After three of the most dramatic days of British political drama in living memory, the financial world is bracing for more turmoil this week.
Britain’s decision to vote to leave the EU has left investors in a state of shock, and likely to send shares sliding across Europe again.
Friday’s sharp selloff, which wiped $2trillion off global markets, looks like the start of months of upheaval.
Both UK major political parties are in a state of crisis – with the Conservatives looking for a new prime minister, and some senior opposition Labour party members trying to force leader Jeremy Corbyn out.
So with uncertainty everywhere we look, there’s little reason for traders to pile into the pound either. So sterling could well head back towards 31-year lows this morning.
Overnight, Chinese premier Li Keqiang has warned that Britain’s vote to leave the European Union has increased uncertainly in the global economy.
In London, chancellor George Osborne is about to deliver an emergency statement outlining the government’s response to the referendum vote.
Mark Carney, Bank of England governor, has been due to attend an event in Portugal today.
But that trip is off, with Carney staying in London – presumably to co-ordinate the Bank’s response to the crisis.
The prospect of a new financial crisis is already alarming policymakers around the globe.
Christine Lagarde, head of the IMF, has pointed out that markets were wrongfooted by the Brexit vote.
But she also argues that the Bank of England et al have done the right thing:
“But there was no panic and the central bankers did the job that they were prepared to do just in case, which was to put a lot of liquidity on the markets.”
America’s top finance official, Jack Lew, is due to give his take on the crisis later today.
We’ll be tracking all the financial action through the day…..