Sterling falls more than 3% to new 31 year-low against dollar
Airline, building company and bank shares hit hard as FTSE 100 closes down 2.5%
Former Bank Governor Mervyn King: 'People shouldn't panic'
George Osborne indicates no Emergency Budget
Image source, PAThe pound slid 2% against the dollar at the start of trading and hasn't made any noticeable gains back yet.
It's still hovering at around $1.34 ahead of George Osborne's statement at 07:00.
The chancellor is looking to settle the markets after the pound plunged 10% against the dollar on Friday to a 31 year-low before reversing some losses to end the day around 7.5% down.
BBC political correspondent Ross Hawkins says the exodus of MPs from Labour leader Jeremy Corbyn's shadow cabinet is set to continue...
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Today Programme
BBC Radio 4
Simon Walker, head of the business group the Institute of Directors, says he's "scared" by the impact of Brexit.
Speaking on Radio 4's Today Programme he quotes the Leave economist Patrick Minford who said that Brexit would "mostly eliminate manufacturing" in the UK but that shouldn't scare people.
"Well it scares me," says Mr Walker.
His group has surveyed its 1,000 members and the negativity "surprised me", he adds.
Two-thirds think it is negative for their business, 36% are planning to cut investment, 22% are planning a hiring freeze, while 5% are planning to cut jobs.
Image source, Getty ImagesWake Up to Money has reaction from two small businesses on either side of the Brexit debate.
Jo Smedley, managing director of a company that makes Murder Mystery games, says "Project Fear is turning into Project Reality".
"If you've got a small business you've no reserves there. A fluctuation like this could be the end of your business," she says.
However, Peter Shirley, managing director of a catering business in the West Midlands, says he's excited by the prospects from Brexit.
He would "rather be the first one and willing to take the gamble" by breaking away from the EU.
Today Programme
BBC Radio 4
Image source, EPAGermany, France and Italy are meeting to discuss the Brexit decision.
The BBC's Damian Grammaticus says that while they would like the process to begin as soon as possible - they also understand that there is a significant crisis in the UK and that it could take some time.
Their priority will be to stabilise things and send out messages of confidence, stressing that they continue to back the EU.
BBC correspondent James Cook tweets...
The chancellor hasn't been seen in public since the government lost Thursday's referendum.
Mr Osborne will give a statement at the Treasury at 07:00 as he seeks to calm market fears. We'll have live reporting here.
BBC Radio 5 Live
Image source, Getty"I suspect we will see significant downgrades to earnings over the coming weeks," says Dominic Rossi, chief investment officer at Fidelity Investments.
This will send many UK shares down further, he tells Radio 5 Live's Wake up to Money.
The relatively muted losses on the FTSE 100 on Friday weren't "a good barometer", he says, as London's benchmark index is dominated by global businesses, particularly oil and mining stocks.
Falls of 20% for UK banks were a better gauge and "pretty disastrous", he says.
Image source, ReutersBBC India correspondent Yogita Limaye reports...
India’s stock markets are trading more or less flat. Bank stocks are showing signs of recovery, but tech and auto companies with investments in the UK are still in the red.
Analysts have said that they don’t expect a dramatic reaction today, like we saw on Friday. Some have gone as far as to say that Brexit is a ‘non-event’ for India, but there are others who warn that in the long term this could be as big as the Lehman Brothers’ collapse.
Image source, Reuters"The economy is in good hands," Boris Johnson writes in his weekly Telegraph, external column.
"Most sensible people can see that Bank of England Governor Mark Carney has done a superb job - and now that the referendum is over, he will be able to continue his work without being in the political firing-line."
Mr Carney clashed with some in the Leave camp who accused him of compromising the Bank's political impartiality by warning of the risks from Brexit to the UK economy.
Ajay Singh Kapur, an equity strategist at Bank of America Merrill Lynch in Hong Kong, thinks the UK's Leave vote is part of a wider shift towards a more national and less global economic outlook.
Quote MessageWe think Brexit could just be the first surprise in a re-calibration of the world away from globalisation towards more inward looking policymaking. Brexit has now possibly opened up more uncertainty about the European Union project, and that the already beated down Asian and emerging markets equity markets could receive asset allocation flows from Europe."
Image source, EPAThe Nikkei in Tokyo is still up in afternoon trading. It was showing gains of 1.8% a short time ago, while Sydney's ASX/200 is up 0.6%.
China's stock markets are a little gloomier. Hong Kong's Hang Seng is down around 0.8% and the Shanghai Composite is off 1.3%.
Image source, Getty ImagesChinese Premier Li Keqiang said he was confident China would achieve its economic targets this year and repeated Beijing's conviction that the world's second largest economy would avoid a hard landing.
He was speaking at the World Economic Forum event - dubbed the "Summer Davos" - in the northern Chinese city of Tianjin.
Li also said China would press ahead with financial reforms and updates for state-owned firms.
China is aiming for 6.5%-7% economic growth in 2016.
Thanks Chris. Dan Macadam here taking over for this bright and early Brexit special.
We'll have all the latest from the final hours of trading in the Asian markets, followed by Chancellor George Osborne's statement at 07:00 and live reaction from the financial world.
Stay here for all the latest business news and analysis into the fallout from the UK's historic vote to leave the European Union.
Image source, AFPKarishma Vaswani, BBC Asia business correspondent:
The Chinese Yuan has fallen to a six year low of 6.6375 against the US dollar, on the back of the Chinese central bank's guidance. The People's Bank of China set the yuan midpoint rate at its lowest level since December 2010, its biggest move since August last year.
At the time many read the move as a devaluation, but China insisted it was a way to keep the yuan in line with market fundamentals. Remember the yuan is still a controlled currency, and the trading band for the yuan is currently at 2% above or below the midpoint.
China, like other Asian exporters, needs its currency to remain low so it can sell goods overseas - but not too weak because that would encourage Chinese investors to take their money out of the country, prompting fears of capital flight. Last year, the Chinese central bank was criticised for not communicating its moves to adjust the value of the Chinese yuan clearly enough to global markets, and investors sold off shares in China as a result of that move.
Image source, ReutersChina's Premier Li Keqiang said the UK's vote to leave the European Union has increased global economic uncertainty.
Mr Li made the comment during a speech at the World Economic Forum in Tianjin in northern China.
He also said that China hopes to see a stable and prosperous UK.
Hiroko Iwaki, senior foreign bond strategist at Mizuho Securities in Tokyo, is not very optimistic about the outlook for shares:
Quote MessageThings are so uncertain that investors still do not have a clear idea how much risk assets they need to sell. But it is safe to assume investors are not yet with done all the selling they need to. I wouldn't be surprised to see another 10% fall in share prices."
Investors are putting money into Japanese debt, driving the yield on the 30-year bond down to 0.11% - a historic low.
Bonds are popular option in uncertain times, despite such meagre returns on the investment.
Image source, AFPThe BBC’s Mariko Oi in Tokyo writes:
After suffering its biggest one-day fall in five years on Friday, Japan's main stock index is back above the 15,000 mark on Monday morning. It is difficult to guess if investors are bargain hunting or if the prime minister's repeated promise to intervene if necessary has calmed the market.
The Japanese yen, which is seen as a safe haven asset and surged to the highest level since 2013 on Friday, has also stabilised. That helps shares in Japanese exporters as it makes their products more competitive abroad.
But analysts say the volatility in the Japanese yen will continue and the government might still have to intervene. Shoppers I spoke to in Ginza on Sunday all expressed their concerns over the uncertainty caused by the result of the UK's EU referendum.
Image source, Getty ImagesUS gold is 1% higher at $1,336.90 an ounce. ANZ analyst Daniel Hynes says: "In the next week or two, we think gold could push towards $1,400. Once things settle down, there will be more clarity around the UK's exit from the EU, and other issues which are still quite supportive like the weak US dollar and the US Federal Reserve remaining dovish."
Image source, Getty ImagesDaniel Been, head of foreign exchange research at ANZ in Sydney, says sterling will continue to be weak given the political and economic uncertainty:
Quote MessageThe core issue for the pound is that it was already lacking fundamental support. The current account is in deficit, as is the fiscal position and with rates already low, and at risk of going lower, there is little premium there to pay for these risks. As such sterling is likely to bear the brunt of this adjustment and continue depreciating."