Summary

  • Sterling down 8% against the dollar and 6% against the euro

  • Banks and housebuilders among biggest fallers on FTSE 100

  • Wall Street falls more than 3% after London closed 3.1% lower

  • European stock markets hammered

Live Reporting

Dan Macadam

  1. Credit risk rating firm downgrades UK

    In the immediate aftermath of the UK’s vote to exit the EU, we advise that this will be a very fast-moving and transitional time for the UK economy – and indeed for the global economy. Amid this uncertainty we have downgraded the UK’s country risk rating by two notches, from DB2a to DB2c (still in our ‘Low Risk’ category). The level of uncertainty will remain especially high in the next few days until the various influencers make their positions clear.

    Dr Warwick Knowles, Senior Economist, Dun & Bradstreet

  2. 'New political reality'

    The World at One
    BBC Radio 4

    Dr Liam FoxGetty Images

    Dr Liam Fox, the former defence secretary and a Leave campaigner, says the market turbulence in the wake of the referendum vote is already coming under some control.

    "This is day one. You've already seen some corrections to the lowest positions as the markets adjust to the new political reality," he tells Radio 4's World at One.

    "Of course there's bound to be a little bit of jitters initially. It's a very big historical change that we're talking about. This is changing the course not just of British history, but European history."

    As for the effect of a Leave vote on the economy, he says "we'll wait and see". 

    "There are so many factors that affect growth - what's happening in China, what's happening to the price of oil, what's happening to the Fed's policy in the States," he says.

    "All of these are factors that will affect us. They can all move in positive or negative directions. What the aggregate effect will be in our economy is very difficult to predict."

  3. Gatwick runway plans take off again?

    BBC transport correspondent Richard Westcott writes

    Stop Heathrow expansion signGetty Images

    The biggest question mark following this vote is what happens to Heathrow. The west London airport was firm favourite to be picked as the site for a new runway, with the government talking about making a final decision this year.

    But that was when David Cameron was in charge. 

    Boris Johnson has promised to lie down in front of the bulldozers to stop Heathrow expansion. 

    The issue is bound to become part of the Conservative leadership campaign, so you can forget an early decision. If Boris Johnson's the new PM, that would seem to kill off Heathrow's chances. 

    Rival Gatwick is very much back in the game. 

  4. Calling small businesses ... what does Brexit mean for you?

    BBC Business tweets ...

    This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
    The BBC is not responsible for the content of external sites.
    Skip twitter post

    Allow Twitter content?

    This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy and privacy policy before accepting. To view this content choose ‘accept and continue’.

    The BBC is not responsible for the content of external sites.

  5. What happens next?

    BBC personal finance reporter Kevin Peachey looks at what the Leave vote might mean for households...

    This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
    The BBC is not responsible for the content of external sites.
    Skip twitter post

    Allow Twitter content?

    This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy and privacy policy before accepting. To view this content choose ‘accept and continue’.

    The BBC is not responsible for the content of external sites.

  6. 'No meltdown', says Leave MP

    The World at One
    BBC Radio 4

    Andrea Leadsom, a Leave MP, says there "just is not the evidence" of a financial meltdown hitting the UK in the wake of the vote, as predicted by some Remain campaigners.

    "There is volatility ahead of an event like a general election or an inflation forecast and traders position their books to try and make profits," she tells Radio 4's World at One.

  7. Cameron and Osborne's economic track record defended

    The World at One
    BBC Radio 4

    Education secretary Nick MorganGetty Images

    Education secretary Nicky Morgan has defended David Cameron's achievements in "rebuilding a shattered economy" as prime minister over the past six years.

    Asked if George Osborne - the chancellor in that time - should follow Mr Cameron and resign, she says that's for the next Conservative leader to decide.

    "Having worked with George Osborne in the Treasury over the course of the last parliament, he too has taken very difficult decisions and he has also put this country back on the road to economic recovery," she tells the World at One.

    Ms Morgan, who campaigned for a Remain vote, wouldn't be drawn on her own leadership ambitions, simply saying it "would be good to have a woman in the final two candidates".

  8. FTSE 250 down by more than 8%

    Shares board - showing fallsPA

    Let's take a quick check on how shares are doing - and in London the FTSE 100 is down 4.43% at 6,057.19. That compares with its dive of about 8% at the start of trading as news of the vote to leave the EU was sinking in.

    However, the FTSE 250 - perhaps a better representation of British companies which are more likely to be affected by the Brexit vote - is at 15,856.06 - that's a fall of 8.52%. 

  9. Thomas Cook suspends travel money sales

    BBC personal finance correspondent Simon Gompertz writes...

    Thomas Cook has suspended its online currency sales after unprecendented demand overnight, as the referendum results came in.

    Throughout the night the travel company had been offering euros to click and collect at yesterday's favourable rate of €1.27 to the pound, despite the plunge in the value of the pound in the wholesale foreign exchange market.

    Their rate has been cut to €1.21 today.

    A rush of demand from holidaymakers trying to protect themselves against the fall led to queues snaking outside the doors at some Thomas Cook outlets this morning.

    So the company suspended the online service to make sure that its counters did not run out of cash.

    A Thomas Cook spokesperson said:

    "We have temporarily suspended our travel money website following unprecedented customer demand for foreign currency overnight and this morning. We apologise to all customers affected. Our immediate priority is to ensure that we have enough currency in store to fulfil outstanding orders. We hope to be back up and running as soon as possible."

  10. Drivers face higher petrol and diesel prices

    BBC business correspondent Simon Gompertz writes...

    A man reaches for an unleaded petrol nosel at a fuel pump outside a Royal Dutch Shell petrol station in HookGetty Images

    Drivers could face higher petrol and diesel prices as a result of the vote to leave the EU.

    Brian Madderson, chairman of the Petrol Retailers Association, said that a rise of 2 to 3 pence a litre was on the cards.

    He said the plunge in the value of the pound against the dollar would have an immediate impact on wholesale fuel prices, which are quoted in dollars.

    The increase would apply to some deliveries made from this weekend and are likely to be implemented on forecourts next week.

    The AA takes a similar view, saying in a statement:

    "Assuming that current market conditions persist over the next 10-14 days, the price of petrol at some fuel stations might be expected to rise by 2.25p a litre or £1.25 a tank."

    Some suppliers may have hedged their exposure to currency fluctuations, which would delay any increases.

    If the pound strengthens again, the Brexit impact on the cost of fuel would be diminished, and any weakening in the oil price would also help drivers.

  11. Brexit threat to fruit growers

    Apples on treeGetty Images

    English Apples and Pears - which represents fruit growers - says "UK voters have been influenced to leave the EU about the concerns of the level of immigration to the UK. 

    "As a result, it says it's highly likely the British government will introduce measures in the coming months to reduce the number of immigrants that are allowed to enter the UK," it adds.  

    And, that it says, could spell disaster for many fruit growers.

    Apples and pears are harvested by hand and seasonal workers are required for this. Despite enormous efforts by growers, government departments and Job Centres, it has proved impossible to recruit from the UK any more than a small proportion of the numbers necessary. In short, the British are not prepared to undertake this type of work. Consequently, almost all seasonal workers are from abroad, and at present, mainly from Eastern Europe. The UK apples and pears sector requires about 12,000 seasonal workers per annum. Unless they can be recruited from abroad, many growers will be forced to cease production which will damage local businesses, local economies, the national economy and deprive consumers. It is vital that the UK government takes into consideration the essential requirement for seasonal workers from abroad in order to allow the commercial production of apples and pears in the UK to continue, and that policies are implemented accordingly."

    Adrian Barlow, Chief executive, English Apples and Pears

  12. The Scottish question?

    Nicola SturgeonGetty Images

    The SNP's manifesto ahead of last month's election said the Scottish Parliament should have the right to hold another referendum if there was a "significant and material change in the circumstances that prevailed in 2014, such as Scotland being taken out of the EU against our will". 

    Earlier today First Minister, Nicola Sturgeon had this to say:

    It would not be right to rush to judgement ahead of discussions on how Scotland's results will be responded to by the EU. However, when the Article 50 process is triggered in three months' time the UK will be on a two-year path to the EU exit door. If Parliament judges that a second referendum is the best or only way to protect our place in Europe, it must have the option to hold one within that time scale. That means we must act now to protect that position. I can therefore confirm today that in order to protect that position we will begin to prepare the legislation that would be required to enable a new independence referendum to take place if and when parliament so decides.

    Nicola Sturgeon, Scotland's First Minister

  13. Scots independence vote 'highly likely'

    Nicola Sturgon

    Scotland's first minister says a second independence referendum is "highly likely" after the UK voted to leave the EU.

    Scots independence vote 'highly likely'

    Scotland's first minister says a second independence referendum is "highly likely" after the UK voted to leave the EU.

    Read More

  14. EDF: Brexit has 'no impact' on Hinkley Point plans

    Brexit is going to have “no impact” on EDF's business in the UK, including plans to build a nuclear plant at Hinkley Point, said chairman Jean-Bernard Levy.

    “As of today, we believe that this vote has no impact on our strategy, and the strategy... for our UK subsidiary has not changed,” he said. 

    “Our business strategy is not linked to Great Britain’s political affiliation with the European Union, so we have no reason to change it,” he added.

  15. Michael Gove for chancellor of the exchequer?

    Michael GoveGetty Images

    It's already started - speculation about who will take on government roles in the future.

    Asset Management firm Berenberg is pretty confident there's no real challenger to Boris Johnson as PM - except pro-Brexit Justice Secretary Michael Gove. 

    "But having campaigned side by side with Johnson, and knowing that the ex-mayor of London is odds-on favourite for PM, Gove probably knows he has no realistic chance at becoming PM," says Berenberg senior UK economist Kallum Pickering. 

    "Our best guess is that Johnson and Gove will strike a deal if they haven’t done so already:  if Johnson becomes PM, he will likely axe current pro-EU Chancellor Osborne and give the job to Gove," he adds.

  16. Reality Check: 'Do I need a new passport?' and other Brexit questions

    Nigel FarageGetty Images

    The Reality Check team has been sent many questions about people's personal circumstances and how they will be affected by the UK leaving the European Union.

    David Cameron has said he plans to let his successor activate Article 50, which is the point when the clock starts on the negotiations for a Brexit.

    Once an application has been made, it has to be completed within two years. That period can be extended but only if all 28 EU countries agree.

    Read more here.

  17. EU presidents: 'Britain must leave as soon as possible, however painful that may be'

    Donald TuskGetty Images

    In a joint statement, European Council President Donald Tusk, European Parliament President Martin Schultz, EU Council President Mark Rutte, and EU President Jean-Claude Juncker said:

    "In a free and democratic process, the British people have expressed their wish to leave the European Union. We regret this decision but respect it.

    "We now expect the United Kingdom government to give effect to this decision of the British people as soon as possible, however painful that process may be. Any delay would unnecessarily prolong uncertainty."

  18. GDP set to 'slow significantly'

    The UK economic outlook is likely to be severely affected by the decision to leave the EU. The economy looks to have sagged under the uncertainty of the referendum itself, with deferral of activity. The decision to leave the EU looks likely to make much of this deferral permanent. We expect subdued investment and foreign direct investment into the UK to weigh on activity. This is likely to be supplemented by the sharp tightening in financial conditions in its wake. Moreover, an expected relative boost to the short term inflation outlook, against rising uncertainty for employment is likely to renew pressure on households. We expect UK GDP growth to slow significantly from the 1.9% we forecast in a Remain scenario. Our expectation is for quarterly growth to fall back towards zero around the middle of next year. Accordingly, we change our forecast pencilling in GDP growth of 1.5% (from 1.8%) in the UK for 2016 and 0.4% in 2017 (from 1.9%)."

    David Page, Senior economist, Axa Investment Managers

  19. Spain still wants Brit tourists

    Spanish tourist board in the UK tweets

    This Twitter post cannot be displayed in your browser. Please enable Javascript or try a different browser.View original content on Twitter
    The BBC is not responsible for the content of external sites.
    Skip twitter post

    Allow Twitter content?

    This article contains content provided by Twitter. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. You may want to read Twitter’s cookie policy and privacy policy before accepting. To view this content choose ‘accept and continue’.

    The BBC is not responsible for the content of external sites.

  20. FTSE recovers some ground ...

    The FTSE 100 index has recovered some ground, trading down 4.85% at around 6,030, or 307 points down, following the vote to leave the EU.

    Shortly after trading kicked off this morning it plummeted 8%.