As we witness the biggest fall in GBP in over 32 years, UK bank stocks are declining anything from 5% (HSBC) to 25% (Lloyds). Gold rallied and there was a flight to safety within the government bond markets. The UK population awoke this morning in the confidence that democracy has prevailed. In Boris Johnson’s comments earlier, he said we have had enough of the super-sovereign demands and its time we planned our own future.
Jean Claude Junker commented that negotiations will be tough. Nicolas Sturgeon wishes to meet with the European Union early next week. The BOE will act to aid bank liquidity and many dealers are discussing the possibility that the Old Lady cuts rates next week. Global Central Banks are in talks and a possible co-ordinated approach could be expected soon.
The trend is in motion – more as we go.
