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The British vote to leave the European Union is the worst political misstep in Europe since World War II, former Clinton Treasury Secretary Larry Summers said Tuesday.
The EU won"t crumble, but it becomes a "less sound experiment" without the influence of the United Kingdom, he argued.
The fallout of Thursday"s referendum could send Britain into recession, Summers told CNBC"s "Squawk Box," pegging the chances of that at about 50-50.
World central banks have little firepower to throw at potential global economic unrest created by a Brexit, the former Obama administration economic advisor said, calling the current environment the "moment of least capacity" for policymakers to make a difference.
With the European Central Bank in stimulus mode and the U.S. Federal Reserve with only one interest rate hike since 2006 under its belt, Summers said there"s not much room to ease monetary policy further if necessary.
The British pound is down in the water on Brexit, but billionaire investor Wilbur Ross sees a buying opportunity. "I bought some pounds on Friday," he told CNBC. "I may very well buy some more pounds today."
George Soros, the billionaire who famously bet against the pound in 1992, did not speculate against sterling just ahead of Britain"s vote to leave the European Union but he did profit from other bearish bets due to the Brexit result. (Reuters)
The British Parliament meets today for the first time since the Brexit vote. But no clear candidate has emerged to replace Prime Minister David Cameron, who announced he"ll resign by October following the referendum result. (USA Today)
U.K. Chancellor George Osborne waited nearly four days to issue a Brexit statement. The finance minister said today the vote did not go the way he had hoped, but Britain is ready to face the challenges ahead. Osborne expects market volatility to continue. (CNBC)
U.S. Treasury Secretary Jack Lew joins CNBC"s "Squawk Box" at 8 a.m. ET this morning to talk about the Brexit vote and what he sees as the fallout.
Hillary Clinton said America "will bounce back from this" economically. Clinton also knocked the Brexit response of her GOP rival Donald Trump without mentioning him by name. Two new polls showed Clinton widening her lead. (CNBC)
Amid VP speculation, the presumptive Democratic presidential nominee Clinton will be joined in Cincinnati today by champion of the far left, Massachusetts Sen. Elizabeth Warren. It"s their first joint event. (AP)
After a flurry of decisions last week, the Supreme Court is set to close out its current term today with opinions concerning the regulation of Texas abortion clinics and federal law seeking to keep guns away from people convicted of domestic violence. (AP)
Facebook (FB) and Alphabet"s Google (GOOGL) unit are using automation to remove extremist content from their sites. The move is a major step forward for internet companies eager to eradicate violent propaganda from their sites. (Reuters)
Intel (INTC) is mulling the sale of its cyber security business, which was previously known as McAfee. Intel bought McAfee for $7.7 billion in 2011. Intel has been restructuring, announced plans earlier this year to cut 12,000 jobs. (FT)
It"s time for financial markets across the globe to eat a big slice of humble pie, Jim Grant said Friday after the shocking result from the United Kingdom referendum on European Union membership.
"It"s a great day for humility," Grant, the founder and editor of Grant"s Interest Rate Observer, told CNBC"s "Squawk Box."
Financial markets across the globe tumbled after the U.K. voted in favor of leaving the EU, a decision markets were not expecting. Ahead of the vote, several polls and bookmakers showed support leaning toward the remain camp.
On Friday, U.S. stock futures implied a lower open of more 2.5 percent, while major European indexes shed more than 4 to 8 percent.
