What you need to know on Wall Street right now

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Welcome to the ‘Brangover.’

Markets are still digesting the news out late last week that the UK voted to leave the European Union. As was the case on Friday, stocks are sliding, the British pound is tumbling, and gold is rallying.

It seems clear that the decision will change global finance in a fundamental way.

The decision will have an outsized impact on investment bank earnings, and it spells bad news for dealmakers. As a case in point, Britain’s government has scrapped plans to sell stakes in RBS and Lloyds Banking Group this year.

World leaders and economic experts have said Brexit is ‘as significant as post-9/11.’ In the UK, analysts are throwing around words like
“recession,” “contagion,” and “stagflation.” S&P has cut the UK’s credit rating.

Of course, Britain is getting
exactly what it voted for.

It’s not all bad for Wall Street. A select group of hedge funds made some serious money on Brexit.

Legendary investor George Soros was one of them, though he didn’t bet against sterling this time around.

Here’s the best of the rest in Wall Street headlines today:

We’re all in a Brexit market now Cross-asset correlations have skyrocketed.

China’s reaction to Brexit has already put the entire world at risk — The entire world is hysterical about Brexit, the UK’s decision to leave the European Union last week.

A former Fed president says Brexit proves the Fed should cut rates Narayana Kocherlakota thinks the Fed is going the wrong way and Brexit proves it.

Don’t panic — the Brexit shock is not as bad as it looks John Stoltzfus at Oppenheimer has pointed out, however, that the wild response on Wall Street wasn’t exactly monumental when taken in context.

Here’s how to trade a geopolitical shock Geopolitical events tend to make traders and investors nervous, which then sometimes leads to volatility in financial markets.

A Brexit is terrible news for airlines — Airlines serving the United Kingdom will not come out on top.

Hillary Clinton is campaigning with Elizabeth Warren for the first time Democratic presidential candidate Hillary Clinton will campaign for the first time with populist US Senator Elizabeth Warren in Ohio on Monday in an early move to neutralise Republican Donald Trump’s appeal in the bellwether state.

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