Global business news twenty four hours a day at Bloomberg dot com, the radio, plus mobile, LAFT and on your radio. This is a Bloomberg Business flag from Bloomberg World Headquarters, sim Charlie Pellatt. UK voters vote to leave the European Union. Stock selling off around the globe. US stocks bouncing along the bottom right now, SMP five hundred index down seventy two points to two thousand forty one, a drop there of three point four percent. We did see the pound
trading at a thirty year low. We've got the ten uere yield one point five seven percent, Gold surging four point six percent, up fifty eight dollars, the ounce to one crude oil West Texas Intermediate now down five percent, dropping to fifty three apparel to forty seven dollars fifty eight cents. US equities lower across the board, SMP down seventy two at two thousand forty had dropped there of
three point four percent. Nastack is down two oh three now a drop of four point one percent, and Dow Industrials down five ninety three points, a drop of three I'm Charlie Pellett, and that's a Bloomberg Business Flash. You're listening to Taking Stock with pim Box and Kapolna's on Bloomberg Radio. As Britain stuns the world with the vote to leave the European Union, what is next for the European Union. Well, here to help us understand, this is
Marion Harken, European Union parliament member representing Ireland. Thank you very much for being with us. Joining us from Sligo, Ireland. Marian, thank you very much for being here. Tell us a little bit about your reaction to the vote and then what you perceive as the European Union's next move. Well, there was shocked felt in Brussels today. I mean from my own perspective, I was shocked that it actually happened. But at another level I wasn't entirely surprised because to
some extent this was a bustin the establishment. To some extent it was a vote about immigration, and to some extent the English people in particular have been mildly your a skeptic, shall we say, for the last twenty thirty years, and you know, maybe at one level you could have seen it's coming. But having said that, I think even in the UK a lot of people are shocked that it has come to this, and nobody knows the ramifications, nobody knows the what's going to happen next, or where
we're going to go. And as you know, uncertainty won't do do any benefit if you like, to the UK economy, to the EU economy, and of course coming from Ireland, we share a land border, the really the only land border you know with the with the UK, and it's going to have a huge impact on our economy as well. And reports that Northern Ireland is already calling for a border patial, well, there are report it's already that somebody's I think shin Fain are talking about a border poll.
You have heard Nicola Sturgeon in Scotland saying that she's looking at the possibility of having another referendum on Scottish independence because of course Scotland voted overwhelmingly to stay in. Northern Ireland also voted to stay and not overwhelmingly, but it did vote to stay in. And the call now is, you know, we need a border poll because that will give residents in Northern Ireland the opportunity to stay in the EU or to stay as part of the UK.
So you know that there's a whole These are just some of the the ramifications within the United Kingdom itself, but I mean the shockwaves are being felt around the globe. So and also, of course, we we have a sense here that you know, some politicians, shall we say, are already smelling blood as it were, in the sense that they now see this as an opportunity to begin the stay stay aalizing the European Union, and they see this as an opportunity to promote referenda maybe in other countries.
I'm not saying that's going to happen, but I'm saying the UK has unfortunately opened a Pandora's box and none of us know where it's going to go from here. Marion Harkin as a member of the European Union Parliament's Economic and Monetary Affairs Committee, what will the conversation be like when you first gather, Well, I'd say a lot of people will be, you know, wondering what is going to happen next year, seeing what happened to Stirling today,
what's happening in the markets. The uncertainty is is our enemy, as it were. We don't know, for example, when the UK is going to trigger the process that will start their exit. It's supposed to be at most a two year process. They don't seem to be rushing to do this, but already we hear from Brussels Seantage Yunker, who is the President of the Commission and others are saying, you know, we need to get on with this now. You know, the British people have made their decision and we need
to know where we're going. So there is a real sense of unknown territory, nobody expecting to find themselves in this place, and instability as far as markets and that are concerned. I really don't know how things are going to settle down. I don't think anybody does. But I think for me, as an Irish politician, we have serious
concerns about the fact that Britain. We export sixteen percent of all our products to Britain and a very significant part of that is from small indigenous Irish business, so it's going to affect our economy significantly. And also, of course we share a landborder with Northern Ireland. We do
a lot of trades there. So if Britain isn't part of the Single Market, if it's nor in Ireland isn't part of the single market that's going to have a major, major dislocating effect on our economy, which is just crawling out of a whole as it were after the two thousand and seven two thousand and that crash. Well Marian explained to us, then if you could in a little more detail with the laws and regulations are on trade
um among countries. Uh for example, if if if Britain leaves, couldn't Ireland just say okay, fine, we'll make our own little we'll have you know, a biletal trade agreement will have the same kind of rules, the same you know, a manner of restrictions or fewer restrictions. Couldn't couldn't Ireland and the UK just say, you know, we're gonna We're
gonna trade as we always did. No, you can't. If you're a member of the European Union, you are, you have access to the single market, to the five million, but you cannot do a bilateral trade agreement as an individual country if only is with the European Union. And and that's the situation and what we don't know yet it's what the UK will look for because with all of the discussion and the debate that went on nobody ever said what would happen if the UK voted out.
There is the possibility of the type of agreement Norway has, but they won't want that because that will mean number one, they will have to pay a contribution to the EU budget. Number two, they'll have to accept free movement to people, and number three they'll have to comply with the u USE on which they have no vote. Those were some
of the very reasons that they left. So if they don't have that kind of agreement, they could have some other type of free trade association agreement which wouldn't give them full access to services, etcetera. And other than that, then you're looking at just some sort of agreement. Und w t oh did be in the same position as
as China or you know, other countries like that. So the British have to a what they're looking for, what they want, and then the negotiations will begin with the twenty seven other member states and that's where the uncertainty is.
And if you know, I mean David Cameron himself said in an interview with Andrew Marr on the thirteenth of June of this year that he didn't believe that the British would accept the Norway models which allows the access to the Single Market, but at a price that he didn't believe they would accept that, and that probably they
would have come out of the Single Market. So what that means in simple terms is you could be I'm not saying you will be, but you could be looking at the UK having to negotiate free new free trade agreements. And equally, because the EU has negotiated trade agreements with the UK as parts of of the EU, we might also be looking at the same situation. So huge uncertainty as to what the future is as far as trade is concerned. I mean, personally and devastated at what's happened today.
I don't know why it's happened. I do as there are loads of reasons, but you know this is it's bad news. It's bad news for the UK, for Europe, it's bad news for Ireland, and I actually think globally it's not a good situation because it weakens the EU. I mean, who's happy about this? Very few people. Marie Lepenne is happy because she sees this as perhaps a catalyst for her presidential campaign in France and she would like to see France out of the EU. You know,
the greatest peacetime you know, movement if you like. That's what the EU is and and we risk the stabilizing it. And it's the greatest piece project the world has ever known. And and you know we can't risk these stay of aalizing. It's because we know what the history of Europe has been and we don't want the future to be like the past. Marian Harkin, European Union Member of Parliament, just
quickly for financial companies and institutions. What happens to the European Central Bank and the European Union's move to harmonize financial regulations, well, I think that will continue. I mean, Mario Draggy hasn't spoken yet about the situation. We know that Mark Kearney from the the Bank of England has said he do whatever is necessary in print as much money as is necessary. Draggy has said the same thing
about saving the Euro. But because this is such a new situation, because this is a situation that nobody ever envisaged really happening. At the end of the day, we are now an unknown territory and we have to wait to hear what the likes of Draggy will have to say me and Harkin thank you so very much for joint is. She sounds a bit heartper been about this movement, very concerned about what it means for European commerce, European politics, Ireland and the UK in particular. She is a member
of the Ewes parliament Economic and Monetary Affairs Committee. This is Boomberg Radio