Sunday

25th Sep 2022

Markets lose confidence in outcome of UK vote

  • Torrential rain in London and other parts of south-east England caused transport problems and may have affected turnout (Photo: EUobserverver)

A larger than expected vote for the Leave side in northern England saw markets lose confidence that the UK would stay in the EU.

Sixty one percent of people in Sunderland voted to leave. In adjacent Newcastle, the Remain side won by a wafer-thin margin of 1 percent.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Richard Elvin, a Leave campaigner in Sunderland, told British daily The Guardian: “Voters made a big statement saying we’re sick to death of politics as it is. Sick to death of being told what’s good for us.”

Bridget Phillipson, a pro-EU MP with the opposition Labour party said on the northern vote that “there’s huge anger that time and again our region is left behind when it comes to jobs and investment.”

The result saw the value of the pound plunge against the US dollar, falling from $1.50 to $1.43 in a matter of minutes.

The volatile trading indicated that markets were uncertain how the vote would go.

The moment marked a U-turn after a YouGov poll earlier on Thursday put the Remain camp ahead and prompted the pound to climb to a six-month high against the US dollar.

Robert Rennie, a currency expert at Westpac, a firm in Sydney, Australia, told the Reuters news agency after the Sunderland result: “It's very jittery and I suppose that's very much going to be the order of the day until we see final results being announced”.

Jeremy Cook, an economist at World First, a firm that handles international money transfers, told Reuters that “Sunderland was a huge kick in the ribs” for Remain.

The two sides remained neck and neck as more results trickled in during the small hours of Friday.

The Remain side led in Scotland and Northern Ireland but lagged behind Leave in England, with the vast majority of votes still left to count.

“Those traders who were looking to book a quick profit before a restful night's sleep have had their ideas shattered”, World First’s Cook said.

More Danes want referendum on EU membership

Forty two percent of Danes want a UK-type referendum on EU membership, up five points on three months ago. "It would be an extremely bad idea", one leading party said.

UK votes to leave EU, causes shockwaves

Britons vote to leave the EU by 51.9 percent. Pound is at its lowest since 1985. Scotland and Northern Ireland at odds with England and Wales.

Pound plunges after UK result, but no 'panic'

"We are not in panic mode”, Germany's Commerzbank said. Bank of England chief said "we were well-prepared for this" and that British banks could weather the storm.

Opinion

How to apply the Nuremberg model for Russian war crimes

A Special Tribunal on Russian war crimes in Ukraine must be convened, because no permanent or existing international judicial institution is endowed with jurisdiction over Russian high-ranking officials, writes the head of the Ukraine delegation to the Council of Europe.

Opinion

Losing on the Ukrainian battlefield will not unseat Putin

Notwithstanding the remarkable Ukrainian advances, a Russian defeat would not necessarily translate into regime change in Moscow. It is likely Putin will try to spin his military setbacks as evidence of the existential threat facing Russia.

News in Brief

  1. More Russians now crossing Finnish land border
  2. Report: EU to propose €584bn energy grid upgrade plan
  3. Morocco snubs Left MEPs probing asylum-seeker deaths
  4. EU urges calm after Putin's nuclear threat
  5. Council of Europe rejects Ukraine 'at gunpoint' referendums
  6. Lithuania raises army alert level after Russia's military call-up
  7. Finland 'closely monitoring' new Russian mobilisation
  8. Flights out of Moscow sell out after Putin mobilisation order

Stakeholders' Highlights

  1. UNESDA - Soft Drinks EuropeCall for EU action – SMEs in the beverage industry call for fairer access to recycled material
  2. Nordic Council of MinistersNordic prime ministers: “We will deepen co-operation on defence”
  3. EFBWW – EFBH – FETBBConstruction workers can check wages and working conditions in 36 countries
  4. Nordic Council of MinistersNordic and Canadian ministers join forces to combat harmful content online
  5. European Centre for Press and Media FreedomEuropean Anti-SLAPP Conference 2022
  6. Nordic Council of MinistersNordic ministers write to EU about new food labelling

Latest News

  1. Ireland joins EU hawks on Russia, as outrage spreads
  2. Editor's weekly digest: Plea for support edition
  3. Investors in renewables face uncertainty due to EU profits cap
  4. How to apply the Nuremberg model for Russian war crimes
  5. 'No big fish left' for further EU sanctions on Russians
  6. Meloni's likely win will not necessarily strengthen Orbán
  7. France latest EU member to step up government spending in 2023
  8. Big Tech now edges out Big Energy in EU lobbying

Join EUobserver

Support quality EU news

Join us