Scotland Rejects Independence as U.K. Wins Reprieve.

http://www.bloomberg.com/news/2014-09-19/scotland-rejects-independence-as-u-k-wins-reprieve.html

Scotland voted to stay in the U.K. in a referendum on independence, stepping back from a breakup of the 307-year-old union while wringing promises of more financial power from Prime MinisterDavid Cameron.

After a count through the night, 55.3 percent of Scottish voters supported the “no” campaign against 44.7 percent who backed independence. The pound surged overnight as the Better Together campaign posted a wider margin of victory than suggested in opinion polls, before falling back. There was a record turnout of more than 90 percent in some of the 32 regions.

The Scottish Independence Vote: Breakdown of Results

“I accept the verdict” of the people, Alex Salmond, the leader of Scotland’s semi-autonomous government in Edinburgh, said in a speech. While conceding defeat, he stressed the broad movement that resulted in 1.6 million votes for independence. “The unionist parties made vows and Scotland will expect them to be delivered in rapid course,” he said.

The referendum outcome follows two years of increasingly bitter arguments over the economic viability of independence, the currency to be used, custody of the health service and North Sea oil revenue, leaving a legacy of a divided Scotland while inspiring self-determination movements across Europe.

The pound gained as much as 0.8 percent to $1.6525 overnight in London after rising 0.7 percent yesterday. It fell back to $1.6383 at 10:17 a.m., down 0.1 percent. The FTSE 100 Index added 0.8 percent. The benchmark 10-year U.K. government bond yield was little changed at 2.58 percent. It climbed as high as 2.61 percent, the highest level since Aug. 1. The two-year gilt yield rose 4 basis points to 0.91 percent as investors bet the decision to reject independence clears the way for the Bank of England to raise interest rates as early as the spring.

The pound is set for its biggest two-day advance versus the dollar since February as 55 percent of Scottish voters supported the “no” campaign, compared with 45 percent backing independence.