Summary

  • 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

Live Reporting

Karen Hoggan

  1. Reading between the lines

    Boris JohnsonGetty Images

    There is nothing to worry about, according to Boris Johnson's weekly column in the Daily Telegraph. He writes: "British people will still be able to go and work in the EU; to live; to travel; to study; to buy homes and to settle down." 

  2. Japan reassures investors

    Yen notesGetty Images

    Today's rise for the Japanese stock market in a slight relief for investors. Traders are taking some confidence that the government is promising to stabilise volatility on the markets. 

    As the pound keeps tumbling, the yen remains strong as a safe haven currency – which is bad news for Japan’s exporters as it makes their goods more expensive.

    In response to the currency woes prime minister Shinzo Abe has told finance minister Taro Aso to watch currency movements "ever more closely" and take steps if necessary.

  3. Yuan weakened
    Breaking

    Yuan notesGetty Images

    China's central bank has weakened the yuan fix by 0.9% today - the biggest daily move level since August 2015. 

    That move has helped push the pound even lower, down to $1.3369 against the dollar.

  4. Tokyo rebounds

    Nikkei stock boardGetty Images

    It's not all doom and gloom on Asia's stock markets this morning. Following Friday’s post-Brexit slide of almost 8%, the Nikkei in Tokyo is up about 1.5% this morning.

    Sydney's ASX/200 is up 0.3%, although the Kospi in Seoul is down 0.6%. Both indexes slid more than 3% on Friday.

  5. Sterling falls another 2%

    SterlingGetty Images

    Sterling continues to slide against the US dollar as trading begins on Monday after Friday's record crash. The pound dropped to $1.3409 as markets opened in Asia - a fall of more than 2% on top of the 10% plunge seen after Thursday's referendum. 

    Against the euro the pound was down 1.39% at 1.2149. 

    George Osborne will issue a statement early on Monday in a bid to calm the market turmoil that spread globally after Britain voted to leave the European Union.

  6. Brexit - day two

    Chris Johnston
    Business reporter

    Good morning and welcome to a special early bird Brexit edition of Business Live. Markets are trading in Asia and the pound is on the slide once more. Stay with us for live updates throughout Monday.