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Brexit live: George Osborne tries to calm markets as Labour coup continues Brexit: Osborne tries to calm markets as Angela Eagle joins Labour resignations - live
(35 minutes later)
12.31pm BST
12:31
And here’s another Labour resignation - but not one involving the frontbench. Michael Cashman, a Labour peer, is resigning as the party’s global LGBT (lesbian, gay, bisexual and transgender) envoy.
Given that I believe Jeremy Corbyn is no longer the right person to lead the Labour Party I am resigning as Labours LGBT global envoy.
12.28pm BST
12:28
Jo Johnson, the universities minister, has tweeted this morning to assure EU students studying in the UK that they will still receive funding.
UK welcomes EU students. Current students and this autumn's applicants will continue to receive student finance for duration of their course
Updated
at 12.33pm BST
12.24pm BST
12:24
Pound hits new 31-year low as shares keep sliding
Graeme Wearden
Over in the City, Boris Johnson’s claim this morning that “the pound is stable, the markets are stable” is turning to dust.
Sterling has suffered fresh falls this morning, and hit a new low of $1.3192 vs the US dollar.
That’s its lowest point since 1985, down almost five cents (or 3.5%) today.
The pound has also lost almost three eurocents against the European single currency, to €1.199. That means holidays on the continent are going to be more expensive – but might help UK exporters.
Shares are also in retreat again, despite George Osborne’s attempts reassure investors.
The FTSE 100 index was down 97 points, or 1.6%, at noon, in a rout led by financial companies and property firms.
Royal Bank of Scotland has slumped by 20% to a seven-year low, in a blow to taxpayers who still own around 73% of the bank.
RBS's shares now down 20% on the day at 164p - levels the bailed out bank traded in early 2009 during the crisis
Budget airline EasyJet and estate agent Foxtons both issued profit warnings this morning, and are both down around 20%.
The FTSE 250 index of smaller UK companies is down over 5%. It’s arguably a better guide to the British economy.
The crisis engulfing Westminster is causing major worries in the City, as investors wonder who will be leading Britain’s two major political parties in a few months time.
As Kallum Pickering of German bank Berenberg puts it:
UK politics has fallen into crisis following the vote for Brexit last Thursday.
The resulting uncertainty and market tensions could further dampen activity in the domestic economy in the near-term.
12.24pm BST
12:24
John Healey resigns as shadow housing minister
John Healey has resigned as shadow housing minister.
According to the BBC, that means Jeremy Corbyn has not lost half his shadow cabinet within the last day and a half.
I have just hand-delivered Jeremy Corbyn my resignation letter. pic.twitter.com/ntnHFzeaXN
Updated
at 12.29pm BST
12.19pm BST
12:19
Angela Eagle resigns as shadow business secretary and shadow first secretary of state
Angela Eagle has resigned as shadow business secretary and shadow first secretary of state.
Here is the key quote from her letter.
It is with the greatest of sadness that, after nine months of trying to make your leadership work and despite your considerable personal qualities, I have come to the conclusion you are not the right person to lead the party we both love.
And here is the letter.
With deep regret, and after nine months of trying to make it work, I have today resigned from the Shadow Cabinet pic.twitter.com/tX7SPDyTIZ
Updated
at 12.21pm BST
12.16pm BST
12:16
Kate Connolly
As Brexit continues to dominate every front page in Europe, here are a few more snippets from some of the editorials today.
Nepszabadsag, from Hungary, says there is much confusion over how to view what has happened.
So which British decision should we now respect? The one resulting from the referendum? Or the fact that very many Britons are now shocked about the result and its effects and basically want to reverse everything?
Der Standard, Austria, believes there is still a chance the referendum result might not lead to a Brexit.
The British people’s decision is to be respected. But the referendum is not binding. It is still not clear whether the parliament in London will vote in favour of this monumentous decision with all the tragic economic and political consequences that will go with it. The EU partners should not force them...we should wait to see what the British decide to do.
Berlingske, Denmark, says the referendum result only underlines the conviction in America that most politicians are too far removed from the people.
The British ‘no’ to the EU will strengthen the Americans in one thing: they are not on their own with their fears and worry for the future. They are not alone with their feeling that politicans who are deciding on their lives are following their own interests and not those of their people. They are not alone when they demand that in the future politics should be decided much more closely with the people rather than by bureaucrats in distant Washington or just as distant Brussels.
Tages Anzeiger, Switzerland, says Merkel is now responsible for turning Europe round, but she lacks the necessary charisma.
Whatever direction the developments (in Europe) take, one thing is for sure, Germany will now get the task of reuniting Europe and to prepare it for the future. Angela Merkel, Europe’s dinosaur, is suited to this task, and at the same time unsuited for it. As a crisis manager she has proved numerous times that she is capable of leading with a calm hand and in so doing she thinks and behaves in a more European way than all the other heads of state and government in this continent ... but at the same time, she’s lacking the vision and passion. She knows that Europe will remain Germany’s horizon, and she’s a convinced European, but she has no success in trying to convince the citizens of the continent of the future of their Union.
12.12pm BST
12:12
John McDonnell, the shadow chancellor, is saying this morning that Jeremy Corbyn should not resign.
12.11pm BST
12:11
According to the Liverpool Echo, Angela Eagle, the shadow business secretary, will resign shortly.
Labour sources have told the Echo the shadow business secretary and first secretary of state’s request for a meeting with the Labour leader “was ignored”.
12.08pm BST
12:08
Merkel ally says Germany should not rush to push UK out of EU
Philip Oltermann
Angela Merkel’s chief of staff this morning said Europe should extend a helping hand to British pro-Europeans rather than rush to push the UK out of the European Union.
Peter Altmaier, who runs Merkel’s chancellory and is seen as her strongest ally in the German government, said:
Should we just be saying: we’re sad that the referendum has ended this way, but now you have to go? I am not sure that would be the right step. Because at this referendum something has happened that I never imagined.
On one hand, the sad result is that 52% said they wanted to leave. But on the other hand – and that’s something that I as a European find deeply moving – even in this country that we often thought of as deeply eurosceptic and not truly European, there has been an incredible turning towards Europe by millions of people ... As a European, I feel a responsibility towards those people.
Updated
at 12.14pm BST
12.03pm BST
12:03
My colleague Anushka Asthana has more on the meeting that Lisa Nandy, Owen Smith, John Healey, Nia Griffith and Kate Green had with Jeremy Corbyn this morning.
Nandy, Smith, Healey, Griffiths and Green went in not expecting to call for Corbyn to go but furious that "McDonnell barged in" I'm told
12.00pm BST
12:00
Nandy and Smith say Watson should take over as caretaker Labour leader
Lisa Nandy and Owen Smith have put out a joint statement announcing their resignation as shadow energy secretary and shadow work and pensions secretary respectively.
Here is the statement in full.
Together with our colleagues from the centre left of the party - John Healey, Nia Griffith, and Kate Green – we just met with Jeremy Corbyn to discuss the future of our party. We had hoped to leave that meeting with the confidence to continue to support the leadership in bringing the Labour party together from within the shadow cabinet. During the course of the meeting it became clear that this would not be possible.
It is therefore with huge sadness that we have resigned from the shadow cabinet. We have both been deeply distressed that this week of all weeks Labour has descended into infighting instead of looking outwards to the country. We do not believe that this is a time for internal warfare. Following the referendum result we believe we in Labour have a unique responsibility to show collective leadership to help bring the country through these difficult times. It has become increasingly apparent in the last 48 hours that this is not a realistic prospect in the current circumstances.
The lack of confidence in the leadership goes beyond the small group of MPs who have consistently opposed Jeremy since his election. It has become clear that he is unable to form a broad, inclusive shadow cabinet that draws on the best of our movement’s left and right traditions. For that reason we have told Jeremy that whilst the party holds a leadership contest - which is now inevitable - we believe Tom Watson ought to take over as a caretaker leader to stabilise the party and to enable us to play a full part as the official opposition in one of the most difficult periods this country has ever faced.
11.50am BST11.50am BST
11:5011:50
Jess Phillips accuses Corbyn of selfishness, saying he is not interested in what's best for LabourJess Phillips accuses Corbyn of selfishness, saying he is not interested in what's best for Labour
The Labour MP Jess Phillips has published her letter to Jeremy Corbyn announcing her resignation as a parliamentary private secretary in the shadow education team.The Labour MP Jess Phillips has published her letter to Jeremy Corbyn announcing her resignation as a parliamentary private secretary in the shadow education team.
Letter pic.twitter.com/lDqcL7d8k2Letter pic.twitter.com/lDqcL7d8k2
Of the many Labour resignation letters we’ve had in the last 24 hours, this is probably the spikiest and most colourful. Here are two of the key points. (I have added some punctuation in a few places.)Of the many Labour resignation letters we’ve had in the last 24 hours, this is probably the spikiest and most colourful. Here are two of the key points. (I have added some punctuation in a few places.)
Writing or saying anything against you risks my job, the livelihood of my family, the threats are already rolling in. Turns out when you stand up for what you believe in you are principled; when I do it, I am an opportunist, careerist, Blairite of even a Zionist plotter. Funny that. I am a socialist. I live my life as a socialist. I speak up regardless of the risk because I am considerably less important than the struggle.Writing or saying anything against you risks my job, the livelihood of my family, the threats are already rolling in. Turns out when you stand up for what you believe in you are principled; when I do it, I am an opportunist, careerist, Blairite of even a Zionist plotter. Funny that. I am a socialist. I live my life as a socialist. I speak up regardless of the risk because I am considerably less important than the struggle.
The Labour party is not about you, it’s about us. Most of all it’s about them, the brilliant people in the UK, even the ones who don’t agree with us. We need action. We really needed it last week, the week before.The Labour party is not about you, it’s about us. Most of all it’s about them, the brilliant people in the UK, even the ones who don’t agree with us. We need action. We really needed it last week, the week before.
I am really worried that you cannot see that you have made this all about you and not about them. Be the socialist you say you are, do the right thing and let the Labour party be the opposition it needs to be now, when people need it most.I am really worried that you cannot see that you have made this all about you and not about them. Be the socialist you say you are, do the right thing and let the Labour party be the opposition it needs to be now, when people need it most.
11.45am BST11.45am BST
11:4511:45
According to the BBC, Owen Smith, the shadow work and pensions secretary, and Lisa Nandy, the shadow energy secretary, are resigning.According to the BBC, Owen Smith, the shadow work and pensions secretary, and Lisa Nandy, the shadow energy secretary, are resigning.
Owen Smith and Lisa Nandy expected to resign nowOwen Smith and Lisa Nandy expected to resign now
11.28am BST11.28am BST
11:2811:28
It’s defence questions in the Commons this afternoon. And Clive Lewis is the new shadow defence secretary. But, according to Sky’s Darren McCaffrey, Lewis may not make it because he is on his way back from Glastonbury festival.It’s defence questions in the Commons this afternoon. And Clive Lewis is the new shadow defence secretary. But, according to Sky’s Darren McCaffrey, Lewis may not make it because he is on his way back from Glastonbury festival.
THICK OF IT ALERT: Labour source: Clive Lewis, is apparently on is way back from Glastonbury and may not make his first Defence Questions!THICK OF IT ALERT: Labour source: Clive Lewis, is apparently on is way back from Glastonbury and may not make his first Defence Questions!
UpdatedUpdated
at 11.32am BSTat 11.32am BST
11.23am BST11.23am BST
11:2311:23
Germany says EU won't start Brexit talks before article 50 invokedGermany says EU won't start Brexit talks before article 50 invoked
The German government is saying there will be no informal discussions between Britain and the European Union before the British government has invoked formal divorce proceedings by making a request under article 50 of the Lisbon treaty, a German government spokesman said this morning.The German government is saying there will be no informal discussions between Britain and the European Union before the British government has invoked formal divorce proceedings by making a request under article 50 of the Lisbon treaty, a German government spokesman said this morning.
According to Reuters, Steffen Seibert, a spokesman for Angela Merkel, told a briefing:According to Reuters, Steffen Seibert, a spokesman for Angela Merkel, told a briefing:
One thing is clear: before Britain has sent this request there will be no informal preliminary talks about the modalities of leaving.One thing is clear: before Britain has sent this request there will be no informal preliminary talks about the modalities of leaving.
Only when Britain has made the request according to article 50 will the European Council draw up guidelines in consensus for an exit agreement.Only when Britain has made the request according to article 50 will the European Council draw up guidelines in consensus for an exit agreement.
11.19am BST11.19am BST
11:1911:19
Bryant says Corbyn refused to tell him whether he voted to leave the EUBryant says Corbyn refused to tell him whether he voted to leave the EU
Chris Bryant, who resigned yesterday as shadow leader of the Commons, has told the BBC that he thinks Jeremy Corbyn may have voted to leave the EU. Corbyn refused to tell him how he voted, he said.Chris Bryant, who resigned yesterday as shadow leader of the Commons, has told the BBC that he thinks Jeremy Corbyn may have voted to leave the EU. Corbyn refused to tell him how he voted, he said.
I suspect that Jeremy Corbyn may have voted to leave, Chris Bryant tells @BBCNews #Brexit #EUrefI suspect that Jeremy Corbyn may have voted to leave, Chris Bryant tells @BBCNews #Brexit #EUref
Bryant says Corbyn refused to tell him whether he had voted to leave the EU #BrexitBryant says Corbyn refused to tell him whether he had voted to leave the EU #Brexit
11.13am BST11.13am BST
11:1311:13
The New Statesman’s George Eaton says Lisa Nandy, the shadow energy secretary, will stand against Jeremy Corbyn for the Labour leadership.The New Statesman’s George Eaton says Lisa Nandy, the shadow energy secretary, will stand against Jeremy Corbyn for the Labour leadership.
Lisa Nandy will stand against Corbyn, Labour source tells me.Lisa Nandy will stand against Corbyn, Labour source tells me.
11.08am BST11.08am BST
11:0811:08
Grant Shapps, the former Conservative party co-chairman, says Lord Heseltine’s calls for a second EU referendum (see 8.52am) is “outrageous”.Grant Shapps, the former Conservative party co-chairman, says Lord Heseltine’s calls for a second EU referendum (see 8.52am) is “outrageous”.
Like Lord Heseltine I voted Remain, but his argument that parliament shouldn't implement that vote without another referendum is outrageous!Like Lord Heseltine I voted Remain, but his argument that parliament shouldn't implement that vote without another referendum is outrageous!
11.05am BST
11:05
This morning’s cabinet meeting, the first since the EU referendum, is over. Ministers are leaving No 10 now.
Updated
at 11.17am BST
11.04am BST
11:04
Roberta Blackman-Woods has resigned as a shadow housing minister.
I have just resigned my position on the frontbench for the reasons as set out below in my letter to Jeremy pic.twitter.com/wtYq5lgt9D
11.01am BST
11:01
The Labour MP Ruth Smeeth has resigned as a PPS (parliamentary private secretary).
It's with a heavy heart that I have just resigned as PPS to the Shadow Northern Ireland & Scotland teams.
10.59am BST
10:59
The Labour MP Karin Smyth was parliamentary private secretary to Heidi Alexander, who resigned as shadow health secretary yesterday. In a letter to party members in her constituency Smyth says she will not serve in the shadow health team anymore and that Jeremy Corbyn should stand down as leader.
Here’s my letter to Bristol South Labour Party members this morning pic.twitter.com/mcFgyMC9YV
10.55am BST
10:55
Here is the text of Diana Johnson’s letter to Jeremy Corbyn resigning as a shadow foreign office minister.
This is the text of my resignation letter sent to Jeremy Corbyn. pic.twitter.com/NoEyBywinA
10.51am BST
10:51
This is from the Daily Mirror’s Jason Beattie.
The unknown factor is how many of those who voted for Corbyn have now turned against him. MPs say substantial number, Corbynistas disagree
And this is from my colleague John Harris.
Lab MPs can put someone else at the helm of Titanic. Truth: party now irrevocably split btwn (new) members & MPs & long, deep crisis peaking
Updated
at 10.51am BST
10.49am BST
10:49
The executive of the Conservative backbench 1922 committee will meet at lunchtime to discuss the rules and the timetable for the party’s leadership contest, the Press Association reports.
They are expected to mirror the system used the last time there was a vacancy in 2005 and will be formally adopted by the party board at a meeting tomorrow.
Graham Brady, the 1922 chairman, said the timetable was a matter for discussion but that there was “a desire to get things moving” as soon as was reasonable.
10.46am BST
10:46
Mark Serwotka, general secretary of the Public and Commercial Services union, which is not affiliated to Labour, has issued a message of support to Jeremy Corbyn. He said:
The most immediate and important thing we need is for Labour and the unions to lead a mass campaign against this racism and xenophobia to protect migrants, and to demand that housing, education, health and other public services are properly resourced.
I am appalled that instead of helping with this, some self-indulgent Labour MPs are looking inward, and turning on you and the party members and supporters who elected you in a landslide last September. I believe you are the best person to lead the Labour party through what is undoubtedly going to be a difficult period and you have my full support.
10.42am BST
10:42
The cabinet has been meeting this morning. Here are some of the ministers arriving.
10.37am BST
10:37
Wayne David has resigned as a shadow minister covering the Cabinet Office, Scotland and justice.
This is my letter of resignation from Labour's Frontbench pic.twitter.com/N2Varu8sHF