Extra liquidity and take necessary steps to ensure stability. Welcome to we are seeing stocks across the world really plunging. The pound at a 45year low. I want to show you the breakaway for the euro stoxx 50. It all has to do with the safety blanket. Theres a clear move, some calling it a shot for the banks and homebuilders. We are live in brussels, paris, and berlin. Here in the u. K. Capital, anna edwards is in berlin. Westminster. We will bring you Global Coverage throughout the show. Lets get you more on those dramatic moves. We have three boards to get through very quickly. It has been brutal. We know from traders that they havent slept. 700, but the ftse is above that mark. We had mark carney saying he is ready to act and providing extra liquidity. That has put a little bit of a safety blanket on the ftse 100. This is a picture for europound. This is a very clear bid on to some of the havens. We are seeing losses like we havent seen since the financial crisis. We havent seen it since at least 2008. Barclays down, unicredit down, dr. Sandra banks, we may be expecting some kind of swap to make sure these are ok. We are not insinuating anything, but keep an eye on that. Final board for the homebuilders. If you look at the stocks that are most under pressure, volatility index gaining some 34 . Lets get on to the guests. Theave Anne Richards for hour. Then, former ecb president jeanclaude trichet a speaks to us from paris. Joining us later is john. First lets get to anna edwards in westminster, matt miller, and manus. The Prime Minister saying half an hour ago that he will step down. What is next . Triggers a big discussion within the conservative party and a vote for a new leader. Bysaid he will be gone october. The next conservative Party Conference will be in october. Hes also talking about when we travel article 50, the part of the lisbon treaty that sets in motion a time horizon for negotiating britains exit from the eu. He wanted to reassure the markets and individuals about stability in the weeks and months ahead, or at least the fact that article 50 would not be triggered straight away. This is a monumental event in u. K. History, breaking with 40 years of integration in the eu project. One professor talked about this as the biggest Political Development in europe since the fall of the berlin wall. It raises questions about the future of the United Kingdom. People in scotland voted to stay in the eu. Matt miller, lets get to you. Matt it has been extremely energetic here. Have beenese traders here since 8 00 p. M. Last night. The moves in the pound started around midnight, dropping further at 2 00 a. M. When it became clear that the leave camp had far more votes than the remain camp. Leveragee trying to de a lot of the clients, but most investors were completely wrong going into this, investing in the remain camp. Theyve had to unravel those. Were talking about margin calls all night. Everything was limit down. U. S. Futures can only be down 5 . Other assets have come back. The pound came down to 1. 33. Traders here telling me the bank of england gave them a little stability and camerons resignation erased some of the uncertainty that still remains. With that, ill toss it over to manus cranny. Manus thank you very much. David cameron doesnt want to be the captain any longer, but theres one man steering the ship of the markets, mark carney. 2013, he ran the central bank of canada. Many say he was responsible for canada avoiding the disruptions other people had. He said the bank of england will not hesitate to take action. The banks are better capitalized than they were at the height of the crisis. 10 times more capital in the banks around me. A very different Banking Industry from the crisis that we looked down the barrel when lehmans went under. The bank of england is prepared. It has done extensive planning. They will watch the volatility. Weve got to wait and see weather today is the day they may take action. They are on watch. It was the voice of a very steady captain. Wastone and indication resolute. Francine, back to you. Francine manus cranny, anna edwards, and matt miller with us throughout the day. Lets welcome our guest host, Anne Richards, the chief executive of m and g Prudential Investment arm. Shes just been in the job three weeks. Congratulations and good luck. Also with us is chris weaver. What was it like . You have a lot of investments. Our people pulling out . Is this a lehman type moment . Anne that is not the case, but it is a surprise. The markets werent expecting this. Everybody was in the belief that remain had pretty much won. Interestingly, we moved quickly from panic into starting to find a bottom. Francine chris, when you look at the banks, Deutsche Bank down 25 , barclays down 25 , are they going to need extra liquidity . Im not convinced by that. Ive been asked by your correspondence a lot. What is the bank doing . Making sure they have liquidity available. I think that is important. The other big factor is theyve told them, get out with your clients. There could be claimants francine rbs down 18 . Socgen down 18 . These are companies that have already been battered. We are not going to northern rock, i dont think, but what we have is uncertainty about earnings, the economy, recession. What happens in the Capital Markets . There will be very little activity in the next few months. What is the earnings impact . Francine stick around. Lets go to guy johnson. Guy the gmm function allowing us to see across the face. Weve been hearing about the fact that there may be signs of stabilization. Continental markets are feeling the pain more than the ftse 100. Etaken theas r 6000 level. Island down, belgium down, the cac 40 down. The reason for that is a very straightforward one. The drop in the british pound, with so much of the earnings both outside the u. K. , making it very clear that they are global businesses. The Revenue Streams are global. The reported earnings story should translate positively. Going to be interesting to see how that one translates. The pound is still down. It is finding stability. 1. 38. Around let me show you what is happening with cable. You saw this drop that matt was talking about. Mark carney stabilizing the ship as manus was saying. The fact that were not going to see an instant resignation from David Cameron, allows some sort of transition mechanism to take place. Article 50 is not going to be called out straight away. The next Prime Minister will do that. There will be a prenegotiation period. Youve been talking about how the banks have been hit very hard. That is very clear down at the bottom of the stoxx 600. Gold miners are doing well. All trading sharply to the upside. Interesting to see some of those stocks getting on the front foot. Some of the global for two stocks, rollsroyce in positive territory, glaxosmithkline in positive territory. Chartse 100, this is the over the last few days. Above where we were back on the 16th. We are trading north of that. The ftse 100 has bounced. Francine i wonder whether it has bounced on what carney said. Lets ask Anne Richards. I just want to quickly look at pounddollar. This is during the height of the financial crisis in 2008. This was this morning. Brutal moves. We werent prepared. Yesterday, some exit polls thought we would remain. The positioning of the markets was the other way. Anne what you are also getting is, the question in the currency market. Because theres this dollar, you yen and are seeing the money go in that direction. What you are seeing in the stock market outside of the banks is people looking through the immediate uncertainty into what will happen to the real economy and who is going to be the longterm beneficiary. You are starting to see the differentiation, shortterm versus longterm impact. Francine we are getting some live pictures. We have donald trump arriving. I wasnt expecting them to show it live. Hes going to scotland. We heard from Nicola Sturgeon this morning. It may put another scottish referendum. How much volatility . We thought this vote was going to decide whether we are in and out, but there are so many questions. Anne it is interesting. I would argue theres more clarity today than there was yesterday. At least we know what the answer is. I think this very strong vote in is very significant. We have a fractured political environment. Currentthink the Scottish Government would have that as its top priority, but now it is going to be to the four. Francine chris, what would be the First Priority for bank ceos today . I think they want a message of support, but if i do run into difficulties, and they are in pretty good shape, that that is going to be there for them. These guys have still got to support the real economy. It is about how they continue to serve the u. K. And the european economy. Hopefully that ameliorates some of the concerns about falling growth rates. Francine looking at live pictures of donald trump arriving in scotland to inaugurate a golf course. How does that play into his hand . It was a little unexpected. He wanted brexit. Anne i think it is so interesting that hes coming to scotland today. Hes struggled to get any local politicians to engage with him. He has been regarded as a divisive character north of the border. Challengesutional have not gone away for the u. K. As we go into David Camerons news this morning and what that means in terms of leadership elections, weve got an awful lot to be sorted out in the political arena. Francine chris, this feels different to 2008, or does it . If you look at the pound, it is worse than 2008. Why does it feel different . Central banks have been much more prepared for this. We looked at how those banks are compared to before the crisis. That is common across the industry. I just think they are better positioned to deal with it. Having said all that, the uncertainty will not go away for some time. What is this going to do to their daytoday business . Francine i jumped to the conclusion that were not going to see a run on the banks, but does it feel different . I think it does. You are not going to worry about which is the next domino to fall. Francine not systemic. Not at all in my view. Anne i would agree with that. You are seeing the focus switch from u. K. To europe, but it is very much in terms of the solvency and the quiddity of the banks themselves. This is very shortterm. Nothing evil is going on. Then we will find the floor. Francine Central Banks have been preparing this for at least 12 months. I want to bring in jeanclaude trichet, the former European Central bank president. Hes lived through a couple crises. Thank you for joining us from paris. This is chaos. Does it feel as bad as 2008 . Mr. Trichet it is absolutely normal to say the market would be surprised by what happens. Obviously it is difficult to understand why a lot of smart as betting on remain when the result is quite substantially in favor of brexit. Im not surprised by the hectic market this morning. I think it is a normal reaction and we should not panic. Banks, not only bank of land, which is up to the all the other major Central Banks cooperate in order to face up with the challenges. I have no shortterm anxiety. Francine if you were still head of the ecb or any central bank, would you press to have activation of swap lines or a blanket of safety, or would you wait until next week . Be, ifchet if need there is a real liquidity problem, which would be confirmed, of course the Central Banks have all the weaponry necessary to cope with it. They can take decisions rapidly and swiftly if necessary. I dont think that we have to , whichquidity problems would be taken seriously by the central bank. The problems we have are more mediumlongterm. Both in terms of real economy in the u. K. , in the rest of the world, in europe, and the political problem, which is very big, gigantic in the u. K. Not only because the Prime Minister leaves, but because scotland might leave too. Of course we have the repercussions on continental europe. Francine what do you think is going through the minds of central bankers . Draghi, butand mr. Actually it is governor kuroda and the snb that probably have the toughest job today. Mr. Trichet im not sure i understand exactly the question. Question is, if you have to defend yen and the swiss franc, how would you go out it today . All, it is first of not my responsibility obviously. As far as the swiss franc is concerned, you could see that the bank of switzerland has already intervened and i have confidence in their capacity to do what is necessary. The yen is part of the socalled core currencies of the world. I would expect appropriate discussion at the level of the major Central Banks of the world in order to have some kind of coordinated move if necessary, not erratic individual move, but coordinated move, as we did after the tsunami. We had a consultation at the ,evel of the major currencies the core of the International Monetary system, and we had a message for the markets. I would recommend that if need be. We have to let the dust settle down a little bit. Francine what is your biggest concern of art from Monetary Policy . Can we put the genie back in the box . We had donald trump arriving. Do you worry this is an implosion of the eu . Mr. Trichet you must remember, the u. K. Was not one of the Founding Fathers of European Union. The u. K. Hesitated a lot before entering. The u. K. Entered only because it thought its own interest were at stake. We are not in the same universe, i would say, from the cultural standpoint in the u. K. And the rest of the European Union. We will see what happens. I take it that the European Union with its 27 countries now has a lot of historical responsibility. Historical in never is of historical endeavor is of extreme importance. The reason it started, to have a big domestic market, to emulate the United States of america. It is even more compelling today because you have china, india, all the emerging world, and so it seems to me that the 27 will interest,eir own which is to remain united. We will see what happens. There are a lot of challenges, enormous challenges, but the u. K. Is a special case. Was not on the same league as the others because history is at stake. We have to respect what the u. K. People have decided. But it does not represent in my opinion the other countries in the European Union. Im confident personally that the European Union will go on. The 27 will go on. Francine just for our global viewers, tv and radio, i want to keep you uptodate. Banks are following 12 . E are seeing volatility in pounds, some brutal moves earlier on. There is political crisis in the conservative party. We have a camera standing by in front of Boris Johnsons house. We may get a statement. We are ready for anything that happens. David cameron saying he will resign. Onset with me, Chris Wheeler and Anne Richards. You have a question . Anne yes. Chet, one of the things we saw in the runup to the referendum was rhetoric from france that we need to be tough on the u. K. Because they wanted to show that other European Countries this is not a path to be followed. Do you think the rhetoric will be followed through with action . Do you think other countries will make it tough as possible for the u. K. To leave . Anne the mr. Trichet the treaty has to be respected. I expect the negotiation to be very tough. The u. K. Is looking for one thing, its own interest. It should be the same for the other partners. They should look for their own interest. There is no more affect in this negotiation. The u. K. Is no more part of the club. I was public in telling the u. K. People that we were wishing the u. K. To stay for many reasons, but now we are in a different universe. I expect negotiation to be tough only because it is a question of conflicting interest. Francine mr. Trichet, what you are suggesting is what jeanclaude junker said a couple weeks ago, that the eu will be tough on what he called the deserters, e u. K. How much worse off will the u. K. Be with trade deals, with the eu . The u. K. Has several options. The 27 also have several options. One option is norway. Another option is switzerland. Switzerland whether seems to be the best option. Cases, to get the appropriate access to the market, they will have to live with the other europeans. They will not participate in the decision, but they will have to live with this regulation as norway and switzerland does. This was explained to the british people. This is life as it is. I dont expect any bad will coming either from the u. K. One from the continental europeans. It is a question of defending your own interest. It is clear that it is the option of the United Kingdom i have no doubt on that. I also expect the u. K. To remain united. Risk that was taken is gigantic. That being said, the continental europeans should not demonstrate any bad will, but defend their interest. It is as simple as that. Francine mr. Trichet, i want to get a thought on banks. The one that will lose the most . They will have to deal with new trade, possibly. When we talk about u. K. Banks, we should talk about banks based in the u. K. There will undoubtedly be jobs losses. Theres going to be issues about transporting. , when he was here, talked about 4000 jobs having to be moved. This is a big impact on the Financial Services sector. Francine jeanclaude trichet, do you think this will lead to consolidation in the Banking Sector . At some point, something will have to be reformed. Mr. Tr