Britain leaves EU, world market in crisis, How it happened

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Britain on Friday voted in favour of leaving the European Union.

The Leave camp, which had conceded defeat as the Referendum poll closed, made a huge comeback as counting progressed.

London, Birmingham, Glasgow, Manchester and Edinburgh voted to remain. However, the winning margin by Leave camp in rest of England was so high that the Remain camp could not offset the deficit.

Bank of England Governor, Mark Carney
Bank of England Governor, Mark Carney

In the end, the Leave camp polled 52% votes, while the Remain camp’s share was 48%.

The Leave polled over 12 lakh more votes than the Remain camp.

Also Read | Prime Minister David Cameron resigns as Britain votes to LEAVE Europe

Flanked by wife Samantha, an emotional Cameron said he had informed the Queen of his decision to remain in place for the short term and to then hand over to a new prime minister by the time of the Conservative conference in October.

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He said, “It would be for the new prime minister to carry out negotiations with the EU and invoke Article 50 of the Lisbon Treaty, which would give the UK two years to negotiate its withdrawal. The British people have voted to leave the European Union and their will must be respected,” said Mr Cameron. “The will of the British people is an instruction that must be delivered.”

The value of pound plunged vertically, at a level not seen since 1985, as soon as the news of Sunderland results came in. While everyone expected the Leave camp to do well here, they were blown away by the margin of their win.

This set the cat among the pigeons and the free fall of the pound started.

As the dawn set in Britain, global markets particularly in Asia, had begun to experience the tremors of the seismic change affecting the British population.

The Bank of England (Equivalent to RBI in India) governor, Mark Carney, appeared on live TV to give confidence to people worried about the impending bloodbath in the economy.

He said, “The Bank will continue to consult and co-operate with all relevant domestic and international authorities to ensure that the UK financial system can absorb any stresses and can concentrate on serving the real economy. That economy will adjust to new trading relationships that will be put in place over time.

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“It is these public and private decisions that will determine the UK’s long-term economic prospects.
The best contribution of the Bank of England to this process is to continue to pursue relentlessly our responsibilities for monetary and financial stability.These are unchanged. We have taken all the necessary steps to prepare for today’s events. In the future we will not hesitate to take any additional measures required to meet our responsibilities as the United Kingdom moves forward.”

According to reports, the Conservative party will elect a new leader in their annual party conference. The new leader will then replace Cameron to strike an exit deal with Europe by triggering what’s known as Article 50.

One name that’s already doing the round as a potential front-runner is the former London Mayor, Boris Johnson. Johnson had actively campaigned in favour Britain leaving the UK.

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