Britain has voted to leave the European Union, results from Thursday's landmark referendum showed, a stunning repudiation of the nation's elites that deals the biggest blow to the European project of greater unity since World War Two, writes Reuters this morning.
World financial markets plunged as results showed a 51.9/48.1 percent split for leaving. The vote instantly creates the biggest global financial shock since the 2008 economic crisis, this time with interest rates around the world already at or near zero, stripping policymakers of the means to fight it.
The pound suffered its biggest one-day fall in history, plunging more than 10 percent against the dollar to hit levels last seen in 1985.
As results came in through the night, investors who had bet on a vote to stay in the EU scrambled to sell sterling. The currency tumbled more than 10% to as low as $1.32. Even after those losses were trimmed in later trading, at $1.36, it was still at its weakest for 31 years amid fears for Britain’s economic outlook.
The vote will initiate at least two years of messy divorce proceedings with the EU and cast doubt on London's future as a global financial capital. The future of Prime Minister David Cameron, who gambled the fate of the nation on an outcome he predicted would be catastrophic, was doubtful at best.
An aide working in Cameron's office told reporters: "We're in uncharted territory ... Everyone's just really tired. They haven't slept."
The euro slumped more than 3 percent against the dollar on concerns a Brexit vote will do wider economic and political damage to the world's biggest trade bloc, stripped of its second largest economy.
Investors poured into safe-haven assets including gold, and the yen surged. European shares were on course to open 6 to 7.5 percent lower.
There was no immediate comment from the Bank of England. Global policymakers prepared for action to stabilize markets, with Japanese Finance Minister Taro Aso promising to "respond as needed" in the currency market.
Yet there was euphoria among Britain's eurosceptic forces, claiming a victory they styled as a protest against British political leaders, big business and foreign leaders including Barack Obama who had urged Britain to stay in the bloc.
"Dare to dream that the dawn is breaking on an independent United Kingdom," said Nigel Farage, leader of the eurosceptic UK Independence Party, calling the EU a "doomed project".
"This will be a victory for real people, a victory for ordinary people, a victory for decent people ... Let June 23 go down in our history as our independence day."
Remain: 119
Leave: 263
Remain: 16,141,241 votes (48.11%)
Leave: 17,410,742 votes (51.89%)
Asked if Cameron, who called the referendum in 2013 and campaigned to stay in the bloc, should resign if Britain voted for Brexit, Farage said: "Immediately."
Diario de Noticias this morning is concerned at other EU countries: "In Italy, Beppe Grillo, leader of the Five Star Movement, which in municipal elections won municipalities of Rome and Turin, has said he wants a referendum on the euro and the other on the EU.
In France, Marine Le Pen of the National Front, who leads the polls for the first round of the presidential of next year, has already guaranteed that if elected he will call the French to ratify Europe.
In the Netherlands and Denmark there are moves in the same direction. And now, Europe? Will this become contagious? Will the European Union be able to stop the bleeding, to close the open stab wound from the UK?"
The United Kingdom itself now faces a threat to its survival, as Scotland voted 62 percent in favor of staying in the EU and is likely to press for a new referendum on whether to become independent after its 2014 vote to stay in the UK.
Scottish First Minister Nicola Sturgeon said Thursday's vote "makes clear that the people of Scotland see their future as part of the European Union."
Northern Ireland's largest Irish nationalist party, Sinn Fein, said the result intensified the case for a vote on whether to quit the United Kingdom.
European politicians reacted with shock. "Please tell me I'm still sleeping and this is all just a bad nightmare!" former Finnish Prime Minister Alexander Stubb tweeted.
The decision will embolden populists across the continent to press for their own renegotiations and referendums. Dutch anti-immigration leader Geert Wilders called for a referendum on the Netherlands' EU membership: “We want be in charge of our own country, our own money, our own borders, and our own immigration policy."
ANTI-ESTABLISHMENT
Quitting the EU could cost Britain access to the EU's trade barrier-free single market and mean it must seek new trade accords with countries around the world. President Barack Obama says it would be at the "back of a queue" for a U.S. pact.
The EU for its part will emerge economically and politically weakened, facing the departure not only of its most free-market proponent but also a member country that wields a U.N. Security Council veto and runs a powerful army. In one go, the bloc will lose around a sixth of its total economic output.
Cameron is expected to formally report the result to his European counterparts within days and prepare negotiations for the first exit by a member state from the EU.
The British leader called the referendum in 2013 in a bid to head off pressure from local eurosceptics, including within his own party. Initially billed as an easy ride, the vote will now be his likely political epitaph. Party ally Boris Johnson, the former London mayor who became the most recognizable face of the "leave" camp, is now widely tipped to seek his job.
In the end though, the pro-EU camp was powerless to stop a tide of anti-establishment feeling and disenchantment with a Europe that many Britons see as remote, bureaucratic and mired in permanent crises.
Britain, which joined the then European Economic Community (EEC) in 1973, has always been an ambivalent member. A firm supporter of free trade, tearing down internal economic barriers and expanding the EU to take in ex-communist eastern states, it opted out of joining the euro single currency or the Schengen border-free zone.
Cameron’s ruling Conservatives in particular have risked being torn apart by euroscepticism for generations.
World leaders including Obama, Chinese President Xi Jinping, German Chancellor Angela Merkel, NATO and Commonwealth governments had all urged a "Remain" vote, saying Britain would be stronger and more influential in the EU than outside.
The four-month campaign was among the divisive ever waged in Britain, with accusations of lying and scare-mongering on both sides and rows on immigration which critics said at times unleashed overt racism.
A pro-EU member of parliament was stabbed and shot to death in the street a week ago by an attacker who later told a court his name was "Death to traitors, freedom for Britain".
It also revealed deeper splits in British society, with the pro-Brexit side drawing support from millions of voters who felt left behind by globalization and believed they saw no benefits from Britain's ethnic diversity and free-market economy.
Older voters backed Brexit; the young mainly wanted to stay in.
"People are concerned about how they have been treated with austerity and how their wages have been frozen for about seven years," said John McDonnell, finance spokesman for the opposition Labour Party, which had favored a Remain vote.
"A lots of people's grievances have come out and we have got to start listening to them."
REACTION
EU affairs ministers and ambassadors from member states gather in Luxembourg by 10 a.m. (0800 GMT) for previously-scheduled talks that will provide the first chance for many to react. A regular EU summit has been pushed back to next Tuesday and Wednesday, when Cameron may trigger Article 50 of the EU's treaty, the legal basis for a country to leave, setting in motion two years of divorce negotiations.
Even less clear at this stage is what sort of relationship Britain will seek to negotiate with the EU once it has left.
To retain access to the single market, vital for its giant financial services sector, London would have to adopt all EU regulation without having a say in its shaping, and pay a substantial contribution to Brussels coffers for market access, as Norway and Switzerland do.
EU officials have said UK-based banks and financial firms would lose automatic "passport" access to sell services across Europe if Britain ceased to apply the EU principles of free movement of goods, capital, services and people.
Aside from trade, huge questions now face the millions of British expatriates who live freely elsewhere in the bloc and enjoy equal access to health and other benefits, as well as millions of EU citizens who live and work in Britain.
BANK OF ENGLAND STATEMENT
The Bank of England issued a statement EARLY this morning:
'The Bank of England is monitoring developments closely. It has undertaken extensive contingency planning and is working closely with HM Treasury, other domestic authorities and overseas central banks.
The Bank of England will take all necessary steps to meet its responsibilities for monetary and financial stability.'
The Daily Mail is somewhat upbeat at Farage's achievements, with it headline reading:
Britain has woken up to a new dawn in its politics. The Brexit campaign officially passed the winning post in the EU referendum at around 6am today, triggering a political earthquake and panic in the markets. Nigel Farage earlier declared it to be 'independence day' and a 'victory for real people' as the Leave campaign racked up votes across England and Wales - defying the verdict of London, Scotland and most of the big cities.
The direction of the battle started to become clear with an early shock result in Sunderland which saw the Out camp win by 61 per cent to 39 per cent. A surprise victory for Brexit in Swansea, where the pro-EU side had been expecting to romp home, signposted a disastrous showing for Remain across Wales.
The Pound - which soared in value earlier after Nigel Farage admitted he thought Brexit had lost - has nose-dived against US dollar to its lowest level for 31 years. A narrow win for Brexit in Chester was the result that confirmed there was no way back for David Cameron's Remain campaign and he is thought likely to announce a timetable for his resignation in Downing Street within hours.
The value of Sterling against the dollar had earlier hit a 2016 high after Nigel Farage appeared to concede defeat as the polls closed at 10pm. But the bombshell result in Sunderland, which far exceeded expectations in the Leave camp, provoked fierce new jitters in the City. The prospect of a Brexit vote had sent repeated shudders through the markets in recent weeks. The pound suffered one of its biggest falls since the Black Wednesday crash in 1992 as the markets reacted with horror to the prospect of a Brexit resurgence as results came in, losing more than 10 per cent against the dollar and plunging below $1.35.
SCOTTISH NOT HAPPY - 62% VOTED 'STAY'
Furious Scottish politicians fired the starting gun for a second independence referendum north of the border as results show Scotland is being taken out of the EU against its will.
All 32 local authorities delivered a vote for Remain but is on course to exit the EU after the Leave campaign edged ahead across the rest of the EU.
First Minister Nicola Sturgeon said Scotland had delivered an 'unequivocal' vote to stay in Europe and said it was 'clear that the people of Scotland see their future as part of the European Union'.
It suggests she is already planning a second independence referendum after the SNP manifesto for the Scottish elections last month said they would demand another vote if there is 'significant and material' change in circumstances, such as Scotland being taken out of the EU against its will.
First Minister Nicola Sturgeon said Scotland had delivered an 'unequivocal' vote to stay in Europe and said it was 'clear that the people of Scotland see their future as part of the European Union'
This morning her predecessor Alex Salmond said he was 'quite certain' Ms Sturgeon would 'implement the manifesto' because England is 'dragging us out the EU'.
Almost two thirds - 62 per cent - of Scots who voted had backed staying part of the EU, with 38 per cent opting for Brexit.
Holyrood External Affairs Secretary Fiona Hylsop warned that a decision by the UK to quit Europe would have 'consequences'.
