Brexit: Cameron resigns; sees new PM by October as markets nosedive

UK Prime Minister David Cameron resigned on Friday, saying he expected to see a replacement by October after Britain voted 52% to 48% to leave the European Union as £200bn was wiped off the value of shares and the pound nosedived.

"I would reassure those markets and investors that Britain's markets are fundamentally strong," he said outside Downing Street.

Cameron, who has been prime minister for six years and was planning to step down by 2020 in any case, said the "country requires fresh leadership to take it in this direction".

"There is no need to have a precise timetable today, but in my view we should have a new prime minister in place in time for the Conservative Party conference in October," he said.

"A negotiation with the EU will need to begin under a new prime minister, and I think it's right that this new prime minister takes the decision about when to invoke Article 50", the mechanism to trigger an exit from the EU.

Having campaigned for Britain to remain within the 28 nation bloc, Cameron's position was always going to be untenable, along with that of his Chancellor of the Exchequer George Osborne who supported him.

A Cabinet reshuffle is inevitable as senior Leave politicians and potential leadership contenders such as Michael Gove and Boris Johnson flex their muscle to demand a seat at any exit negotiations making Cameron effectively a lame duck leader.

Johnson, who has been eyeing up a run at the leadership for years, said there was no rush to begin exit proceedings, but European Commission President Jean Claude Juncker said the process needed to happen “as soon as possible, however painful that process might be”.

The political ramifications within the UK could be immense. Scotland First Minister Nicola Sturgeon said a second independence referendum was now "on the table" the country voted unanimously to remain.

Northern Ireland, a major beneficiary of EU funds, should consider a vote on reunification with Ireland, said Deputy First Minister Martin McGuinness.

Plaid Cymru leader Leanne Wood said it was a "dark and uncertain morning" for Wales, which voted overwhelmingly to Leave and expressed concern over future funding for the devolved nation.

“The top priority now must be to secure political and economic stability for Wales and the rest of the United Kingdom," she said.

“With Scotland voting to remain and a second independence referendum now on the cards, it is clear that the UK cannot continue in its current form. Wales, its economy and its communities will soon be at the full mercy of the Westminster elite and robust action must be taken to mitigate the impact of this."

“All the promises made by the eave campaign, with regards to safeguarding grants and financial support for Wales and our NHS must now be fully honoured, not only up to 2020 under current EU programmes, but beyond that into the future.

European Parliament Martin Schulz rejected the idea that a Brexit will trigger a domino effect across Europe.

"We respect the the way Great Britain has decided to go. David Cameron has put a great responsibility on his shoulders. We now have to negotiate seriously with Great Britain. It will be treated as a 'third country',” he told German television.

UK Liberal Democrat leader Tim Farron lashed out at opposition Labour leader, and long time eurosceptic, Jeremy Corbyn over his less-than-enthusiastic support for his party's pro-European stance.

"I absolutely accuse Jeremy Corbyn and the Labour leadership for a lot of spinelessness. He has let the country down massively," he told BBC. A motion of no-confidence was tabled by a group of rebel MPs to be considered at the party's next parliamentary meeting.

Corbyn infuriated the party when he called for Article 50, the EU's legal trigger for any country to leave, to be invoked immediately. "We must get the best deal possible," he told the BBC.

The result reflected voters anger at "levels of inequality" across the UK, he added.

"David Cameron's immediate job is to stabilise the pound (and) have a plan in order to negotiate with the European Union," he said, adding that the trading relationship with Europe meant "many jobs are dependent on that and of course they have to be protected".

"The decision must be respected that decision must be embraced," he told the BBC.

Trades Union Congress general secretary Frances O'Grady said the first priority was now is to “protect jobs and defend the living standards of working people”.

“The government must urgently set out a plan to defend UK industry and keep British jobs. That means defending the pound and stimulating the economy. Working people must not pay the price for the decision to leave the EU,” she added.