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Leave Set to Win UK's EU Referendum. Aired 2-3a ET

Aired June 24, 2016 - 02:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(COMMERCIAL BREAK)

RICHARD QUEST, CNN INTERNATIONAL HOST: A very good morning to you. Good day, wherever you are watching, whether it's in Europe or in the United States. And a warm welcome.

What a night it has been. An historic morning for British and European politics, as a nation wakes up to the news it has voted, for the first time ever, a nation has voted to leave the European Union. I'm Richard Quest.

HALA GORANI, CNN INTERNATIONAL HOST: I'm Hala Gorani. It is the morning after the night before. We are here to bring you the final results as we get them and all of the reaction from both Westminster and the world. And we've been hearing from the foreign ministers of Germany, of France.

But first, the people of Britain, they have spoken clearly, and with over 90 percent of districts now reporting, the leave campaign is more than one million votes ahead. You see it on the map there, a sea of red in England.

QUEST: There are two results that we were waiting for. The one that's just come in is Basing -- ah, the last result has now come in! Forgive me. The last result has now come in. Basingstoke and Deane have come in for leave. Cornwall has just come in again for leave, both with majorities, not huge majorities, 51-48, 56-43.

But that now mean all of the results are in Britain's E.U. referendum. 382 counting areas have now declared. You see the picture on your screen, a total of 33.5 million votes cast out of an electorate of 46.5 million.

GORANI: So it looks like the final percentage will be 51.89. I mean, that might shift a bit but not by much. But under 52 percent and little over 48 percent for remain. So clearly, the leaves have it with -- and it's not as close as it could have been. In a clear way, the leaves have it.

The Bank of England, by the way, coming out.

QUEST: Yes, do forgive me if I'm looking away. I'm not sort of tweeting or sending texts. I'm actually just looking at the latest news. The Bank of England has put out a statement. It says, "The bank is monitoring developments closely. It has undertaken extensive contingency planning and is working with Her Majesty's treasury and other domestic authorities and overseas central banks. The Bank of England will take all necessary steps to meet its responsibilities for monetary and financial stability," it says.

Also, which is key, as the markets open in just one hour from now, the pound, Hala. Would you remind us where the pound has been?

GORANI: Yes, absolutely. So the pound has bounced back slightly. We're under $1.37, 1.3654, so by my calculation, that's down a little under 10 percent. But we were close to $1.33 and change, weren't we?

QUEST: Yes, and I think that we might be seeing the pound bouncing back for a few soothing words from the Bank of England. But frankly, it's going to take more than the odd word from the bank. That goes down just a bit.

GORANI: By the way, before we get to Freddie, Poland, Britain's vote to leave the European Union is bad news for Europe and for Poland. The foreign minister of Poland is saying this, "It is bad news for Europe. A great dilemma for the Eurocrats. We all want to keep the E.U. The question is in what shape." Freddie?

QUEST: As always, give us the overview, but I may interrupt you, because we're expecting the national result any moment. But you carry on.

SAYERS: With those messages coming in from Europe, I think it just reinforces what a global event this is.

GORANI: Yes.

SAYERS: You know, the shocks and the effects of it will be felt throughout the world, because actually, the trends that underlie this vote are present in all sorts of countries. Certainly, throughout the West.

GORANI: Yes.

SAYERS: And with the presidential election coming up in the United States, you can be sure that people will be looking at this to see what lessons can be learned for that forthcoming campaign. It's a global event.

GORANI: All right, and we're seeing -- but we're seeing from France, as well. We were discussing the foreign minister's statement. I think there is a realization right now that something needs to change in order to prevent a scenario in which other countries will also demand their own exit referendum.

SAYERS: Throughout this campaign, the Brexit side were painting the powers that be in Brussels as out of touch bureaucrats, elite, who did not care for the will of the people and would just plow on regardless of what anyone says. They need to be very careful not to fulfill that stereotype to stop this spreading to other European countries.

QUEST: But the Americans have a lovely phrase, don't they? A day late and a dollar short. All these words -- you know, I mean, Juncker said earlier in the week -- Jean-Claude Juncker, the president of the commission, out means out.

Now, although Tusk said Europe needs to rethink itself, everybody coming out of the woodwork now, saying, oh, dear, we've all got to rethink the whole European project. It's a bit late.

SAYERS: Absolutely. I mean, right back to the time where the Prime Minister, David Cameron, was attempting to renegotiate our terms. Let's not forget that the idea of this referendum was not just to ask people straight out in or out. He was supposed to be going to the people with a renegotiated offer.

GORANI: Right.

SAYERS: We were going to be still members of the European Union but a different way, having negotiated certain key distances. And he got very little from Brussels.

GORANI: I wonder if Brussels is regretting that now.

SAYERS: Well, I think they must be. And, you know, Richard was talking about the tone they used. It seemed like throughout the campaign they weren't sure whether they should be threatening to scold us --

GORANI: Yes.

SAYERS: -- which half of the voices seem to want to do --

GORANI: Yes.

SAYERS: -- or promising reform and sort of enticing the British people to stay. That was not a coherent message, and I think there will be a lot of regrets in Brussels this morning.

GORANI: Yes. How -- I mean, this isn't just what happens with the U.K.'s relationship with the E.U. The U.K. is going to have to renegotiate so many deals with so many other countries, because as part of the E.U. and that block, there are many bilateral E.U. and then third-party country negotiations and deals, that it's going to have to go back to the drawing board on. That's going to take more than two years.

SAYERS: That's right. And, you know, Barack Obama when he visited London just earlier on in the campaign, made that famous comment that if we're talking about a trade deal with the United States, we're going to be at the back of the queue.

GORANI: Yes.

SAYERS: At that time, there was speculations, because he used the word queue instead of line. Was this something that Downing Street had planted and asked him to say?

GORANI: Yes. SAYERS: You know, so there was that what felt like a threat from the

United States as to whether there would be a quick and efficient trade agreement.

GORANI: And that didn't have much -- from David Beckham to Barack Obama, pleas to stay in the E.U. that clearly didn't have the impact, the desired effects.

QUEST: We have the final numbers.

GORANI: Yes.

QUEST: We have the final numbers. Remain is 16,140,000 or so -- 241. Leave is 17,410,742. Those percentages as you see them on the screen. Let me call them up for you. You can see exactly the numbers of the percentages.

Nina dos Santos is in the U.K.'s financial center. Nina is in the city of London and on the trading floor and joins me now.

NINA DOS SANTOS, CNN CORRESPONDENT: Yes, Richard, Hala, we're only 50 minutes away from the start of a new session across Europe and across the FTSE 100, which is poised to fall some eight percent, maybe even more, when it get trading early on today.

And I'm here on the trading floor of Panmure Gordon, which is a brokerage, and there's a lot of people arriving in the office this morning literally in a sense of shock. They're talking about, quote/unquote "How this feels like it could be a bereavement." And they're poised for some heavy losses when equities get trading early on today.

We did, as you were quite rightfully pointing out, Richard, hear from the Bank of England. Some soothing words there from the Bank of England, saying, that it's monitoring the situation, standing ready to act. It has plans in place.

But the real concern here is that we could see the credit ratings agencies start to cut the U.K.'s credit rating. Standard & Poor's has been reported by "The Financial Times" today as saying that it could be ready to cut the U.K.'s AAA credit rating. It's the only ratings agency that currently has has a AAA credit rating for the U.K. It's head of research (inaudible) being quoted Rueter's news agency this morning saying that that position looks untenable. We have to, of course, confirm those comments, and we'll be doing our due diligence.

When it comes to the British pound, that is at a 35-year low. It's the biggest drop we've seen in this currency in literally a generation. Many people on this trading floor will not have seen a drop like that in, what, the best part of 35 years.

That brings us back to the days, Richard and Hala, of Black Wednesday, let alone Black Friday. And I should point out that the British pound is not the only currency that's falling. Almost all of the world's major currencies, with one exception, is falling, and that exception is the Japanese yen. It is the ultimate safe haven. It's going to be a real headache for

Bank of Japan if the yen continues to appreciate from here if people continue to plow their money back into safe havens like Japan. And that's one of the reasons by across trading floors like this, you'll hear, it's not just up to the Bank of England to start sharpening its pencil and thinking about how to deal with this situation. Other central banks will be kicked into action as well.

QUEST: Nina Dos Santos, thank you for that.

Can I remind you, Hala --

GORANI: Yes.

QUEST: -- what the Bank of England has said?

GORANI: Yes, go ahead, because it's significant because what the Bank of England says, of course, is either going to reassure the markets or perhaps add to some of their concerns.

QUEST: And the bank said just a short while ago it's monitoring developments closely and to take an extensive contingency planning, working closely with treasury and other domestic authorities and overseas central banks. And this is the core bit. The Bank of England will take all necessary steps to meet its responsibility for monetary and financial stability.

And we're actually seeing the 10-year Gilt, which is the 10-year bond --

GORANI: Yes.

QUEST: -- indicated at a record low of one percent. So interest rates are not going up there in the market --

GORANI: Right.

QUEST: -- at the moment.

GORANI: Well, we'll see what the Bank of England feels is necessary if the currency -- although we have found a floor over the last several hours --

QUEST: Yes.

GORANI: -- for the pound around $1.33 or so.

All right, we'll keep our eye on the markets. Let's go to the Houses of Parliament. Christiane is there.

AMANPOUR: Indeed. And there are lots of people behind us, sort of the leave caucus, if you like, who are cheering and waving British flags, English flags. And I'm now joined Mujtaba Rahman, who's heads up Eurasia group's Europe practice. And Eurasia is all about managing risk for investors. Did you predict this for your investors? MUJTABA RAHMAN, HEAD, EUROPE PRACTICE, EURASIA GROUP: It was a very,

very close call. We actually believed there was a 45 percent chance of Brexit. So it wasn't something that we thought was likely, but it was a very, very uncertain outcome, and indeed, that's the vote that's been delivered.

AMANPOUR: So let's speak about what has to happen next. First and foremost, there needs to be a government that can deliver the change that the people have voted for. Is that government headed by David Cameron?

RAHMAN: No, I think not. So there's a set of domestic questions regarding David Cameron, his premiership, who is succeed him. Heading our bet is that's going to be Boris Johnson or Theresa May.

That's very, very important, because that's going to determine what the renegotiation with the rest of Europe looks like, and I think there's going to be a lot of pressure from Angela Merkel, Francois Hollande and E.U. leaders collectively this weekend for the U.K. government to quickly to a decision regarding who leads it and what it expects from the rest of Europe over the next one or two months before the formal renegotiation begins.

AMANPOUR: Well, obviously, Cameron has said he will stay. He's had all this support from 84, including Boris Johnson, Michael Gove, all of the other Brexiters. But you're saying it's not possible.

What about the Brexiters who say, but we don't want to invoke Article 50, in other words the divorce, anytime soon? We want to have a nice, orderly transition. We want David Cameron, who's known by the European leaders, to help, you know, ease us into these negotiations. Is that fantasy? Is that like, you know, trying for a little bit of soft padding?

RAHMAN: I think it is. I think all of the leverage in the renegotiation is essentially on the European side, because the fundamental question is what's the U.K.'s access to the market going to be and what concessions does the U.K. have to give up in order to achieve that single-market access in terms of fiscal transfers, free movement of labor, adoption of E.U. regulation.

Now, the longer the U.K. waits to begin that discussion with Europe, the more likely it is the rest of Europe is going to come to a consensus regarding what it wants to give to the U.K. So I think the U.K. has a strong interest in getting that discussion started early before the battle lines harden on the European side.

AMANPOUR: But we know the Brexiters don't want free movement, so the idea of the single market is out the window. Is that right?

RAHMAN: Well, we have obviously a monopoly in terms of financial services. Passporting rights are very important for financial institutions and their ability to trade with the rest of Europe. If we want to maintain that comparative advantage in financial services, we have to maintain those passport rights. That necessitates a degree of access to the single market that is going to make the conversation between Boris Johnson, Theresa May or whoever leads the U.K. and the rest of Europe very, very difficult.

AMANPOUR: So what you're saying is that this whole wish was an anti- immigration referendum -- let's face it, a referendum on immigration policy -- could actually not deliver that because of the realities of the financial markets and needing to belong to the single market?

RHAMAN: Absolutely. I mean, as a share of GDP, we do more significant trade with the rest of Europe than we do all the emerging markets combined. So we want access to the single market. Now, that access is not going to come for free.

AMANPOUR: Because you know the Brexiters say, no, we don't need it. A, we could renegotiate our own deals, but B, we have so much opportunity, they say, globally.

RHAMAN: Right. Well, now that the Brexiters have actually won the referendum, I think they're going to be accountable for the renegotiation they ultimately achieve with the rest of Europe, because that's a far more important driver for growth and prosperity in the U.K. than any of the trade we do with the rest of the world. And I think that's the uncertainty that's going to prevail now, really, over the next two to five years.

AMANPOUR: I mean, that's an incredible reality check, so thank you very much indeed.

RHAMAN: Thank you for having me.

AMANPOUR: Thanks, Mujtaba Rahman of the Eurasia group. And back to you, Hala and Richard.

QUEST: As we continue, the reaction from around the world, is coming, if I may, Hala.

GORANI: Yes.

QUEST: The Australian Prime Minister, Malcolm Turnbull, has posted these comments. "We respect the wishes of the British people expressed through the referendum." He describes it as "a momentous and historic decision. The Australian economy is strong and resilient, however, there will be a period of uncertainty and some instability in global markets," and on he goes.

Japan's Nikkei has closed the day.

GORANI: Right, a massive sell-off in Japan. We saw also some very sharp losses on other Asian markets, including the Shanghai composite. Take a look here, the Nikkei down almost eight percent. The Hong Kong Hang Seng 4-1/3 percent lower. The Shanghai composite, as I was mentioning, also lower.

And the pound continues to sort of rest on a floor of about $1.33 for one pound, so it went down from over 1.5. It lost about 10 percent and so far has not really lost any more ground.

But we're waiting for more reaction from the market shortly. We'll take a quick break. We will be right back with a live shot of Downing Street, as we await David Cameron, the Prime Minister.

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GORANI: All right, we continue to cover this breaking news story. The U.K. has voted to leave the European Union, a historic vote with very deep and long-lasting implications.

We hope to hear from the Prime Minister of the United Kingdom, David Cameron. But also, the official count has not been announced.

QUEST: Yes, let's just show you what's happening in Manchester in northern England, which actually, if I call out the results from Manchester, you've got a chance to see. It was an interesting result. Manchester did not go the way anything the way it was supposed to go. Ah, now, we've got Christiane who is at Westminster with the foreign secretary.

AMANPOUR: Indeed, Richard, foreign secretary Philip Hammond in our first government response and reaction to what has just happened. I mean, a defeat for you, for your prime minister. How is this in the annals of British history?

PHILIP HAMOND, BRITISH FOREIGN SECRETARY: It's pretty seismic. It's a momentous morning. But, look, we have to draw a line under the campaign now. We always said we were the party that advocated this referendum. We always said that we would carry out the instructions of the British people, whatever those instructions were. And the British people have clearly spoken.

So our job now this morning is to, in the short term, to try to stabilize the markets and in the medium term to negotiate the best relationship we can with the European Union in the best interest of the British people going forward.

AMANPOUR: You've seen what's happened to sterling, and markets are wobbly. And we'll see what happens when it opens here.

But, you know, you say our job was to deliver the referendum. You know that there are huge numbers of people who say it's a self-inflicted wound. David Cameron didn't need to do this. He could have just said for the good of the world, for the good of Britain, for the good of Europe, no, we're going to continue with our strong economy, our employment and our strong security. Why did he take this risk?

HAMMOND: This is a democracy, and, you know, when you get governments and political parties saying, I tell you what, we'll ignore what the people are thinking, we no better, we'll do something else --

AMANPOUR: Well, no, it was Nigel Farage who was pushing you from the right.

HAMMOND: I'm sorry. It was clear to us that the political elite no longer had a clear democratic mandate for our arrangements with the European Union. We needed to test that. We needed to put the case again to the British people, the economic case, the security case, the case about Britain's place in the world for remaining in the European Union.

We've done that. We can and no doubt will pore over the way the campaign went, what was said, what was done. But the British people have made their decision. And our task, now, is to get the best possible outcome for Britain in the long term.

And look, you talked about the volatility in the markets. Of course, there's volatility in the markets.

AMANPOUR: Sir, I just want to show you what's happening behind you. That is Nigel Farage --

HAMMOND: Yes.

AMANPOUR: -- and he's there, and he's doing his victory lap. And your posters, which were for remain said, "Do not let Nigel Farage speak for you." And in fact, he has done.

HAMMOND: No, I reject that. I mean, the leave campaign is a broad campaign, including some of my very sensible conservative colleagues, who put their case in a very measured way. I happen to disagree with them, but they put their case.

This is not Nigel Farage's victory. This is a much broader consensus that we've seen prevailing here. And I wouldn't like Britain going forward, and I wouldn't like the British people going forward to think of itself as being presented in the image of Nigel farrago.

Because, you know, I know from my own constituency that many people who voted to leave the Europe Union yesterday are perfectly respectable mainstream British people. They would not associate themselves with Nigel Farage, and they wouldn't want to be represented by Nigel Farage.

AMANPOUR: What happens next for the government? Obviously, the Prime Minister said that he would stay, and he's had all these letters of support from 84 or so members of the pro-Brexit conservatives. But nobody believes it, Mr. Foreign Secretary. Nobody that I've talked to for the last seven hours believes that the prime minister can actually stay as prime minister.

But of course, the Brexiteers would like him to, because Europe knows him. They think, you know, he'll give them some soft padding as he goes and tries to negotiate a great deal. Can the prime minister stay on?

HAMMOND: Well, I think what the country needs right now is stability and a firm, calm hand on the tiller. And I think the Prime Minister is clearly the person best positioned to deliver that, and that's why leading Brexit campaigners are saying that he should remain.

He's always been clear that whatever the result, he would continue as Prime Minister, do the people's bidding, go and negotiate the best possible deal he can get with the European Union, provide continuity and stability at what is an uncertain moment in British political history. HAMMOND: You are foreign secretary. You have dealt with all these

actors, all these leaders in the European Union. I mean, do you believe they're inclined to give Britain an easy ride into renegotiating all sorts of deals? Because they say publicly that, yes, of course we respect what the British have done, but we don't want this to be a contagion. And already you've got Marine Le Pan and Geert Wilders calling for referendums in their countries.

HAMMOND: Well, of course, this is the key issue that we've been trying to explain to people in Britain during the campaign that it isn't that the leaders of Europe will be vindictive towards us or wish us any ill will. It is simply that as of this morning, their attention will move from Britain and to their own backyard.

They will be looking at protecting their own interests and dealing with their own domestic political pressures. And they will be driven by those considerations. Our interests will not feature anywhere on their radar screens, and that's the challenge for us.

But it's also clear -- and you've mentioned a couple of European politicians this morning, it's also clear that we don't know what will happen inside the European Union in the politics of other European countries. Clearly, there will be people across Europe, looking at this campaign in Britain, looking at this result here and also questioning the European settlement.

AMANPOUR: You know, the President of the United States was very clear when he came here about trade but also about the value of Britain staying in the E.U. How will Britain's relationship with the U.S. change just in terms of its influence? And also, on the stage, on the whole global stage?

Britain has wielded a very powerful voice and force. But do you think that will be diminished? You said that Europe won't be really listening to you that much right now. What about the rest of the world?

HAMMOND: Well, I'm afraid I said it during the campaign, and I firmly believe it that Britain's influence in the world will be diminished. We will remain an important partner for the United States and a good friend with the United States, of course. We have a close security and intelligence and defense relationship, which will endure.

But look, we will just be that bit lower down the priority list of any U.S. president in future, because we're an important bilateral partner but we won't have any influence on the U.S. relationship with the European Union, which as the world's biggest economic trading block, is a key relationship for any U.S. president.

AMANPOUR: And then, the flip side of that, you know, Britain was there helping to push sanctions on Russia, helping to put sanctions on Iran, you know, having some kind of loud voice when it comes to --

HAMMOND: Yes.

AMANPOUR: -- China and all the other challenges you have. Europe will be weaker without that voice.

HAMMOND: Well, that is my big fear, and I've said that several times during this campaign. It isn't just about the fact that Britain was made stronger by being a part of the European Union in terms of things like sanctions against Russia. But I fear that perhaps my European colleagues, without our engagement, would not have been as robust as they have been and may not be as robust in the future.

AMANPOUR: And so what kind of world are we going to see out there?

HAMMOND: Well, I said during the campaign, I think it will be a more uncertain world. I don't want to over-exaggerate the case. But clearly, I believe, or I wouldn't have been campaigning for Britain to remain, that been in the European Union gave Britain more leverage.

I believe that Britain's influence in the world is an influence for good so being able to leverage that voice as an influence for good, I think, made the world a more stable and safer place. And it will be slightly less so as a consequence of this decision.

AMANPOUR: And, I mean, look. What did the Prime Minister do wrong? He obviously bet over and over again that the economy was going to trump any other sort of issues and fears. Obviously, the remain camp played immigration, and many said that, you know, this is actually a referendum on immigration policy.

So two questions. What did the Prime Minister do wrong? Did he not take into account immigration enough? And B, what is going to happen to immigration policy now Britain is out of the E.U.?

HAMMOND: Well, precisely. We don't have any clear steer from the exit campaigners what they were expecting to happen. We heard a variety of different ideas, Australian point systems. But we know that Australia has twice as many immigrants per head of population that we do in the U.K., so I don't think that is going to be the answer for Britain. But all of these things we will now have to work out over the coming weeks and months.

In terms of the campaign itself, I think we set out things as we saw them. But there is a political reaction going on, and I don't think it's confined to Britain. I don't think it's confined to Europe. Indeed, you've seen some of it in the United States, which is a reaction, if you like, to some of the changes that we're seeing as a result of globalization of the economy.

And a lot of people, who feel very disgruntled, very discontented by the impact of those changes on them, whether it's manifest through migration, whether it's manifest through fewer opportunities being available to them in the workplace.

AMANPOUR: So then what is the solution? Because otherwise, we're going to have years of disgruntled people. What is the solution then to the people who feel like they're shut out of this globalized world? To people who feel that they don't share in the economy?

HAMMOND: Well, clearly, the medium to long-term solution is that in the developed world we have to focus even more intently on upskilling our people. We have to make sure that the next generation really is a generation of skilled people who are able to benefit from the globalization of the economy. And in the short term, we have to protect those who find their interests adversely affected by globalization. What we can't do is unravel globalization. That isn't going to work.

AMANPOUR: You can't put that genie back in the bottle.

HAMMOND: We can't put back in the bottle the genie of 3 billion Asians getting richer and playing a much bigger role in the world's economy. In the long run, that's good for all of us but in the short run, of course it's created turbulence in the world's Economy.

AMANPOUR: And as you know the spectre of so many hundreds of thousands maybe up to a million refugees from Syria and elsewhere, coming to Europe, spooked everybody. All of the people who made this vote have been spooked. So at what point do you, world leaders, say we actually have got to tackle it at the source, we have to stop the Syria war?

HAMMOND: We are already saying that, of course --

UNIDENTIFIED FEMALE, CNN HOST (?):Yes but not doing it because nobody's going against (INAUDIBLE).

HAMMOND: -- We've got to stop all the drivers of large scale migration and as we know, more than 50 percent of those who were arriving in Europe from the Middle East were not coming from Syria at all. They were coming from the wider Middle East, from South Asia, some from Africa. They were part of a much wider movement of people and that's a big challenge. The pressure of migration from the poorer world to the rich world. It's not just a European problem it's a problem in North America as well of course --

AMANPOUR: And it will continue.

HAMMOND: -- And it's going to be a big challenge for the rich world to manage over the coming years and whether Britain is inside or outside the European union isn't going to change that challenge. We are going to have to work together with our rich world partners in responding to that challenge.

AMANPOUR: Foreign Secretary Philip Hammond --

HAMMOND: Thank you.

AMANPOUR: -- thank you very much indeed for joining us today.

HAMMOND: Thank you.

UNIDENTIFIED FEMALE, CNN HOST (?): Back to you, Hala and Richard.

RICHARD QUEST, CNN ANCHOR: Thank you. Fascinating discussion from the Foreign Secretary. Perhaps slightly more -- I think -- I have to say --

HALA GORANI, CNN ANCHOR: Quite candid there in his --

QUEST: -- I think there's a bit of shock about everybody this morning. Even from the reality.

GORANI: He's basically saying, that the UK -- this is according to Philip Hammond the UK Foreign Secretary -- will have less influence, that this is bad for the country. Of course, he was firmly in the remaining camp as the Foreign Secretary of the Prime Minister, David Cameron. These are live aerial pics of London. The London skyline.

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QUEST: Whilst the Foreign Secretary was talking, Jenny Watson, the Chief Counting Officer in Manchester did give the official result. We knew what it was. Remain 51.89 percent, leave, 48.11 percent on a turnout of 33,551,983 and let's listen to Jenny Watson.

JENNY WATSON, CHIEF COUNTING OFFICER: As Chief Counting Officer, for the referendum on the UK's membership of the European union, held on the 23rd of June 2016. I hereby give notice that I have certified the following; the total number of ballot papers counted was 33,577,342. The total number of votes cast in favor of remain, was 16,141,241. The total number of votes cast in favor of leave, was 17,410,742.

QUEST: Leave wins by about 3 point something percent. Just about.

GORANI: A little bit less than -- well 48.1 -- They've won -- By the way, Nigel Farage, while Christiane was conducting that interview with Philip Hammond, was behind the Foreign Secretary, essentially addressing reporters in what was a Victory address at Westminster. And he said the EU is dieing. The UK leader said. He told that group of journalists. He called for a brexit government and that we've given ourselves the chance to rejoin the world. June 23rd needs to become a national bank holiday and we will call it Independence Day. Nigel Farage.

QUEST: 3.78 was the majority for the leave campaign. To Downing Street now. We heard from the Chief Counting Officer. We've heard from government officials. Max Foster, when will we hear from the Prime Minister?

MAX FOSTER, CNN CORRESPONDENT: Well we're now expecting around the top of the hour, which is when the markets will open here in London, so he's going to have to say something reassuring for them. He also has to speak to his Political career --

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FOSTER: -- because he did lead that remain campaign, and the remain campaign has lost. So, how does he move forward from this when he's lost that credibility? Not just in terms of his political campaigning but in his own party, which was split from the very start of this, around European lines. That's why he started this whole referendum campaign. He has to find some way of speaking to the nation, speaking to the markets, speaking to his party as well. We have to assume he has been speaking to the leaders of the leave campaign, as well. Lead by Boris Johnson. What conversations have they had? What negotiations have they had? We don't expect him to resign when he comes out today. That has to be too unsettling financially, let alone politically, but he's under huge pressure. He's going to have to word it somehow.This is going to be the defining moment of his career possibly. So, imagine the pressure on him as he prepares his words.

QUEST: Thank you, Max. I need to point out that the Czech Prime Minister has been speaking. The Prime Minister (INAUDIBLE) said the british vote does not mean the end of the EU. This is the crucial bit and the bloc should agree Britain's leaving quickly and rationally.

GORANI: Well we're starting to see reactions from across Europe that point toward a new environment, where European leaders are saying to try, perhaps, to prevent another brexit scenario from happening and are saying we need to take a very serious look at the EU. Maybe a little too little, too late, some might say. We're going to take a quick break. Still expecting David Cameron to speak. We believe, perhaps, around the top of the hour, when markets open here in the United Kingdom. Aerial shots of the houses of Parliament. We'll be right back.

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GORANI: Welcome back to CNN's special coverage of the EU referendum. I'm Hala Gorani in London.

QUEST: I'm Richard Quest. Never seen anything quite like it. The final result has been announced in the northern city of Manchester. We now know that leave has won the referendum, over the majority of about 3.78 percent over remain. The reaction is now coming in at Westminster. The Palace, Westminster, Parliament, and indeed across

the world, leaders are giving their views.

GORANI: This has profound implications, of course not just for the United Kingdom, not just for the EU, but for all of Great Britain's partners. Across Europe, people are waking up to an extremely changed continent. The British voters have spoken and they've chosen to leave the EU. What happens now? How long does the UK negotiate with the EU in order to find an agreement on trade, on a political union? What happens to transatlantic deals that the EU has with other countries? What happens to the UK's trade relationship with those countries? How long and complicated will it be? What impact will it have on the economy? The pound has basically crashed this morning.

QUEST: Freddy (ph), do you have any answers to any of those questions?

FREDDY (ph): I have a feeling, just like the financial markets weren't really planning for this. I don't think that much planning has gone on inside the government, either. You've seen the Foreign Secretary, Philip Hammond there, looking a little grumpy that he didn't win this. He didn't have a big message. He didn't have a plan how the country is going to go forward in a positive way. It will be interesting to see what David Cameron says in less than half an hour when he appears in the steps of number 10 Downing Street. Where is that plan?

GORANI: Did you think it was surprising that the Foreign Secretary was essentially saying, this is going to weaken us internationally, after the result was announced?

FREDDY (ph): I think it's a political no-no for him. He is the Foreign Secretary of the United Kingdom. For him to go out and say we're now going to be less important and less successful in the world, will infuriate his colleagues in the conservative party who have been arguing for brexit and across the population.

QUEST: Nowhere -- thank you -- will this be felt more strongly. The shock waves will be reverberating around the Bernabum (ph) building in Brussels where it's coming up 20 to 9:00 in the morning. Erin Mclaughlin is our Correspondent person in Brussels. From what you've heard, and what people are saying, are they in shock?

ERIN MCLAUGHLIN, CNN CORRESPONDENT: Absolutely, they're in shock. Diplomats are saying this outcome was not expected. They expected a remain, and we are now hearing reaction from leaders across Europe. In fact, a short while ago, the Prime Minister of Belgium gave a press conference. Charles Michel, in which he called the outcome of the referendum a quote, "Slap" for the European project. We heard from the German Foreign Minister, Steinmeier, tweeting out that it is a, quote, "Sad day for Europe" and we are expecting very shortly to hear from Donald Tusk, the president of the Council of the EU. There is a flurry of meetings underway here in Brussels at the European Parliament.

We're expecting a meeting in a short while to begin in the building behind me, the European Commission. Another meeting in Luxembourg. The Foreign Minister meeting as well as a variety of meetings in various European capitals, how best to Respond, how best to deal with the outcome of this referendum? I have spoken to one official, who said Brexit would be a great tragedy for the European Project, a blow to the EU, symbolically, politically, economically. There's a real concern about the rise of Euro skepticism across the continent, the rise of nationalism, as well as the far right. We're hearing calls for referendums in countries such as the Netherlands, as well as France. Going forward, we can expect that to have an impact on any sort of negotiations. Brexit negotiations with the United Kingdom. I was speaking to one diplomat who said there will be no niceties in the negotiations. They want the negotiations to happen rapidly. Another senior diplomat said they're waiting to hear from British Prime Minister David Cameron. They're waiting to see what he has to say. Expressing confidence in the European institutions, they can deal with any number of crisis whether it be a Greek financial crisis, to a migration crisis and now, a Brexit. Richard?

QUEST: Erin McLaughlin who is in Brussels and there's going to be an enormous amount of reaction in the hours ahead.

GORANI: The London skyline here, as seen from the air. Some of the iconic buildings. As London wakes up to an extremely different reality -- by the way it's 7:45 am here in London and that means markets open in about 15 minutes. We're expecting sharp declines at the start of trade.

QUEST: The Dutch Prime Minister Mark Rutte has been speaking. He says the British brexit vote must be stimulus for more reform in Europe --

GORANI: -- Wow. This is a message we're hearing from all of the leaders across Europe. They're trying to keep this union together, and not have other countries ask for similar referendums.

QUEST: Rutte says that the decision appears irreversible, but the process may take a long time. The bank of England put out a statement just about 45 minutes ago saying it will take all necessary steps to meet its responsibilities for monetary and financial stability. They're going to do whatever they can. The markets open in 15 minutes and it's not looking particularly cheerful.

GORANI: The pounders dipped again below 133. We'll be right back with more.

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UNIDENTIFIED MALE, WEATHER ANCHOR: Anticipating temperatures in the lower to middle 20s for San Francisco and Los Angeles. Denver 33. Chicago, 28. Atlanta, hot and humid conditions. Daytime highs in the middle 30s. You see the forecast for the East Coast of the U.S. Warm for New York City. Heating up near Washington and Charlotte. Let's travel to the south. Anticipating showers and thunderstorms across much of Central America. Belize city, 32 degrees with afternoon thunderstorms in your friday forecast.

QUEST: The President of the Council, Donald Tusk is speaking in Brussels.

DONALD TUSK, PRESIDENT OF THE COUNCIL: It is a historic moment but for sure, not a moment for historical reactions. I want to reassure everyone that we are prepared for this negative scenario. As you know, the EU is not only (INAUDIBLE) project. Over the past two days, I have spoken to all of the EU leaders, Prime Ministers and Presidents, as well as heads of the EU institutions about the possibility of a brexit. Today, on behalf of the 27 leaders, I can say that we are determined to keep our unity as 27. For all of us, the Union is the framework for our common future. I would also like to reassure you that there will be no legal vacuum until the United Kingdom formally leaves the European Union. EU law will continue to apply to and within the UK. By this I mean rights as well as obligations.

All the procedures for the withdrawal of the UK from the EU, are clear and sets out in the Treaties. In order to discuss the details of the proceedings, I have offered the leaders an informal meeting of the 27 in the margins of the (INAUDIBLE) summit. I will also propose to the leaders that we start with a wide reflection on the future of our Union. Finally, it's true, that the past years have been the most difficult ones in the history of our Union but I always remember what my father used to tell me, what doesn't kill you, makes you stronger. Thank you. QUEST: It is a historic moment but not one for hysterical reaction, says Donald Tusk. He said, we are prepared for this. I've spoken to all 27 leaders and we are determined to defend our unity as 27.

GORANI: And there will be no legal vacuum, Donald Tusk said, until the UK formally leaves the EU and significantly, this is something we've heard from other European leaders, proposing to start a wider reflection on the future of the Union because, as he said, determined to keep the unity as 27 will require some soul-searching clearly.

QUEST: The way he talked, Freddy (ph), basically saying EU law still applies until the EU finally leaves. But also, the process has begun. They're going to start talking about to negotiate and that.

FREDDY (ph): And there he says the 27 and that's 28 minus one. Already he's talking about the group of the 27. The future member states of the European Union. Earlier, we were asking and speculating, is there any way that it might be delayed? Maybe there would be shenanigans in Parliament so that it wouldn't happen straight away. The EU wants the UK out cleanly with as little damage as possible.

QUEST: To Westminster.

GORANI: Yes.

QUEST: And Christiane Amanpour, our Chief International Correspondent. You were listening to Donald Tusk. What did you think about what he said?

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: He was very clear that this was not going to be allowed to let the Union to spin apart into all its 27 different components, or however many may want to leave. That for us, the Union, and unity is still the vision of the future. He was also, as you mentioned, very clear that there won't be legal vacuum. But he said that all the laws, the legal obligations, and the rights the UK stands for, will continue to stand until the UK formally leaves. This could be something that sticks in the craw (ph) of the brexiters. They don't want some of the provisions of the EU, which is why they voted this way. While they may want the single market, they don't want the free movement of people. Some have suggested that they may immediately try to say, even without having invoked article 50 without having started the divorce procedures, and in fact getting divorced, they may immediately start imposing crackdowns and limitations on, for instance, free movement. He is saying, no. You cannot cherry-pick until you leave.

Until there's negotiations, our laws will remain sacrosanct as they have in this regard over the years. He said,

this is a process we have to start reflection on our Union. Presumably, he's admitting that there are challenges. People here have spoken. He knows that there's disaffection in other countries, about the bureaucracy of the EU. They have to look at where they can trim their sails presumably he's saying and then in the end he ended by saying my father told me that what doesn't kill you makes you stronger. A rallying cry of the sort, that they're going to go on strong, regardless.

And to hear that after hearing my interview with the Foreign Secretary Philip Hammond, who admitted very frankly that they will be at a disadvantage, Britain will be at a disadvantage, during any future negotiations. Their voice will not be listened to as loudly and as clearly as it was, when they were a full member. It adds a pretty stark reality to the vote that's just taken place here. Richard?

QUEST: Christiane, thank you. Stay with us Christiane because we are heading towards the top of the hour. I want to hear more from -- I just wanted to ask Freddy (ph) quickly, how -- let me just ask you bluntly. How vindictive do you think the other countries will be in the negotiation, if, indeed, vindictive they are?

FREDDY (ph): Well during the campaign, we already heard opposing views on that. Just in the past few days there was President Younker (ph) as you said saying out means out. Really trying to take a firm line and say if you do this, we will make a lesson of it, so that the other countries don't get tempted to do the same.

Meanwhile, the Head of Trade in Germany put out a statement saying, of course, we need to trade with the UK. Of course we'll do a good trading arrangement with them. There's two voices. It will be interesting to see which one comes out. Is it the pragmatic voice or is it the political desire to protect the Union from further rebellion?

GORANI: Well it's a tough one, right? If you, after Brexit -- the UK voted for Brexit -- If you give the UK the best possible trade deal, without freedom of movement for people for instance, are you not then telling other countries in the Union this is how we'll treat you if you decide to leave?

FREDDY (ph): That's exactly right. I think, you know, we said from what the statements so far, they want the UK out, cleanly and quickly. Whether they do a punitive regime to make it as painful as possible, I think is unlikely. There will be very few voices in Brussels who want to make this too sweet a moment for the United Kingdom.

GORANI: Is it possible to get all this done in two years?

QUEST: It is going to be longer than two years?

GORANI: What happens? Do you prolong the period where new laws apply and the relationship is intact?

QUEST: Under article 50, that's what happens but there has to be unanimity on the decision to extend the two-year deadline. Freddy (ph), are you -- we're going to say goodnight to you in just a moment -- but your final thoughts on what we've seen tonight with your long experience of politics?

FREDDY (ph): This is what happen -- what happens when the unexpected happens, is what we're witnessing now. People weren't prepared for this, not in the financial markets and not in politics, either. There isn't a shadow team. It's not like a government, where they lose and then there's a shadow team ready to take over. There is no team ready to take over --

GORANI: There's no shadow Brexit government.

FREDDY (ph): -- There's no Brexit government. Every day for the next few days, it going to be fascinating to see what happens. This is clearly a momentous moment and I think it has repercussions across the world.

GORANI: All right Freddy (ph) sayers, thanks very much. Really appreciate all you have contributed during this breaking news coverage. A historic day. We continue to cover it for you on CNN. A few seconds from now, minutes from now, UK markets will

open.

QUEST: And that will add a whole new dimension to a story that, frankly, is unique.

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