The news we have been waiting for has been announced… Britain has voted to leave the European Union.
72% of the British people voted, out of those votes 51.9% voted to leave.
The first thing to know though, is Britain won’t be leaving immediately. There is a process. Sources say that it could take up to 2 years for the process to complete.
During the campaign David Cameron insisted he would not resign as the prime minister if there was a leave vote, however many are saying, as he was campaigning for a stay vote, this is the time to announce if he is. He will address parliament Monday, unless it is called earlier. It could be called on the weekend.
Now to the bit that really matters to you, our investors.
What does this mean for the market?
All eyes are now on London for when trading starts again.
The value of the pound tumbled after the announcement of the first results in the referendum – falling to its lowest levels against the American dollar since 1985.
The Bank of England said it was “monitoring developments closely” and would take “all necessary steps” to support monetary stability.
Oil prices have also fallen sharply in the wake of the referendum outcome, with Brent crude down 5.2%.
The price of Brent crude fell by American $2.68 to $48.24 a barrel, its biggest fall since February. At the same time, US crude was down 5.4%, or $2.69, to $47.52 a barrel.
Before the results started to come in, the pound had risen as high as $1.50, as traders were aiming for a remain vote.
But following early strong Leave votes in north-east England, it tumbled to $1.43 and then took another dive after 03:00 BST as Leave maintained its lead.
The London’s main share index, the FTSE 100, is expected to open sharply lower, with a fall of about 7%.
A weaker pound buys fewer dollars or other foreign currencies, which makes it more expensive to buy products from abroad for Britain. However, it should benefit exporters as it makes their goods cheaper abroad and benefit us as buyers.
Asian markets have closed at a low, and we expect the markets world wide to close at a loss tonight due to this news. The S&P/ASX200 has closed down at 5,113.20, after a high of 5,325.40 today.
We will see volatility in both the share and the money market with this latest announcement.
BT Chairman, Michael Rake warns of the risk of Britain leaving the EU. He expects drops in markets, and volatility at least for the short term.
Keep posted for more news as it comes.