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Prime Minister David Cameron is to step down by October after the UK voted to leave the European Union.
Speaking outside 10 Downing Street, he said “fresh leadership” was needed.
The PM had urged the country to vote Remain but was defeated by 52% to 48% despite London, Scotland and Northern Ireland backing staying in.
UKIP leader Nigel Farage hailed it as the UK’s “independence day”, while Boris Johnson said the result would not mean “pulling up the drawbridge”.
EU chiefs said they expected the UK to begin negotiations to leave “as soon as possible, however painful that process may be”.
But Boris Johnson, the ex-London mayor and public face of Vote Leave who is now a frontrunner to be next prime minister, said there was “no need for haste” about severing the UK’s ties.
Shares and pound plunge on Leave vote
London’s stock market has plunged following the UK’s referendum vote to leave the EU.
The FTSE 100 index began the day by falling more than 8%, then regained some ground to stand nearly 5% lower.
Banks were hard hit, with Barclays and RBS falling about 30%, although they later pared losses to below 20%.
Earlier, the pound fell dramatically as the referendum outcome emerged. At one stage, it hit $1.3236, a fall of more than 10% and a low not seen since 1985.
By lunchtime, it had partially recovered, but was still nearly 8% down on the day.
The Bank of England said it was “monitoring developments closely” and would take “all necessary steps” to support monetary stability.
EU leaders have insisted that the UK must move swiftly to negotiate leaving the organisation, saying any delay would prolong uncertainty.
European Commission head Jean-Claude Juncker stressed the “Union of the remaining 27 members will continue”.
The UK voted by 52% to 48% to leave the EU, and David Cameron has announced he will step down as PM by October.
He has said it will be up to the new PM to invoke the article that will begin the UK’s withdrawal.
Two Labour MPs have submitted a motion of no confidence in party leader Jeremy Corbyn.
Margaret Hodge tabled the motion, her office has confirmed. It was seconded by Ann Coffey.
Volkswagen to settle emissions cheating scandal for more than $10.2bn
Volkswagen has agreed to pay US vehicle owners an average of about $5,000 apiece to settle claims from its diesel emissions cheating scandal, two people briefed on the matter said on Thursday. The total price tag for the repayments and other fines is said to exceed $10.2bn.
The company will still have to settle foreign suits over allegations that it lied about its emissions standards, in addition to claims brought by other US agencies. The US justice department is conducting a separate criminal inquiry of the automaker, which could also result in a hefty fine.