Global Associates: David Cameron has said he will remain in office for the next few months to “steady the ship”, but that the country would need a new leader to take it forward. He had risked his political future on the referendum, but working-class voters turned out in large numbers to provide a spectacular reproach to the European status quo.
Timothy Faraday, Chief Economist at Global Associates said, “After delivering the vote in favour of leaving the EU, the European project is looking decidedly shaky as France’s far-right leader, Marine Le Pen, called for her country to hold a referendum and the PVV party in the Netherlands wants the same.
“Italy’s 5-Star movement said the country needed to vote on whether or not to keep the Euro and its ex-PM, Mario Monti, warned that the EU was ‘heading towards disintegration’. Denmark said it should follow Britain’s lead, while in Germany the chairman of the Bundestag foreign affairs committee said Britain’s vote was ‘the biggest catastrophe in the history of European integration’.”
As the sheer scale of fallout began to unravel, the pound plummeted to a 30-year low, the FTSE 100 slumped 8.7 per cent and bank stocks also took a trouncing, with Lloyds down 30 per cent and Royal Bank of Scotland down 34 per cent. £40bn was wiped off British banks as the reality of the Brexit vote sank in. Risk aversion for investors rocketed in value, with the 10-year US Treasury yield falling 25 basis points and the German 10-year Bund yield tumbling to a record low. Worried investors said they were alarmed at the chaos Brexit would bring.
Global Associates was expecting more caution from the British but this was not to be. David Cameron had led the campaign for Britain to Remain, which he remarked was backed by Britain’s largest companies, economists and trade unionists, but the country ignored his warnings of the economic damage a Brexit vote would trigger.

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