Business presenter Ben Thompson tweets:

Image source, AP

Chancellor Angela Merkel has warned that there could be no "cherry-picking" by the UK in its forthcoming negotiations about Brexit. 

She told the European Parliament it was up to Britain to initiate the next steps for leaving the EU before any negotiations about its future ties with the union could begin.   

There could be no talks with Britain until the formal procedure to leave the EU - the so-called Article 50 - has been triggered, the German leader added.  

That's Mrs Merkel greeting David Cameron last night as he arrived in Hannover for a meeting with her and the leaders of the US, France and Italy. 

Image source, Carpetright

Shares in Carpetright have plunged 16% after the flooring retailer warned, external about the Brexit hit. 

Trading in recent weeks has been "challenging", and that's been "further complicated" by the outcome of the EU referendum. 

"We are cautious about the impact the associated uncertainty will have on consumer confidence," it said.

The share slide comes despite Carpetright's pre-tax profits almost doubling to £12.8m last year.

European Commission chief Jean-Claude Juncker has urged UK to "clarify its position" on Brexit as soon as possible.

He told the European parliament that Britain and the UK remained friends but it needed to state its position to avoid uncertainty.

David Cameron will meet European Union leaders for the first time since the UK voted to leave later on Tuesday.

Image source, Getty Images

The combined share of discount supermarkets Lidl and Aldi has hit a record high of 10.5% - with each capturing 4.4% and 6.1% of the market respectively in the 12 weeks to 19 June, according to Kantar Worldpanel. 

Almost three fifths of UK shoppers - 58% - visited one of the two retailers in the past three months, with Lidl increasing sales by 13.8% and Aldi by 11.5% on a year ago. 

The German duo's performance continued to hit the big supermarkets, with Tesco sales down 1.3%, Sainsbury's 1.4% lower, Asda sinking 5.9% and Morrisons down 2.4%.

Meanwhile, Waitrose sales were up 1.3%, giving the chain an unbroken period of growth dating back to 2009. That's the best run of any retailer outside of the discounters, says Kantar's Fraser McKevitt.

BBC Business Live

Image source, AFP/Getty Images

Maike Currie, a director at Fidelity International, says shares that have taken a heavy hit since the referendum will come to be viewed differently as fears recede.

The markets are a "voting machine" in the short term, and a "weighing machine" in the longer term, she says.

Over time, the "psychological factor drops out of the market, and it weighs the true value of a company".

Today Programme
BBC Radio 4

Image source, Getty Images

Savers should "do nothing" despite the market turmoil, Martin Gilbert, chief executive of Aberdeen Asset Management, tells Today. 

He admits that sounds counter-intuitive but adds the best thing to do is "sit on your hands and wait for this to pass over" because some of the share price falls recorded in the past two days of trading have been overdone. 

Mr Gilbert is asked if the City has been damaged? He's confident that London can retain its position as Europe's premier financial centre.

Economics editor Kamal Ahmed tweets:

Image source, PA

Some joy today for house builder Redrow, whose shares are up more than 8% this morning after plunging in the past couple of days. 

"Although it is too early to tell whether Brexit will have any effect on future sales, initial feedback is that sites remain busy, reservations continue to be taken and, indeed, we witnessed long queues and strong reservations at new sites launched last weekend," the company says.  

Redrow thinks it will beat expectations, external, with an order book of £807m - more than 50% higher than a year ago.

Shares in house builders have been among the biggest losers since the EU referendum on fears that Brexit could lead to a recession and a collapse in the housing market.

Today Programme
BBC Radio 4

George Osborne finishes by saying he'll continue working to help the economy, which includes ensuring the "pause in investments" into the UK is as short as possible.

Some good news too for the battered FTSE 250 today as well, which is 3.2% higher. The biggest riser is Marshalls, up 12.7%, with G4S up 10.6% and Redrow 9.4% higher.

George Osborne is asked if the government should have put together a better plan for Brexit.

"This is one of the most nonsensical arguments articulated in the last few weeks," he says.

There are "extensive contingency plans" in place, including £250bn of extra money from the Bank of England if needed.

It was up to those arguing for a Leave vote to set out how the country would exit the EU, he says. 

Today Programme
BBC Radio 4

The chancellor says the next prime minister may need to hold an Emergency Budget, with tax rises and spending cuts.

The government is not going to do that budget now, he says, but adds that "we are absolutely going to have to provide fiscal security".   

Today Programme
BBC Radio 4

Image source, EPA

George Osborne is giving his first interview since the referendum. 

Pushed on whether he regrets the government holding the referendum, he tells the Today Programme that he "certainly regrets the outcome". 

"We made a clear commitment to resolve this uncertainty which hung over Britain for decades," he says. 

European markets are also bouncing higher today, with the Dax in Frankfurt up 2.3%, the Cac in Paris up 2.5% and Milan rising almost 3.4%. 

All three bourses have fallen more heavily than London in the past two days of trading since the Brexit vote.

The FTSE 100 has edged up by more than 1% to 6,074 points at the start of trading. It follows modest gains in Tokyo and other Asia markets.

The blue chip index has fallen 5.6% since the Brexit vote.

Meanwhile, the pound is also recovering - it's up 0.7% against the dollar to around $1.33.

Image source, AFP

Tokyo has regained some ground today, with the Nikkei 225 index closing up 0.1% - the second day it ended higher. With the yen remaining strong, Japanese exporters though continued to suffer.

Hong Kong's Hang Seng fell 0.5%, while the Shanghai Composite rose 0.6% up. 

Sydney, meanwhile, has continued to slide in the wake of the Brexit, with the ASX 200 ending down almost 0.7% after rising close to 0.5% on Monday. The index has still fallen by 4.5% since Friday. 

The market in Wellington closed 0.44% higher.