussels and comes back to back to the uk with a much sweeter deal. we still want you and that we will give you this, this than this. that is not out of the realm of possibility. they may say find good i you all lost but they could come back if they believed would be better for the union as a whole and i think it would and make britain another offer. that's us possibility that's being considered stuart. stuart: you are right it's unlikely, tightly unlike lean. >> that's almost exactly what happened here go with greece when they said we are not going to going to accept the bailout terms and they came back and they said let's negotiate more viciously. i don't think it's a great idea for europe to take a stab at it. so many things are totally in flux. it's such a big deal. we don't know how it's going to work out for britain, for your poor american relationships. we are in a state of flux but if
you are still there i just want to tell you we have a senior conservative party leader who is in the leave camp. don't know his name but this conservative party leader is urging david cameron to stay on, stay on as prime minister because that would provide some sense of security to scotland and northern ireland. he is talking about exiting the united kingdom together. priority number one, two u. ashley. >> gas and that's a very good point because there is talk about the local media that the uk itself could be splitting up as a result of this. there was a letter sent by 84 mps prior to the vote him both sides of the aisle from all political parties asking david cameron to stay on regardless of the result. if it wants to beliefs and that is what it is he should remain as prime minister to continue the negotiations with the eu for the uk to get out and provide continuity and it provides
comfort and security to the rest of united kingdom. cheryl: france is saying it is not criticizing the eu saying it's increasingly anti-democratic and brutal. so what i was trying to say before it's to your point about the greek bailout, greece was always saying listen print our way out of it but germany was saying with republic memories fresh don't print yourself out because we fear inflation. if you print money it will cause hyperinflation in germany so was never perfect monetary union for that very reason. stuart: you are looking at the s&p 500 and circuit breakers were imposed upon it. there was a brief hault in the trading and the nasdaq as well. circuit breakers were imposed. they have been taken often they are trading again. both of those indicators down
4.8 m4 .9%. that's a weaker right there. changing the topic for a minute nigel farage is the guy who was one of the leaders of the leave campaign. he has had quite a few things to say in the past 24 hours. here's his latest tweet. we got our country back. thanks to all, independence day. robert powell from the economist magazine has something to say about that. >> is like me quite excited about the independent sequel. this is something he stole from lawrence johnson. boris johnson. even got a standing ovation in the final debate. stuart: and he won. >> and he did. it's not just dollars and cents and this rationality. it is emotion. it's great to be led by emotion
but it has to be rational. stuart: it is rational. we don't want any part of the socialist and brussels. hold on a second, john bolton is still with us. john, what if you got? >> uranium in exile it seems. look, there's going to be an earthquake in british politics regardless. you just mentioned nigel farage the head of the uk independence party. guess what the rational for the party is ceased to exist that those votes are going to come back to the conservative party and of course bite definition they are all probe wrecks it right i think the labour party is in serious trouble internally the reason that wrecks it is about to win this referendum is that labor voters voted as high as 40% for brexit so this is a real opportunity inside of the conservative party to be the dominant force in british pics or as far as atkins and that's why david cameron is not secure
enough and despite what you've heard by some of these conservative mps, this is something that's going to have to play out but it's definitely more in favor of written taking a hard line on this negotiation. i think they will be very successful. stuart: i want to turn to turn affect american politics for a moment. one name that has really been much on this program the last two and half hours and that is hillary clinton. what is her position now on this boat in britain? if there's a parallel between the issues voted on their and the issues which we will vote on a november and there is a parallel. the braves have voted a certain way. i suspect is not the way that hillary clinton would have liked the brits to vote. does that mean hillary clinton is to some degree affected by this in a negative way? >> she is going to miss the message. she's going to say this is the populist vote and therefore she's going to move further to the left.
think she would embrace bernie sanders and his populist rhetoric on the left and she will be more liberal in the end. >> by the way she was on team remained. she wanted them to stay. cheryl: look at what is happening in the democratic party in terms of people migrating to support holtrop and who are those people like they are educated working people dislike the people a good many of whom voted. stuart: robert is going to disagree with you. >> no, i'm just going to be right. hillary clinton pushed that trump had no knowledge inform policy doesn't understand the whatsoever. she went the other way. >> he said make england great again. what's wrong with that? cheryl: he got what was going on and she didn't but by the way i think his political instincts
are much better than hers. this is not the first time hillary clinton has had --. >> i would call than exasperating sometimes because the path to the white house is in the center and this is not to date to move from where he has been to squarely dominate the center and hillary will move further to the left. if he keeps that center space you will occupy the white house. >> he's also a change candidate and appears to be establishment. cheryl: sankey is terrible and that's exact weight the sentiment that prevails in england. stuart: it is now 6:30 in britain and britain. of all those celebrities who were urging the brits to stay in europe, they're waking up in some and some of them are making statements. she is by the way as staunch campaigner.
she said i don't think i have ever wanted magic more. with the what the devil does that mean? she wants magic reverse the decision may be? >> i think trump's valdemort. stuart: is going to be a long list of celebrities who wear in favor of state who now to eat their worst and come up with some explanation. >> the most entertaining side was lindsay lohan repeatedly tweeting about the referenda and she can graduate weighted at tweet -- had a congratulatory tweet. do i just have the daily mirror? the mirror i suspect is that labour party organization. they would have supported remain so that's a rather tepid page.
that's the best that that? i have to assess what will be on the economist front-page? >> we were wrong. i want to know what's on your front-page? >> breaking up is hard to do. i don't know what will be next. >> raking up is hard to do? stuart: can we take sky news per second. this is nigel farage. he has had quite a night. that is not live, that is video of than previously. he has had an extraordinary night. >> he is still saying quote is not acceptable for prime minister cameron to stay on.
stuart: a lot of people are saying he's got to stay on to reassure northern ireland and scotland say with united kingdom and organize the two exits and a two-year period to negotiate their exit from europe. >> why cameron's existence would reassure northern ireland scotland. it's not really going to make any difference whatsoever. i think it's going to be dusted. stuart back done and dusted, that the new saying? >> he was so hyperbolic about supporting it. how is he going to bridge those different points of view and perspectives? i get the notion to slow it down but in but in three of four weeks time when this starts to look like a whole new day i think people wonder why we are we are listening to this man.
>> hideaway this is totally on him. if you recall he was the one who initiated it and he was the one to quote the economist banging on about the eu for a long time that kind of got people route up about this issue. this didn't have to happen. >> when they first came out with the question that was should written remain in the eu? they wind up changing the question so would he remain or leave? is started as yes or no and people said to confusing at told storage remain. let's make it do we remain or do we leave? stuart: the white house has said that president obama will speak with prime minister cameron during the course of the day. so we don't know what is going to say obviously. maybe is going to apologize for coming over there and running of the vote, who knows these
things? >> or ask for frenzies in the queue. >> on trump is there. oddly enough. stuart back look on the right side of your screen. maybe i'm grasping at straws but it looks to me that mark is gone back just a tad. we were well down 700 points and now we are down 670. circuit breakers were imposed on the s&p futures and the nasdaq features. circuit breakers were a temporary force and trading while they sought themselves out. the circuit breakers are withdrawn and they're holding it at a loss of 5% predict no industrial will be down over 600 points, not quite as bad as it was say an hour ago. to summarize everyone 51.8% of the vote went to the brits saying out and 48.2% went the people saying let's stay in so very roughly a three-point lead,
lead, a three-point when i should say for the leave campaign. ramberg this is not an ordinary vote -- remember this was a referendum and every single vote had to be counted. there are no electoral college votes. it was an accounting of the number of votes to leave versus day and it's turned out there's a three-point margin of victory for the leave campaign. they easily would pass the 16.7 million votes that they had to get to secure the victory and leave. bryce where are we now? >> john bolton is still with us. he is over there in london. i don't know what you are up to. why did you go to london the first place john? >> as i wanted to be her at a potentially historic moment. as i said earlier i'm proud of the british people to cast off
the supposedly earning of their wiser and better and to do the right thing. i a vice believe this was about self-government and that's why think what comes next to british pop politics is going to be especially important that i think cameron may well resign when he comes out perhaps in hopes of the party put him back in and give him a vote of confidence but it's going to be a very different scenario than what people thought before. we talked this morning about how it's going to take two years under article 50 of the european communities act to negotiate an exit. i think it will come up more quickly. if written at the case of treaties involved obviously you aggregate article 50 as well and that would be the best thing to move very quickly to illuminate the uncertainty. one senior eurosceptic said during the night that whoever there prime minister is has to be committed to an axis soap exit so per cameron tuesday he
needs to show he had a political lobotomy during the night to build to do that. he remains in jeopardy whatever he does but i wouldn't put it beyond the promo possibility that he announces his resignation. stuart: john thank you very much. please stay there. i have i have a minisink cornelio meyer and economist who is very much in this day camp and i want to know what cordelia has to say is an economist. what isn't economist. what do you say about the financial fallout that we are now seeing? i take it you are worried about the global economy? >> i'm word about the global economy and especially the british economy. you will see a flight. the swiss economy will suffer and the dollar will go up. it's bad for exports of america's i'm worried about the
turmoil that this will create and it's going to be protracted. whatever your previous speaker said. we have not left yet and we will have to invoke article 50. you can't just say that say we abrogate and that's a two-year exit negotiation. stuart: hold on a second because i'm interested in whether or not this is a short-term phenomenon. the unanswered markets are going to be way down when they open up again and that's in the near future but this is not just a short-term movement. you are implying there's a longer-term movement that the damage is much longer-term to the entire global economy. >> what i would say to local economy will be short to medium term into the british economy to long-term movement. we will get less investment
because we will not longer have access to the common market and we were the third largest recipient and generated 88,000 jobs. stuart: what you think is the impact on america's economy? >> i think there is a direct impact. the dollar will appreciate which is not good for ameran export so in terms of manufacturing and so on it may not be very good in terms of that jobs in the and the terms of the job situation. it will also have an impact how many times yellen will be able to go up with the base rates in the fed. i think we should go up at the base. cornelia thank you for joining us. we wanted your side of the argument and we got it and we appreciate you being with us. thank you for joining us. the two things that cornelia
said about the american economy was number one the dollar goes straight up and that's bad for exports. is that such a terrible thing for america's economy? >> it's an absolute prohibition towards process -- progress. there is a multiplier effect on that. i think there is some real joy. i think there's real opportunity hidden in this market. professional traders are going to let the sellers do their thing until i capitulate and then they buy in. i started in 1975 and i've seen a few a few crashes in my day and they tend to work on overselling on the front side. don't get in a way and let them get out and you can buy. >> is expected to s&p saying that country could use its
international -- calling for a referendum to france to leave the eu. stuart: that is breakup stuff. >> this is going to become politics and i don't think establishment politics will resist it for too long. >> apparently yesterday erred again said we may have a referent of the turkey whether we want to join the eu. everybody's getting on this bus. stuart: i don't see what's wrong with breaking of the european union but simply failed to produce real growth and prosperity from us a generation. it's a socialist brocker see. what's wrong with that rake in reagan had rake in that up and starting something new? there is going to be a lot of pain understood that he can't
just keep on going with this european socialism. it's awful. >> the ones that will feel it the most are the ones that are least able to bear it. think about eastern europe. stuart: russia said we will take a little bit for parcells. one thing i would say is the trouble with the european union is there a the haves and the have-nots and the have-nots are really going to get left line here. >> although i would argue they argue about who are the haves and the have-nots for the northern countries think they are supporting the southern countries and the southern countries think because they have given germany at currency energy basically there giving
something to the eu. i don't think there is any -- stuart: this is the beginning of the end and that would be my opinion. john bolton is still there. he is waving. he wants into this. what if you got to say? >> i'm just persistent. i want to respond to mr. powell's point. the central fallacies under girding the european union and that is this notion that somehow the european union has kept the peace in europe. the fact is what what is kept the peace in europe from 1945 to today has been the united states. it's been us in the nato alignment. not a sparrow has fallen in the european industrial complex that we haven't known about. we have prevented any remilitarization because all of the free countries militaries have been them at. into nato.
with the collapse of the warsaw pact we extended that benefit. that's why the european union has no role in security or for does have a role it's negative. i think one of the reasons why the british exer is so important is to reinvigorate nato and make it a real security barrier against the ambitions of putin the russians in the middle east which has been trying for a thousand years to move to europe and is now having success. once you break through the eu reality the route becomes much more here. stuart: lewis is a ardent leave campaigner. lewis welcome back to the discussion. i'm saying this is the beginning of the end for the european union and i will not miss it. what say you? >> i say here, here and as ambassador bolton's analysis has
been right in every respect. he has rights with respect to peace and security. the intelligence of the angles. english beat in countries that have secured these in europe and around the world and that will continue. what i think we are going to see is the breakup of the political eu and i think we will see a simpler economic community mogul which was a free-market without the ambitions of united states and europe without ambition of a nation-state. they european nation became little napoleons leglating civil service for the whole of europe. a german newspaper said the euro were a colossal mistake.
how stable does greece looked to the united states quickly ran in project has failed. a free market is a good idea. stuart: we seem to be moving towards what we have just witnessed in the last 12 hours is an historic event of major proportions were people around the world are direct way affected. europe may break up. written is going to have maybe a change in its politics and certainly a change in its status with europe and we and america have been affected to some degree by this parallel election that has just taken place in britain. back to you robert. you have taken some shtick tonight, have you not? you were taken on by almost all of our guests and you are still smiling.
do you think that boat is a catastrophe? >> for the uk? stuart: for the world, for the uk for politics? >> for the uk it's extremely bad news. exporting goods, 20,000 jobs. stuart: doesn't just stop? >> no one really knows but two days of uncertainty anyone would be making major investments within the uk but this is between 1992 and now britain is to plan the european union. >> i think that's exactly right. during the next two years we will see this problem be solved in england will be perfectly fine. i say that with confidence because again england is doing
better or i should say the eu is doing better in their arrangements with england than in what is so a $25 billion surplus i don't see that as a catastrophe and by the way the english voters voted on not what is going to happen in the eu but what is good for england and we spent a great deal of the evening talking about the eu impact and that did not guide the vote. stuart:stuart: what did you sayt maureen le pen in the national sporting? >> she is calling for a referendum for france to vote on whether to leave the eu. stuart: when we went on the air tonight at 11:00 eastern time on thursday evening i did not imagine the people's conscience would be like they are. i thought the vote would a
narrower and there would be a three-point spread as there is in the leave campaign would win a strong victory and i didn't realize that i'm not going to say the word cataclysmic. i've been told by my executive producer that the london stock exchange is going to open as normal. that doesn't tell me very much because that doesn't mean they are not going to be way down. just means they're not going to hold up trading in the beginning. they were talking about closing the market today a bank holiday. there were talking about it and they're not going to do it. the market is going to open as usual. mr. ambassador john bolton i think we have to say goodbye to you because we can no longer afford that satellite time. it's that simple i'm sorry but it was great having you john. >> land of hope and glory, mother for free. stuart: that was your last comment.
lisa from economist magazine and robbers listening to that i'm sure he agrees. >> make england great again. stuart: the dow jones industrials have been stable for the last half-hour. we have been down more more than seven appointed now we have come back a little bit. do you think the markets are listening to you that it will go down sharply and there's work in hunting? >> this is a movie that people seen before. lacks wants overshoot and/or persons going to panic don't get in their way. the panic there will be a settling out point almost like a capitulation. they are breathless and it's a chance to come back and i think this is going to come back nicely. see that it wouldn't be the individual tester watching this program. it's not the way it is.
it is the computerized trading and the twitter boom itself. >> if anybody is watching this and thinking about him and you do not do it. >> it's better to ride it out. storey want to bring up today with a couple of numbers that are of extreme importance. number one to keep benchmark interest-rate in the united states of america. when we did farney and company 9:00 thursday morning, sister the morning, seems like an eternity ago but we are on the air at 9:00 in the morning and we were quoting the 10 year treasury yield at 1.74%. it's all the way down to 1.45%. if you are not active in the financial world maybe doesn't mean them at at at sea. it means an awful lot to anybody who knows anything about money. it's down to 1.44% as we speak.
if you ever seen a drop like back? it happened but i've not seen it before. >> what is particular striking out mike crashed in 2008 or 1987 working out of nowhere we knew the data we need the time and we knew what it was going to report down to the hour so they had ample chance to get ready. it feels like an overreaction but they serve -- are overacting. another item of news is the yield on the 10 year treasury and germany has fallen to a new negative interest rate. in other words you borrow money, you lend money to the german government and they did not give it all back to you. and you don't get in just a doll. they keep a piece. in other words that's negative interest rates and they're moving further and that direction and germany as we speak. this is unheard of. this is a major concern robert because this is one of the of the world's great central banks and they don't know what to do about this.
>> they will have a hard time responding. it may be why the bank of england said will be trading as normal. the dollar amounts consistently strong and that could put a brake on the recovery in oil prices we have seen lately. what about venezuela which is pretty much heard in the trash but the middle east and so for the bin coming on this recovery of the strong dollar. i pretty much is where they were at the beginning of of the year. storey whereby to close them but i want to go back to luis and one last word from you please. >> it's independence day and i would say get your bargains wakened because the uk economy is about to go on a fantastic terrors of get your bargains why you can. stuart: that was a good last word and thank you for being with us virtually all night long.
robert you got your chance. the british economy is going on a terror. you work for economist magazine that clearly disagree. >> it's something that we viewed the uk economy by 2020 will be 6% smaller. there'll be this huge deterrence of money. the investors -- investors want to go near. as much as it might be a bargain for power up in the floor the other issue which is talked about, it's further doubled that go, the long-term consequences for the uk don't look at the we may have volatility today but in the market but the uk it could be a long-term story and we are quite downbeat about that. stuart: i have to ask you this last question, what would be worse that donald -- excuse me
at donald trump presidency or the british leaving the european union? >> a trump presidency. storey that's worse? is the biggest economy in the world and it has the most clout. >> it's not going to have that big an impact on everyone else. current? >> i don't think that the trade war with china. we are past the time when we should have a tough dialogue with china. who in the united states government is looking at china like that today? >> i think the same issues for the brexit vote, thinkers are
thinkers are wrote for full against too much regulation and an aspiration to that type of enterprise do very well at cent drop and i think there are parallels in the think american voters are going to look at this and say we can do that too. stuart: or windows state of shock? are we in the state of shock? i am because i'm so surprised at this result. i was not expecting that from the first went on the air. you are shocked because it has not gone the way you thought. >> we are outside of the arc of light but i believe there are lots of rays of sunshine and we just have to keep our poise. it's worth don't sell your stocks, don't do it. maybe even do some bargain hunting. >> to's point about poison
people reacting now the city of london the financial district says they do not see a max -- mass exodus of banks in london. the banks will stay put and the foreign minister said david cameron wants to stay so they are looking for stability. stuart: no mass exodus in the banks. it may serve the bank's purpose to say that. it would be underscoring the ongoing stability of the uk by making a pronouncement and my guess is they might. stuart: robert do you have a green card? are you an american citizen? >> i am from alabama. stuart: you didn't tell me that. here. >> i wasn't bored and bred in
alabama but my mom was. stuart: after this you are saying that robert think you're joining us and liz peek we appreciate you being with us. kiernan thanks for being with us. this you work for fox and you've got to be here but thank you for being here all night long. we are done everybody. the show is yours. >> a shocking turn of events overnight and thank you for the last three hours of coverage. we have so much more coming in the next two hours here. fox business network is like taking you through a stark moment through a start montverdee k. per british voters have voted in favor of an exit from the european union. we are lie with breaking news coverage cheryl casone taking you through the next the next to the next two are separate continuing coverage on the fox business network. i want to show you a live picture of 10 downing street the prime minister david cameron expected to speak within the next two hours. we are going to take those comments live.
of course david cameron is the one that wanted the uk tuesday. he was in the remain party but that's not happening we expect to hear in the next couple of hours. we'll take you live and also expecting more european leaders to come out to the cameron speak and françoise hollande expected to speak and we are mantra comments from him. remember no country has ever left the european union produces a historic moment that frankly no one saw coming. the odd makers and wall street investors believed the uk would stay in the european union. these results have thrown global markets into turmoil. o'shea was happening in this country and where our markets are expected to open at 930 eastern, seven have numbers -- seven hours from now.
these of course are futures. these are indicators. a lot can happen. there certainly is discussion about what's going to happen when the new york stock exchange opened at 35 eastern time that circuit breakers were put in place back in 1987. remember black monday. the circuit breakers may come into play today. that is where volatility must be managed and we have seen nothing but lowball volatility over the last three hours and again it's officially going to be the next hour but everyone calling that the uk is going to be the european union. want to show you other things that are monitoring a particular commodity story. investors going into gold but a bit of the selloff in oil. but you're seeing is investments
around the world from australia to asia and european markets which will be opening in the next hour. we'll be covering that live as well. everyone is going for safety looking for a safe haven because the amount of volatility we are seeing in the global markets and we expect a contingency when europe opens and that's france germany and the bursch market which we do expect it and we have been told will open at scheduled. the u.s. treasuries the safe haven we have seen the yields falling continuously overnight on the u.s. treasury. that 10 year particulars were investors are moving now but a 30 basis point loss. really quick i want to show you what we are seeing overall with regards to these futures. one more time before good ashley webster these are the numbers that we'll continue to watch over the next two hours. let's bring our correspondent on the ground that wanted to talk
about the political ramifications. in particular as to the biggest question is the future of david cameron. he has been his political life on her main campaign in his loss. >> is lost and in that the back part of his re-election campaign was yes i will hold a referendum on staying in the eu and that helped him get reelected print some of his own conservative members of of the time were very happy with that but he made the promise and the hell did to that promise in here we are. quite frankly cheryl a lot of us in this country are in shock certainly towards the last day before the actual vote. we were told by the betting offices in the polls that the remain side would win but apparently not so back to your question what happens to david cameron? he will be speaking. the cameras are trained on number 10 downing street for hours. we thought he might come to the camera an hour ago.
he is obviously trying to decide what and where he goes from here pb2 no there were 84 mp sent to david cameron after those saying no matter what happens to want you to remain and if it's real leave vote we want you because you represent continuity, sense of comfort as the country starts to negotiate with the eu on how to uncouple itself of the union. boris johnson the former london mayor is impossible tory conservative politician who could take over as prime minister. if he is enough support within the ranks of the conservative party. he has upset a few people when he spun on this leave campaign so there is now concern about what happens to the united kingdom to political parties and are then saying they want the border now removed between northern ireland and the republic of ireland to unite
ireland again because northern ireland voted unanimously to stay in the eu. scotland we could have another referendum sooner rather than later. now we are seeing the battle lines being drawn within the united kingdom. all sorts of scenarios and possibilities but no one really knows what's going to happen next. you mentioned the markets. the dust will eventually settle but how long will it take and what will be the fallout? >> i want to bring that up with you because this is going to be a slow process. this is a negotiation between of course the parliament and the uk government and eu leaders of brussels. article 50 they have to and crack me up if i'm wrong but they have to invoke article 50 which begins the process. once the british government does that there's no going back and
it's a two-year minimum process. you get the sense that the conservative from britain are ready to lay down the goblet and say that said we are going to move forward. what i've. and what i understand as there could be political machinations in place. you never know what's going to happen. >> you never know. some nonbinding vote but parliament will have to ratify it. i can't imagine parliament will override what the british people have voted for. i think it will go ahead and that's it to your painful process as they go through the official uncoupling from the eu. as we say unchartered territory. as for david cameron will he be the one doing it? will he announce his resignation when it comes to the microphone today? there some speculating that he might do that but then have the
mps ask them to come back and carry on to at least get the process underway. british politics can be a bit confusing and messy and we will see it in all its glory or the next weeks, months and years. cheryl: i want to talk about the british economy and the people of written. it's interesting we have seen deal leaves from david beckham the soccer star to the wealthy individuals in britain who wanted to remain but yet the people of written really spoke. they are the ones have had enough so is the economy that route for rough for small businesses or for the regular citizen and this is why this all happened today? >> there is that sense that when you pair the uk economy to the eu, the uk is doing better.
the eu is up under 10% and unemployment is 5% of the uk and 10-point something% of the eu, 20% in spain and greece of economy by comparison to the eu is doing better. like the united states wage growth has been slow in the uk. i kept up with the cost of living so you can argue that has ramped that. the economy was certainly one of the issues where, where's the growth coming from and the concern that the uncontrolled borders the migration of eu citizens to the united kingdom because the economy has led to a strain on the medical system on the school the education system and also jobs that are being taken from people from overseas. in some cases that may be true in other cases it's not but ultimately it comes down to sovereignty not to have brussels tell this country what to do and not to have the court of justice on legal issues tell this country what to do.
that resonate with a lot of people and david cameron and all the fear-mongering started to backfire just a little bit. david beckham says we need to remain and i don't think anyone. attention to that at all. cheryl: i've been watching in new york as far as global currency in particular. sterling hitting a 31 year low overnight. we are seeing a parity between the u.s. dollar and they your o which i'm not sure we expected to see this year in particular considering what our federal reserve has been doing or not doing we should say. talk to me about what the currency markets, how they're going to recruit a couple of days. the eu summit is june 28 and 29th. this is certainly going to throw that summit into turmoil.
you have global trading in turmoil and opposite ashley you have is happening with eu leaders. >> certainly lets start with the currency. one trader on the tv said sterling burned to the ground overnight. a little dramatic but not far from it. they knew would take a huge hit when the leave campaign one. george soros said so you could lose 20% and need well be right. there will be a bottom and it will recover but how long that will take we don't know. those currency markets are going off the charts. as for the eu summit how many other countries, people in other countries say i think the birds are right or it may be the netherlands, maybe country have been thought of. there's certainly a lot to
scored and unhappiness with the political dysfunction we have seen in brussels. italian prime minister matteo rensi said last week even if the uk decides to stay in the eu where some trouble as a union. that's coming from the prime minister. there's a lot of concern that this union cannot maintain its viability especially with the uk out now. the uk contributed 18 to 20% of the eu's gdp so that gives you a sense of how big the uk's influence was. cheryl: it's what angered so many british residents as they pay their wine to stand by for just a moment. we of course are working overnight at fox business working with our partners sky news based out of london. there a lot of things at play right now particularly the reaction of the british people. let's listen in for just a moment.
>> it is what favorite cam has to decide is he going to start negotiations next week as they planned, as he says? >> thank you very much indeed. a lot knowing on their lot going on here. the former leader of the -- or want to start with you in the good morning. i want to start with you. do you have any advice for the prime minister and what to do after losing the referendum? >> there is no accountability left. he may stay for a few weeks or maybe a few months. it's not the right thing to do incidentally but w when you have been a reject from something so fundamentally your fundamental your credibility as a prime minister is gone and you are in no position to the crochet. you can continue the caretaker
capacity. >> his heart is just not in it anymore. >> is something absolute fundamental. david cameron has lost nds to knowledge that and we all have to move on including him. >> the fascinating situation and we are hearing that the prime minister will be making a statement around 8:00 a.m.. the world is expecting the results before prayer breathing is collected and we will be hearing from them and we will go live to bring you that. it is arctic and from the uk has voted to leave by more than 1 million votes. let me bring in.
>> something that was mentioned by the broadcaster and sky news is that david cameron and you were looking at the live picture of 10 downing street expected to make a statement 3:00 a.m. eastern a.m. eastern time and time and adm is when the london market opens. his expected to speak we hope at least a few moments before the market opens if not right as the market opens. what david cameron has to say is to try to stabilize the volatility that we are going to see not just at the london stock exchange but the volatility when france and germany opened up the same time that all three markets open up at 3:00 a.m. eastern time, 45 minutes from now. if he could come out and speak in come the nurse of those who want to remain. that is the investment community not just in new york around the world that investment community with bleeping and banking on the remaining foe. let's listen in to sky news.
>> baby that will do. >> i don't think so. i think they will say we have had a referendum and that's it. that is what the british people want to do. let's start negotiating with him about how we have some sort of relationship with the uk. >> of course to think scotland wants to spend any time outside the european union? scotland could be taken out of the european union in two years. >> that's only not. over the next few days the one politician to get these things are what the nicholas -- it's what people need at this moment. the mandate from last month from the scada selection and overwhelming mandate and then of course 62% of the scottish people on every single --
by switching to xfinity x1. rio olympic games show me gymnastics. x1 lets you search by sport, watch nbc's highlights and catch every live event on your tv with nbc sports live extra. i'm getting ready. are you? x1 will change the way you experience nbcuniversal's coverage of the rio olympic games. call or go online today to switch to x1. you are watching that continuing coverage of the historic photos happen in the uk. uk voters voting to leave the european union diverse country to ever leave the 20 nation bloc. live pictures.
to the screen and a lefty can see a live shot of the parliament. parliament will be an active place today is the future the prime minister uk david cameron are ready into question that we are being told they're getting that getting the final official results and what you're seeing is a live picture coming out of manchester. >> the total number of ballots paper scanner for 33 million 577,000342. the total number of votes cast in favor of remains was 16,000,100 in favor of leave and 17,410,000742. [applause] the number of papers rejecting,
the number of ballot papers rejecting were as follows. no official mark, 232, both voted for 9084. >> that is the counting center in manchester and their reaction to london and in the middle of that is uk leader nigel farage and his supporters, quite a scene and quiet evening for him and those supporters started off at 10:00 when the polls closed. >> this means the u.s. -- the uk is devoted to leave the european union.
i would like to thank once more the counting officers in the regional accounting regional accounting offers at the chief election officers in northern ireland that gibraltar parliament the electoral registration offices the royal mail and the city council. i would also like to thank all of the staff past and present particularly upset that he chief accounting officer andrea's gallon. thank you very much. cheryl: that is janet watson the chief accounting officer and the uk. making the official announcement that we did expect between 2:00 on 4:00 eastern time the woman had to tell the world that yes britain is leaving the european union. let's go back to sky as they roll continuing coverage of the reaction to this. sky news. >> i'm proud of everybody had the courage to stand up and do
the right thing. the election was one in my view in the middle of the north. we as a party campaigned as hard as we could in those areas. there is still a massive disconnect between westminster after the one in real communities and the one image i will remember for the rest of my life was a woman of boston grabbing my hand with tears in her eyes saying why doesn't david cameron white isn't the government come and see what they have done to my community and what is done to the prospects for my kids. people here don't get mass immigration is result of eu membership is done to people's wages and people's availability of getting gp appointments or getting kids in the local schools.
i am thrilled that we got this. i believe the other bigger thing is is not what not what has happened not what is happening for the global happen in the rest of europe. the rest of the eu party never talked about leaving the eu but now they are. the majority there now wants to leave so we may well be close to an accident certainly in denmark a majority there are in favor of leaving so we could be quite close the exit and the same playa may apply to sweet and sweden perhaps austrian perhaps even italy too that the eu is failing on the eu is dying. i hope they throw the first brick out of the wall. a europe of sovereign nationstates trading together friends together but without flags and thumbs or elected presidents. what happens next?
70 million people it said we leave the european union. we now believe that wrecks the government, government that begins the renegotiation of our trade relationship a government that will be mindful that are ready that german manufacturing car manufactures have said let's get on with selling motor cars and wine and cheese with each other. at the same time using the opportunity of wrecks that and the opportunity is we are now freed to start making our trade deals and associations with the rest of the world. we have left behind this result. we have left behind a failing political unit given ourselves a chance to rejoin the world in the 21st century global economy. we need as i say or brexit government. we need negotiations to start as soon as humanly possible and we need to start thinking globally
about our future. the other thing i think that needs to happen is january charney third needs to become -- june 23 needs to become a national bank holiday and we'll call it independence day. [cheers and applause] cheryl: that was a statement i independent leader nigel farage standing outside of the house of parliament saying they think june 23 should be independence day for england and celebrating a victory for them. 17 million britons voted to leave the union. now what happens to the government? we hope within less than 30 minutes or so we'll be hearing from you cape ray mr. for now david cameron to be making a statement. the market in london the stock architect to open at 3:00 a.m., 33 minutes from now. i want to bring in ahead of
training at e.t. x. capital. you cover currency in particular that i want to talk about what happened the sterling. some are calling it a crash. maybe you will not say that but the crash of the sterling uk pound because of what the buzz signifies to the current state not just to the pound but also the euro. >> it was. significant i think crashes almost right we haven't seen moves like this certainly in my lifetime. we have had a 30-year low on the dollar today. it's been an unprecedented move and i think there's more to come in you write the eurozone is in risk of breaking up. we will see more significant moves over the coming weeks and they could get out of control. cheryl: we are seeing something that has been expected that we are seeing particularly dirty between u.s. dollar and the euro. there you are right there and
the euro gained strength over the last 20 minutes or so but again does this through and to flex the euro as well because of what happened to the eu and economic consequences for the eu without written involves? >> i think. he is -- britain has a risk of breaking up now and there probably needs to be more votes from other countries and you could quickly say -- see three or four or five countries leaving the eurozone. it puts an end to your as a currency. now it's going to be firmly off the tracks and will be very him precedent on the certain side of the training center. cheryl: the end of the euro is a currency and that's a bold
statement for me look at other countries that may indeed follow. there are other countries and what happens with italy. their other countries in the eu that you want to leave but that's completely upends business is conducted in europe. it took a decade to get the euro fully vetted into the 20 countries. now you are saying it's going in the other direction? >> it's going to change a matter that. when i go to europe and i do regularly people think the uk have had a better deal than they have in europe and we maintained our sovereignty with their own country but now they have seen us walk away you are hearing questions from people about whether the euro is the right currency for them.
i think there is significant risk to the eurozone in a full-blown eurozone crisis. cheryl: there has been a lot of commentary in the last 24 hours that this event if britain was to leave the eu and now they are leaving the eu that would cause a global recession and that's a scary phrase to use especially for our u.s. audience who is watching, futures in this country falling as it is late. we forecasted at the up and we were down seven and points futures. it would be nice to take a little bit of the fear out of this and talk about the timeframe for this for market participants and by the way we are 29 minutes from your market opening. >> it's been a rough couple of weeks.
there need to be renegotiation through the eurozone and the question is what is the detail with britain and the european zone going to be correct if? if we can come up with a sensible deal and there are no rash reactions a deal can probably work out but i think uncertainty will take a long time to work its way through the system. the recovery of the uk is gaining traction but certainly not an organic recovery and uncertainty could derail it. if we get derailed in the uk there is the potential that everything moves on and carries on trading in the world recovers but i think it's an unnecessary risk to british parliament put into the world and --
cheryl: the consequences no one would could predict. i do want to let our viewers know if you're just waking up in the united states 2:30 a.m. eastern time we are waiting right now on a statement by uk prime minister david cameron who put his political future on the line. he promised when he ran for his second term that he would bring to a vote idea of a brexit with britain leaving the european union. he still wanted the eu to stay. he was in the remain camp. david cameron has lost that fight overnight and many saying many analysts and political analysts saying this could be i swan song for david cameron. i do want to talk about the london exchange opening. we are hearing about the lsp will open as normal 27 minutes from now. how nervous are you about bollen
bollen -- volatility? >> i think the way the stock exchange works they will stagger the circuit breakers. i think you'll be outright panic and we will see you slow phase and a bed expecting the uk market to be down eight or 9% across-the-board in some debate thanks we'll be hit considerably more than that. there's going to be widespread selling today. interestingly we are seeing movement to europe. the german dax index is down 1000 points which is more than the uk so there is wide-ranging wide-ranging -- and it will be interesting especially if david cameron speaking at the same time. >> i want turmont her peers within the next 25 minutes we expect to see uk or mr. david cameron and that's statement could come before the london
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protecting a loss this moment of 596 points. at one point of the night we were down seven and points of the dowsett coming back a little bit but the s&p 500 and the nasdaq pointing to a severe loss at the open u.s. market. we have exactly seven hours to go until u.s. markets open your payroll for looking at as well i want to show a live picture out of london. we are waiting a statement by favorite cameron uk prime minister. the expected him at the next 20 minutes and we are now being told that it's been push back a little bit. he is not spoken and there's not a statement out of his office, nothing from david cameron prime minister of england at all overnight since his referent of us voted. uk voters 17 million voting to leave the eu. an unprecedented historic moment for the country for europe and probably for the world. fox business looking at what the markets are going to do and i want to say also i was just
looking at what european markets might be doing. of course i that's a major selloff as well. we are looking at some of the lost potentially for germany's market than we are seeing for the uk market the one of the things we want to hear that many want to hear on the investment side from david cameron when he takes to the microphone are calming words about the economy and what is next for britain. this is not an easy process. it could be very long and drawn out process. there are negotiations that will have to happen between the eu in brussels and uk leaders. i want to take you back for a moment to moment to sky news our partner out of london with continuing coverage of the referendum. >> would do you hearing in particular about jeremy corbin has performance for so many labor supports in his referent am? >> frankly there's an extra game of the banker and mps have
told me privately they think he resigned he'd resigned over what happened in the referendum. the labour said he believes it should pave the way for the united kingdom to leave the eu. i'm going to give you a bit of the flavor of some of the other things that labour mps are saying as well. labour ignores concern of immigration and we have been richly punished for it. another saying jeremy corbin's reaction is they are delusional and there's real anger and have to take responsibility but i think what many people are reacting to our these -- issues by the labor leader which is effectively telling them the good news on the airways and tv
studios and the emphasis there for jeremy corbin is he name checked some of the labor mps who campaigned to leave the european union. that has angered some labour mps and people who are pro-eu and pointing the finger of blame at jeremy corbin. i think although behind me you can see people gathering outside at number 10 david caromont is under pressure and jeremy corbin as well. he needs to shore up some of his own mps from feeling quite angry towards him. >> thanks for that update indeed and that background. let's show people who may just be joining us what his causes question about those liters jeremy corbin and david cameron and the uk has voted to leave
the european union by a margin of 48-52%. jonathan samuels will talk us through what's been and am trawling an amazing evening. it makes fascinating reading. different regions and nations voted within the uk. john is on our big screen. talk it -- talk us through john. send in k. at voted out but how did happen next here we have all 30080 voting areas plus northern ireland and gibraltar. in alphabetical order from aberdeen. as you can see by looking at those wall there is a lot of lou. remember blue without and yellow is in. let's shuffle things up a little bit because this really does tell the story of the night.
now they are all in order so the biggest hear top left northern ireland has the biggest electric and us expected that is yellow but there is a lot of blew up their lives sheffield durham wiltshire and the remaining camp by this stage a lot of the top left of the screen are bigger broader areas will be yellow by simply isn't the case. now this is fascinating. cheryl: listening to our partners in london sky news we are monitoring what happened to global markets around the world on the heels of this historic vote with the uk deciding to leave and voting 17 million plus delete the uk. this is affecting how u.s. markets are going to open. your look at the dow jones industrial futures. i want to be clear we were down 500 earlier. s&p futures lower by 95 and nasdaq gore by two under.
we have several hours to go. all of this could change volatility around the world. asia markets japan 42 minutes ago, a loss of an 8% loss for the japanese market and degette rallied against the dollar overnight and japanese regulators coming out saying they were indeed doing their trading session looking at potential circuit breakers and nervous about what they were seeing in our markets. i want to show you that hang sang out of hong kong a substantial loss of more than 4% that market is still trading in the singapore strait times still trading but those markets have to close soon. once again we are expected to see david cameron uk prime minister. he will be coming up surely and expect to see them in 30 minutes from now. he was speaking after the london markets open. we are expecting an incredible amount of volatility when the european markets open.
the dax out of germany and these markets the german market is going to see a selloff. one of the biggest reasons for those that wanted to leave the european union and britain was they were frustrated with the moves being made by angela merkel and by germany particularly the immigrant type crisis and the syrian refugee crisis. we are going to take a quick commercial break. i am cheryl casone covering continuing breaking news coverage. we will be right back.
shot of london. 10 down the street the home of david cameron for now. uk's prime minister. the embattled leader a huge loss for him overnight is british people decided to leave the eu, 17 million votes for rates to leave. this was a stunning vote we should say. we of course waiting to see david cameron petter want to show you what's happening with futures. this post which is a surprise to many analysts around the world markets in particular u.s. markets at triple digit gain for the dow because we thought we were going to have an extra day in the uk so a stunning reversal of fortune for england and that is affecting the united states. the dow opened at 570 points and s&p pointed to a huge loss 89 points a loss of 4% and the nasdaq down 190. you want to say you will hear conversations of the dabo circuit breakers. this point because of the level
of the circuit breakers with the narc socks -- stock exchange is not likely will see that you never know what will happen. the new york stock exchange does have the right to hold trading. numbers you are seeing on your screen does not tell us that is going to happen but american investors and traders wake up to the news if they have are went to sleep that britain is leaving the european union, something that many predict could cause a recession and we have heard that entered around as well. that could affect their trading here. we are expecting incredible amounts of volatility. one of the things we saw in the commodity space and many of you invest in gold is a safe haven. this is your day. look at the contract of gold, why? people wanted safety. they went to treasuries and they went to gold because of volatility we are likely going to seem u.s. market making us
very nervous. look at oil about the side effects of heaven with the oil contract. the worries about a global recession what happens to not just the european economy but the asian economy the u.s. economy and the heels of this historic vote. it's uncharted territory that puts pressure on the oil contracts and as you are seeing nearly 5% down on crude. we have seen $50 and again traders convince u.s. trading at 4:00 p.m. eastern the eu was not going to lose. a couple of things i want to point out as we wait for david cameron uk prime minister. people were looking for safety and you also saw in particular a lot of volatility in asia. that market posting huge losses.
also as you can see where just finishing up trading in hong kong. there's the hang seng for you and singapore -- the singapore strait times losing as well. we are going to see hong kong closed an hour from now and japan closed and singapore will be closing at 5:00 p.m. eastern time. i want to bring in from london craig irwin messinger market analysts. talk to me about what you expect to see and what type of volatility are we going to see when european markets open in less than 10 minutes from now? >> we could see -- we have seen a lot of her night. we saw the leaf campaign has been quite clear that not only
is it going to be close race but the campaign may be in the lead. of course once the european markets open, this is likely to be followed by volatility. i think we will inevitably settled down little bit but there's so much to come. we'll through here from david cameron as you mentioned and see going to -- which could cause further turbulence in the market? cheryl: from a broader perspective you're on the ground up is sam munden. we know that it was small businesses and it was the average british worker that felt ignored and persecuted by brussels and the european union but do you think there's a true understanding among the british people of what this could do to
the uk economy and the globe? i say that because it seemed as much from the imf in particular that there could be a loss over the next decade to the uk can't make your gdp by as much as 7%. job losses and potential recession. >> i don't think it's an understanding of what it essentially means and theirs is growing disillusionment. not enough is done in like you said there's an also an element of people saying i don't care anymore.
i have no control of what influences their country and that makes it to lose gdp than it's worth the risk. that's the sentiment that is being bubbling over in the economy recently. >> i have to ask you about the political climate there. he mentioned it with the two parties and disillusionment with the conservatives and the independent and independent party celebrating as they got their way and david cameron not getting what he wanted but i have to ask you in particular the political climate in the future and david cameron. there's a lot of speculation about the future david cameron come is he out in your opinion? is he out? >> i certainly think he should be. he took a big risk with the economy and taking political advantage than first election and has led a terrible cam pain in order to get people to vote to remain within the eu pointing
to the benefits of being in the eu. it's something with which people have become frustrated with in the last election. enough is enough and i'm sick of projects. this is three massive mistakes of david cameron has made. this is a view that is shared by large number of people. it's time for him to move on and stop taking risks with their future. cheryl: i think the british people are sick of being told how many bananas they can buy or sell at their local market. craig or am i wanted to stay with me. we are about three minutes away from the european markets opening we are also waiting a statement by david cameron. we will be right back.
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vote but they surprised the world in voting to leave the european union. we are expected to see the british prime minister soon when the markets open in europe and a lot of volatility is expected. i will bring back the senior market analyst because as we look at our futures now, that volatility in europe is really going to dictate how the u.s. begins to trade. there is going to be some fear trading in london and the u.s. markets but at the same time it's an entire trading day. where do we end up? what does friday night in london look like from a market perspective? >> reporter: the initial start is that we will see all this fear as you mentioned. i think markets will stabilize
and i guess the big question is will that take an hour, or a day or a week? it's currently down around 4%. not just because of the few aspect but the implications this would have for the global market and for the global economy. this isn't just a referendum for the uk. this is a test for all the eu countries that are disillusioned with the european union project. get the netherlands and we are scene calls for referendum. it wouldn't surprise me if we see calls for referendum in france as well. there is growing concern about where this project is moving in the uk has been a test for what can happen next. this is where the eu might have
to come down hard on the uk for the rest of the country is -- that are considering the same thing. if you leave it will be hard. this has an impact on the global financial market. it's already very fragile. this can be the trigger for further instability. i think the fear has been reflected in the u.s. as well as european market. >> this is the second time i have heard in the last hour that the eu, the currency, the euro is in dire trouble. i think what's interesting is you mention the referendum that is going to happen. we heard netherlands, as you mentioned, france, italy.
could the italians be next to say they don't want to be part of the eu? let's talk? let's talk about from a market perspective craig, certainly if we see other countries start to do these types of votes, that takes the entire currency market, the global currency market, into chaos chaos. how do you manage that? >> it's very difficult. today we seen people moving toward the traditional safe haven. we've seen the yen appreciate significantly and gold be locked in. it's a safe haven again as we find investors. i think this will be something we will continue to see in the short to medium-term because people don't know what's coming next. people don't know what path the uk is going to take. they don't know what's going to happen in the uk, let alone what's going to happen to the economy in the next few years while this new relationship with the eu is being negotiated.
i know it's a cliché but the markets hate uncertainty. when you see this in certainty, people pull back and it's not good for financial instability. we may see similar actions in this period now. >> this is something we never expected to be talking about which is the fact that the brits were going to leave the eu. that is what is happening. i want to remind viewers if they are just joining us that we are following two important developments. broad selloff is potentially happening in this country as they are down more than 3% for the dow and 4% of the nasdaq and s&p. all of this because britain has decided to leave the eu. one of the things about the timeline is this article 50, which again is something we never thought we would be
speaking about right now. once the british government enacts article 50, and they may take some time with this, once that happened happens, does that take the uncertainty away from the market partipant? does that tell you someone who's in the market every day managing currency and managing trading that once article 50 is invoked that process begins. does that give you comfort or make you more worried. >> i would like to think it would offer some comfort and take away uncertainty. in my eyes it's where the uncertainty begins because it's where the negotiations begin between the uk and the eu. spain and france and germany will be watching very closely because the deal that the eu it's right now is going to dictate what happens for other countries.
while it's nice to think that invoking article 50 will relieve some of this, in in mymy view it only increases at. >> craig earlham is joining us live out of london. the european markets are now open. we see of broad selloff as predicted for european market. >> ashley we are looking at european markets opening five minutes go. are they down 84 points right now. the german market is also taking a hit. does that surprise you? >> a little. we will have to see how the day goes. germany of course very much wants the uk to stay in the eu. that has not happened. what happens to the eu now?
we've had numerous guest talking about opinion polls in the netherlands and denmark saying they might want to have their own vote to get out of the eu. the very foundation of what the eu stands for is being stand questions. germany who rules the roost certainly has concern and i think that explains why we are seeing a big hit to their market. you can probably hear the news helicopters hanging over westminster right now as we wait for david cameron to come out of ten downing st. what is he going to say? will he announce his resignation or layout the timetable of how this will all work? we know it's not going to happen overnight. it will take up to two years or more for the uk to renegotiate and uncouple itself from the eu. it's no easy process. in the meantime, uncertainty. you want to talk about uncertain, this is about as uncertain as it gets. ultimately the the dust will settle.
the question is how long will that take? >> we want to let you know we are standing by with david cameron. we expect to see them within the next ten minutes or so. his timeframe has been pushed back. we thought he was going to talk before the market open in europe but that has been delayed. we have not seen him all night. i want to ask you about the politic of this. david cameron, by all account, it's done for him. his political career is over. isn't it true that the government, i think it's a no vote of confidence, similar to an impeachment process in the united states, is that being talked about to pull him out of power? he met possibly. actually it's more the other way. we've had a number of events, many have signed a letter that say we still want you to help us get through the phase initial phase of this to provide some sort of continuity as the uk goes about its business of trying to untangle itself from the european union. ultimately it's up to him.
either way this vote turned out, he was in trouble because he has put his whole name behind it, if you lost. if you want, want, 41% of his conservative party leaders had already broken away and supported the leave campaign. there was always going to be a messy time. after the vote was in. with this result, certainly it's almost untenable for david cameron and can he negotiate a deal when he was the one who wanted to stay in the eu should he be the person negotiating to get out of the eu. all these questions, ab some of them will be answered by david cameron himself when he comes out of ten downing street. who nails, maybe mr. obama himself in the united states will weigh in. a lot of people will be glued to their radio or their television this morning. people are going about. it's the rush hour, the compute
commute hour in london. people were surprised when they woke up and heard the results. it will be an interesting day for the markets. >> reporter: is just after three am eastern in new york. if we wait for david to come out and speak, one of the things that will be talked about broadly will be the the future of boris johnson, the the former mayor of london who was a vocal leader, the most animated leader, if you will, of the leave camp. we haven't heard from boris johnson yet. we also know that president obama will speak with david cameron at some point per let's talk about boris johnson. already that support him believe he should be the next prime minister. >> he is such an iconic figure as the mayor of london. he always looks like he's been
dragged through a hedge backwards but is also a very good speaker and he's very intelligence. make no mistake, he is part of the political establishment. he grew up the son of a euro kratt in brussels. he is a member of parliament parliament. he does have support within the conservative party with whom he ultimately represents. we'll have to see if mr. johnson comes forward now. there is media outside his house with various news organizations that have been hammering on his door. he is not answering. i think he will wait until david cameron comes out in a few minutes and has his say and then we will hear from boris johnson. boris johnson tried to put himself away from nigel farage but he has been seen as a racist and bigoted and hateful in his campaign. horace johnson said no, i don't want to be a part of that. i am not anti-immigrant by any
means. his roots are from turkey. of course johnson says i understand what immigrants can provide to the community but certainly i think boris johnson could come out of this as the big winner. >> reporter: immigration seem to be the true issue. there was a lot of talk about the stifling regulation that they were suffering from brussels, the the fact that they were not elected leaders in brussels that were governing them. that seemed to be what made the brits so angry that they felt they had no control yet they were committing such a huge amount of gdp to the eu. at the same time, the immigration issue. as we go through the next two years, as this separation starts with article 50 being invoked by uk parliament, but the immigration flow, correct me if i'm wrong, doesn't stop. any syrian immigrant, for example, that, that came in through any part of europe can freely come to england. or is there going to be
discussion about that not happening? >> they can, well it will eventually become a case of not being able to do that. right now the borders are still under eu rules. the eu out of brussels can determine who you can deport and who you can deny entry to which has been a sticking point. that will eventually come to an end when the uk gets back complete control of its borders. it is an issue that has been on the minds of many voters. on the one side, people are saying over too many migrants have put a strain on the education system and the hospital system and taking jobs. that's one side of the argument for the other side of the argument is the eu being part of a stronger union and immigrants per providing skilled labor and contributing to society. obviously with this vote there are more people who say no, we need border controls, we need to
have control of who we allow in and who we want to move out. >> i want to just remind our viewers in the us, it's just after three am eastern eastern and we are looking at market wars as we wait for david cameron to appear at ten downing street. that market is opening 13 minutes and change. we have seen not just london's market but germany is down 8%, the german market as you mentioned is much more sensitive to this peer the germans did not want to see their british friends leave. i guess i guess you can't say were friends anymore. from the other side of this, what what is so interesting, we've had to market analysts say that whether it's the netherlands or italy or france, there are huge movements in these countries to also leave the eu. i know you are hearing that more more from your perspective, but with the timeframe be for that?
you been following following the uk referendum and it was a long process. >> it was a long process and you know it really comes down to the ruling governments in those countries, whether they allow, whether there's enough pressure put on them to allow a referendum out there for people to vote on. they obviously consider it a dangerous move because what can happen is what happened here in the uk. whether it's the nether netherlands or denmark or italy who says we need to reset what we do in the eu. there is a lot of discouraging comments about how the eu operates. the political dysfunction, the major layers, layer upon layer upon layer of bureaucracy. how it is basically smothering free trade because there are so many rules. there's that argument. so i'm not surprised the german markets are being hit hard because this was just not expected frankly and the uk is such a big part of the eu, both
with its money and presence. it's a financial capital capital of europe as well. it is a historic day and a historic message to the political establishment, i think, and that resonates very much in the united states. >> you had told us as well, the fact that there were billboards all over in london for the leave camp but the elite, whether it was celebrities or david beckham with the bank ceos, everyone believed that at the end of the day this would be a vote tuesday and yet we are seeing this vote to leave. as we wait for david cameron, we also it are expecting to hear from the president of france to make some sort of statement as well on this historic moment in european politics and global politics, ashley. let's talk about those relationships for a moment. i know the relationships between david cameron and the french president have been rocky.
>> well, they have. let's be honest, david cameron went back to the eu this year to win concessions that he believed would be enough to persuade the british people that look, we have the deal that we want to stay in the eu. when he came back from the meeting in brussels, it was the chamberlain moment where he held up a piece of paper and said back in before the second world war he said i hold peace in my hands. he said this is that, we got what we wanted. too many people said you didn't get what you wanted. the eu was not budging on any of the key issues on sovereignty, on immigration immigration and economic issues and therefore he was already at odds with the french president and others spread he tried to put a positive spin on it but it just didn't work. of course we have a relationship of these countries that just
across the english channel, they will be coming out to calm the nerves of the rest of the eu to say it's up to britain. we think they've made a bad decision. we are strong and powerful together. that will be his message, but i guarantee you there will be members of many countries in the eu saying, you know what, i want to vote on whether we should say stay in or out. >> we've been watching this live picture coming from ten downing st. waiting for any moment to hear from david cameron, the prime minister to weigh-in on this historic occasion. as we look at global market reaction, it has been negative. the japanese market fell off, hong kong, singapore fell off and now major losses for european markets. at the same time, david cameron could come out and ease the minds of uk investors, those that are currently trying to figure out what to do with their investments, on a friday moving
into a weekend where so many things need to be worked out. again we are looking at david cameron and here we go. >> good morning everyone. the country has just taken part in a giant democratic exercise. perhaps the biggest in our history. over 33 million people from england to scotland, wales am a northern ireland have all had their say. we should be proud of the fact that in these islands we trust the people with these big decisions. we not only have up parliamentary democracy, but on questions about the arrangements for how we are governed, there are times when it is right to ask the people themselves and that is what we have done. the british people have voted to leave the european union and there will must be respected. i want to thank everyone who took part in the campaign on my side of the argument, including
all those who put aside party differences to speak and what they believed was the national interest. let me congratulate all those who took part in the leave campaign. i want to thank them for the spirited and passionate case that they made. the will of the british people is that instruction must be delivered. it was not a decision that was taken lightly, not in the lease because so many things were said by so many different organizations about the significance of this decision. there can be no doubt about the result. across the world, people have been watching the choice that britain has made. i would reassure those markets and investors that britain's economy is fundamentally strong. i would also reassure the european countries and european citizens living here that there will be no immediate changes in your circumstances.
there will be no initial change in the way our people can travel , in the way our goods can move or the way our services can be sold. we must now prepare for a negotiation with the european union. this will need to involve the full engagement of the scottish, welsh and northern island governments to ensure that the interests of all parts of our united kingdom are protected and advanced. above all, this will require strong, determined and committed leadership. i am very proud and very honored to have been prime minister of this country for six years. i believe we have made great steps, with more people in work than ever before in our history, with reform to welfare and education, increasing people's life chances, building a bigger and stronger society, keeping society, keeping our promises to the poorest people in the world
and enabling those who love each other to get married whatever their sexuality. above all, restoring britain's strength. i'm fickle to all that made that happen. i'm also aware that we need to confront big decision and not duct them. that's why we delivered the first coalition government in 70 years to bring our economy back from the brink. it's why we delivered a fair, legal and decisive referendum in scotland. it's why i made the pledge to renegotiate britain's position in the european union and to hold a referendum on our membership and i have carried those things out. i thought this campaign and the only way i know how, which is to say directly and passionately what i think and feel head, heart heart and soul. i held nothing back. i was absolutely clear about my belief that britain is stronger, safer and better off inside the
european union. i made clear the referendum was about this and this alone. not the future of any politician, including myself. but the british people have made a very clear decision to take a different path. as such, i think the country requires fresh leadership to take it in this direction. i will do everything i can as prime minister, to steady the ship over the coming weeks and months, but i do not think it would be right for me to try to captain and steer the country toward its next destination. this is not a decision i have taken lightly, but i do believe it's in the national interest to have a period of stability and then the new leadership required there is no need for a precise timetable today, but in my view we should aim to have a new prime minister in place by the start of the conservative party conference in october. delivering stability will be
important and i will continue to impose as prime minister with my cabinet for the next three months. the cabinet will meet on monday, the governor of t bank of london art taking steps to reassure the financial market. i have spoken to her majesty's queen this morning who advised her of the steps that i am taking. a negotiation with the european union will need to begin under a new prime minister. i think it is right that this new prime minister takes the decision about when to trigger article 50 and start a formal and legal process of leaving the eu. i would attend the council next week to explain the decision the british people have taken and my own decision. the british people have made a choice. that not only needs to be
respected but those on the losing side of the argument, myself included, included, should help to make it work. britain is a special country. we have so many great advantages , a parliamentary democracy where we resolve great issues about our future through peaceful debate. a great trading nation with our science and arts, engineering and creativity which is respected the world over. while we are not perfect, i do believe we can be a model for the multiracial, multi- face democracy where people can come and make a contribution and rise to the very highest. although leaving europe was not the path i recommended, i am the first to praise our incredible strength. i said before britain can survive outside the european union and indeed we could find a way. now the decision has been made to leave, we need to find the best way.
i will do everything i can to help. i love this country and i feel honored to have served it. i will do everything i can in the future to help this great country succeed. thank you very much. >> prime minister david cameron saying the country requires first leadership and a new prime minister should be in place by october. a stunning revelation for david cameron. let's go back to our partners at sky news for reaction on this announcement. >> prime minister was outside ten downing street announcing that he will resign his post and wants a new prime minister by the time the conservative party conference in october because he feels negotiations about the nature of britain's relationship with the european union must be undertaken by a new prime minister. we have a country that is still
absorbing the news that it is to leave the european union and now we have to absorb the fact that the prime minister is to go by october. he becomes more or less a caretaker prime minister. he has an important meeting with fellow leaders next week where he will formally start that process. let's move this along with our political editor witnessing that in the flesh. quite extraordinary. >> he won a majority just a year and a month ago. a shock majority for conservative party in over two decades and yet just 13 months on, he finds himself having to make that statement having to
announce his resignation per the first thing he had to do was acknowledge the result an egg the mandate of someone to carry forth the renegotiations. he think he is not the person for that job, but right now he sees the nation needs a caretaker. somebody to reassure several people, the market who is reassuring uk citizens and citizens in the eu that their position won't change immediately but might change in the future. then he said he would resign, which is obvious from the result this morning but particularly when he walked out with his wife in that way. he won't be invoking the article 50. he will leave that decision to a new promised her. a new prime minister, and the timetable for that will be within the next three months before the conservative party conference in october. on top of the uncertainty, we also now have a change of prime
minister, a change of personnel at number ten. we await what will happen at number 11 where george osborne who vigorously back the campaign to stay in the european union also must be considering what he thinks his future is. >> so much going on. thank you for that. i want to get some quick reaction from two senior conservatives, graham brady. has the prime minister done the right thing? >> think he has done the right thing in two ways. one he made it clear that he is not going immediately. i think the most important priority is the stability and continuity. the other important thing he said as he is not going to trigger article 50, the the mechanism for leaving the eu immediately. that is something. >> we have been listening to
instant reaction to the stunning announcement from david cameron that he will resign as a prime minister of england after the referendum to leave the eu was approved by british voters. i want to bring in ashley, our correspondent on the ground in ended. ashley, stunning, stunning news stunning news from david cameron. >> absently stunning but to be honest, i think these were clear intentions for him pretty put his head, heart and soul in this campaign because he truly believed the uk would be better off in the eu and unfortunately for him a majority of more people believed that wasn't the case then did. i thought he was pretty gracious in his speech. he said listen, we have to respect those who wanted to get out of the you and we have to work together to make it work the best way we can for the uk. he said britain's economy continues to be strong but the big story was finding a new prime minister by october when
the conservative party meets for its annual conference. who will that be? there will be lots of speculation. orest johnson is among the front runners but i think he david cameron is saying that president, whoever it will be, should be the person to trigger article 50 and take the country and a new direction that he himself did not want to take this country. >> that pushes back a timeline because the new prime minister will be the one to invoke article 50. from there it's a minimum two-year timeframe as a negotiations began between the british government, the new british leader and european leaders out of brussel. i guess it's fair to say this is something that won't be far from instant. it's a big change initially but it will be a long and drawn out process. i want to ask you about george he said this is the next piece
they are waiting on, george osborne, are there questions about his fate as well? will he go along with david cameron? >> he may very well. he has been outspoken for this day campaign and has been making all sorts of camp predictions about how dire the financial situation will be for the uk if they get out of europe. in fact he said if the leave vote wins he will have to put in place a very severe type of budget to help england get through the initial phase of what will be somewhat of an unknown for this country's finances but he is being right out their front and center pleading with the people of the united kingdom to stay in the european union. his credibility is on the line as well. will we have an announcement from him today or in the next
week or two, i wouldn't be surprised. >> i bring that issue up because that's what matters to investors, ashley. the financial leadership that you get from a george osborne, what does that mean for that market in the community there? we've heard from several bank ceos out of london say they are ready for this and they had contingency plans in place and are prepared to go through this transition from a financial perspective but the leadership change will be, there's no way this can't be a volatile event for european markets and the british markets. there's just no way. >> absolutel that that is absolutely a given. whoever replaces david cameron and george osborne will have the same approach to the economy. the belief in free trade and less regulation because that is the conservative party's mantra,
much like the republican party in the united states. there is no doubt that there will be a long time. of uncertainty. it could be two years, four months before we get this totally threw. i think that does by the markets time to get used to the idea. we will here all sorts of ideas and predictions and thoughts on what happens from here but to be honest with you, nobody knows p at the key is, as someone said, britain isn't going to disappear into the ocean. it will continue to trade and get new trade agreements. germany has already said they are happy to trade with the uk. it's a well-respected country when it comes to doing business with. it's a financial capital for europe. that's not going to go away overnight. it's just a matter of how do you work out these deals. how will this work when it comes to trade with other countries and establishing new deals, but those who say we leave, they say we are free to do whatever we want. that was a a big plus for the campaign, for those who want to do campaign to have power over its own destiny. >> so the future of britain is so uncertain. i want to let our viewers know we are being told that we expect the former mayor of london
speaking live in london. he looks like he was waiting to hear from david cameron first, but boris johnson, major figure in this campaign. we will take those comments live we get them. we will take a quick commercial break. you are watching breaking news on foxbusiness. global markets are pulling back a little bit. we'll be right back. honey, we do? we need to talk. i took the trash out. i know. and thank you so much for that. i think we should get
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welcome back to foxbusiness continuing coverage of the shocking development out of great britain. if you been up all night watching the development, an incredible moment in history for the people of the united kingdom. the brits voted to leave the european union, 28, 28 country block, the first time anyone has ever voted to leave. that is causing a global market selloff. you are looking at the u.s. features in this country and what concerns they have about volatility in the noble economy. let's back up a little bit. the story has improved over the last two hours. one time we were down about 700 on the down now we are down 481. part of that correlation or not, some of this movement to the downside is more of an improvement for the dow as david cameron came out to the microphone and announced his resignation.
he said he planned to be out of there by october from the conservative party. we also want to say another statement we are expecting in the next few moments is from the former mayor of london, now a member of parliament on the conservative side, boris johnson. boris johnson boris johnson is a very public and colorful figure with regard to the uk vote in the referendum to stay or leave. again, britain is saying it will leave. european markets are open. they are trading to the downside the ftse 100 has come back. it was down 7% but it has improved a little. some of our analysts are saying this ability and the volatility may be in the beginning but there may be stability throughout the day is markets trade in europe and when u.s. markets open six hours from now. germany, that market is being hit a little further, a little harder than the london market.
ashley was saying many of the germans did not want to see this happen. we are expecting a statement from the french president. he will make a statement as well to potentially help the fears of the french with regard to this leave of the uk. many did not think that was coming and that is causing this global reaction from a markets perspective. ashley webster is standing by once again. i want to talk about boris johnson once again. i know you know him so much more than i do. he really is colorful. that's the best way to describe him. he has been such a voice in this campaign. >> he certainly has. as i said before he has always had that disheveled look, dragged through a hedge backwards with his wand hair all
over the place. make no mistake he is a clever politician. he is someone who grew up as the son of the bureaucrat in brussels. he's not exactly antiestablishment when it comes to politics per his father was in politics and have the same blond hair. it's a trait of the family. he was very much out in front of the lead campaign per there's no doubt about it. he crisscrossed the country much like david cameron did on the last day, he was in some fishmarket kissing fish doing all sorts of crazy stuff. he connects very well with people and certainly his message got across. i think he could certainly be a leading contender to take over from david cameron. >> david cameron, he, it wasn't in an emotional moment for david cameron.
he was a majority vote, he had a second term a little over a year ago and now he's announcing his resignation which just seems incredible. that's like us selecting a u.s. president and then him resigning as the president of the united states. it's incredible and unheard of. >> it is, but you know that was the risk that he took by putting his referendum out there and being so strong in his campaign for staying in the european union. he made his points in numerous press conferences, news conferences, everywhere he went. he made his head, heart and soul as he said, he put everything into it. he said he was fully committed and still believes it was the best way to go for the united kingdom, but as he said the will of the people must be respected and we will do everything we can to make the transition the very best it can be for this country. gracious in defeat, no doubt but it must've been a very bitter realization for him once it was
clear that there was no way that the stay campaign was going to win enough votes. ironically, i think it was a voter turnout that had been stronger in scotland, it may have been enough to tip the balance, but we will never know. it's a moot point now. david cameron, it is certainly a sad and for him. i think he thought he had this in the bag, especially with the polls and bookmakers pointing to a stay vote. that's why on top of everything else we are shocked today. >> we are looking at a live picture outside of the boris johnson's apartment. we are expected to see him emerge at any moment to give a brief statement of reaction to the development of the resignation of david cameron as the prime minister of the uk, and also, you mentioned, i thought it was so incredible the words we heard from david cameron. he said yes the will of the people must be respected but he
also, i thought, spoke very eloquently to the british people think this will not disrupt your life. travel, goods and services sold to our country, your life to the average person is not going to be disrupted. that calming voice that i'm sure the british people need right now as they wake up to this incredible uncertainty in their lives. >> they do and the irony is, he kind of created a lot of that fear saying if you don't vote to stay all sorts of horrible things will happen, but you're right, his concession speech was very gracious. it was certainly heartfelt. i do believe that, but i know behind doors of number ten he must be so bitterly disappointment. i'm expecting boris johnson to come out and praise david cameron. i'm sure he will congratulate him on his efforts but he will be very happy and i'm sure everyone wants to know,
mr. johnson do you want to be the next prime minister of the united kingdom. there's a long way to go but certainly that is the presumed path for boris johnson. >> we also saw the leader from the independence party coming out in celebration as they feel they have been victorious in this historic vote, this referendum. the party system, one of the market analyst told us there is disappointment by the british people on both sides, with both parties in power, but how does that disappointment play out in particular as we try to find a new prime minister? >> you can't please all the people all the time, but i think it all comes back to that disappointment in the political establishment. the disconnect between those who elect the people and the people who make the laws and govern
them. there's that disconnect and they don't believe you have the best interest at heart and they want to push the reset button, much much like we've seen in the united states. nigel for oz was not the initial leader of the leave campaign by any means. boris johnson did everything he could to distance himself from nigel for oz who took a step too far occasionally who was spreading hate and nigel's campaigning was the major problem that the uk had because it was allowed by the eu. boris johnson tried to step away from that and didn't focus on the migration issues. he is doing his victory lap today. he has campaigned for this for a long time. >> i want to monitor reaction from sky news. >> inevitably there will be appeared of uncertainty following this result but as the prime minister said just this
morning, there will be no initial change in the way our people can travel, in the way our work goods can move or the way our services can be sold. it will take some time for the united kingdom to establish new relationships with europe and the rest of the world. some market and economic volatility can be expected as this process unfolds, but we are well prepared for this. her majesty's treasury and the bank of england have engaged in contingency planning and the chancellor and i have remained in close contact including through the night and this morning. to be clear, the bank of england will not hesitate to take additional measures as required as markets addressed and as the uk economy moves forward. those economic adjustments will be supported by a resilient uk financial system. one that the bank of england has consistently strengthened over the course of the last seven years.
the capital requirements of our largest banks are now ten times higher than before the financial crisis. the bank of england has stress tested those against scenarios far more severe than our country currently faces. as a result of these actions, uk banks banks have raised over 130 bi capital and now have more than 600 billion pounds of high quality liquid assets. so why does this matter? that substantial capital and liquidity the gives banks the flexibility they need to continue to lend to businesses and households even during challenging times. moreover, to support the function of the market, they stand ready to provide more than 250 billion pounds of additional funds through its normal market operations. the bank of england is also able to provide substantial liquidity
in foreign currency if required. we expect institutions to draw on this funding if and when appropriate just as we expect them to draw on their own resources as needed in order to provide credit to support markets, and to supply other financial services to the financial economy. in the coming weeks the bank will assess economic conditions and we will consider any additional policy responses. a few months ago, the bank judge that the risks around the referendum or the most significant near-term domestic risks to financial stability. to mitigate them, the bank has put in place contingency plans and these plans begin with ensuring that the core of our system is well-capitalized, is liquid and is strong. this resilience is backed up by the bank of england liquidity in foreign currencies and sterling. all of these resources will
support orderly functioning in the face of short-term volatility per the bank will continue to consult and cooperate with all relevant domestic and international authorities to ensure that the uk financial system can absorb any stresses and can do its job of concentrating on surveying the real economy. that economy will adjust to new training relationships that will be put in place over time. it's these public and private decisions which will determine the uk's long-term prospects and the best contribution of the bank of england and that we can make to this process is to continue to pursue relentlessly our responsibilities for monetary and financial stability. these are unchanged and we have taken all the necessary steps to prepare for today's event and in the future, we will not hesitate to take any additional measure
required to make meet our responsibility as the united kingdom moves forward. thank you very much. >> we been listening to the governor of the bank of england wanting to reassure people of britain but also the investment community that the bank of england is standing by and ready to do whatever it is going to take to make sure that the economy in the markets are stable in london, saying that he had conversations with the queen and that the financial system was stable and also with regards to the bank, the stress test had been done on the bank to make sure, for events worse than this, for any type of global market event, if you will that these banks were ready for any type of event and they are ready today and stable. there are also saying they stand ready with 250 billion pounds
through normal operations to provide the quiddity to the markets, liquid cash, if you will to make sure that everything is operating as normal, that banks that banks can lend money to each other, that banks can lend money to consumers and business continues to operate as normal. as the european markets are open it's not a normal day. you're looking at a major selloff happening in europe and i want to bring in the research director in first, what's your overall reaction to what we have seen overnight with the votes in the referendum that the british people have said we are out. >> it's highly unexpected from the market. we've seen carnage and not just politically but financially as well. it stabilizing up a low level but this is unprecedented. >> i have to say, i was stunned to see in overnight trading for us because it's nearly 4:00 a.m. here in new york the fact that
we basically had a characterization of the pound overnight. you had a 31 year low on sterling. then you also saw the euro on the dollar on par. again that something incredible to see. the yen, again the yen was going against the dollar. the currency market was really upended by what happened in britain. >> absolutely. you're right. it wasn't just a historical move for the pound, this this was the global market. japan fell, the german fell, i think there is real risk, real chance of intervention risks coming now and not just unilaterally from the bank of japan. the european authorities, the uk authorities trying to figure what to do with it further declines. there's a huge amount of uncertainty. >> what did you make about the
comments we just got from the governor of the bank of england reassuring, you and your fellow traders and investors around the world to assure you that there is liquidity, that we will trade as normal today. we we may be trading down but it's going to be normal. >> your reaction? >> yes he definitely played down the doomsday message. he seemed kind of druggie and he said they're going to do what it takes to carry the uk economy through this process and that there's nothing normal about this at this time. they will do what it takes. the market is having him mild positive reaction to what he just said. >> i was with the goal of mark carney, any goal of them making any public statement is to assure the market that this
volatility may be short-lived, that the volatility, while we are seeing it right now on our screens, and may be a day or week or two weeks but the economy and the banking system is solid in a place and really quick, i want to let our viewers know that we are waiting comments from boris johnson, the former mayor of london and now a member of parliament who was leading the vote leave campaign. i apologize in advance if we have to leave and take comments from him. the political landscape, we've seen this and other countries and we've seen in our country, the, the political landscape is affecting the monetary landscape. >> 100%. they'll talk about a rate hike for years. we have a general election and this is going to trigger potentially another scottish referendum.
scotland could break away and northern island could break away. we have a different political, financial and geographic take on our hands right now. >> you are saying within the government as it stands, and the country as it stands for the united kingdom you could see referendum with a breakup within the united kingdom. is that correct? >> absolutely. it seems very unlikely that scotland won't vote to leave the united kingdom now. i would not be surprised if that announcement happens at some point today. >> so on the heels of that scottish referendum which of course we are listening. >> i want to bring in sky news from london. boris johnson is speaking now. >> mr. mayor, thank you very much. we are keeping a close eye on the man replace boris johnson who worked so tirelessly to
achieve the result he got and may be the results that he wanted that the uk should leave the eu. >> my apologies. i wanted to, i thought we were going to hear from boris johnson. that was the current mayor of london speaking to our colleagues over at sky news with his reaction to the historic events that we have seen unfold in britain overnight. that live picture that he have been watching is the apartment of boris johnson. he was leading the leave of vote, the vote to leave. that is what he wanted. he likely will come out and not make any moves about going to be the next prime minister because david cameron, as we now learned about 30 minutes ago is resigning. stunning events. kathleen is still with me. i've just a couple of minutes here but the volatility that we
are seeing seems to be easing up. from a market perspective it seems that all of these politicians coming out and speaking is making investors feel a little bit better. >> the market is really fatigued after this huge move overnight. this doesn't mean were we are on an upward trend or the politicians can sooth any of this. between mark carney, they do like to hear from the central bakers when they say they will do whatever it takes for the economy. the bank of england better have broad shoulders because they have a lot to balance. >> from a market perspective, this talk that we have heard so much about, the fact that britain is the first country ever to leave the eu, but now other countries may follow, whether it's france or the netherlands or italy, what are the odds from it trading perspective about the odds of that happening and what does that do to the euro which i think would be a disaster for
the euro. >> the euro has not been held up well not surprisingly but that will be what we will watch for more in the weeks to come. >> i want to remind my viewers here in new york, it's nearly four am a.m. eastern in new york. as we look at the future here in this country, the dow and s&p and the nasdaq pointing to a rough opening when wall street opens. kathleen, it seems to me that fears are easing in the market. >> i think the volatility has come down, yes. the big move to the downside has passed already. cheryl: any thoughts as we move on? >> it is a historic day. a lot can happen in 24 hours. the ramifications will hit the market for a long time. cheryl: thank you for your time
and want to let our viewers know we have been covering breaking news overnight, historic referendum, a surprise to many that the uk has voted to leave the european union. it is a historic moment, markets reacting not in a good way. i will send it to lauren simonetti and nicole pedallides. lauren: thank you for taking us through the reaction and the breaking news, the historic vote as voters decide to bail out on the european union leaving the market in turmoil, british prime minister david cameron just moment ago says he will resign in october. >> let me congratulate all those who took part in the leave campaign for the spirited and passionate case they made. the will of the britishpl