So much for the British finance minister’s calming words. George Osborne broke his post- Brexit silence on Monday to assure the markets that Britain was ready for the challenges ahead and was in good shape to overcome them. This was following a horrible week’s opening for the pound and shares. In hours Osborne’s words lost their magic and the slump continued.
“Those markets may not have been expecting those referendum results but the treasury, the Bank of England and the Financial Conduct Authority have spent the last few months putting in place robust contingency plans for the immediate financial aftermath in the event of this result. We and the PRA (The Prudential Regulation Authority )have worked systematically with each major financial institution in recent weeks to make sure they were ready to deal with the consequences of a vote to leave,” said Osborne.
London was down over two and a half percent on Monday, Frankfurt over three and all the other major European markets were one and a half, two, and two and half percent down.
The losses have continued on the other side of the Atlantic, too, as Wall Street lost ground
Against the dollar both the pound and euro lost out, the latter by more than three percent to stay at a three-decade low.