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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the radio, plus mobile, LAFT and on your radio.

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Speaker 1: This is a Bloomberg Business flag from Bloomberg World Headquarters,

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Speaker 1: sim Charlie Pellatt. UK voters vote to leave the European Union.

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Speaker 1: Stock selling off around the globe. US stocks bouncing along

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Speaker 1: the bottom right now, SMP five hundred index down seventy

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Speaker 1: two points to two thousand forty one, a drop there

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Speaker 1: of three point four percent. We did see the pound

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Speaker 1: trading at a thirty year low. We've got the ten

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Speaker 1: uere yield one point five seven percent, Gold surging four

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Speaker 1: point six percent, up fifty eight dollars, the ounce to

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Speaker 1: one crude oil West Texas Intermediate now down five percent,

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Speaker 1: dropping to fifty three apparel to forty seven dollars fifty

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Speaker 1: eight cents. US equities lower across the board, SMP down

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Speaker 1: seventy two at two thousand forty had dropped there of

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Speaker 1: three point four percent. Nastack is down two oh three

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Speaker 1: now a drop of four point one percent, and Dow

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Speaker 1: Industrials down five ninety three points, a drop of three

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Speaker 1: I'm Charlie Pellett, and that's a Bloomberg Business Flash. You're

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Speaker 1: listening to Taking Stock with pim Box and Kapolna's on

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Speaker 1: Bloomberg Radio. As Britain stuns the world with the vote

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Speaker 1: to leave the European Union, what is next for the

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Speaker 1: European Union. Well, here to help us understand, this is

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Speaker 1: Marion Harken, European Union parliament member representing Ireland. Thank you

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Speaker 1: very much for being with us. Joining us from Sligo, Ireland. Marian,

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Speaker 1: thank you very much for being here. Tell us a

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Speaker 1: little bit about your reaction to the vote and then

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Speaker 1: what you perceive as the European Union's next move. Well,

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Speaker 1: there was shocked felt in Brussels today. I mean from

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Speaker 1: my own perspective, I was shocked that it actually happened.

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Speaker 1: But at another level I wasn't entirely surprised because to

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Speaker 1: some extent this was a bustin the establishment. To some

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Speaker 1: extent it was a vote about immigration, and to some

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Speaker 1: extent the English people in particular have been mildly your

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Speaker 1: a skeptic, shall we say, for the last twenty thirty years,

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Speaker 1: and you know, maybe at one level you could have

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Speaker 1: seen it's coming. But having said that, I think even

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Speaker 1: in the UK a lot of people are shocked that

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Speaker 1: it has come to this, and nobody knows the ramifications,

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Speaker 1: nobody knows the what's going to happen next, or where

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Speaker 1: we're going to go. And as you know, uncertainty won't

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Speaker 1: do do any benefit if you like, to the UK economy,

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Speaker 1: to the EU economy, and of course coming from Ireland,

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Speaker 1: we share a land border, the really the only land

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Speaker 1: border you know with the with the UK, and it's

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Speaker 1: going to have a huge impact on our economy as well.

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Speaker 1: And reports that Northern Ireland is already calling for a

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Speaker 1: border patial, well, there are report it's already that somebody's

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Speaker 1: I think shin Fain are talking about a border poll.

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Speaker 1: You have heard Nicola Sturgeon in Scotland saying that she's

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Speaker 1: looking at the possibility of having another referendum on Scottish

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Speaker 1: independence because of course Scotland voted overwhelmingly to stay in.

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Speaker 1: Northern Ireland also voted to stay and not overwhelmingly, but

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Speaker 1: it did vote to stay in. And the call now is,

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Speaker 1: you know, we need a border poll because that will

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Speaker 1: give residents in Northern Ireland the opportunity to stay in

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Speaker 1: the EU or to stay as part of the UK.

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Speaker 1: So you know that there's a whole These are just

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Speaker 1: some of the the ramifications within the United Kingdom itself,

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Speaker 1: but I mean the shockwaves are being felt around the globe.

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Speaker 1: So and also, of course, we we have a sense

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Speaker 1: here that you know, some politicians, shall we say, are

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Speaker 1: already smelling blood as it were, in the sense that

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Speaker 1: they now see this as an opportunity to begin the

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Speaker 1: stay stay aalizing the European Union, and they see this

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Speaker 1: as an opportunity to promote referenda maybe in other countries.

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Speaker 1: I'm not saying that's going to happen, but I'm saying

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Speaker 1: the UK has unfortunately opened a Pandora's box and none

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Speaker 1: of us know where it's going to go from here.

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Speaker 1: Marion Harkin as a member of the European Union Parliament's

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Speaker 1: Economic and Monetary Affairs Committee, what will the conversation be

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Speaker 1: like when you first gather, Well, I'd say a lot

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Speaker 1: of people will be, you know, wondering what is going

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Speaker 1: to happen next year, seeing what happened to Stirling today,

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Speaker 1: what's happening in the markets. The uncertainty is is our enemy,

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Speaker 1: as it were. We don't know, for example, when the

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Speaker 1: UK is going to trigger the process that will start

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Speaker 1: their exit. It's supposed to be at most a two

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Speaker 1: year process. They don't seem to be rushing to do this,

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Speaker 1: but already we hear from Brussels Seantage Yunker, who is

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Speaker 1: the President of the Commission and others are saying, you know,

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Speaker 1: we need to get on with this now. You know,

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Speaker 1: the British people have made their decision and we need

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Speaker 1: to know where we're going. So there is a real

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Speaker 1: sense of unknown territory, nobody expecting to find themselves in

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Speaker 1: this place, and instability as far as markets and that

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Speaker 1: are concerned. I really don't know how things are going

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Speaker 1: to settle down. I don't think anybody does. But I

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Speaker 1: think for me, as an Irish politician, we have serious

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Speaker 1: concerns about the fact that Britain. We export sixteen percent

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Speaker 1: of all our products to Britain and a very significant

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Speaker 1: part of that is from small indigenous Irish business, so

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Speaker 1: it's going to affect our economy significantly. And also, of

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Speaker 1: course we share a landborder with Northern Ireland. We do

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Speaker 1: a lot of trades there. So if Britain isn't part

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Speaker 1: of the Single Market, if it's nor in Ireland isn't

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Speaker 1: part of the single market that's going to have a major,

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Speaker 1: major dislocating effect on our economy, which is just crawling

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Speaker 1: out of a whole as it were after the two

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Speaker 1: thousand and seven two thousand and that crash. Well Marian

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Speaker 1: explained to us, then if you could in a little

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Speaker 1: more detail with the laws and regulations are on trade

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Speaker 1: um among countries. Uh for example, if if if Britain leaves,

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Speaker 1: couldn't Ireland just say okay, fine, we'll make our own

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Speaker 1: little we'll have you know, a biletal trade agreement will

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Speaker 1: have the same kind of rules, the same you know,

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Speaker 1: a manner of restrictions or fewer restrictions. Couldn't couldn't Ireland

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Speaker 1: and the UK just say, you know, we're gonna We're

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Speaker 1: gonna trade as we always did. No, you can't. If

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Speaker 1: you're a member of the European Union, you are, you

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Speaker 1: have access to the single market, to the five million,

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Speaker 1: but you cannot do a bilateral trade agreement as an

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Speaker 1: individual country if only is with the European Union. And

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Speaker 1: and that's the situation and what we don't know yet

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Speaker 1: it's what the UK will look for because with all

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Speaker 1: of the discussion and the debate that went on nobody

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Speaker 1: ever said what would happen if the UK voted out.

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Speaker 1: There is the possibility of the type of agreement Norway has,

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Speaker 1: but they won't want that because that will mean number one,

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Speaker 1: they will have to pay a contribution to the EU budget.

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Speaker 1: Number two, they'll have to accept free movement to people,

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Speaker 1: and number three they'll have to comply with the u

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Speaker 1: USE on which they have no vote. Those were some

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Speaker 1: of the very reasons that they left. So if they

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Speaker 1: don't have that kind of agreement, they could have some

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Speaker 1: other type of free trade association agreement which wouldn't give

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Speaker 1: them full access to services, etcetera. And other than that,

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Speaker 1: then you're looking at just some sort of agreement. Und

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Speaker 1: w t oh did be in the same position as

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Speaker 1: as China or you know, other countries like that. So

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Speaker 1: the British have to a what they're looking for, what

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Speaker 1: they want, and then the negotiations will begin with the

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Speaker 1: twenty seven other member states and that's where the uncertainty is.

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Speaker 1: And if you know, I mean David Cameron himself said

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Speaker 1: in an interview with Andrew Marr on the thirteenth of

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Speaker 1: June of this year that he didn't believe that the

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Speaker 1: British would accept the Norway models which allows the access

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Speaker 1: to the Single Market, but at a price that he

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Speaker 1: didn't believe they would accept that, and that probably they

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Speaker 1: would have come out of the Single Market. So what

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Speaker 1: that means in simple terms is you could be I'm

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Speaker 1: not saying you will be, but you could be looking

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Speaker 1: at the UK having to negotiate free new free trade agreements.

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Speaker 1: And equally, because the EU has negotiated trade agreements with

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Speaker 1: the UK as parts of of the EU, we might

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Speaker 1: also be looking at the same situation. So huge uncertainty

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Speaker 1: as to what the future is as far as trade

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Speaker 1: is concerned. I mean, personally and devastated at what's happened today.

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Speaker 1: I don't know why it's happened. I do as there

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Speaker 1: are loads of reasons, but you know this is it's

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Speaker 1: bad news. It's bad news for the UK, for Europe,

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Speaker 1: it's bad news for Ireland, and I actually think globally

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Speaker 1: it's not a good situation because it weakens the EU.

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Speaker 1: I mean, who's happy about this? Very few people. Marie

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Speaker 1: Lepenne is happy because she sees this as perhaps a

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Speaker 1: catalyst for her presidential campaign in France and she would

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Speaker 1: like to see France out of the EU. You know,

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Speaker 1: the greatest peacetime you know, movement if you like. That's

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Speaker 1: what the EU is and and we risk the stabilizing it.

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Speaker 1: And it's the greatest piece project the world has ever known.

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Speaker 1: And and you know we can't risk these stay of aalizing.

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Speaker 1: It's because we know what the history of Europe has

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Speaker 1: been and we don't want the future to be like

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Speaker 1: the past. Marian Harkin, European Union Member of Parliament, just

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Speaker 1: quickly for financial companies and institutions. What happens to the

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Speaker 1: European Central Bank and the European Union's move to harmonize

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Speaker 1: financial regulations, well, I think that will continue. I mean,

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Speaker 1: Mario Draggy hasn't spoken yet about the situation. We know

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Speaker 1: that Mark Kearney from the the Bank of England has

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Speaker 1: said he do whatever is necessary in print as much

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Speaker 1: money as is necessary. Draggy has said the same thing

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Speaker 1: about saving the Euro. But because this is such a

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Speaker 1: new situation, because this is a situation that nobody ever

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Speaker 1: envisaged really happening. At the end of the day, we

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Speaker 1: are now an unknown territory and we have to wait

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Speaker 1: to hear what the likes of Draggy will have to

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Speaker 1: say me and Harkin thank you so very much for

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Speaker 1: joint is. She sounds a bit heartper been about this movement,

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Speaker 1: very concerned about what it means for European commerce, European politics,

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Speaker 1: Ireland and the UK in particular. She is a member

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Speaker 1: of the Ewes parliament Economic and Monetary Affairs Committee. This

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Speaker 1: is Boomberg Radio