Global Markets Take Another Drubbing On Brexit Worries

While those companies declined or didn’t respond to requests for comment, industry groups say that USA tech companies could face even tougher rules without Britain serving as a moderating counterbalance against Germany, France and other countries that prefer even stricter oversight.

U.S. Treasury Secretary Jack Lew also tried to restore calm, telling CNBC television it had been “an orderly impact so far” though he later added: “We have resilience built into our economy, but we’re not cut off from the world”.

Earlier, a German MEP accused Farage and fellow Leave campaigners of misleading the British public over the vote.

Leaders are now trying to allay fears that Britain may be heading for a recession and are trying to boost confidence in its markets and currency to avoid an economic meltdown.

A non-binding draft resolution drawn up for Tuesday’s session says the process should be launched once Prime Minister David Cameron notifies the outcome of the British referendum to European Union leaders. There has been talk that Britain wants informal negotiations on what the U.K.’s future relations with Europe might look like before that happens – a notion many in the bloc have rejected.

“I can not stress too much that Britain is part of Europe, and always will be”, he said. “Financial sector activity in the City of London may well be hit quickly”.

United States stocks opened sharply lower, following European markets, pulled down by financial stocks amid uncertainty over London’s future as the region’s financial capital.

Western Digital declined the most among companies in the S&P 500 index. But if it did, it would be unlikely to get open access to the EU’s single market, with which the United Kingdom now conducts half its trade, exporting everything from beef and lamb to financial services.

Immigration was one of the main themes of the campaign, alongside discontent with the political establishment in general and the Conservatives in particular.

Leading Brexit campaigner and ex-mayor of London Boris Johnson and Home Secretary Theresa May, who wanted Britain to stay in the European Union but is seen as a unifying candidate, are the current favourites.

European Union powers have called for a swift divorce amid fears of a domino effect of exit votes in euroskeptic member states that could imperil the integrity of the 28-nation alliance.

Cameron said the advice from the new civil service Brexit advisory unit would be “the most complex and important task that the British civil service has undertaken in decades”.

Analyst Malcolm Barr said: “The Bank of England has argued that the policy consequences of a decision to leave are not clear-cut, because even as growth slows and unemployment rises, the fall in sterling will lift inflation”.

“Continental Europe is our key market”, said Thomas Schneider, BrickVest’s chief investment officer and one of three co-founders. The status of Europe’s Internet regulations has also now been thrown into disarray.

Schneider said he and his co-founders were looking at Berlin, because it offers cheaper costs and many of BrickVest’s real estate deals are in Germany, or Paris, because France may offer an easier licensing process and regulatory framework than Germany.

Volatile trading is expected to continue for some time, Mr Dooley said, pointing to the type of activity that accompanied the great uncertainty around doubts over possible Greek debt defaults in 2015.

U.K. No Longer a Tech Hub?

Q: Does the country have a fully functioning Government? The vote threatens the results of that effort, as companies and investors question whether the country is the global hub its leaders have tried to establish. But in the face of a severe financial market reaction to the vote to leave the European Union, U.S. officials are making more supportive statements about the strength of the U.S. -U.K. economic ties “remain strong and vibrant as they have been, and the special relationship had not suffered because of the vote”. If bad loans start rising once more, the banks may be overwhelmed. “On behalf of all Londoners, I am demanding more autonomy for the capital – right now”.

“This is our sovereign decision and it will be for Britain, and Britain alone, to take”. “How do you value what they’re going to say and how do you judge when they’re going to say something?” said Jim Caron, fixed income portfolio manager at Morgan Stanley Investment Management.

“There’s a risk that some of these businesses will leave”, said Russ Shaw, the founder of Tech London Advocates.

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