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George Osborne: 'Britain is ready to confront what the future holds'

George Osborne has been seeking to reassure financial markets this morning following Britain's decision to leave the EU.

In a speech at The Treasury, the Chancellor said Britain is "ready to confront what the future holds for us from a position of strength" in his first public reaction to Brexit.

He also told journalists that any decision on an emergency budget would need to be taken by David Cameron's successor.

The UK's credit rating outlook was downgraded from "stable" to "negative" on Saturday in the wake of the referendum.

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Brexit 'might cost City its EU passport', bank boss warns

The City of London financial centre is at risk of losing its vital 'EU passport' after Britain voted to leave the EU, a European Central Bank boss has warned.

Francois Villeroy de Galhau, ECB council member Credit: Reuters

The 'passport' is relied upon by many London-based banks as it allows them to operate across the bloc without restrictions.

Speaking to France Inter radio, ECB Governing Council member Francois Villeroy de Galhau said if Britain chooses to leave the EU's single trade market then the City will not be able to keep that privilege.

"There is a precedent, it is the Norwegian model of European Economic Area, that would allow Britain to keep access to the single market but by committing to implement all EU rules," he added.

"It would be a bit paradoxical to leave the EU and apply all EU rules but that is one solution if Britain wants to keep access to the single market."

Brexit talks should be conducted as soon as possible to avoid uncertainties, he said.

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