Global shares remain under pressure on Monday with the Dow Jones down 286 points (-1.66), the FTSE 100 ending Monday -2.55 lower with European stock indexes falling to a 4 month low, and the British Sterling resuming its decline to a 31 year low after erasing another -3.65 percent on Monday against the U.S. dollar.
British Chancellor of the Exchequer George Osborn said in a statement today that there will be an adjustment in the British economy because of the decision of the British people to leave the European Union.
“I respect that decision and we are going to get on and deliver on that decision. But the impact on our economy will have an impact on our public finances” Osborne admitted.
Osborne indicated that it is sensible to wait for a new prime minister before triggering Article 50 that officially introduces the exit process from the EU.
On Friday British PM David Cameron gave a resignation speech from 10 Downing Street where he said, “we should aim to have a new prime minister in place by the start of the Conservative party conference in October.”
Several EU leaders have expressed a desire for Britain to immediately begin triggering Article 50 before October.
Cameron addressed the House of Commons today and ruled out a second referendum vote across the U.K. despite over 3 million Brits signing a petition over the week-end to initiate a second vote.
Cameron emphasized the Brexit decision must be respected and said that tomorrow he will attend the European Council meeting in Brussels attended by EU leaders that will deal with the aftermath of the Brexit vote.
“In the last few days I have spoken to Chancellor Merkel, President Hollande and a number of other European leaders. We have discussed the need to prepare for negotiations and in particular the fact that the British government will not be triggering Article 50 at this stage” Cameron said.
“Before we do that we need to determine the kind of relationship we want with the EU. And that is rightly something for the next Prime Minister and their Cabinet to decide” Cameron added.
Cameron explained that he will make this point again tomorrow before EU leaders at the European Council tomorrow and said the nature of the relationship that is secured with the EU will be determined by the next British government.
“But I think everyone is agreed that we will want the strongest possible economic links with our European neighbors, as well as with our close friends in North America, the Commonwealth and important partners like India and China” Cameron said.
The Associated Press reported today that Bank of England Governor Mark Carney and U.S. Fed Chair Janet Yellen won’t be attending the banking conference in Portugal later this week and were removed from the updated scheduled released on Monday.