We are flabbergasted. The Bremain camp should have clearly won, because Brexit is analogous to economic suicide. However, this is how democracy works. Brexit is yet another clear occurrence of a black-swan event taking place, one that will probably have major implications. 

Below are the first repercussions following the decision of the United Kingdom the leave the European Union: 

Equity Markets 

Brexit cost investors $2 trillion, the worst one day drop ever. 

David Cameron  

Cameron said he would stand down by October after voters ignored his pleas to stay in the European Union and voted to leave the bloc in a referendum. 

Boris Johnson 

Former London mayor and leading Brexit campaigner Boris Johnson is the favorite to succeed David Cameron as Prime Minister, bookmaker Ladbrokes said in a statement on Friday. 

Scotland 

Scotland is highly likely to hold a second independence referendum, Scottish First Minister Nicola Sturgeon said on Friday, adding she would do what was necessary to secure the country's place in the European Union after Britain voted to leave the bloc. 

Article 50 

When David Cameron delivered his resignation speech outside No 10 on Friday, he said he would leave the task of triggering article 50 of the Lisbon treaty – the untested procedure governing how an EU member state leaves the bloc – to his successor. 

The Federal Reserve 

The U.S. Federal Reserve, already undecided on when next to raise interest rates, now has one more reason to wait: Britain's vote on Thursday to leave the European Union. 

The Bank of England 

The Bank of England offered to provide more than 250 billion pounds plus "substantial" foreign currency liquidity and it was ready to take additional measures if needed, Governor Mark Carney said after markets went into a tailspin. 

Britain's financial sector 

Britain's 2.2 million financial industry workers face years of uncertainty and the risk of thousands of job cuts after the country voted to quit the European Union, leaving question marks over London's status as Europe's premier financial centre. 

Britain's big banks took a $130 billion battering with Lloyds and Barclays plunging as much as 30 percent. 

Sterling 

Sterling sank 10 percent in value to its weakest since before the 1985 Plaza Accord on Friday after Britain voted to leave the European Union, triggering a rush of capital into the traditional security of the yen and the Swiss franc. 

Japan 

Japan will respond as needed to "extremely nervous" currency moves following Britain's vote to leave the European Union, Finance Minister Taro Aso said on Friday, signaling a readiness to intervene to stem excessive yen strength. 

Gold 

Gold soared as much as 8 percent to its highest in more than two years on Friday after Britain delivered a shock vote to leave the European Union, leaving investors to scurry for protection in the precious metal and other assets perceived as less risky. 

This article was issued by Kristian Camenzuli, Investment Manager at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice.  

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