UK exit beats Pound further; Dips to 30 year new low

RSTV Bureau
FILE: Photo of UK Prime Minister David Cameron with his wife Samantha walking back after to their official residence 10, Downing Street, London after addressing the press post the Brexit referrendum.  Photo - PTI

FILE: Photo of UK Prime Minister David Cameron with his wife Samantha walking back after to their official residence 10, Downing Street, London after addressing the press post the Brexit referrendum.
Photo – PTI

Monday was the first major trading day after Britain voted to exit European Union. Reports suggest that at about 0955 GMT, sterling slumped to USD 1.3222 – the lowest level since September 1985.  Other world markets steadied a little after Britain’s June 23 vote to abandon the European Union wiped $2.1 trillion off international equity values on Friday.

Sounding warning signals, analysts said that volatile period is expected to contuse for few more days as global investors grappled with the financial consequences of the Brexit referendum.

Britain’s finance minister, George Osborne made a public statement before European financial markets opened said Britain’s economy is “as strong as could be and it will confront all eventualities.

“Today I want to reassure the British people, and the global community, that Britain is ready to confront what the future holds for us from a position of strength,” said UK’s Finance Minister.,

Osborne who had campaigned strongly for Britain to Remain within the European Union and repeatedly warned against adverse financial consequences of Brexit, sought to reassure the country in the wake of the referendum which resulted in Britain’s exit from the EU last week.

“It is inevitable, after Thursday’s vote that Britain’s economy is going to have to adjust to the new situation we find ourselves in…Our economy is about as strong as it could be to confront the challenge our country now faces,” said the British Finance Minister.

File photo of Bombay Stock Exchange (BSE). Photo-PTI

File photo of Bombay Stock Exchange (BSE).
Photo-PTI

The Financial Times Stock Exchange 100 Index, in London, which has many international companies, fell about 1.5 percent in the morning trade. It has witnessed steeper fall in sectors likely to be affected by Britains exit from European Union.

Important airline companies EasyJet, International Airlines Group, parent of British Airways and Iberia dropped in the morning trade in Monday.

Institute of Directors survey reported that 20 percent British business leaders are considering move their operations out of UK after the referendum, while 5 per cent said they were set to make workers redundant.

UK government is starting to take corrective measures following the Brexit in Downing Street. Finance Minister Osborne along with other ministerial colleagues is meeting to decide on future economic plan. They will also deliberate on issues that are to be discussed with US secretary of state John Kerry who is scheduled to visit London and Brussels for talks on the fallout from the vote.