Sterling slides as Brexit alarm spreads

Other world markets steadied a little after Britain’s June 23 vote to abandon the European Union wiped USD 2.1 trillion off international equity values on Friday. 

Analysts warned of a volatile period ahead as global investors grappled with the financial consequences of the Brexit referendum. 

“Today I want to reassure the British people, and the global community, that Britain is ready to confront what the future holds for us from a position of strength,” Britain’s finance minister, George Osborne, declared before European financial markets opened. Britain’s economy is “as strong as could be”, the minister said.

The pound skidded to USD 1.3222 in morning London trade, its lowest level against the dollar since September 1985. British budget airline EasyJet, which warned of a Brexit hit to sales, fell 16.0 per cent. International Airlines Group, parent of British Airways and Iberia, dropped 9.4 per cent. Royal Bank of Scotland shares plunged 15 per cent. Lloyds Banking Group fell 8.9 per cent. 

One fifth of British business leaders are considering moving operations abroad after the referendum, according to a survey from leading business lobby group, the Institute of Directors.