Closing summary: Corbyn resists resignation calls, while Johnson sets out stall
•Eleven members of Jeremy Corbyn’s shadow cabinet resigned, following the sacking of Hilary Benn, who was accused of plotting a coup. Corbyn, however, received the backing of loyalists Diane Abbott and John McDonnell, as well as trade union bosses.
Despite coming under serious the pressure to quit, Corbyn was bullish; insisting he would remain Labour leader and challenging his detractors to stand against him in an election. There were conflicting claims about whether or not Corbyn would need to secure support within the parliamentary Labour party in order for his name to appear on the ballot paper, however.
•Boris Johnson set out his Brexit vision and tried to paint himself as the next leader of the Conservative party. Despite strong suggestions to the contrary by some of his leave colleagues, he claimed Britain could keep access to the European single market and limit freedom of movement after Brexit.
•The chancellor George Osborne announced he would make a speech in the morning in a bid to calm the markets as it emerged that pound had fallen in early Asian trading on Monday.
•The Scottish first minister Nicola Sturgeon said the country could try to block Brexit by withholding the necessary legislative consent.
Updated
The pound fell in early Asian trading on Monday as confusion over Britain’s course after the Brexit vote continued.
Sterling was quoted at $1.3440 after shedding more than 8% on Friday to stand at $1.3662 late in New York. The pound also slipped on the safe-haven yen to 137.16 yen from around 139.64, Reuters reported.
Updated
The Pope has warned against the “Balkanisation” of Europe in the wake of Britain’s vote to leave the EU and urged the bloc to chart a new way forward by giving member states greater freedoms, Agence France-Presse reports.
“We have to come up with a new kind of union,” the pontiff told reporters as the EU grappled with the unprecedented task of having to negotiate a divorce from a member state.
“There is something that’s not working in this massive, heavy union. But let’s not throw the baby out with the bath water,” Francis said.
He warned that places such as Scotland and the Spanish region of Catalonia could push for “secession” following the seismic Brexit vote, which he said could lead to “the Balkanisation” of Europe.
And the Pope said the EU could recover its strength by being open to “creativity and healthy disunity.... That is to say, to give more independence, more freedom to countries in the European Union”.
Updated
The EU is preparing to move its European Banking Authority from London following Britain’s vote to leave, Reuters reports - citing EU officials. It sets up a race led by Paris and Frankfurt to host the regulator.
Updated
The head of the IMF, Christine Lagarde says the financial markets “vastly underestimated” the outcome of the EU membership referendum but insisted there “was no panic”, adding that central bankers “did their jobs” and that the market situation was “under control”.
Lagarde added that policymakers would need to work in a cohesive, positive way to deal with the aftermath of Brexit, Reuters reported.
Updated
Eurozone crisis expert Yannis Koutsomitis critiques the vision Johnson sets out:
Boris Johnson sets out Tory leadership stall
Boris Johnson, who is widely tipped to stand for the leadership of the Conservative party, has broken cover for the first time since the referendum results were announced.
He has set out how he sees Britain navigating the Brexit process and given an indication of how he would run the Conservative party, should he win its leadership.
Despite strong indications from senior leave figures that freedom of movement would be likely to stay in a renegotiated deal with the EU, Johnson claimed Britain would be able to introduce a points-based immigration system while maintaining “access” to the single market.
And, despite some of his Brexit colleagues admitting that there would not be an extra £350m to spend on the NHS as a result of Britain leaving the bloc, he insisted there would be a “substantial sum of money which we will no longer send to Brussels, but which could be used on priorities such as the NHS”.
In his weekly Telegraph column, Johnson said Brexit would “not come in any great rush” and dismissed Nicola Sturgeon’s calls for a second Scottish independence referendum, insisting he did not “detect any real appetite” for one.
And Johnson signalled how he may cast himself in the Tory leadership election, saying: “We must pursue actively the one-nation policies that are among David Cameron’s fine legacy, such as his campaigns on the living wage and life chances.”
There were more than 16 million who wanted to remain.
They are our neighbours, brothers and sisters who did what they passionately believe was right. In a democracy majorities may decide but everyone is of equal value.
We who are part of this narrow majority must do everything we can to reassure the remainers.
We must reach out, we must heal, we must build bridges - because it is clear that some have feelings of dismay, and of loss, and confusion.
Johnson expanded on his vision of post-Brexit Britain, writing:
I cannot stress too much that Britain is part of Europe, and always will be.
There will still be intense and intensifying European cooperation and partnership in a huge number of fields: the arts, the sciences, the universities, and on improving the environment.
EU citizens living in this country will have their rights fully protected, and the same goes for British citizens living in the EU.
British people will still be able to go and work in the EU; to live; to travel; to study; to buy homes and to settle down. As the German equivalent of the CBI - the BDI - has very sensibly reminded us, there will continue to be free trade, and access to the single market.
And he added:
The only change - and it will not come in any great rush - is that the UK will extricate itself from the EU’s extraordinary and opaque system of legislation: the vast and growing corpus of law enacted by a European court of justice from which there can be no appeal.
This will bring not threats, but golden opportunities for this country - to pass laws and set taxes according to the needs of the UK.
Yes, the government will be able to take back democratic control of immigration policy, with a balanced and humane points-based system to suit the needs of business and industry.
Updated
Jill Treanor
Bloomberg is reporting that Sterling dropped 1.3% to $1.3509 at 4:06am in Tokyo on Monday in a continuation of the slide from Friday.
The chancellor’s whereabouts since the referendum was the subject of much conversation earlier in the evening.
It’s emerged that he will make an early morning statement aimed at trying to reassure financial markets tomorrow.
In a speech to be delivered before the markets open, he will set out how the government intends to “protect the national interest”, following the referendum result. A Treasury spokesman has said:
The chancellor will make a statement to provide reassurance about financial and economic stability in light of the referendum result and the actions that he and the rest of the government will be taking to protect the national interest over the coming period.
Defiant Corbyn refuses to stand down
The Labour leader Jeremy Corbyn has released a statement insisting he will not resign amid a host of resignations from his shadow cabinet. He vows to appoint a new shadow cabinet and challenges those opposed to his leadership to stand against him in an election.
Our country faces a huge challenge following Thursday’s vote to leave the European Union. And the British people have a right to know how their elected leaders are going to respond.
We need to come together to heal the divisions exposed by the vote. We have to respect the decision that has been made, hold the government to democratic account over its response, and ensure that working people don’t pay the price of exit.
Neither wing of the Tory government has an exit plan. Labour will now ensure that our reform agenda is at the heart of the negotiations that lie ahead. That includes the freedom to shape our economy for the future and the necessity of protecting social and employment rights.
One clear message from last Thursday’s vote is that millions of people feel shut out of a political and economic system that has let them down and scarred our country with grotesque levels of inequality.
I was elected by hundreds of thousands of Labour party members and supporters with an overwhelming mandate for a different kind of politics.
I regret there have been resignations today from my shadow cabinet. But I am not going to betray the trust of those who voted for me – or the millions of supporters across the country who need Labour to represent them.
Those who want to change Labour’s leadership will have to stand in a democratic election, in which I will be a candidate.
Over the next 24 hours, I will reshape my shadow cabinet and announce a new leadership team to take forward Labour’s campaign for a fairer Britain - and to get the best deal with Europe for our people.
Updated
Bryant says he didn’t really back Corbyn but, since he was elected as leader, he thought it was his duty to “make a go of it” but “last week changed everything”.
He says Corbyn failed to get a clear pro-remain message across during the referendum campaign. “If you refuse to step aside, I fear you will go down in history as the man who broke the Labour party.”
Updated