U.S. companies do stand to lose from Britain's divorce from the EU, a process expected to take two years to negotiate. Fed Chair Janet Yellen is scheduled to speak at an event in Portugal on Wednesday and investors will want to know how she sees the so-called Brexit changing the outlook for the U.S. economy and interest rates.
By Sam Forgione NEW YORK (Reuters) - Sterling edged off lows against the U.S. dollar on Friday, recovering slightly from a 10 percent plunge to its weakest in 31 years following Britain's vote to leave the European Union, on reassuring statements from central banks. Sterling was last down 8.1 percent against the dollar, at $1.3662, after touching its weakest since before the 1985 Plaza Accord of $1.3228. Traders said Bank of England chief Mark Carney's comments that the central bank stood ready to provide extra support helped sterling recover.
By David Milliken LONDON (Reuters) - Ratings agency Moody's said Britain's creditworthiness was now at greater risk after voting to leave the European Union, as the country would face substantial challenges to successfully negotiate its exit from the bloc. Moody's assigned a negative outlook to its 'Aa1' rating for British government debt after a Thursday referendum showed that a clear majority of Britons wanted to leave the EU, prompting Prime Minister David Cameron to announce he would resign. Britain's finance ministry and central bank had warned voters the country would face a major economic hit if it left the EU after more than 40 years as a member, and sterling on Friday fell to its lowest against the dollar since 1985.
Britain's representative on the EU executive in Brussels, Financial Services Commissioner Jonathan Hill, resigned on Saturday after having campaigned against a British exit from the European Union. "I don't believe it is right that I should carry on as the British commissioner as though nothing had happened," Hill said in a statement a day after British voters backed Brexit in a referendum called by Prime Minister David Cameron. European Commission President Jean-Claude Juncker said he had accepted Hill's decision with regret after failing to convince him to stay on.
By Joseph Menn and Dustin Volz SAN FRANCISCO/WASHINGTON (Reuters) - Some of the web?s biggest destinations for watching videos have quietly started using automation to remove extremist content from their sites, according to two people familiar with the process. The move is a major step forward for internet companies that are eager to eradicate violent propaganda from their sites and are under pressure to do so from governments around the world as attacks by extremists proliferate, from Syria to Belgium and the United States. YouTube and Facebook are among the sites deploying systems to block or rapidly take down Islamic State videos and other similar material, the sources said.
U.S. financial regulators on Friday said the country's financial system is functioning in an "orderly manner" after Britain voted to leave the European Union and sent markets around the globe reeling. The Financial Stability Oversight Council - which includes the heads of the U.S. Treasury, Securities and Exchange Commission and Federal Reserve - "noted that the U.S. financial system continues to function in an orderly manner, and that the Council will continue to monitor ongoing developments," according to a summary released after a telephone call.
Britain's vote to leave the European Union shocked pundits, investors and politicians alike, underscoring the inherent difficulty of forecasting such rare events. On PredictIt, an online political events betting site operated by Victoria University in Wellington, New Zealand and U.S.-based partners, bettors had the probability of a ?leave? camp win at just 16 percent on Thursday as British polls closed. The dramatic reversal caught many investors flat footed and showed how they have trouble hedging against such shocks even with the help of such tools as exchange-traded funds or computer algorithms designed to capture an electorate's social media vibe, economists, pollsters and fund managers said on Friday.
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