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Brexit live: Labour MPs to hold no-confidence vote in Jeremy Corbyn Brexit live: Labour MPs to hold no-confidence vote in Jeremy Corbyn
(35 minutes later)
10.34pm BST
22:34
Sam Thielman
More detail from my colleague Sam Thielman in New York on the shock experienced by the US stock markets as the reverberations of Britain’s vote to leave the EU continue to echo.
Since the results became known on Thursday, the major US markets have suffered their biggest two-day fall in 10 months, Sam writes.
Monday’s dips came as the pound collapsed to its lowest point since 1985 and the UK lost its triple-A credit rating.
The Dow Jones Industrial Average finished the day down 260 points, or 1.5%, the S&P 500 dropped 1.8%, and the technology-heavy Nasdaq ended the day 2.5% down as the sell-off sparked by the Brexit vote in the UK continued to reverberate through the American market.
While many Americans have had trouble wrapping their heads around Brexit, the term is now dominating headlines in the US as it is in the UK and the impact of the vote has been affecting US assets. US government-issued bonds and gold both continued to climb: the online gold sales website BullionVault said it had liquidated a quarter-ton of gold since the vote went through.
Sam spoke to Ryan Sweet of the ratings agency Moody’s, who said that trouble would likely not do lasting damage to the US economy, though he did say equities “are likely going to have a rough few days.”
You can read the whole piece here.
10.22pm BST
22:22
The situation with the UK’s national and local Young Labour societies is becoming more fraught. As many commenters have pointed out, the London Young Labour committee acted unilaterally in condemning Jeremy Corbyn in the statement they released earlier this evening.
The official position of the national Young Labour organization is that they still support the Labour leader, according to their Facebook account, where the latest statement - from Sunday - reads:
The one certainty is that we as the Young Labour National Committee have full confidence in Jeremy Corbyn to continue to lead the Labour Party through these uncertainties. We are reassured by his decades of integrity and service, when it is obvious that so many do not trust politicians.
Lauren Gilmour, the Scotland rep for the organization, sent the Guardian a statement which she said had been passed by a majority of the national Young Labour committee. The statement says that “The calls for Corbyn to go have been vastly over-exaggerated by a hostile media, and by a minority within our party. Antagonism to Corbyn is largely concentrated within the PLP, who do not compose the entirety of our movement.”
The statement hits out at London Young Labour, saying:
It is highly disappointing that the media has given an undue focus on fringe petitions and statements, whilst choosing not to cover the statements of representative bodies of the youth movement.
The LYL statement had not even been discussed on a committee level, in comparison to our statement which was.
What this indicates is that the media, far from representing debate across all wings of the party, has chosen to propagate a certain political position: Jeremy must go. The elected Young Labour National Committee must and should have all Labour mediums available to them to communicate the views of young members: that is the only way we can fulfil our duty to represent and fight for young members.
The bulk of the Labour youth movement is fully behind Jeremy Corbyn and is willing to fight to ensure that the democratic mandate he has been given is respected. Those who would spit in the face of the democratic will of ordinary members should be prepared to be faced with ordinary Labour members’ opposition to their brazen shenanigans.
But London is not the only local Young Labour organization to go rogue. In an email shared with the Guardian, Chiltern Young Labour emailed Corbyn’s office just after 8:30pm GMT imploring him to resign:
For the good of the party, for the good of the nation, for the good of the people it is time for you to step aside and allow wounds to heal. A party leader that cannot command the respect of the Parliamentarians is one who lacks leadership.
For the members of Chiltern Young Labour I implore you to do the honourable thing and resign now.
10.04pm BST
22:04
The decision to leave the EU continues to cause economic shockwaves
Here’s a quick round-up of what has happened.
9.52pm BST9.52pm BST
21:5221:52
Full time, and England have lost 2-1 to Iceland in a match which has taken on symbolic significance after the EU referendum.Full time, and England have lost 2-1 to Iceland in a match which has taken on symbolic significance after the EU referendum.
Over on our match live-blog, Barry Glendinning calls England’s play “absolutely pathetic”.Over on our match live-blog, Barry Glendinning calls England’s play “absolutely pathetic”.
#ENG v #ISL pic.twitter.com/yaYiAFWZdU#ENG v #ISL pic.twitter.com/yaYiAFWZdU
9.36pm BST9.36pm BST
21:3621:36
A picture of Corbyn speaking at the Momentum rally in Parliament Square.A picture of Corbyn speaking at the Momentum rally in Parliament Square.
Shadow Chancellor John McDonnell tweeted that there were 10,000 people there, though others have disputed that figure.Shadow Chancellor John McDonnell tweeted that there were 10,000 people there, though others have disputed that figure.
Don't agree. I reckon 2,000 tops. I was there too. https://t.co/qxFUWmmOpKDon't agree. I reckon 2,000 tops. I was there too. https://t.co/qxFUWmmOpK
Many are also pointing out that the crowd appeared to be composed more of Socialist Workers’ Party members than Labour members.Many are also pointing out that the crowd appeared to be composed more of Socialist Workers’ Party members than Labour members.
Seems like most of the people at the #KeepCorbyn rally in London are from the AWL and SWP rather than Labour pic.twitter.com/aHyIJkhfFsSeems like most of the people at the #KeepCorbyn rally in London are from the AWL and SWP rather than Labour pic.twitter.com/aHyIJkhfFs
9.25pm BST9.25pm BST
21:2521:25
Nigel Farage, meanwhile, has just gone on Fox News to criticise president Barack Obama, who came out strongly in favour of the “remain” camp.Nigel Farage, meanwhile, has just gone on Fox News to criticise president Barack Obama, who came out strongly in favour of the “remain” camp.
"Vladimir Putin behaved in a more statesman-like manner in this referendum than President Obama did" -- @Nigel_Farage on @FoxNews"Vladimir Putin behaved in a more statesman-like manner in this referendum than President Obama did" -- @Nigel_Farage on @FoxNews
9.12pm BST9.12pm BST
21:1221:12
Fitch becomes the third ratings agency to downgrade UK creditFitch becomes the third ratings agency to downgrade UK credit
The agency just announced in a press release that it was downgrading the UK from an AA+ rating to an AA rating.The agency just announced in a press release that it was downgrading the UK from an AA+ rating to an AA rating.
“The UK vote to leave the European Union in the referendum on 23 June will have a negative impact on the UK economy, public finances and political continuity,” the release said.“The UK vote to leave the European Union in the referendum on 23 June will have a negative impact on the UK economy, public finances and political continuity,” the release said.
Fitch believes that uncertainty following the referendum outcome will induce an abrupt slowdown in short-term GDP growth, as businesses defer investment and consider changes to the legal and regulatory environment.Fitch believes that uncertainty following the referendum outcome will induce an abrupt slowdown in short-term GDP growth, as businesses defer investment and consider changes to the legal and regulatory environment.
While recognising the uncertainty of the extent of the negative shock, Fitch has revised down its forecast for real GDP growth to 1.6% in 2016 (from 1.9%), 0.9% in 2017 and 0.9% in 2018 (both from 2.0% respectively), leaving the level of real GDP a cumulative 2.3% lower in 2018 than in its prior ‘Remain’ base case.While recognising the uncertainty of the extent of the negative shock, Fitch has revised down its forecast for real GDP growth to 1.6% in 2016 (from 1.9%), 0.9% in 2017 and 0.9% in 2018 (both from 2.0% respectively), leaving the level of real GDP a cumulative 2.3% lower in 2018 than in its prior ‘Remain’ base case.
Part of the decision was that the EU referendum “makes a second referendum on Scottish independence more probable in the short to medium term,” the release said.Part of the decision was that the EU referendum “makes a second referendum on Scottish independence more probable in the short to medium term,” the release said.
9.01pm BST9.01pm BST
21:0121:01
Politico has published an inside account of the PLP meeting this evening in which, they say, Corbyn “fought for his political life.”Politico has published an inside account of the PLP meeting this evening in which, they say, Corbyn “fought for his political life.”
In notes from an MP who was inside the meeting, they say that Alan Johnson MP said “I fought the [EU referendum] campaign and I take my responsibility, but you’ve got to take yours. Your office did not even turn up for the weekly meetings.”In notes from an MP who was inside the meeting, they say that Alan Johnson MP said “I fought the [EU referendum] campaign and I take my responsibility, but you’ve got to take yours. Your office did not even turn up for the weekly meetings.”
Other MPs who took the floor in the meeting and told Corbyn he had to go, Politico says, include Margaret Hodge, Chris Bryant, Ian Murray, Helen Goodman, Ivan Lewis, Clive Efford and Bridget Phillipson.Other MPs who took the floor in the meeting and told Corbyn he had to go, Politico says, include Margaret Hodge, Chris Bryant, Ian Murray, Helen Goodman, Ivan Lewis, Clive Efford and Bridget Phillipson.
You can read the whole piece here.You can read the whole piece here.
8.49pm BST8.49pm BST
20:4920:49
One of the most alarming effects of the EU referendum has been the rise in racially-charged attacks across the country over the weekend.One of the most alarming effects of the EU referendum has been the rise in racially-charged attacks across the country over the weekend.
In utter shock: just been called p**i in my home town! Haven't heard that word here since the 80s..!In utter shock: just been called p**i in my home town! Haven't heard that word here since the 80s..!
Figures on Monday suggested a 57% increase in hate crimes and abuse.Figures on Monday suggested a 57% increase in hate crimes and abuse.
Suspected racist graffiti was found on the front entrance of the Polish Social and Cultural Association (POSK) in Hammersmith early on Sunday morning, and the Metropolitan Police is reportedly on high alert.Suspected racist graffiti was found on the front entrance of the Polish Social and Cultural Association (POSK) in Hammersmith early on Sunday morning, and the Metropolitan Police is reportedly on high alert.
“In the past few days we have seen despicable graffiti daubed on a Polish community centre, we’ve seen verbal abuse hurled against individuals because they are members of ethnic minorities,” David Cameron said earlier today.“In the past few days we have seen despicable graffiti daubed on a Polish community centre, we’ve seen verbal abuse hurled against individuals because they are members of ethnic minorities,” David Cameron said earlier today.
“Let’s remember these people have come here and made a wonderful contribution to our country. We will not stand for hate crime or these kinds of attacks, they must be stamped out.”“Let’s remember these people have come here and made a wonderful contribution to our country. We will not stand for hate crime or these kinds of attacks, they must be stamped out.”
A police source told the Guardian that it was “no coincidence” that the increase came off the back of the EU vote.A police source told the Guardian that it was “no coincidence” that the increase came off the back of the EU vote.
8.40pm BST8.40pm BST
20:4020:40
Jeremy Corbyn has lost the support of London Youth Labour, perhaps fairly unsurprisingly given the events of the last week.Jeremy Corbyn has lost the support of London Youth Labour, perhaps fairly unsurprisingly given the events of the last week.
In a statement posted to their website and signed by the group’s executive committee, the organisation says:In a statement posted to their website and signed by the group’s executive committee, the organisation says:
Not only did Jeremy Corbyn fail to deliver passionate Labour messages about staying in the EU, he also refused to work with Britain Stronger In Europe, despite polls showing this would turn out Labour votes.Not only did Jeremy Corbyn fail to deliver passionate Labour messages about staying in the EU, he also refused to work with Britain Stronger In Europe, despite polls showing this would turn out Labour votes.
Warnings were ignored, meetings cancelled and a desperately needed Labour message was lost.Warnings were ignored, meetings cancelled and a desperately needed Labour message was lost.
This result will have effects on everyone, but especially the poorest in our society- for decades to come. These are the people we seek to protect as the Labour party, and we have failed – Jeremy Corbyn has failed.This result will have effects on everyone, but especially the poorest in our society- for decades to come. These are the people we seek to protect as the Labour party, and we have failed – Jeremy Corbyn has failed.
It is for these reasons that we express no confidence in the Leader of the Labour Party, and hope London Labour MPs will consider young members’ views.It is for these reasons that we express no confidence in the Leader of the Labour Party, and hope London Labour MPs will consider young members’ views.
You can read the whole statement here.You can read the whole statement here.
8.25pm BST
20:25
England is 2-1 down to Iceland right now, and the schadenfreude is nearly overwhelming.
If Joe Hart is looking for a new job I hear Jeremy Corbyn is hiring...
#EURO2016 #ENG v #Iceland There is something essentially familiar to the narrative of this game.
Half my timeline is Polish people laughing at #ENG; the other half is English people laughing at #ENG.
Presumably we're losing to Iceland as part of some deal to get into the EEA.
Corbyn refused to say who he's supporting tonight #ENGICE
2-1, England? Lacking respect for foreigners. No single marking. Not enough freedom of movement.
8.16pm BST
20:16
S&P held back the downgrade until the London stock market had closed, so the City hasn’t had chance to react yet, Graeme reports on the Business Liveblog.
But over in New York, shares are falling deeper into the red on Wall Street.
The Dow Jones industrial average has now shed 306 points, a fall of 1.75% today, on top of the 611 points shed during Friday’s tumble.
The Sterling has also just taken another plunge against the dollar, reaching a new low of $1.32.
8.07pm BST
20:07
This is the view from the platform where Corbyn was speaking:
I was as elected as the Labour Party's leader to redistribute wealth and power pic.twitter.com/J8F0f4qooO
8.06pm BST
20:06
Corbyn has finished speaking.
He spoke defiantly in front of a rally by the pro-Corbyn organization Momentum in parliament square. He didn’t mention the no-confidence vote he’s facing from the Parliamentary Labour Party.
He left that to his shadow chancellor John McDonnell, who made clear that Corbyn would not be resigning his position, and would be a candidate in any future Labour leadership race.
8.04pm BST
20:04
Corbyn calls for “greater respect in the way we treat each other.”
I do not want to live in a country where there are people sleeping in the streets while the mansions are empty. I do not want to walk away from discussions on human rights ... because to me, human rights are universal, not national.
In the background as Corbyn speaks, Big Ben tolls the hour.
I don’t want to be somebody that says to young people, ‘sorry, you’re not going to have it as good as we did because the nation can’t afford it’ ... and we cascade poverty and debt down the generations.
Or are we going to say that the brilliance of science and engineering must be the opportunity for the redistribution of wealth, and that we develop an economy that excites a whole generation that have been told they can only look forward to a future of debt.
8.00pm BST
20:00
More Corbyn, speaking in the shadow of the Palace of Westminster:
We have a government that is giving tax breaks to the super rich. We have a government that is systematically privatising at least half of our NHS, and if you overlay the map of poverty in Britain, one of those heat maps, and then you overlaid it with where the biggest cuts are taking places, they would be exactly the same, because that is the priority of this govt.
John McDonnell as Shadow Chancellor has called this out and turned out party into an anti austerity party, and I thank John for all the work he’s done.
He thanks Diane Abbott, who is standing beside him, for her work as shadow secretary for international development.
“All these issues have to be linked together to economic inequality,” he says.
It’s the spirit of hope or the spirit of despair. Which are we?
No mention so far of the no-confidence vote among Labour MPs that he’s facing.
7.56pm BST
19:56
Jeremy Corbyn addresses his supporters in Parliament Square
“Friends. Straight after we won the leadership election last year we came to this very same spot to speak up for the rights of refugees to live in our society,” he begins.
And one of the horrible disfigurements of our society is racism, intolerance ... and sadly this has increased in the last few days. Can we agree we are going to unite as one society to oppose racism in any form.
And recognise that the grotesque exploitation of workers on zero hours contracts called out by Dennis Skinner in the house of commons shows that we don’t need the blame culture, we need the unite culture to work for the social justice to which we all aspire.
Here’s a video of the rally:
7.52pm BST
19:52
“We will not allow the democracy of our movement to be undermined by a handful of MPs who refuse to accept Jeremy’s mandate,” McDonnell continues defiantly.
We’re not going anywhere. We’re standing solid in solidarity together to ensure we maintain the democracy of our movement, and to ensure that Jeremy Corbyn remains the leader of the Labour Party.
“Solidarity!” he ends.
7.50pm BST
19:50
Shadow Chancellor John McDonnell addresses the pro-Corbyn rally in Parliament Square.
“Let me make this absolutely clear,” he says. “Jeremy Corbyn was elected only nine months ago with the biggest mandate any political leader has had from the rank and file of their party. The biggest. We call that democracy.”
What we have seen in the last few days is a small number of MPs seeking to undermine the democratic decisions of the labour party members and trade union movement
Let me make it absolutely clear. Jeremy Corbyn is not resigning. He’s staying on.
If there are MPs who disagree with Jeremy and his policies, it is open to them under our constitution to seek another election. But let me make it clear: if there is another election, Jeremy Corbyn will be standing again and I will be supporting him.
7.45pm BST
19:45
The no-confidence vote will be a secret ballot of the Parliamentary Labour Party. They would then have to collect 51 names in support of a leadership challenge.
According to Iain Watson, a BBC political reporter, on Twitter: “Jeremy Corbyn’s spokespeople say he will stay in post until there is a formal challenge and will be a candidate in any leadership contest.”
In Parliament square, where Corbyn is expected to speak imminently, his supporters are chanting “Jez we can”.