BRITS CUT ACCORD: PM quits as billions wiped in ‘bloodbath’

• Cameron to leave as Prime Minister by October
• Pound falls to lowest level in 30 years
• Bank of England ready with £250 billion war chest
• Farage tips Netherlands, Denmark, Sweden to leave EU
• Scotland FM says independence vote ‘on the table’
• Johnson denies 'pulling up drawbridge’ to Europe

Former London Mayor Mr Johnson said Mr Cameron is “one of the most extraordinary politicians of our age ... who has given superb leadership of party and country.”
Earlier, the Prime Minister, who had spearheaded the Remain camp in the lead up to the EU vote, announced he would stay on as caretaker until the Conservative Party conference in October when a new leader would be chosen.
That person, widely tipped to be Johnson, will face the immediate challenge of negotiating Britain’s withdrawal from the EU by triggering Article 50 of the Lisbon Treaty.
On Friday morning Mr Cameron said he had not shied away from giving the country the power to make such an important decision.
“I will do everything I can as Prime Minster to steady the ship but I do not think it would be right for me to try to be the captain that steers our country to its next destination,” he said.
“I love this country and I feel honoured to have served it and I will do everything I can in future to help this great country succeed.”
The news comes on an extraordinary day in UK politics in which:
• Scotland FM Nicola Sturgeon said a Scottish independence vote is ‘on the table’

• There are fears Brexit could spark breakup of European Union
• Londoners react with shock
• Aussies wonder what it means for their UK passports
• Twitter users see the funny side of Brexit
• Donald Trump hails the result as “fantastic” for British people

 

UK Leaders including Mr Cameron, Mr Johnson and Bank of England Governor Mark Carney have stressed stability on Friday — saying there would be no change to the movement of people, goods or services in the short term.

Mr Carney revealed the Bank has a £250 billion war chest at the ready to keep financial markets liquid in a bid to avoid a repeat of the 2008 volatility.

Markets in the UK and Europe went into free fall on Friday with billions wiped from banking and housing shares after the referendum result defied market expectations.

“We are well prepared for this," Mr Carney said. “We will not hesitate to take any additional measures required.”

 

WE’RE NOT “PULLING UP THE DRAWBRIDGE”

In his first comments since the result, Mr Johnson paid tribute to Mr Cameron and said it was vital to stress “there is no need for haste” in terms of unwinding the UK’s relationship with the European Union.

He also sought to knit the country back together after a bitter and divisive campaign that has centred around immigration.

“This does not mean the UK will be any less united, nor indeed that it will be any less European,” he said.

“We cannot turn our backs on Europe, we are part of Europe.”

“Young people can look forward to a more secure and more prosperous future if we take back the democratic control that is the foundation of our prosperity.”

Justice Secretary Michael Gove said the country was embarking on a “new chapter but one in line with our best traditions.”

“We can build a new stronger, and more positive relationship with Europen leaders based on free trade.”

Scotland’s First Minister Nicola Sturgeon said a second independence vote would be “on the table” after Britain voted to leave but Scots opted to stay in.

“The option of a second referendum must be on the table and it is on the table,” she said.

 

‘SUN HAS RISEN ON INDEPENDENT BRITAIN’

UK Independence Party leader Nigel Farage said “the sun has risen on an independent Britain” and he hoped the Brexit vote will unravel the entire European Union.

Speaking as Brits woke to the news of the shock result that saw 17.4 million votes to leave and 16.1 million votes to remain, the right-wing politician said it could trigger similar moves in the Netherlands, Denmark, Sweden, Austria and Italy.

“We may well be close perhaps to Nexit ... we could be quite close to Dexit,” he said of the Netherlands and Denmark.

“The EU is failing, the EU is dying, I hope we’ve knocked the first brick out of the wall. I hope this is the first step towards a Europe of sovereign nation states.”

He also called the result a “victory for ordinary people” against big business and political elites.

Sky News political editor Faisal Islam said Mr Farage “may well go down as the most important politician in the last 30 years” having soared from a relative unknown to being at the centre of a large win within a few short years.

However he was also slammed for a victory speech in which he claimed to have won “without having to fight, without a single bullet being fired,” after a bitter and divisive campaign during which Labour MP Jo Cox was tragically killed.

 

TRUMP HAILS BREXIT AS ‘GREAT THING’

Donald Trump has said the Brexit result is “fantastic” and a “great thing” that the UK has “taken back control” of the country as he arrived at his golf course in Scotland.

The US presidential hopeful touched down Friday morning to find the country reeling from the result. Scotland voted to remain part of Europe however it wasn’t enough to swing the final result.

 

TUSK REACTS AND TURNBULL REASSURES AUSSIES

European Council President Donald Tusk has offered the leaders of 27 countries of the European Union a meeting on the sidelines of the European summit to discuss what the move means in the first sign of UK exclusion.

He said he was “fully aware” of the historic significance of the result but “what doesn’t kill you makes you stronger”.

“I want to reassure everyone that we are also prepared for this negative scenario ... For all of us, the union is the framework for our common future,” he said in a statement designed to allay fears about the breakup of the union.

Meanwhile, Australian Prime Minister Malcolm Turnbull said he was sure the UK relationship with the UK would stay “very strong and intimate” and not affect free-trade negotiations with the EU.

“I have no doubt ... that our very strong and intimate relations with the United Kingdom will be entirely unaffected,” he said.

“There is no cause for Australians to be alarmed.”
 

STERLING ‘FALLEN OFF A CLIFF’

The pound collapsed to a 31-year-low against the US dollar and fuelled a wave of global uncertainty on Friday with the London FTSE dropping five per cent.

ETX Capital head of sales trading David Papier said financial markets have seen “carnage”.

“It’s a madhouse in here. It has been a bloodbath,” he said.

UniCredit Research economist Daniel Vernazza said the vote against economic warnings has sent “shock waves” through the global economy.

The result was a shock to traders after they had been pricing in a vote to Remain.

“Leave’s victory has delivered one of the biggest market shocks of all time,” said Joe Rundle, head of trading at ETX Capital.

AlixPartners market lead Eric Benedict said the result has been a “complete surprise” to clients with many now looking to put contingency plans in place.

“So far, we are seeing a considered response to the outcome, with a clear acceptance of a prolonged period of uncertainty.”

“From a business point of view, many sectors will be nervous but for others there’s plenty of reason to be optimistic, with exporters and the tourism industry likely to be net beneficiaries.”