The calm is over. FX markets are open and Cable is currently down another 170 pips, testing 1.3500 once again. USDJPY is also sliding back below 102.00 as the world awaits China's reaction with its official peg as offshore Yuan plunged on Friday...
Earlier today Scotland's First Minister Nicola Sturgeon told the BBC that the Scottish Parliament could try to block the UK's exit from the EU. As we predicted yesterday, the Scottish National Party leader, who went through her own UK independence referendum two years ago and is now considering yet another referendum, said that "of course" she would ask MSPs to refuse to give their "legislative consent".
Spain’s two main progressive parties, the 137-year-old Socialists and the anti-establishment group Podemos, appear to have won a majority of seats in parliament in Sunday’s election, according to exit poll data.
"The global economy cannot afford to rely any longer on the debt-fuelled growth model that has brought it to the current juncture... The world has been haunted by an inability to restrain financial booms that, once gone wrong, cause long-lasting damage... We need policies that we will not once again regret when the future becomes today."
"...the actual disaster isn’t the vote, it’s the eight years of policy that made it thinkable... Brexit is not the disaster. The disaster is what they’re rowing from..." As soon as the focus returns to why the UK bailed in the first place the proper sympathy will shift from the poor Britons in a flimsy rowboat to Europeans still trapped on the Titanic.
"We're looking at a public health emergency affecting the streets of New Haven" Deputy Director of Emergency Management Rick Fontana said. “We’ve had quite a hectic time,” he said. “I don’t recall an incident where it’s been like this.”
Angela Merkel sought to temper pressure from Paris, Brussels and her own government to force Britain into negotiating a quick divorce from the EU, despite warnings that hesitation will let populism take hold. Eurosceptics in other member states applauded Britons' decision to leave the European Union in a referendum that sent shockwaves around the world, with far-right demands for a similar vote in Slovakia underlining the risk of a domino effect. Meanwhile, the EU is urging Cameron to promptly trigger Article 50, even as nobody really knows what the UK will do next...
Any “faint prospect” of a Fed July rate increase has entirely vanished, ING economist Rob Carnell wrote in note adding that the longstanding ING call for Sept. hike looks to be “hanging in tatters.” Here are more comments, courtesy of Bloomberg, from Wall Steet's so-called experts, none of whom predicted the actual a Brexit outcome, about U.S. monetary policy outlook following the outcome of the U.K. referendum.
"Now the catastrophic scenario that many feared has materialized, making the disintegration of the EU practically irreversible. Britain eventually may or may not be relatively better off than other countries by leaving the EU, but its economy and people stand to suffer significantly in the short to medium term. But the implications for Europe could be far worse."
"... such measures would entail amendment of section 29 of the Scotland Act 1998, which binds the Scottish Parliament to act in a manner compatible with EU law, and he therefore believed that the Scottish Parliament’s consent would be required. He could envisage certain political advantages being drawn from not giving consent."
In the short day since David Cameron announced his resignation, the UK is undergoing a chaotic and very much ad hoc politcal transformation, in the middle of which is none other than Boris Johnson, the leader of the successful "Leave" campaign, who however has cause to celebrate tonight because according to the Sunday Times, the former London mayor has won the backing of a key colleague to replace David Cameron as prime minister.