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tv   Street Signs  CNBC  June 24, 2016 4:00am-5:01am EDT

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british people have made a very clear decision to take a different path and as such i think the country requires fresh leadership to take it in such direction. >> uk prime minister david cameron saying he'll resign after britain chooses to leave the european union. >> a lot of big stocks falling. but the foundation pulled is amongst many with the shares of some companies losing almost half of their value. >> british lenders sinking over 30% glsmt and international community reacts with the swiss national bank intervening to stabilize the franc while others are questioning their own eu
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membership. so a very warm welcome back to our special live coverage of the referendum. clearly we have a result now. the uk has voted to leave the european union. 9:00 in the morning and on the back of that result we've already heard david cameron gave statement. within the last fen minutes he has said the country needs new leadership following the referendum result and he's may noted the stance that the uk would have been better off staying within the european uni. >> the british people have made a very clear decision to take a different path. and 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
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ship over the coming weeks and month. but i do not think it will be right for me to try to be the captain who tries to steer our country to its next destination. this is not a decision i've taken lightly but i do believe it is in the national interest to have a period of stability. and then the new leadership required. >> so a lot of news coming left, right and center as well. and a lot of very important speakers this morning. including a contradiction from the fca, the regulator in the united kingdom says well. derives from eu legislation. they say they will work closely with the government. longer term impacts of decision to leave the eu on overall regulatory framework will depend in part on the relationship that ensue also well.
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firms must continue to abide under those derived by uk law and eu as well. >> in case you want to ignore some of these eu rule, they are still in place. >> okay. we're going hear a lot of statements over coming days. and some of them will have some truth in fact. and some of them will be totally misleading. and i think let's take that on face value. fair enough. a lot of european law is now governing what's happening in financial markets. but the way it works is that legislation is now embedded in the uk legal framework. so if you are suggesting that come monday, suddenly financial markets in the uk are completely unregulated because of the referendum, complete poppycock. not at all. the rules are in legislation
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passed by the parliament in the uk. come monday the rules will be still be operating until there is any decision by our own national parliament to get rid of those rules. just to make that very clear. >> i'm just going to make a statement about the equity market, about those companies being traded on this morning. i would suggest it is very orderly. i think the action in the foreign exchange market has been extraordinary. as far as the equity market is concerned it is pretty much textbook. the price were marked down aggressively. they are still down relatively aggressively across europe. in the context of the last 12 months and in context where we were at our low and our trough in february i would suggest it is a very orderly must have in many ways. the stocks under pressure, they were marked down. looking fur stops. looking for the seller and market up again. i will make one point. david cameron spoke and i was looking at exactly at the level of the ftsi 100 when cameron got
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up and to the surprise of many of us out there decided to resign. the it is now trading back up t 6,026. it is and i'm just looking across the board. apart from the smi, it is the best performing of the major european indices. the ftsi is current wli down 4.9%. a big move but not a historic move. the german market is down nearly 7%. the french market is down 8%. and the ftsi mib over in italy is down 11%. and again you can't extrapolate a big trend out of one mornings movement but i would suggest the moves on the london market on equities are relatively orderly. >> and a worm welcome to u.s.
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viewers just waking up at this point. if you are planning a summer vacation to the uk it's just got 10% cheaper. the final declaration has been made. the leave camp emerging victorious with 51.9% of the vote here. remain trails with 48.1%. in terms of the regional breakdown, london and scotland stand out as the only regions that voted to stay in the eu with northern, central, eastern and western britain all choosing to leave. >> and with that our european markets still seeing a lot of red out there. i just saw the independent put out a tweet saying so many people are signing on online petition for a second referendum that the government website has crashed. we're still looking at a lot of red has people to come to terms with this new reality of what it
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will mean for the financials and britain doing business with the eu and other countries as well. the remainder of the eu. you have the ftsi down by 5%. 6020 right now. so tempering those earlier levels we saw to the downside and keeping in mind the ftsi was called down by 10% coming into trade. cac off still by 10%. the ftsi mib a similar story there. the xetra dax also lower. house seeing loss down somewhere 15 to 20%. the miners with gold heading higher. it had been speculated maybe you could see a safe haven trade for the miners out there. not so for the big ones. glen core off the most by just over 6.5%. and the retailers too. here we've seen some pretty indiscriminate selling taking place. the uk retailers off 7%.
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8% for markson spencer. a national company there off by almost 10%. so that is what we're seeing here this morning. the eu banks say in we just kind of broaden that mix and take a look at what we're seeing across the board. you have got a similar story here with many of these banks off somewhere in the region of 10 to well almost 20% when it comes to soc gen. 21 and a quarter for unicredit. and your point is well taken steve that we're seeing a worse performance in many cases coming from mainland europe than what we are for some of the stocks in similar sectors here in the uk. and what that goes to show and whether or not people are questioning -- or they are questioning already whether we have to go through this once again with other countries in the eu. with regards to the auto sector, also selling here across the board. bmw down 8% or so. same for daimler. vw down 9%.
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fiat. psa. others off more than that. 10 to 15% in broad terms. and the eu retailers off somewhere in the region of 10%. eu retailers fairing a little better than that. del hayes off 3.5 percent. these are really big trades we're seeing. so what is the flip side to. this there are safe haven trades out there. and we are seeing pockets of green. -- up 11%. spot gold hanging on to gains as well. as we've seen overnight up 5%. popping 1314. it was higher er8ier. gold still hanging onto the safe
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haven trade. the big move in sterling this morning. down 7.3%. that move continues. incidentally also a lot of speculation about what this is going to do to emerging markets and how all of this repositioning coming from sterling. coming from the uncertainty in the eu, whether or not you are going to see money moving out of emerging markets because of that. so a lot of moves seen still. and 11.45 off by 2% right now. in the asian markets overnight, a lot was feeding through there first once we saw the initial polls coming through. akiko fujita joins us from cnbc asia. recap for us the moves you saw. >> hi there louisa. we saw a lot of volatility in the asian markets. very broadly. because remember when these markets opened this friday morning they were expecting a victory for the remain camp.
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and we saw dramatic swing in the other direction. you see it across the board here. red all the way. a, and 200 in australia down. the -- in seoul hitting a four month low. shanghai composite down and the hang seng over here. this is where we saw the financial stocks get hit. down 6% broldly. but if we can flip the wall here. take a look at the uk banks listed in hong kong. hsbc down 6.5%. standard chartered here. down 9.4%. we kdid see the biggest selloff over here in asia here in japan. keep in mind this is the market that started in positive territory. up .6% at the open and take look how it fell. almost 8% here. breeching that 15,000 mark. and this is why. investors keeping a close watch
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on the dollar-yen. 106 when the polls closed and the dramatic swing at 100 level at one point here. down about 3% there. we are of course waiting for another press conference from finance tars a sew. >> donald trump just arriving in scotland. the helicopter just touching down. he's just arriving in scotland. he's going to be visiting his golf course there. hadley's in scotland accidentally will be covering that in full. so the trump copter. is that what you call it? the trump copters just settling this in there as he arrives in scotland. lot of speculation also about new leadership in britain and who they will be dealing with in the states. it is going to be even more
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crucial now that special bonds and special ties are formed between whoever the next leader in britain and the rest of the world. and that of course includes the u.s. so i've been talking to you guys on twitter about who a strong leader could be for britain. and who would be able to take on the world. you would assume they might be looking to form stronger alliances with nato. maybe also form a stronger special relationships with the u.s. as well. here we go live this turnsbury. mr. trump just getting ready to come out of the helicopter. live shots coming through from scotland. maybe a small welcoming committee, you would assume. as said, hadley is going to be covering this in full for us. donald trump no doubt will also be looking very closely at what's just happened with britain deciding to leave the
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eu. here he is. just stepping foot on to scottish territory. it will be interesting to hear his take of why it is the brits voted to leave the eu. his wife and son following him. and we'll be right back after the short break
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welcome back everybody. we are i think showing you shots of boris johnson's house.
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boris johnson of course a key figure in the brexit debate on that side of the campaign arguing that the uk should leave the eu. we obviously have a referendum result that confirms that decision now. we are with cameras outside boris johnson's house waiting to see whether he will emerge and speak to those cameras. and of course key because we've just had david cameron announce his resignation. and boris johnson must think that he is in plum position here. >> or he's a very keen historian. he's just written a biography of winston churchill and he'll know very much in more recent history the story of michael he issaltine who tried to commit -- with margaret thatcher. he wounded margaret thatcher but it wasn't him who ultimately got the job -- it was john major.
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interesting to see whether he is the man who can unite the conservative party or people such as theresa may. phillip hamid as well. i do want to mention sterling if i may as well. what we've seen in the last -- well actually since david cameron spoke actually. the market drifted a little lower in both sterling and on the equity market when mr. cameron was speaking about his resignation. and thereafter it rallied. and it rallied quite hard. and i want to tell you that the ftsi is significantly above 6,000 at the moment. outperforming its european peers but even on the currency basis as well where we saw sterling get down to 130, 132 at its low today. so extreme 30 years highs on sterling volatility actually back up to circa 138 on the cable cross at the moment. 138 is where it's coming to trade. again it is a very big movement but nowhere near as big as previously. two guests joining us now. peter oppenheimerer at goldman
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sachs joins us on the phone and eric lundgren joins us. multi asset fund manager. eric. tell me what you feel about the market reaction today. you and i were talking with jeff earl queer about actually if you take into consideration the currency the ftsi's outperformed but not by as much as it looks on pure local currency terms. >> right. it is worth bearing in mind about 70% of ftsi earnings generated overseas. so sterling weakness in beneficial for uk equities actually. but i think markets have been reasonably considered unpredictable in terms of how they have responded. so you have seen as you have mentioned earlier the most extreme volatility in the f kmrks market focused around sterling. one point this morning i think had been about 15% on the yen/sterling cross. which is a colossal interday move. broad markets more concentrated
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moves in the financials which is what you would anticipate. >> peter, similar point. we've seen a reaction. think it is more measured than some out there are saying. how do you feel about the moves we've had? are they logical? have you seen panic setting or you do expect significant buyers to come in. >> i agree with the comments made. in some ways at least the magnitude of the moves across assets are consistent with what we had expected since the beginning of the year moving towards the election. in other words, moving towards the election as the polls were closing. sterling first and foremost was the asset that was hit the most. the ftsi hundred for the reasons eric said that is very global in exposure is actually outperforming. it's been the best performing market in europe this year. essential local currency terms.
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and really more domestic parts t ftsi 250 which is derated and very domestic stocks which have weakened the most. and really we are seeing at least in terms of moves a narrative that is consistent with that. as you say the moves themselves are not as big perhaps as some have feared. particularly given the strong rally that we've seen in ris risky assets over the last few days. we should bear in mind that europe rn markets over rallied about 8% in the last ten days on the growing confidence there would be a remain. and perhaps one of the reasons why the market moves have not been so striking is because positioning has been quite like going into this result. although many people expected a remain. position has been very light. we know that foreign investors have been pulling money out of european and uk equities since the beginning of the year. and that i think is an important point to bear in mind too. >> peter, can i ask you then how do you view the opportunity in
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the ftsi 100? and are there particular sectors that one should under weight at this point? >> two points. first we've argued in e event of an exit the ftsi would outperform for the reasons that we've been discussing. and i think that lots of uk assets, particularly very large global companies will be attractive at some level, given the weakness in sterling. and the adjustment in the value of those for foreign investors. from a sectoral perspective i think the movements are pretty understandable. first there is a risk off. so the more cyclical parts of
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the market are underperforming but secondly the financials we argue going into this could be the most vulnerable on the downside. remember they have been extremely sensitive apart from the risk factor to what's happened to bond yields and interest rates. and as bond yields come down again and yield curves further flatten more potential squeeze on interest margins, you know, financials are of course exposed to that on the negative side. the only other thing i would mention is that, you know, for much of the period since february, there's been a big spread between the different parts of the cyclicals in the market. you know, financials have been poor performers whereas things like resources have been very good performers and part of that reflected the lower dollar and the pushing out of u.s. rate expectations following the draw down in january. what we're seeing today is all cyclical sectors really underperforming. so financials, as well as
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resources. oil, etc. so it is really much more today a cyclical beater risk off which is being reflected in the large move downwards. >> eric, obviously with volatility opportunity what have you been buying or what are you thinking about buying on the moment on the back of what we're seeing in the price action. >> well i certainly think financials are a very interesting area within the equity market to be looking at. i think it is very plausible you have had an overreaction in the domestic bank shares in the uk. particularly mark carney's points were spot on. what we have to remember, the big difference between now and liamance is we've had lehmans. the banking system is in totally different system. liquidity rates are highest in history. contagion physical it -- the
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truth is the big unknown is what happens to the uk economy. so the honest answer is there are predominantly probably negatives in terms of the variables but all of that analysis assumes everything else remains the same and we don't know what the uk economy would have been been doing anyway. that is the really big uncertainty. i think poempbl bond markets. very big move in 10 year treasuries. they rallied 25 basis point this is mork morning. >> you think there might have been a little premature action. talking off camera about the brokers. called down their u.s. rate hike calls and taken september off the table. let alone july. taken ept is you they that is premature. >> that is a very risky strategy to be buying bonds in these kind of moves. this is about risk prempss.
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this is not about economics. in two, three months time, even a week we could have a very different perspective based on u.s. economic data. >> as far as europe is concern. this is very uncertain. we don't have a prime minister. a trade union at the moment. tort use negotiations. what have you. we do no the uk equities are a lot cheaper because the pound is cheaper now. we do know uk equities are cheaper because they have come 4 or 5% today. does this make uk actually medium term more attractive than europe as a long/short play? or a relative value trade because -- >> i can't help but see an irony here that it is very european not to have a government. i think if you look at historically phases of political uncertainty where you don't know what the make up of the government is do not necessarily weigh that heavily on the economy. now there is a particularly
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uncertainty here, which is firms that would be investing in the uk with the view to exporting or selling their services into the european union have a degree of uncertainty that is particularly unusual. so it is logical to expect that to weigh in investment spending. but there are two critical issues, which is we don't really know what a leave means. we're going to find out now. >> got to rush you on the second one. >> and the other is how is europe going to respond. that is the big unknown. >> fabulous. >> real pleasure. thank you so much for your company this morning. peter oppenheimerer, thank you as well. with us from goldman sachs. >> -- five and a half. >> we could just stay here and do another couple of hours but that would annoy a lot of people waiting to climb into these seats. and it's been a terrific ride. a real pleasure having your company through the last few hours as we've charted the uk's departure from the eu. the coverage goes on. >> coverage goes on.
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and lose and a and will and sara. but we've done our shift. >> thanks everybody. and we'll catch up with everybody on monday
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the british people have made a very clear decision to take a different path. and as such, i think the country requires fresh leadership to take it in this direction. >> european equity markets plunge as britain chooses to leave the european union. the foundation is pulled from under the house builders. shares in some companies losing almost half of their value as seen here. banks also bearing the brunt of the selling with british lenders sinking over 30%. dragging down their european counterparts. and the international community
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reacts with the swiss national bank intervening in the currency market to stabilize the franc, while others they question their own eu membership. if you are just joining us the uk prime minister david cameron has said he'll resign. in a statement within the last hour he said that the country needed new leadership following the referendum result and he may noted his stance that the uk would have been better off within the european union. >> the british people have made a very clear decision to take a different path. and 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 will be right for me to try to be the captain that steers our country
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to its next destination. this is not a decision i've taken lightly. but i do believe it is in the national interest to have a period of stability. and then the new leadership required. >> well let's just check in on our u.s. futures. not only are we look at massive drops here in europe but the implied open stateside is also big. you have got a big hit to the downside. dow jones off 436 and you have the s&p 500. the applied open lower by 65% and nasdaq also called lower too. just seeing live pictures here coming through. boris johnson having just left his house. boris johnson being an english politician, served as member of parliament. exmayor of london and also happens to be the bookies favorite to be the next prime minister. he just got in a car outside of his home and speculated we'll be
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hearing from him very soon. he of course also having been one of the front runners in leading the outcampaign. europes markets trading significantly to the downside in the region of 5%, 10:% when it comes to the ftsi mib t ibex. xetra dax off 6.5%. the smi safe haven saths there off by only 3% today. the european union's duonal tusk has said he wants to may not unity despite the referendum. and merkel will be making a statement at 12:0. a number of leaders out giving their opinions. julia is in brusselss and i was looking at a tweet coming through from the president of the republic of lithuania saying respect, regret and reengage.
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>> absolutely right louisa and i think they are going to echo that when we hear from the zugs heads. -- institution heads. i think they will say look, we respect the voters decisions. we regret it but now we have to move on and i think the markets tell you that some greater clarity is needed all the way along through this campaign we've not really heard from the leave side about what to do about the economy. there's been implication that things would be organized on increasing focus of immigration and not necessarily anything else. i think it is interesting to see the bounce we've seen in the market since david cameron came out and said look nothing will change in the short-term. mark carney sounding very mario draghi like which has also served to at least take the markets off lows we saw earlier in the session. a crucial point here that we do need to give a sense of stability because for the next two years while this is
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negotiated remember the uk does remain within the eu. so while the markets are panicking and wondering what next as they always do sort of fore think, predicting what is going to happen, the uk is still going to be a member of the eu. for all the unsesht things will continue as they have until this is sorted but for now at least we need some clarity over who's going to do the negotiations for the uk side and just how quick these kind of things can happen because it is going to be a lot of paperwork to do and of course no precedent to give us any kind of pro forma here. >> a ton of paperwork. i spoke to the director general of wto just the other day. and he was saying not only in the event of a brexit which now has happened, not only would the uk have to renegotiate contracts with the 27 remaining members. they would also have to renegotiate contracts with additional 61 members who have preferable agreements already signed. and on top of that 161 other
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countries that are waiting on the side lines too and there isn't even a trade body in place to do that right now a proper trade body so there is a lot of work to be done. >> absolutely right. you make a point about one aspect of this which is trade. i would argue that we haven't brexited yet. the uk voters are not even half of uk population of course have voted ed td to lee the eu. i think there are all sorts of complications with how tight this vote is and for any government that is seeing this referendum and has held this referendum they don't actually have to abide by the referendum of course. this is just a public vote in effect. so there is a number of elements here and complications and i know you've tweeted out this independent online poll that's crashed because people are saying hold on we want a recount. we want a new vote. because this vote is incredibly tight i'd say it opens pandora's box for the future here. it is going to be very interesting to hear what they eu officials say given it is so tight and of course given the
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possibly leadership change in the future. i mean these next few months i this i are going to be very difficult whether it is talking about what the future trade negotiations or anything else. and i've always also seen other comments an twitter as well about possibility of holding a fresh general election rather than just a leadership change which perhaps gordon brown should have done in 2007. so wow, pandora's box louisa. >> stay with us. i want to introduce our guest here in the studio. reejis professor of economics at the london school of economics. good morning. first what is your reaction to the results. what is the reaction to the markets this morning? to all this talk of uncertainty to come? and what we do from here? >> the reaction was more one of shock early indication showed
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the remain were going to edge it. undecided voters usually you don't vote for big change when you are undecided. something we saw in the scottish referendum. but we have to accept it of course. it is democracy and although it is not law of course it has to be enacted. otherwise democracy will not work. that was the promise given. i thought the main -- first would be the uncertainty created in markets and what is the we're seeing. sterling at the beginning going to highest level in 2016. by this morning, lowest level in i don't know how many years. uncertainty especially with exporting firms, the financial sector and now added uncertainty as to who will lead the party. and are they going carry on with the same policies david cameron's government? >> yeah. from an economics point of view.
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again, as you say many people are very shocked by these results. where do you start? where does one first begin to try to put something back together again to start anew. where would you put the priority? >> i would put the priority on trade. what happened during last 40 years was restructuring of the british economy to trade mainly with europe. about half of all british exports were with the european union. if we see what markets outside of the european union, united states, china and son. and despite all that they only attracted half compared with what europe attracted. that has to be a priority. there will be new agreements, new treaties, negotiated with the european union. and priority should be given to trades so that businesses can go back to knowing where they stand, knowing where the new business model is going to be so
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they can start investment again. because i suspect investment will be put on hold for the time being. >> yeah. >> and therefore job creation will be put on hold and this phenomena, employment performance that the united kingdom had over the last few years will not continue unabated we need to sew what's coming next. >> i spoke to the chief economist from within the oecd a couple of weeks back. and she was making the point that we could be looking at the big dent to gdp growth in the near term up to something like 5% here over the next couple of years. but then the point was made, show me the countries that are lining up to do trade deals with the uk. do you think countries now are going to be lining up? will they want to come knocking at the doors of britain and try to make new trade deals? >> given what they said like the united states and so on before
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the referendum, i don't think they will be lining up. i think they will come grudgingly because they know a new deal has to be made. but they want to deal with bigger markets. the european union is a single market of 500 million people. the united kingdom is -- there abouts. of course they will do it because it is a big economy. open economy. big financial sector but it is not something they were looking forward to doing and i'm sure it is not something they will enjoy doing. they say oh well what we have to go along. what else can with we do. >> do you think we're going to have to go through this again with other eu countries? has this just literally opened the door to flood gates of referendumed? >> that is a very good point and one that is i'm sure going to occupy european union leaders a lot. because they obviously don't want this to happen.
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so one way of discouraging other countries so do it is to be very tough with britain on negotiations. if suddenly they say over the next month okay, you can have everything that you had before. you know, you can be the new norway. you don't like immigration. all right we'll exclude immigration. if you say all of oez things then there is going to a flood of obligations. so what i suspect will happen is they are going to be very tough with britain. and of course that is going to make it worse because they are the first ones to undermine this drive for unity that started 60 years ago. >> thank you is for coming in to talk us to. reejis professor of economics at the london school of economics. donald trump touched down in scotland. find out more after the break. this is a game of yards and inches,
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well the governor of the bank of england is saying that he's ready to deploy 250 billion pounds to stabilize financial markets. that says britain's decision to leave the eu has sent shock waves across asset classes. mark carney added he'll always consider further policy measures during the coming weeks. >> it will take some time for the united kingdom to establish new relationships with europe and the rest of the world. so some market and economic volatility can be expect as this process unfolds. but we are well prepared for this. her majesty's treasury and the bank of england have engaged in
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ebs ten extensive contingency planning and her majesty and i have remained in close contact, including lew the night and this morning. to be clear the bank of england will not hesitate to take additional measures as required as markets suggest. and as the uk economy moves forward. >> kayla tausche is outside of the bank of england. mark carney's message basically being here and we stand ready do what we have to do in any event. >> and louisa he did emphasize the relative strength of the financial system here in the uk compared to previous financial crises. of course he said that the capital requirements are ten times higher. the banks have raised 130 billion pounds in additional capital and they have over 600 billion pounds in high quality assets on their books. but that hasn't been able to stanch the selloff in european bank shares. the banks themselves have come
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out with statements saying they are committed to serving their clients. they are working closely with governments and that all of this transition will take time to work out new trade agreements to figure out what their employment situation is here in the uk and across europe and that will not have immediate impact on the availability of funds to certain customers at branchs and like. they have been warning institutional clients that liquidity especially the foreign exchange market today and perhaps for the foreseeable future will not be business as usual. they have been warning clients to find alternative sources of capital. to be executing certain orders in sterling specifically over the phone rather than through algorithms. so the certainly banks are trying to prepare for this situation. either outcome they have said they have been planning for for months. but the fact that the bank of england has now said it is willing to step in with that 200 billion pound currency reserve is certainly going to be
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meaningful for some of these institutional funds, as well as some of these banks. as the volatility continues to unfold just about an hour here after market open and we'll see how it fairs throughout the day louisa. but certainly the bank of england trying to give some uplifting or some confidence to the markets this morning. the uk house builders still trading off significantly. down in the region 15 to almost 25%. the miners seeing a lot of red on screens this morning too. miners also off in the region of -- well a bit less than earlier but rio tinto still down. glen core and angelo american a similar story there. the safe haven of trade being some of the commodities overnight.
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the uk banks though not being spared today. off some 20%. barclays, lloyds and rbs, although a little bit of a better performance than initially on the open where barclays was off around 30%. paul joins us. good morning. mark carney talking about thebacks there. and also saying they stress tested the banks furthest than the current situation. do you think business is ready for this? >> i think business has clearly seen the people of uk have voted for an outcome. business in the uk is very practiced at dealing with challenges and all sorts of crises as come through many of their history. and business people today will be assessing the impact on their businesses. going out with revised plans. and getting on with business. and making the very best they can of the different sort of challenges and the uncertainty that exist. >> do you think business has
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taken it seriously enough? have there been enough plan bs in place? >> i think business has sensed all along that this was quite a finely balanced debate. we knew that the business case economic case was very strong but there were other concerns the people had. so all businesses will have given some consideration. but we do know that we're into a period of uncertainty. but things will stabilize over time. so there isn't an immediate reason to sort of be concerned. we need to get on with our business, go to work. progress the investments that we've already planned for. capitalize on the great strengths that the uk has. we have a strong economy at the moment. excellently led in financial terms by the bank of england. and a lot of really strong businesses. i want we want to get on
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optimistically, assess the risks and create opportunity from the challenges around there. >> where is the opportunity? do you think companies are going to be looking for outwards now? >> i think most of the companies in the uk look to grow both national and internationally. and what we'll want to do going forward is to get the best possible trade deals we can with our friends in europe. and they are friends. they have been friends for 40 years. and they will still be friends. so want to actually get the best trade deals with can for the european neighbors. but also with the many other countries around the world which we already have trade deals through europe. so i think that will be really important for us. as we'll continue to operate our business the way where we access the best talent and skills so we can compete on a global basis. >> how do you get the trade deals on the best terms if for example if i'm china and i want to deal either with the eu or i deal with britain on a stand
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alone basis it would make more sense economically to deal with the eu. so how can i get the best terms in trade if i'm sitting ing it britain now? >> we have high levels of the innovation. great technology and products people around the world love. so they will want to keep trading with us on competitive terms. so what consumers want is the best value they can get. we have fantastic products and services. i think people want -- to buy them. we've got develop a strategy. it won't be quick and easy but that is what we deal with in business every day. >> duke companies are going to be moving headquarters out of london? >> i think companies are going to be focus on doing everything they can to grow their business, make them more successful and they will take the right decisions but they won't take any quick decisions. anything we do now is going to impact the uk for decades to come. so decisions need to be thoughtful, measured and they need to be planned. >> paul thank you very much.
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paul dreschler. president of the cbi. now the ftsisy over the course of the past week, so far this week a little higher. hanging on to some slight gains. today is friday. so this is since monday's trade that we're looking at. the dax flat since the beginning of the week. the smi higher 1.25%. the cac is off 1.5%. the ibex is off just over 4 and the ftsi mib the italian market down 5%. many of the banks especially are being sold off heavily from the periphery country as there is speculation about what happens next. not only with referendum but the financial sector in europe. and speaking of the banks, we're
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looking at the english banks. all trading lower by a -- by a lot. think just disappeared. they were there a second ago. let's show you the european moves. across the board we're seeing a lot of the european banks trading off by around 10 to almost 20%. unicredit. soc gen. ubs off 8%. mark carney has said this morning t governor of the bank of england, talking about this 200 billion pound currency reserve. and also saying they have stress tested the banks further. and the auto sector. indiscriminate selling taking place as well. with these stocks off in the region of 6 to 13%. and sterling. massive moves in sterling
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overnight. 15 cent range. never seen that. wild swings between around 134 to 150. we're currently 139. so we've come back from that 134 level earlier. sterling against the euro off just over 4%. 124 and sterling against the yen, 143. so there you have a safe haven trade against a very volatile trade one could argue with regards to the safe haven yen moves. but the final declaration has been made. as we've been saying.
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the leave camp emerging victorious with 51.9% of the vote. remain trails with 48.1%. in terms of the regional breakdown it is interesting because london and scotland stand out as the only regions that voted to stay in the eu. northern, central, eastern and western britain, they all chose to leave. also interesting if you look at the demographics because the younger part of the population, 18-24 by and large overwhelmingly they wanted to stay. basically we're passing this on to a generation that doesn't want it. which is also interesting. uk prime minister david cameron sais he'll resign. in a statement within the last hour he said the country needs new leadership and may noted his stance that the uk would have been better off within the european union. >> the british people have made a very clear decision to take a different path. and as such, i think the country requires fresh leadership to take it in this direction.
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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 will be right for me to try to be the captain that steers our country to its next destination. this is not a decision i've taken lightly. but i do believe it is in the national interest to have a period of stability, and then the new leadership required. >> that is for today. i'm louisa bojesen. special thank you to u.s. viewers. "worldwide exchange" is up next. markets again having come back a little from the initial market open that we saw but we're still trading in negative territory. see you very soon again. ain. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish.
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breaking news. the uk votes out of the european union. an historic day here in great print. >> a state of shock. the pound plunging. stocks slammed. bond yields dropping. gold sores. central banks are just beginning to react with the swiss national bank calling for a currency sbvx. we've got the global market reaction covered from start to finish. >> and cameron steps down. the uk prime minister says his country needs fresh leadership after british voters have their say. friday, june 24, 2016 and "worldwide exchange" begins right now.


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