Winners and losers in the markets after British ‘leave’ vote

Britain’s FTSE 100 plunged as much as 8% but recovered much of its losses later, falling 1.9%.

Companies will wonder whether to invest or locate in Britain during the years-long negotiations to define new trade conditions with the European Union, its biggest business partner.

Scotland voted in 2014 to remain a part of the United Kingdom, but that decision was seen by many as conditional on the United Kingdom remaining in the EU.

WORLD LEADERS WARN, MARKETS FRAGILESpeaking in Aspen, Colorado, on Sunday, the International Monetary Fund managing director, Christine Lagarde, acknowledged that financial markets “vastly underestimated” the outcome of the Brexit vote, but said “central bankers did the job they were prepared to do just in case, which was to put a lot of liquidity on the markets”.

Prime Minister David Cameron, who announced his resignation Friday, said his successor, to be chosen by October, should start the process. Pro-Leave MP Boris Johnson, London’s former mayor, is tipped as favourite to replace him.

“I do not think it would be right for me to try to be the captain that steers our country to its next destination”, the outgoing prime minister said as sterling, global stocks and oil prices plummeted.

Luxembourg’s foreign minister said Britain needs to quickly start negotiations with the European Union on its exit from the trade bloc.

“I’m quite shocked by it all”, she said.

“The failure of the British government” has opened up “the possibility of the crumbling of Europe, ” Macron said at a debate in Paris.

On Friday, leaders of the European Parliament’s political factions will meet in Brussels to discuss the result of the referendum.

Luxembourg Foreign Minister said he hoped there would be no “cat and mouse” game. France’s Ayrault suggested Britain could name a new prime minister within “several days”, – but in reality that is likely to take several months. The process calls for Conservative lawmakers to winnow candidates down to two choices who will then be voted on in a postal ballot of party members.

Critics say the EU has veered too far from its initial concept as a customs and economic union, meddling in national budgets and labor laws while seeming a remote bureaucracy to many across the region it serves.

“I do think that yesterday’s vote speaks to the ongoing changes and challenges that are raised by globalisation – but while the UK’s relationship with the European Union will change, one thing that will not change is the special relationship that exists between our two nations”. They all spoke of the need for a speedy renegotiation.

But what does the Leave campaign’s victory actually mean for the global market?

Britain needs to have good relations with its European neighbours whether it is in or out of the EU.

That was at risk, including the “passport” arrangement under Europe’s single market rules which allow London banks to do business with clients in the euro zone, even though Britain never joined the common currency.

The City could also lose its position as an important centre for clearing financial transactions, the process of making sure that they proceed smoothly. It’s not clear what will happen in the markets on Monday, the next trading day.

German Member of Parliament, Jo Leinen, center, holds an EU flag outside European Parliament in Brussels on Friday, June 24, 2016.

In a fresh sign of problems, Moody’s Investors Service downgraded the U.K’s. outlook from “stable” to “negative” on Saturday.

While there are no figures for how numerous 30,000 to 35,000 British citizens here voted in Thursday’s referendum, it has been a subject of great interest to the British community, said Mr Wightman at a post-EU referendum media briefing at Eden Hall, the official residence of the British High Commissioner in Singapore.

MPs from the opposition Labour Party also launched a no-confidence motion to topple their leader, leftist Jeremy Corbyn, accused by opponents in the party of campaigning tepidly for its Remain stance.