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Fallout After Historic vote in U.K. to Leave European Union; British Prime Minister David Cameron Announces He Will be Resigning. Aired at 8-9a ET

Aired June 24, 2016 - 08:00   ET

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

[08:00:16] BECKY ANDERSON, CNN ANCHOR: Well, a historic day for the United Kingdom and for the world. You're watching CNN's continuing coverage of

the U.K.'s Brexit decision. I'm Becky Anderson live from outside the Houses of Parliament in London.

There is lots of fallout this hour after the historic vote here in the U.K. to leave the European Union. News of the decision has triggered stocks

around the globe into freefall. London's FTSE 100 index plunged by more than 8 percent for the opening this morning. But you can see it has

recovered somewhat since then.

Here is how the European stock markets are doing this hour. And all of them are significantly, including the French market there, as you can see

now down nearly 7.5 percent, Germany of six, and Zurich down nearly 3 percent. The vote has exposed deep divisions across the U.K.

Overall, nearly 52 percent of voters supported Brexit. But Scotland voted overwhelmingly to stay in the E.U. And now, First Minister Nicola Sturgeon

has announced it is highly likely Scotland will hold a second independence referendum.

Well, adding to the turmoil, British Prime Minister David Cameron has announced that he will be resigning. He, of course, campaigned forcefully

for the U.K. to stay inside the European project. He spoke outside 10 Downing Street earlier today.

(BEGIN VIDEO CLIP)

DAVID CAMERON, UNITED KINGDOM'S PRIME MINISTER: Perhaps the biggest -- you know, I mean, this is not a decision I've taken lightly but I do believe

it's in the national interest to have a period of stability and then the new leadership required. There is no need for a precise timetable today,

but in my view, we should aim to have a new prime minister in place by the start of the Conservative Party conference in October. Delivering

stability will be important and I will continue in post as Prime Minister with my Cabinet the next three months.

(END VIDEO CLIP)

ANDERSON: Well, the former mayor of London and current member of Parliament, Boris Johnson, was a leading voice for the leave campaign. He

is praising the decision as a step forward for the country.

(BEGIN VIDEO CLIP)

Boris Johnson, British member: I want to reassure that in my view, as a result of this, Britain will continue to be a great European power, leading

discussions on foreign policy and defense and intelligence sharing, and all the work that currently goes on to make our world safer. But there is

simply no need in the 21st century to be part of a federal system of government, based in Brussels that is imitated nowhere else on Earth. It

was a noble idea for its time, it is no longer right for this country.

(END VIDEO CLIP)

ANDERSON: Boris Johnson speaking in their home bringing a guest who says this is a sad day for the U.K. Former British Prime Minister, Tony Blair,

joining is now. And sir, you have criticized the Labour leadership for failing to lay out the "enormous consequences" of a leave vote its support.

What do you believe those consequences are?

TONY BLAIR, FORMER BRITISH PRIME MINISTER: I think we see the consequences already. We've had a huge fall in the pound. We've had about $200 billion

wiped off the financial stock market. We've had even questions about whether our credit rating as a country will be downgraded. I think in the

days and weeks ahead, we've got to do everything we can to stabilize our situation. But of course, this is a decision personally I regret very much

but it's a decision with vast consequences for Britain, for Europe and for the global economy, and I also think the way politics is conducted.

ANDERSON: The British Prime Minister is standing down. Was he right to make that decision?

BLAIR: Well, I think, look, it's a very personal decision for him and his -- in any way, but he's taken it. I think what is important is that he

will be there for a period of a few months. I think he will have a great responsibility and role in trying to bring the country together because,

remember, what happens now. This is the beginning now of what will be a long drawn out and very complex process. Because over the last four

decades, there have been immense commercial trading economic relationships, political structures, security structures that had grown up between Britain

and the rest of the European Union and those of God to be disentangled and made sense of. We've got to try and get access back into the European

market and that's a negotiation that will take place with all of the rest of Europe.

[08:05:02] So we'll have to get the agreement of 27 different governments, 27 parliaments, the European Parliament. Some countries may even have

their own referendum. So it's going to be a complicated process and that's why I think it's very important we try and bring the country together and

stabilize our situation because this is a great country, it's a resilient country, it's still a strong economy. You know, we still got many

opportunities and advantages. But personally, I think it's a great sadness that we've chosen not to exercise those as a sovereign nation within the

European Union.

ANDERSON: Tony Blair at the heart of this debate, and this was a violent, sometimes vicious debate at times, the contentious issue of immigration.

Do you see that when you were a prime minister and the E.U. expanded, you underestimate the level of immigration into the U.K. and that the legacy is

where the U.K. finds itself today.

BLAIR: Well, if you are part of the European Union, have the free movement to people. Now it's correct, I introduced that some -- a few years earlier

than it might have been, but in any event, we have Eastern Europe as part of the European Union. This is a good thing for the world. These are

former Soviet Convent countries that came into the European Union as a result of that by the way they have reformed and changed.

We as a country, we as Britain, have doubled our trade with these countries over the years. And, yes, I understand the pressures when you get them --

people from Eastern Europe, for example, coming into the U.K. But on the whole, these people work hard. They pay far more tax than they take out in

benefit. And the real problem that Britain has on immigration is from outside the E.U., not inside.

In any event, by the way, these people will continue to have free movement until we change the terms of our trade with the E.U. and that's one of the

things that will be negotiating over this coming period of months and possibly years.

ANDERSON: That's not what 17 million people decided though, is it? Fifty- two percent of the population decided that immigration was such a big issue to them that they wanted to leave this European project. I wonder how you

feel about how the project will, "going forward". Angela Merkel this morning calling for calm but clear shock amongst other European leaders,

French President yesterday suggesting that were Britain to vote out of t he E.U., that the entire project would be in play. Do you have a concern

about Europe and its project going forward?

BLAIR: Of course. I mean, why wouldn't you have a concern? This is a huge vote. And even though the British people have voted this way in a

referendum, there were these types of insurgent movement, left and right, in virtually every European country seat over the United States of America.

The question is whether these people have an answer to the problems that the modern world places in front of us. And this is all about the process

of globalization, the force of globalization. It drives change around the world. It's not actually a force that's driven by governments, it's driven

by people, by technology, by migration, by the way the world changes.

And the right way to cope with that is not to shut ourselves off from the rest of the world, it's to educate people, it's to build the infrastructure

necessary and is to try and make sense of the way that the world have worked and the societies will change as the world around us changes. So

this is this is a big, big task as well for those of us on the center -left or center-right unit. You know, these insurgent and populist movements of

left and right, they -- at the moment, they've got the power but we've got to think very carefully about how we resecure our position in this new

politics because I do not believe these people have answers for the future.

ANDERSON: And there is clear concern about how the far right and far left nationalist movements may capitalize on this result, and clear concern by

other European leaders. Why is it, do you think, finally that 17 million people in the U.K. didn't agree with you, didn't agree with the sort of

things that you are saying today and quite frankly decided that they wanted to back leave because the campaign says we are taking our country back?

BLAIR: Right. I was a prime minister of the U.K. for 10 years. I cannot think of a single large decision other than those connected literally with

our relationship with Europe. I cannot think of a single large decision, not on war and peace, not on public services, not on tax and spending where

Europe told me what I had to do. We are a sovereign independent country. But the truth is, we are more powerful in today's world, when we're working

in alliance with others.

[08:10:01] Now I agree. I mean, you've just made the point that I have to accept it. We lost that debate. But I think in the days and weeks ahead,

people will look very carefully at the consequences of this and I think there will be a lot of soul-searching and a lot of reflection.

And, you know, it is important that we stabilize our country in the meantime, but it's also important that those of us who believe in what

would say is a more center ground view of politics work out how we deal with this insurgent populism because there are many, many people in Britain

who voted for all sorts of different reasons to leave the European Union, who I think will -- when they reflect upon it, will see it in, as time

unfolds, that the problems that they thought they were dealing with still remain and we haven't yet found answers to them.

ANDERSON: With that, Tony Blair, we take you very much indeed for joining as out of the studio in London today. I am outside the Houses of

Parliament here, the seat of political power and those corridors (ph) shaken. Today, world markets are in crisis mode as investors process

Britain's decision to leave the European Union. U.S. trading begins in just offer an hour. Stock futures there are sharply lower with major sell-

off projected at the opening belt (ph) in Europe.

Well, London's benchmark index plunged as much as 8 percent, the biggest fall since the 2008 financial crisis. I have to say, it has recovered

somewhat. As you can see, all major indices in Europe all feeling the pinch, certainly, if not the sting of Brexit this morning. The pound also

batted by the vote to leave, falling to a more than 30-year low on the opening versus the dollar. The currency recouping some of these losses

after the Bank of England Governor stepped into reassure investors. He's pledging to spend billions of dollars to help trump up the financial

system. This is just some of what he said earlier on today. Have a listen.

(BEGIN VIDEO CLIP)

MARK CARNEY, BANK OF ENGLAND GOVERNOR: As a backstop and to support the functioning of the markets, the Bank of England stands ready to provide

more than 250 billion pounds of additional funds through its normal market operations. The Bank of England is also able to provide substantial

liquidity in foreign currency, if required.

(END VIDEO CLIP)

ANDERSON: Well, another major concern this hour, from banking to all choice. The worry is that firms choose to move their operations out of the

country in search of better access to the European Union. For more on this, I'm joined Carolyn Fairbairn, Director General of the CBI which is

the Confederation of British Industry. And I believe that eight out of 10 of your members were campaigning for the U.K. to stay within the European

Union. Why?

CAROLYN FAIRBAIRN, DIRECTOR GENERAL OF CBI: Well, that's right. I mean this is clearly a momentous day for the country, it's also a momentous day

for business and it's -- you're absolutely right that this is not the outcome that business wanted and they are not having to come to terms with

it. What are the implications? And implications are developing. We -- you know, we've seen the news about Scotland, we've seen the news about

leadership of our two main parties.

The one thing I would say I think that's really important is our businesses are resilient. You know, one of the things that business is very good at

is adapting to change and one of the things I'm hearing very strongly from our members is that they are ready to really grip this, to get on with

this.

Once there is a greater sense of clarity, and some of them we've seen today around that the actions by the Governor of the Bank of England, of the

Prime Minister in setting out a timetable, at the gun (ph) to help, and then there's the next step of carving out the negotiation.

ANDERSON: It's interesting, isn't it? Financial market hates uncertainty, and so do businesses. And I don't think anybody should be surprised really

at the end of the day and see what happen on the financial market this morning. Couldn't the government here have been more responsible in

convincing people and that that were contingency plans as oppose to what the leave campaign was suggesting, is that the government and those

campaigning to stay within the E.U. were scaremongering, suggesting it's all over for the U.K. by the shouting as we're going to have a short-term

level at this point in this country. We're going forward. Things will be fine.

Well, I think that things can certainly recover well. I mean you look at how the U.K. recovered from the financial crisis. We were one of the

fastest recovery nations. So I think there will be an effect. We're seeing it as you businesses hate uncertainty. But as we see decisions

taking, as we see clarity will come through and I think we are beginning to see that. I think that you will start seeing businesses say, "Right, OK,

now, we just want to get around the table, set out the things that matter most. First, we need to trade deals, we need access to the single market,

we need a really mature conversation around immigration."

[08: 15:04] And actually, they're very good of rolling their sleeves up. They will be an effect but I think we can start mitigating that and

businesses can get on with what they could have.

ANDERSON: So aside from the uncertainty, what is it the business needs to hear and do next? Give me an example of business -- one of your members

who will be affected by what is going on today. Let's us not forget only U.K. isn't leaving the E.U. soon. It may not have to leave the UK at all,

some of you experts would say. But what's the deal short, medium, long term?

FAIRBAIRN: So nothing is the right questions. So I think that there are stakes in the ground the business holder want to play, so as much access as

possible to the single market and really a mature conversation about immigration which protects access to talent while at the same time

recognizing public concerns and access to trade deals around the world.

But then there's a more granular exercise which I think is the one you are asking which is what do businesses most value? Which of the directives

that matter? Which are the particular relationships in Europe? And that's one of the conversations that we want to start with our members. You know,

it goes to more sector by sector, region by region, take that back into government and help to shape a deal going forward that works for everybody.

ANDERSON: Because as much as business hates uncertainty, they also hate red tape and bureaucracy, don't they? And many of those who have voted to

leave the E.U. say they have do so for that reason, that British business is a hand put by this over regulated Europe.

FAIRBAIRN: Well, I think one of the -- no, when we get through this uncertainty, you know, the three stakes in the ground I mentioned, if you

can make real progress on that, then they're all opportunities. I mean, one of the things that CBI has always said is that the E.U. needs to become

like to touch regulation. And actually, we have seen that over recent years. But yes, there could be an opportunity here.

But let's really settle things down and focus on getting decisions take when this process starts, really calm, reassuring leadership and probably,

you know, reassurance to people out there that actually people who are, you know, I think very concerned. Business will respond. It is ready to gear

up and make us work.

ANDERSON: There is a plan B is what you are telling me today.

FAIRBAIRN: Well, I think what you see ...

ANDERSON: Not one so there will be ...

(CROSSTALK)

FAIRBAIRN: ... through history is how good businesses are responding today. They are anxious, they are trying to work through the implications.

But look at the response of a financial crisis, look how we creative jobs after that. So I think over time, what we need to be looking to do is to

mitigate the downside and build for us going forward.

ANDERSON: Carolyn Fairbairn with me outside of the Houses of Parliament, what is being a momentous morning.

FAIRBAIRN: Absolutely.

ANDERSON: I think we'll overuse that term today, it was a momentous decision. It was the Brexit referendum. Thank you.

FAIRBAIRN: It's worth that word.

ANDERSON: Has exposed the split within the U.K. Scotland, then voted in favor of staying in the European Union. First Minister Nicola Sturgeon

says she would explore all options to secure Scotland's place in the E.U. going forward and that a second referendum on Scottish independence she

says is highly likely.

(BEGIN VIDEO CLIP)

NICOLA STURGEON, SCOTTISH FIRST MINISTER: Scotland faces the prospect of being taken out of the E.U. against our will. I regard that as

democratically unacceptable. And of course, we face that prospect less than two years after being told that it was our own referendum on

independence that would aimed our membership of the European Union and only a rejection of independence could protect it.

Indeed, for many people, the support guarantee of remaining in the E.U. was a driver in their decision to vote to stay within the U.K. So there is no

doubt that yesterday's result represent a significant and a material change of the circumstances in which Scotland voted against independence in 2014.

(END VIDEO CLIP)

ANDERSON: Also in Scotland, White House hopeful, Donald Trump, this morning. The likely Republican presidential nominee is visiting his golf

resort in Turnberry. He supports the U.K. leaving the E.U. He's in contrast to the majority of Scottish voters.

(BEGIN VIDEO CLIP)

DONALD TRUMP, (R) Presidential Candidate: You know, this is in such a phenomenal like some people are saying. And when people ask me what I

thought was going to happen. As you know, I said, I think they're going to breakaway. And it just turned out that way. And it was a little bit

surprising because the polls indicated probably that it wouldn't happen, 80 percent. And when I landed this morning, the first thing I asked is that,

and I mean, it was fairly close, but it wasn't that close. So, we'll see what happens.

I think it will be a good thing, you know, taking your country back. You're going to let people that you want into your country. And people

that you don't want or people that you don't think are going to be appropriate for your country or good for your country, you're not going to

have to take. And, you know, I love Europe. Like the United States, it has made tremendous mistakes over the last the time.

[08:20:02] You look at Germany, you look at some of the things that are happening, there have been tremendous mistakes that have been made. So, I

think it's going to end up being a very good thing but it will take time.

(END VIDEO CLIP)

ANDERSON: Donald Trump in Turnberry in Scotland and also are going. Meanwhile in the United States, Bernie Sanders tells MSNBC, he will be

voting for Hillary Clinton. Clinton clinge (ph) the party nomination earlier this month and is the presumptive Democratic presidential nominee.

While Sanders said last week he will work with Clinton to defeat Donald Trump, he still has not ended his own presidential campaign. However, he

did admit to C-SPAN on Wednesday that it doesn't appear. He'll be at the Democratic presidential nominee.

The German chancellor is calling it a watershed moment. After the break, more of our live breaking coverage of a decisive event, a divisive one as

well in the history of Europe and what it means for the continent going forward.

(COMMERCIAL BREAK)

ANDERSON: While Britain is facing a stunning new reality, Prime Minister David Cameron is on his way out just as the entire United Kingdom provides

the exit of the European Union and now begins what is expected to be a two- year process to extract the country from the 28 nation block. It will involve negotiations on everything, from immigration to trade.

Now the had thought it won't happen under Mr. Cameron's watch. The remain campaign supporter says he will step down in the next few months. Well,

response to the vote has been swift, world markets plummeting and the pound at one point crashed to a three-year -- three-decade low, sorry. Leaders

from across Europe, speaking out. French President Francois Hollande is calling the voting painful choice in a series of trial for Europe. Also,

weigh in, German Chancellor Angela Merkel, here's what she had to say about Europe's decisive moment.

(BEGIN VIDEO CLIP)

ANGELA MERKEL, GERMAN CHANCELLOR: Today is a cut for Europe. It is a cut as regards the European unity. For the coming weeks, months, years, what

exactly that means that will very much depend on whether we, the other 27 European Union members, are willing and also capable to ...

(END VIDEO CLIP)

ANDERSON: Well, no one knows exactly how Brexit will play out. But it is what we do know right now. Outgoing Prime Minister David Cameron says his

successor will trigger what's known as Article 50 of the Lisbon Treaty. Now, that gives the 27 other E.U. countries two years to come up with an

exit deal.

[08:25:04] The U.K. will not take part in those deals, now -- in those talks, sorry. If there's no agreement after two years, E.U. countries can

vote to go over time or not. If there is no unanimous decision, the U.K. is out of the E.U. with no deal whatsoever.

Wall Street is bracing for a major drop at the open as investors react to the result from the historic U.K. referendum. For more on the global

market reaction then, let's go to Rupert Harrison, Chief Macro Strategist for BlackRock Multi-Asset. Sir, surprised by the significant drop in not

just U.K. assets, but assets all over the world.

RUPERT HARRISON, CHIEF MACRO STRATEGIST FOR BLACKROCK MULTI-ASSET: I don't think it's such a surprise given the markets in the 48 hours running up to

the vote managed to persuade themselves that everything was probably be going to OK and that left a lot of downside. And, you know, I think that's

what we at BlackRock and many others expected. And the question now is how much of that is going to recover.

ANDERSON: And the answer to that question is what?

HARRISON: Well, I think that one of the thing -- interesting things we're learning today, markets fell initially very, very sharply. Some of them

come back including Sterling for example. One of the things we're learning, and you've just been talking about a two-year process, I think of

the things we're learning today is it might end up taking a little longer than that.]

So not only has David Carmen said he is not going to trigger the Article 50 that you are going to talk about -- that you were talking about that

triggers this two-year process. But we've heard today from Boris Johnson, Michael Gove, the senior leaders of leave campaign, and it sounds like they

are not going to be in any rush to trigger that Article 50 either in the way they are talking about a gradual divergence process that is going to

take some time, and I think that actually markets might take a little bit of comfort from that that this is going to happen slowly. It's going to be

more of an evolution than a revolution and I think that's quite a significant bit of information today.

ANDERSON: Rupert, you and I know that markets absolutely hate not knowing what's going on. Any instability is awful for markets. Could the

Chancellor of the Exchequer and the Governor of the Bank of England have done a better job in providing the markets British citizens, Europeans with

a sense that there were at least contingency plans. I mean, you are formerly chief for George Osborne, the Chancellor of the Exchequer Finance

Ministry, if you want to call him that. I mean, did he play a really bad hand in this?

HARRISON: I don't think you can get rid of the inherent uncertainty in this situation, the British people made a choice. Nobody knows how their

choice is going to evolve and the contingency plans you can put in place, particularly central banks can put in place are there. And indeed, Mark

Carney has come out and he said the bank will do whatever is necessary to ensure liquidity, financial stability. That's really all you can do

immediately. And probably over the months ahead, we'll see - we would expect the Bank of England cutting interest rates potentially even

embarking up on a new round Q.E. and it will be ultimately for the in the new government, the new prime minister to make decisions about, you know

...

ANDERSON: Right.

HARRISON: ... fiscal policy and those kinds of things. So I don't think there's really you can do to get rid of the fact we made step into dark.

ANDERSON: But perhaps, it could have been. I mean the Bank of England Governor didn't come out and talk about contingency plans until the pound

had already dropped to a 35-year low. The Chancellor of Exchequer ...

HARRISON: That's not quite right. He had talked in the bank.

ANDERSON: Right, OK, fair enough. But still, I mean the pound is still -- but the pound still had dropped out. And hang on, George Osborne has been

accused of scaremongering coming up with statistics that suggest they'll be a $42 billion hole in public finances. And when asked to be able to sort

of stock this up, it's very difficult to do so. So my point is this, you know, could the chancellor have done a better job in persuading people

whether they wanted to stay or go, that things would be okay going forward.

HARRISON: Well, I think it wasn't just the Chancellor of Exchequer, it was the overwhelming majority of economists, market commentators like us at

BlackRock. And I think what today has shown is it wasn't project fear, it was project reality. I think it was the correct information that markets

would take a very dim view of this and that there would probably be no consequences for the economy. As I say, I don't think you can get around

that. That was the decision that we have taken as a country.

ANDERSON: I wonder if I can just take you back six months to a speech that David Cameron made at Davos, the World Economic Forum. I'm pretty sure you

have heard this speech and if you didn't, I want you just to point one phrase. As he was talking to the audience, say, he was really addressing

the Euro skeptics in his own party. And one line that really struck me at the time and may come back to haunt him is this. He said, "You will never

hear me say that Britain can't cope outside of the European Union."

[08:30:04] In the last a couple weeks of campaigning, you are already being pushed to find David Cameron suggesting that things will be all right,

well, over the U.K. to pull out of the E.U. So will the U.K. be all right going forward?

HARRISON: Well, we will cope. I mean, you know, the U.K. economy is not going to collapse. I would expect that there will be an impact on growth.

We may even have a recession. But what David Cameron's argument and the argument of the vast majority of economist was the better choice

economically was to remain within European Union. That doesn't mean life doesn't go on. And the -- we've go to pick up the pieces today. So we've

got to think about monetary policy, the Bank of England is going to step in. We've got to think about a process of negotiation that tries to

minimize uncertainty, which I think are beginning, you know, the evidence of that today, talking about a slow and gradual process.

So look, it's not ideal. I don't think it's the best outcome economically. But, yeah, life will go on. The challenge now is we have to make the most

of it.

ANDERSON: Also, as does Europe itself pushing, sir, over the European project as a whole going forward. All right. Thank you for that. Thirty

million voters across the U.K. have spoken and nearly 52 percent have opted for the country to leave the European Union in the wake of, what it is, a

historic decision. Prime Minister David Cameron says he is going to resign. He was the leading voice in the remain campaign that says the will

of the British people has to be respected.

Result of the vote has highlighted deep divisions within the U.K. Scotland, for example, overwhelming voted to stay and that country's First

Minister says it's highly likely they'll have to have a second independence referendum. She said and I quote, it is democratically unacceptable to be

taken out of the EU against our will, end quote. So what will happen now that the U.K. has voted to leave the European project? CNN's Erin

Mclaughlin walks us through what is this divorce process.

ERIN MCLAUGHIN, CNN CORRESPONDENT: So, it's official, the U.K. will become t he first country to leave a 28 country block and the separation could be

messy and difficult taking at least two years, probably more.

First, the U.K. invokes Article 50 of the E.U. Treaty which outlines the process for a country to leave. It's only five sections long but those

lines hold the key to the U.K.'s future and how they're interpreted by both sides will make a world of difference.

Once Article 50 is invoked, the negotiations begin on treaties and trade deals. Everything from fishing and agriculture subsidies, to financial

markets, to immigration and each member state will have their say on every single subject. It's going to be a complex negotiation.

The U.K. has just two years to negotiate. It's exit, after that, it could be unceremoniously kick out of the E.U., unless all remaining member states

agreed to extend that deadline. And this Brexit has triggered fresh fears of further fractures in Europe. Scotland has already hinted that it may

call its independence vote so that it can join the E.U.

In fact, the only certain thing about a Brexit is that no one knows exactly what is going to happen. The U.K. will be sailing solo into unchartered

water. Erin Mclaughlin, CNN Brussels.

ANDERSON: All the referendum in U.K. slamming world while markets. Wall Street poised to plunge at the opening in just under an hour from now.

London (inaudible) is not seen since the 2008 financial crisis. But it's going to set after reassuring words in pledge of billions of dollars from

the Bank of England, the Governor, the FTSE did recover some ground to trade around, what is it now, about four percent low. Look at the Xetra

Dax, nearly seven though. Then you can see Paris off some 8.5.

Across Europe, banking stocks have been especially hard-hit. Multiple lenders across Europe nosedived more than 15 percent. And business is

clearly now reacting to the (inaudible). Paul Kahn is president of Airbus Group in the UK and joins us now. A good or bad decision in behalf of the

British electorate.

PAUL KAHN, PRESIDENT OF AIRBUS GROUP: We're disappointed with the decision but we respect that decision because, yeah, the British people has spoken.

ANDERSON: I'm sure that we're glad to hear that.

KAHN: Now, we're going to work constructively to minimize the impacts on our operations.

ANDERSON: When you say minimize the impact, just how bad could things be explained to us how this work.

KAHN: Well, we employ 15,000 people in the U.K. We're a global business. So we work in a very joined up interconnected way with our operations

globally but in particular, France, Germany, Spain, as well as into the U.S. and China. And we make use of the freedoms of the E.U. single market

today and, of course, the good news is that won't change at least in years and that gives us a chance to understand the changes and to work

constructively with the government with our supply-chain in order to minimize the impact.

[08:35:10] ANDERSON: Were in the impact to feel costly going forward, would you move your operations away from it?

KAHN: Well, we are absolutely committed to our current operations in the U.K. We're a big British business and we've invested heavily in the U.K.

ANDERSON: How bad would the costs need to be in order for you to move?

KAHN: Well, it's always about future investments. It's about productivity because we are global business and we have to be globally invested. So

it's a -- what will be reviewed is the future investment in the U.K. which could go anywhere in the world. It come to the U.K. but only if economic

conditions are right.

ANDERSON: So you are telling me there is a risk to the 15,000 people that you employ at Airbus here in the U.K.

KAHN: There's a risk of future investments and that's what will be reviewed, not our current operations, not our current employees, but we are

fully committed to it.

ANDERSON: DO you think the leave campaign would see that as a threat? Does it work?

KAHN: I don't -- I don't see it as in terms of threat, so this is a new reality. This is -- you know, we are disappointed but we accept the

decision of the British people and now we're going to work very constructively to be as successful as possible. We are, you know, a global

business, a very successful global business, and that is more important than protecting anyone for this decision.

ANDERSON: I'm interested to find out from you whether you have any sense of how the people who work for Airbus voted?

KAHN: I have nowhere of knowing what we vote to (inaudible) not to tell them how to vote but to tell them the company's position and why the E.U.

is good Airbus Group. And then of course, they along with the rest of the British people took their decisions and made their votes.

ANDERSON: How many people do employ you may have immigrated into U.K.

KAHN: So we are about six percent of our workforce non-British and about half of those or about three percent are E.U. nationals who are here under

the freedom of movement for us labor. And we have a similar number of Brits who are working in Europe or in the E.U. also benefit from that

mobility of labor.

ANDERSON: Going forward then, you are talking about assessing the investment opportunity here and assessing the cost of any risk going

forward. As a parliamentarians here now getting ready and reorganize themselves under studded (ph) by a new conservative leader by the way, but

the Prime Minister will be resigning once this negotiation with Europe begins. What will you be telling those negotiators, one of them could be

Boris Johnson, for example.

KAHN: Well, we will be working very constructively with the British government to minimize the impact on operations. The British aerospace

industry is the second largest in the world, second only to the U.S. and we work in a very integration way across Europe. And so we will be making

sure that when it comes to tariffs and taxes, that any changes which come about there are structured in such a way that they minimize the impact in

our business.

ANDERSON: So Airbus will be around for two years but we -- you can't tell me today that you wouldn't be moving on after that.

KHAN: Lets' be clear, Airbus Group is a very successful global business and we are fundamentally, you know, addressing the worldwide market from

Europe, from the U.K., as well as everywhere else. So Airbus Group is absolutely here, Airbus Group is successful. And what my job is and what

the U.K. operations are trying to do is to be as competitive, as productive as possible as part of a success with global group.

ANDERSON: I appreciate your time. It's a busy morning and it's more than interesting one. Thank you, sir.

This is a fast-changing story. I want to get you back to Downing Street where just hours ago, David Cameron announced his resignation as the

British Prime Minister. And now word of a no-confidence motion against the Labour Leader, at Jeremy Corbyn, CNN's Clarissa Ward joining us for there.

END