Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
ABC News 24 The Business -

View in ParlView

(generated from captions) And as it happens Australia's second biggest polling booth is in in London.

The rest of the day's top stories: The Prime Minister Malcolm Turnbull says Coalition MPs will still be able to vote against gay marriage, even if the public backs it in a plebiscite. The Coalition promised a national vote on gay marriage if it wins the election. The Opposition says its's a waste to spend $160 million on a plebiscite that won't be binding. Sydney stock broker Oliver Curtis was jailed for two years after an insider trading scam with his then-best friend which made them more than $1.4 billion in illegal profits. The 30-year-old was found guilty of conspiring to commit insider trading between May 2007 and June 2008. He will serve a minimum 1-year term in prison. The former commanding officer of an army apprentices school in Victoria denied all knowledge of children being physically and sexually abused. Former commander Alan child
McDonald told the inquiry into child sexual abuse the system had failed some of the apprentices. The chairman of the inquiry said Mr McDonald should have known what was happening. Two Australians have been chosen in the top ten in the NBA draft in Brooklyn. Ben Simmons was chosen by the Philadelphia 76ers as the number one pick. Thon Maker was drafted as number 10. Time The Business.

This program is live captioned by Ericsson Access Services. Welcome to The Business. Coming up on the program: Britain votes for a European exit, leaving market carnage in its wake. Just how bad will the fallout be and will the UK just be the first to leave? The pundits, the pollsters and loads of bookies had it wrong, in a vote that's wroced global equity and currency markets, Britain has astonished many by leaving the European Union. Here it was a roller caster on the markets. Trading was buzzing even before the Aussie market opened, as early results showed two sides were neck-and-neck. Vote to leave. Investors were reasonably camp the Remain camp would win. Around 1 o'clock, the BBC called it for Brexit and all hell broke loose. The pound slumped 10% and Asian markets were smashed. Once it was clear the Leave camp had won, the ASX, already deep in the red, headed even further south, its worst fall since September last year. Some Asian markets fared worse. The Nikkei fell so hard the automatic circuit breakers kicked in and it was temporarily shut down. It lost 8% - reminiscent of the financial crisis. The US dollar British
and the yen are soaring, the British pound has been sinking and the Australian dollar is caught in the crossfire.Yeah, it was a really black day. There is no other way to point to. I think what I've been looking is outside of the UK you have to look at what happened in j pan today in terms of -- Japan today in terms of it is very much a flight to safety there. 30-year bond hit the lowest level on record. Against the US dollar it is below party -- parity. In Australia we lost 7.9% against the yen. It makes things hard for that economy to keep firing forward. If you look to what happened in the UK, we've talked about pound, it is the worst day on record - worse than Black Wednesday and any day they saw during the GFC. Volatility in the pound is now at the highest level it's ever been.I think in the short-term the risks are cereal to the downside. I like many in Sydney was in super early this morning. I saw the pound North of is.50, Aussie -- 1.50, the Aussie above 76. For me it was sun derland, then Newcastle. Depending on central banks and, the politicians and what happens next. The risks in the short -term when you look at global growth, trade, east-west trade, very weak for this time of year. When we see a big shock in foreign ec change markets, remember we have seen 1.50 and 1.35, a 12% swing, when we see that kind of volatility, that switches off global trade, which hits the Australian dollar as well.Robert Rennie there. The European markets were hit hard and when London's FTSE opened, it promptly fell 8%. Some of the UK Banks showing downside moves of 30-plus per cent. We are in unchartered territory in some of these moves this morning. Certainly since the great financial crisis. Let's see whoo the knock-on effects to the European and global economy might be. I would also note that the euro is also weak this morning. So I think the idea that Europe can somehow be totally divorced what has happened in the UK is fanciful. We are not in contagion territory yet but I would suggest that the various politicians both in the UK and over in Brussels should choose their words very, very carefully because things could get edgy from here on. British Prime Minister David Cameron announcing he'll quit by October, the markets in turmoil, bank shares smashed and the pound seeing wild trade, Bank of England Governor Mark Carney stepped up to try to restore calm.We are well prepared for this. Her Majesty's Treasury Secretariry and the Bank of England have engaged in extensive contingency planning. To be clear, the Bank of England will not hesitate to take additional measures, as required, as markets adjust and as the UK economy moves forward. Those economic adjustments will be supported by a resilient UK financial system, one that the Bank of England has consistently strengthened over the course of the last seven years. The capital requirements of our largest banks are now 10 times higher than before the financial crisis. And the Bank of England has stress-tested those banks against scenarios far more severe than our country currently faces. As a result of these actions, UK banks have raised over £130 billion of new capital and now have more thanlb 600 billion of high-quality liquid asset. Why does this matter? Well, that substantial capital and huge liquidity gives banks the flexibility they need to continue to lend to UK businesses and households even during challenging times. Moreover, as a backstop and to support the functioning of markets the Bank of England stands ready to provide more than £250 billion of additional funds through its normal market operations. The Bank of England is also able to provide substantial liquidity in foreign currency in -- if required. We expect institutions to draw on this funding in and when appropriate just as we expect them to draw on their own resources if needed to supply credit to support markets. In the coming weeks the bank will assess economic conditions and we will consider any additional policy responses. A few months ago, the bank judged that the risks around the referendum were the most significant near-term domestic risk to financial stability. To mitigate them, the bank has put in place extensive contingency plans. These plans begin with ensuring the core of our financial system is well capitalised, is liquid and strong. This resilience is backed up by the Bank of England's liquidity facilities in sterling and foreign currencies and all of these resources will support orderly market functioning in the face of any short-term volatility. The bank will continue to consult and cooperate with all relevant domestic and international authorities to ensure that the UK financial system can absorb any stressors and can do its job of cans -- concentrating on serving of
the real economy.So, has the Bank of England managed to settle the nerves and what now for the British and European economies? I'm joined by Nick parsons from the National Australia Bank. He is head of research in Europe and he has pulled an all-nighter on that trading floor. Thank you very nuch for joining uts.You're welcome. Considering what we've seen, are you surprised the FTSE now is trading only between 4 and 5% down? Well, you know, we only have another four hours of trading before the London close. A lot is going to be said and, indeed, read over the course of the weekend both by politicians, central bankers and treasury officials in London and, indeed, in Frankfurt and across the continent of Europe. So this is not really the time for making enormous asset allocation decisions. It is a time for prudence. It is the time for looking to hedge and to mitigate market risk. This is not a period where, I think, investors want to be making decisions in haste. So I'm not surprised that we've seen some stability. The Governor of Bank of England's words had the desired effect, as indeed from other bank officials around the world. I say so far - bearing in mind we're only six hours since the result was announced - it's been relatively stress-free. It's not been a calamitous occasion for markets. It's been a relatively orderly decline, albeit one of some huge magnitude, but there doesn't seem to be any sense of dislocation or panic. I think in that regard we'll be breathing a huge sigh of relief both from the investor side, from the regulators and, indeed, from those in charge of monetary policy.Having said that, though, looking at some of the moves on the FTSE, we've got the likes of the Royal Bank of Scotland off by 17%. We have Lloyd's off by around 21%. There is certainly a little bit of panic around British banks even despite what the Central Bank Governor has been saying about the fact that, as we just heard, that British banks are strong?Well, British banks are, indeed, strong but, of course, the relations, the trading relations, and the business relations with the rest of the EU dark.
are now essentially a leap in the dark. We don't know which products we'll be able to trade with or without tariffs. We don't know what goods and services we'll be able to provide. We don't know what reciprocal arrangements will be put in place. More importantly, perhaps, we don't know the time-scale for that. So it is perhaps no surprise that we are seeing a great deal of uncertainty around institutions and, indeed, conduct
manufacturing companies, which conduct a large part of their business with the continent of the
Europe, which is domiciled within the European Union. So I think that uncertainty is undoubtedly localised in certain market sectors. Overall, the market feels quite heavy. There are those pockets of specific concern. But, overall, we're doing OK.For now. How long do you expect that to remain? We have Wall Street opening in a couple of hours. Its futures are indicating a fall of between 3 to 4%. Do you expect that to carry through to trade?I think we'll see a little bit of pressure during the Wall Street session but we've already been limit down, we've had those circuit-breakers kicking in to limit the downside pressure. I think they may well be called in again at some point in the session. But, really, this is very much a holding operation until the big asset allocation decisions are made in the early part of next week.So do you expect some big ramifications on the European and US markets next week because... Yes...Today in Asia we saw some massive falls, particularly on the Nikkei, where we saw it go down by 8%?Yes, I think we will see some large falls next week because the whole of Britain's trading grabs.
relationship with Europe is up for grabs. Although a lot of market attention has been on what it means question
for the UK, the much bigger question is what it means for Europe. Let's not forget that the UK is only 4% of GDP around the world.
Europe is about 20%. So five or six times bigger in Europe. That matters. What looks to be a little local crisis in the UK is potentially a kind of existential crisis for Europe. Is it going to continue in its present form? Will there be pressure for further exactly.
referendum over there?Well, exactly. I mean, how do you expect the European Central Bank to react to this? In the short-term?Well, the Central the short-term it will be reassuring words, it will be a promise of liquidity, it will be a promise to do all it can to support the normal functions of markets, make capital available. I don't think they have any magic wand up their sleeve. In the long term I think the ECB will urge structural reform and progress on the politicians, essentially handing the ball back to the politicians and saying, "Guys, you run with this. We've done as much we can." The ECB now is all about fine words and reassurance. If we're looking for policy action, that comes from politicians? Is this the beginning --Is this another beginning of what we saw with Greece a few years ago but on a much greater scale?Potentially, it could be, yes. We have some of the more extreme parties, both of the left and the right, in a whole host of countries across Europe faring very, very well in the opinion polls. We have the Front Nationale in France, we have alternative for Deutscheland in Germany - all of these parties will be agitating for a say in their oeb -- own affairs. How the European leaders deal with this pressure will be crucial over the next couple of weeks and, indeed, months. This is potentially an existential issue for the European Union and further single European currency.Given your role as the Head of research for the UK and Europe, what is your greatest fear? A greatest fear is a very messy break-up of Europe, a disintegration of the single European currency, a break-up of the euro in a disorderly fashion such that investors, manufacturers, producers all around the world, even down in Australia 15,000km away, will have to decide for example - bear in mind you asked me what the worst fears - they will have to go back to opening accounts in Paseatos will they get a Deutschemark or a hard or soft euro. The danger is we'll get a lot of uncertainty right around the globe on trading relationships, payment
accounting identities, bookkeeping, payment systems and so on and so forth. We really hope that that uncertainty can be avoided but that is what really would be the nightmare scenario for markets globally and, indeed for businesses and consumers. What we want is certainty. If you're an Australian company exporting to the European Union, you would want to know what currency you are getting. That will put a cloud over growth globally. It will not bring the global economy to a grinding halt. We are saying this is just a fresh source of uncertainty. Quite frankly, right now, businesses could do without that.They certainly could. Look, the falls on the European markets, and particularly in London the
today, seem like the calm before the storm possibly. Nick Parsons, thank you so much for your time. You're welcome.That's all from The Business this week. I'm Elysse Morgan. Have a good weekend. Thanks Elysse. We are continuing with our coverage of the Brexit. Scottish First Minister Nicola Sturgeon has been speaking in Edinburgh. We'll bring you that media conference now.When we were told there was our own referendum that would end our membership of the European Union and only our independence could protect it. For many people, vote
this was a driver for people to vote to stay in the UK. So there is no doubt that yesterday's result represents a significant and material change in which Scotland voted against independence in 2014. My job now is to act responsibly and in the interests of all of Scotland. That is what I intend to do. The Cabinet will meet tomorrow morning to discuss our next steps in more detail but I want to set out now some immediate priorities. Firstly we have an urgent job to do to provide as much reassurance and certainty as we can. I spoke a short while ago to the Governor of the Bank of England to discuss husband plans -- his plans to reassure the markets and ensure financial stability. This afternoon, Ministers will engaged with key stakeholders particularly in the business community to emphasise that as of now we are still firmly in the EU. Trade and business should continue as normal and we are determined that Scotland will continue now, and in the future, to be an attractive and a stable place to do business. Our Resilience Committee will meet later this afternoon to oversee these immediate actions. Secondly, I want to make it absolutely clear today that I intend to take all possible steps and explore all options to give effect to how people in Scotland voted. In other words, to secure our continuing place in the EU and in the single market, in particular.
To that end I have made clear to the Prime Minister this morning that the Scottish Government must be fully and directly involved in any and all decisions about the next step that is the UK Government intends to take. We will also be seeking direct discussions with the EU institutions and its member states, including the earliest possible meeting with the President of the European Commission. I will also be communicating over this weekend with each EU member state to make clear that Scotland has voted to stay in the EU and I intend to discuss all options for doing so. I should say I have spoken also this morning with the Mayor Sadiq Khan and he says he shares this objective for London. The discussions that take place over the coming days and weeks will of course be led by Government but I will seek the support and ensure the involvement of the Scottish Parliament at every step of the way. I intend to speak all party leaders later today and make a full statement to the chamber on Tuesday. I will also make a further statement following tomorrow's meeting of the Scottish Cabinet. Lastly, let me address the issue of a second independence referendum. The manifesto the SNP was elected on last month said this, "The Scottish Parliament should have the right to hold another referendum if there is a significant and material change in the circumstances that being
prevailed in 2014 such as Scotland being taken out of the EU against our will. " Scotland does now face that prospect. It is a significant and material change in circumstances and it is therefore a statement of the obvious that the option of a second referendum must be on the table, and it is on the table.
Clearly, though, there are many discussions to be had before final decisions can be taken. It would not be right to rush to judgement ahead of discussions on how Scotland's result will be responded to by the EU. However, when the Article 50 process is triggered in three months' time, the UK will be on a 2-year path to the EU exit door. If Parliament judges that a second referendum is the best or only way to protect our place in Europe, it must have the option to hold one within that time-scale. That means we must act now to protect that position. I can therefore confirm today that in order to protect that position, we will begin to prepare the legislation that would be required to enable a new independent referendum to take place if and when Parliament so decides. To conclude, this is not a situation that I wanted Scotland or the UK to be in today. For my uncertainty,
responsibility, in a climate of us forward
uncertainty, it is to seek to lead us forward with purpose. I know that there is a lot of thinking and talking to be done in the period that lies ahead and before final decisions are taken. The issues that we face are complex. There are many people who voted against independence in 2014 who are today reassessing their decision. Indeed, a very large number of them have contacted me already. However, I know that they will not want me to simply assume their support or to hear me talk about the challenges we face as if they are straightforward. They will want me to be straight and honest with them. Now is the time for me as First Minister, to do everything I can to bring people together in common cause and to seek to lead our country forward as one. The need to act decisively must be tempered with the need to build consensus, and it will be. That is my duty as First Minister. As the campaign that has been characterised in the rest of the UK by fear and hate, my priority in the days, weeks and months ahead will be to act at all times in the best interests of Scotland and in a way that unites not divides us. Let me also be clear about this - whatever happens as a result of this outcome, England, Wales and Northern Ireland will always be Scotland's closest neighbours and our best friends. Nothing will ever change that. But I want to leave no-one in any doubt about this. I am proud of Scotland and how we voted yesterday. We proved that we are a modern, outward-looking, open and inclusive country, and we said, clearly, that we do not want to leave the European Union. I am determined that we will do what it takes to make sure that these aspirations are realised. In closing, let me just say a word or two about the Prime Minister. David Cameron and I have very many political disagreements, not least over the conduct of this referendum. But as I am learning every single day, leadership is not easy. David has been the Prime Minister of the UK for six years. It is a tough job, and whatever our disagreements he deserves our thanks for his service. I wish him and his family well for the future. With these comments, I am happy to take some questions. Glen Campbell. First Minister, if not an independence referendum, what other options are available to you?I think an independent referendum is now highly likely but I think it important to take time to consider all steps and to have the discussions not least to assess the response of the European Union to the vote that Scotland expressed yesterday. I am absolutely determined in my responsibility to give effect as to how Scotland voted yesterday and it is important that we take all steps to make sure we explore all options to do exactly that.Is that independence referendum, you say is highly likely, will that go ahead with or without the consent of Westminster, because you had consent last time? Obviously we would seek to follow time.
the same precedent we did the last time. But I think in the circumstances, with the Scottish Parliament decides that that option is an option that it wants to exercise, I think it would be inconceivable that, particularly, in the circumstances that have given rise to this that the UK way. But
Government would seek to stand its way. But these are discussions to be had in the days and weeks ahead. Peter?First Minister, you say you want us to remain in theEU. You say to do that you are likely to propose a referendum. The rest of the UK will be out of the EU. That means there must be a proper real border between Scotland and England?These are issues we have to assess and consider and we have to do that calmly and rationally. That's why I've made it clear in the remarks I've made today that I am not going to stand here and pretend the issues we face are straightforward.We have been listening in to Scotland's First Minister, Nicola Sturgeon. She says she'll explore all options to in
secure Scotland's continuing place in the European Union and the single market. Scotland was a Remain strong hold in this Brexit referendum. Nicola Sturgeon says a now
second independence referendum is now very much on the table. Faction-moving reaction -- fast-moving developments on the Brexit vote. We'll continue to bring them to you here on ABC News. I'll be back in just a minute with more reaction. Stay with us.

This program is not captioned. This program is live captioned by Ericsson Access Services. David Cameron to resign as British Prime Minister by October after Brits vote to leave the EU, a move set to reshape global politics.I me
do not think it would be right for me to try to be the captain that steers our country to its next destination.

Markets tumble as they react to news of a Brexit and the pound falls to its lowest level since the 1980s. European leaders express regret over the decision as they prepare for the impending divorce. At home, there has been a rush to reassure Australians that the local economy will stand strong in the face of a Brexit.

Hello, Kirsten Aiken with continuing coverage of today's historic Brexit vote. It's the biggest shock to European politics since the fall of the Berlin Wall and it's reverberating worldwide. More than 33 million people turned out to vote and decided to leave the European Union by 52 to 48%. the
The move will open deep rifts in of
the UK and set Britain up for years of bitter divorce talks with Europe. This afternoon, Prime Minister David Cameron, who led the campaign to remain, announced his intention to resign.I will do to
everything I can as Prime Minister to steady the ship over the coming weeks and months but I do not think it would be right for me to try to be the captain that steers our country to its next destination. This is not a decision I have taken lightly but I do believe it's in the national interest to have a period of stability and then the new leadership required. There is no need for a precise timetable today but, in my view, we should aim to have a new Prime Minister in place by the start of the Conservative Party conference in October. David Cameron's announcement to resign as sparked conflicting emotions among London locals. Lisa Millar joins me a short time ago outside No.10 Downing Street.It is I
9a.m. In the morning on Friday. As I walked to Downing Street, there around
were masses of crowds building up around the various media sites where people have been broadcasting. Horns have been honking, cars driving past, they're flying English flags. Before David Cameron came out from behind me here, people were chanting "Resign, resign, resign". There is this sense on the streets, Kirsten, that it is a celebration for some and sheer shock for other people. I'm all
not sure it has really sunk in at all to hear David Cameron come out, to watch him stand here and announce that he would resign, that he could not be the leader to take Great Britain forward after this result, there was just silence. I just truly don't think people, even though they had Plan B, Plan C, Plan D, that they did not really think it was going to come to this. It is such uncharted territory. That's why you are seeing that uncertainty with the pound. On the radio this morning as I was coming in, people were talking about wanting to make sure their money the
was OK in the bank accounts. That's the state we're at at the moment. Indeed, a seismic shift under way and the Prime Minister acknowledging the country needs fresh leadership but what happens next and who could possibly be succeed him?Well, that's a very good question. I'm not sure how that might have changed in the last couple of hours but the people I was speaking to in the last week were suggesting it wouldn't be Boris Johnson necessarily. This is a party and a country that needs to be healed and brought back together. That's not going to happen with someone who was so connected to one particular argument, even though it was the winning argument. David Cameron has said he wants the transition to happen by the time of the Conservative Party conference in October but the pressure could be on for that to happen pretty rapidly. Certainly he was so committed to arguing that the UK should stay in the EU, how does he even begin conversations with people like Angela Merkel or Donald Tusk to even talk about what happens next? There will be, and there are plans, for emergency meetings with European leaders. There was one already planned for early next week. The phones will be running hot because there are so many questions no-one has the answer to. This was a process that some people said was going to take between 2-10 years. It is not going renegotiate
to be a quick divorce. You have to renegotiate all of the agreements, the trade agreements, the business agreements, the visa, migrant, work, you name it. This is going to be a massive, massive task. The shock hasn't even sunk in yet. As far as plans being put into place - reassuring words
I think that's why you saw those reassuring words from David Cameron when he tried to say the people who are in this country, they're welcome, it's not going to change anything for them straightaway. We had friends who were here on European visas yesterday asking us was
what would happen to them if there was an EU Brexit? We said the bookies are saying it's likely to remain, don't worry about it. Because when we last spoke, that's how it was looking. Brexit campaigner Boris Johnson has paid homage to the British Prime Minister David Cameron who was calling for the UK to remain in the EU. But Mr Johnson says the decision is the direct will of the people.Today I think all of us politicians should thank the British people because, in a way, they have been doing our job for us. They hire us to deal with the gave
hard questions and this year we gave them one of the biggest and toughest questions of all. Some people are now saying that was wrong, that the people should never have been asked in this way. I disagree. I believe it was entirely that
right and inevitable and, indeed, that there is no way of dealing with a decision on this scale except by putting it to the people. Because, in the end, this question is about the people, it's about the right of the people of this country to settle their own destiny. It's about the very principles of our democracy. The rights of all of us to elect and remove the people who make the key decisions in their lives. I think that the electorate have searched in their hearts and answered as honestly as they can and in a poll on the scale the likes of which we have never seen before in this country, they have decided that it is time to vote to take back control. From a European Union that has become too remote, too opaque and not accountable enough to the people it is meant to serve. In voting to leave the EU, it is vital to stress that there is now no need for haste and, indeed, as the Prime Minister has just said, nothing except
will change over the short-term except that work will have to begin on how to give effect to the will country
of the people and to extricate this system.
country from the super national Now that Britain has decided to leave the EU, Scotland, which voted to remain, is renewing its case for independence. Scotland's First Minister Nicola Sturgeon says future
Scotland has made clear it sees its future as part of the European Union and a second independence referendum is now highly likely. The former leader of the Scottish National Party, Alex Salmond, says he is quite certain there will be a second Scottish independence referendum.The logic would be for Scotland to remain within the EU so access to the marketplace, there was no dislocation. Nicola Sturgeon has the advantage of being the politician who has fought through these circumstances, who can provide clear leadership not just to the people of Scotland but to companies who are planning forward, to invest in Scotland, to know in a Scottish context she will pursue marketplace.
and defend access to the marketplace. She won't allow the livelihoods of Scottish families jeopardised
and workers to be sacrificed and jeopardised by the incompetence of Westminster politicians. European leaders have expressed regret at the UK's decision to divorce from the EU. German Chancellor Angela Merkel has called for calm in the lead-up to the departure.TRANSLATION: It is a decisive moment for the European Union and the union process. The next days, weeks, months and years will be determined by what the other 27 member states of the European Union will be willing and capable of not taking any rash decisions from this decision of the United Kingdom which would only lead to further disintegration of Europe. But whether we can actually keep calm, analyse the situation, evaluate the situation and, on this basis, find the right decision together. We should remember the following with this: Firstly, Europe consists of diversity and no matter how diverse the people are, this always means that they are also diverse in their attitudes and expectations of the European Union. Nevertheless, we see again and again that there are fundamental process
doubts about the unification process of the EU amongst the population, not only in the UK but in all member states to different levels. Therefore, we have to make sure that the citizens can feel directly and concretely in how far the European Union tries to improve their personal lives. This is a task of the institutions of the European Union but also of the member states. Secondly, in a world that comes together more and more, the challenges are too big for individual states to solve them by themselves. The European Union is one of the biggest economic areas of the world. The head of the European Council Donald Tusk says the bloc is determined to keep the remaining 27 member states united.All the procedures for the withdrawal of the UK from the EU are clear and set out in the treaties. In order to discuss the details of the proceedings, I have offered the leaders an informal meeting of the 27 in the margin of the European Council summit. I will also propose to the leaders that we start wider reflection on the future of our Union. Finally, it's true that the past years have been the most difficult ones in the history of our Union but I always remember what my father used to tell me "What doesn't kill you makes you stronger".Back home, the Prime Minister Malcolm Turnbull says the referendum reflects Britain's democratic system and says the relationship with the UK will remain strong. He spoke 7.30's Leigh Sales.We respect the decision of the British people. We know we will continue to have in the future the very closest relations with the United Kingdom. At a personal level, I'm sorry to see David resign but I can understand his reasons for doing so. But our relations with Britain are as close as two countries' relations could be. Nothing will change there. Equally, in terms of the European Union, we have strong relations with all of the countries of the European Union but particularly the two biggest economies, France and Germany, and we have strong support in both those countries to the negotiation EU
of a Free Trade Agreement with the EU which is one of our next export trade deals that we're seeking to achieve, building on the success of the others we achieved over the last few years.I will come to the big picture in a second but firstly have you spoken to Prime Minister Cameron?Yes, I spoke to Mr Cameron his
a few hours ago before he announced his resignation.What did you say to him?It was a private conversation. Naturally I consoled him on the defeat in the referendum and we discussed his next steps and what he announced did not come as any surprise.Australia would have preferred Britain to remain within the EU so, therefore, I assume we think this is not an optimal outcome. What do you think the impact on the Australian economy will be?I think the immediate instability
impact will be a period of instability in markets. We've already seen that. We have seen the pound sold off, the Aussie dollar was sold off too, big falls in equity markets. These events unsettle markets, they undermine confidence to some extent. There is a process that has to be gone through. I think it would be difficult to say precisely how long it will be before equanimity is a period
restored but we could be looking at a period of some uncertainty. It's that
a reminder of a point I often make, rapid
that we are living in a period of rapid economic change, we're living in a period of volatility, we have to embrace that. We have to recognise we've got to make sure we have stable leadership, an economic plan, stable government so that we are able to deal with the unforeseen, as Margaret Thatcher would have said, expect the unexpected, we've got to be able to deal with those eventualities and seize the opportunities as they arise.When you look at what's happened in Britain, the message about change and the need to embrace it, people find change scary and lots of things about it scary, that technology takes jobs, that markets are open, that flow of labour is open, increased immigration back and forth within Europe. I wonder if that message you are making perhaps scares and alien ates people?You mentioned immigration. That was a very big issue in Britain, probably the single biggest one, Britons felt they'd lost their sovereignty, or many Britons did. This was the argument, that because citizens of other European Union countries could come and go into the United Kingdom as they pleased, Britons own
felt they'd lost control of their own country. Rightly or wrongly, that was a perception, that was something that reminds us of how really important it is for the government to be seen to control its borders. Of course, we are able to do that in Australia. That's one of the issues in this election.

The UK Independence Party or UKIP, this
has been a driving force behind this referendum led by Nigel Farage and campaigning non-stop for a Brexit. Ray Finch is a member of the European Parliament for UKIP and joins me on the phone now. Good there
to speak to you. It seems as though there is a fair degree of shock in the UK by the Brexit result. Are you surprised that Leave got up on the day?No, not at all. What happened was that the pollsters and the establishment generally didn't understand the depth of feeling amongst ordinary Britons that power had slipped out of their control, which is where it should always reside, of the people. It has been given away by successive UK governments. We understood that the people were very angry about that. The markets didn't appear to be so, nor did Mr Cameron.Are you concerned that some voters might express buyers' remorse over time? Once the decoupling process gets underway, it is bound to be quite messy, isn't it?The thing is we have a 2-year negotiation period with the EU where we can set out all of the deals in the future. Your Prime Minister was just saying you're doing a free trade agreement with the EU. That's all we ever wanted. That's it. We want a free trade agreement, we want to be friends, we want to be partners. But the power must never leave the people. That's what our governments have done over successive 43 years. Where will this vote leave the people of the UK? It was very close, hardly decisive.It was completely decisive because we won. A win is a win is a win. If you try and bet on a football match and you bookmaker
say "Well, I only lost 1-nil", the bookmaker will laugh at you. The fact is what happened - in our preamble to this, the government was making all these scary suggestions, basically that the sky would fall on our heads if we left. suppressed
We all know that's untrue. That suppressed the vote. We would have won by far more if it hadn't been for the scaremongering tactics of the establishment.What for the future of the UK? Do you expect opt
Scotland will opt out of the UK and opt in to Europe?No, it wouldn't. For one thing, it wouldn't be in Scotland's interests. At the moment Scotland is doing well out of being part of the United Kingdom. It EU,
would do less well as part of the EU, particularly with the problems with the Euro because if Scotland joined, it would have to take on the Euro which is essentially being keep
used as a pseudo Deutsche market to keep German exports cheap. We have seen in southern Europe and in Ireland huge numbers of young

Ireland huge numbers of young
people - in south of the Europe, the unemployment rate for young people is 50%. The EU is a 1950s solution to a 1940s problem. It's not relevant to today. It cannot be and it will fail.Do you think there will be a push on to reintegrate Ireland?Sinn Fein have always wanted this. It's not going to happen. It will happen when the people of the United Kingdom and Ireland and Northern Ireland decide that then is the time. It won't happen because Sinn Fein say they want it to happen because I'd trip over my shoelace, there is no excuse for it.As a member of the UK Independence Party sitting in the European Parliament in Brussels, have you and your colleagues essentially put yourselves out of a job?Yes, we have. You are now talking to the happiest man to have ever made himself redundant. We are just ordinary people. We are not politicians. I was an engineer for many years. We have many other jobs. Nigel Farage himself worked on the metals trade. We came into this purely and simply because we believed in democracy, sovereignty self-determination for
and determination for the people, self-determination for the people. We started to achieve that. The job isn't done by a long way but this is the key in the door.Ray Finch, ABC
UKIP MEP, thank you for speaking to ABC News 24.Thank you.

ABC News 24.Thank you.
With Europe still dealing with the fallout from the global financial crisis, the Brexit vote is a new shock to the system. We look at what it could mean for Australia and the world economy. The Brexit vote hits a world yet to fully recover from the global financial crisis. Yet despite this, share markets had soared to record highs until the outcome.Stock markets can
are overvalued around the world. It can be argued this is the prick that bursts the bubble.What Brexit means for the economies of Britain, knows.
Europe and the world nobody really take months
knows. Negotiating exit terms will take months or years, that's part of the problem.We are in completely uncharted territory. A country has never within the EU decided it wants to leave.It will give a big lift to the secession movements growing fast across Europe and will threaten the existence of the Euro.Australia's economy will feel the fallout. Falling commodity prices in the short-term and perhaps in the longer-term as well, plus rising city
bank funding costs as the London city exits Europe.There is a risk the Australian dollar continues to we
push lower, there is a possibility we could see it down to 72 n't cents.With risk, people are less confident.The world is facing weak productivity growth, huge debt levels and with official interest rates at or below zero in much of the world, central banks don't have a lot of ammunition to deal with the fallout of Brexit. Nearly a decade since the onset of the global financial crisis, the world's markets are again in turmoil. Londoners have reacted with shock and satisfaction to the outcome of the referendum. Here is what a few Londoners had to say about the result.I was very surprised when I saw it this morning but then in hindsight perhaps I shouldn't have been as surprised as I was. The signs were probably there. It's going to be really interesting and very scary time ahead of us in the devastated
next 5, 10 years.I'm absolutely devastated by this morning's result. I think it's completely idiotic, I think it's economic insanity.I think the EU has gone on longer than it used to be. It expansion
was created to prevent the Soviet too
expansion into Europe. It's gone too long. It's become something it was never meant to be. In the end, it was better for us to be out. Obviously it would react to the research. Markets are obviously going to react but hopefully it will recover soon. That's what I am expecting. People in Europe, too, have been following the vote in Britain closely. Here is a sample of opinions from Paris, Athens and Berlin.TRANSLATION: Europe doesn't bring anything. Apart from giving it money and never getting anything in return. If France could do the TRANSLATION:
same, it would be great. not a
TRANSLATION: I believe that it's not a good thing that Britain left the European Union. But I think that it will not affect us seriously.TRANSLATION: There will while
be a great crash now and after a while it will calm down and continue as before. We now have one payer less, the second largest payer in the European Union. This is going to be the greater problem for us.Arnd Henze is a correspondent with Germany's public service broadcaster ARD. He says vote to
most Germans expected Britons would vote to stay in the EU.People in Germany went to bed around midnight with a strong confidence that Britain would reject the Brexit and European
would vote for a remain in the European Union. Throughout the night when people found a good night's rest, real life turned into a nightmare. This morning, the first reaction from politicians and people around this country is shock, almost horror, there is frustration. Politicians reacted on Twitter very early in the morning. The Foreign Minister said it is a very sobering day. The vice chancellor said it is a black Friday for Europe and the world. This resonates throughout the political statements this morning. The Cabinet is meeting, the leaders of the political parties will meet We
with the Chancellor within an hour. We will have an extra session of the Parliament on Tuesday. The only political party that celebrates this vote is the far right AFP. Great
It's a populist party like UKIP in Great Britain.Germany and Britain are the two big players in Europe. relations
What does the future mean for relations between the two?First of all, there are strong economic connections between Germany and Great Britain but as difficult as relationships have been throughout the years when it came to internal matters in the European Union, internationally, Germany and Great Britain worked very strongly together. Think of the talks with Iran - the nuclear talks with Iran. Three plus three, Great Britain, France and Germany united in their attempt to negotiate the deal together with the US, with Russia and China. How Germany and Great Britain will maintain this connection, this strong relationship and the European Union and Great Britain, this is a big question. Beyond that, there is a strong fear this will have a domino effect so other populist movements within Europe will take up this cause and will also ask for referendums. We have calls from far right parties they will have a referendum in their countries. So Europe will change and the leadership role of Germany, which is ambivalent, other countries ask Germany to take a leadership role but at the same time they fear the leadership role, this will be much more significant for Germany in the of
future.That was going to the heart in
of my next question about stability in Europe, what happens now if, for instance, there is a Frexit and does it fall to Germany to calm frayed nerves?Germany is the country with the strongest commitment to Europe. In the last couple of years when we had controversies around immigration, the financial crisis with Greece and others, with the sanctions against Russia and Ukraine, Germany was always looking for a middle ground between countries that went in one direction, others in a different direction. Germany urged interests.
others to look for their own interests. This will be much more difficult because the balance is shifting and no-one knows how it will shift. The European countries will play a different role. France will play a different is a very weak government. It is very, very complicated right now. Arnd Henze from the German public broadcaster ARD. That is the latest from ABC News. I'm Kirsten Aiken. Lateline will continue our coverage of the UK's vote to leave the European Union. The leave camp won the vote by 1.2 million. The decision sparked turmoil on financial markets and the pound fell to its lowest level since 1985. More coming up now with Ticky Fullerton on Lateline.

This program is live captioned by Ericsson Access Services.

Ericsson Access Services.
Good evening. Tonight - a historic day for Britain. The decision to leave Europe shocks the world, sending financial markets into a spin. And the country's Prime Minister is the first casualty. I think the country requires fresh leadership to take it in this direction.Let June 23 go down in our history as our Independence Day. (CHEERING AND APPLAUSE)