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Labour's Shadow Health Secretary Quits; Brexit's Impact on British Youth; Scotland Seeking Immediate Discussions with E.U.; U.K. Labour Leader Refuses to Resign; Contenders for British Prime Minister; Pope Wraps Up Visit to Armenia; Euro 2016 Fans React to Brexit; How the Brexit Vote Unfolded. Aired 4-5a ET

Aired June 26, 2016 - 04:00   ET

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


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MAX FOSTER, CNN HOST: Well, we welcome our viewers in the United States and around the world as we continue our special coverage of Britain's decision to leave the E.U. From London. I'm Max Foster.

CLARISSA WARD, CNN HOST: And I'm Clarissa Ward.

FOSTER: We are closely following fallout from the Brexit vote. It's coming thick and fast, particularly from the Labour Party.

The shadow health secretary has just resigned in the last half-hour. Heidi Alexander says on Twitter that the Labour Party needs a new leader after the U.K. voted to leave the E.U. Alexander says that Labour leader Jeremy Corbyn, quote, "does not have the capacity to shape the answers our country is demanding."

WARD: And this comes on the heels of reports that Corbyn fired his shadow foreign minister. It's believed that Hilary Benn was fired earlier today after indications that he was planning a coup against Corbyn.

And we do have a statement from --

FOSTER: Corbyn's spokesperson saying there's no resignation of a democratically leader -- democratically elected leader with a strong mandate from the membership. Corbyn basically saying he's going to resist all of this pressure.

Hilary Benn, a crucial player in his cabinet.

WARD: Absolutely. And certainly that pressure probably likely to increase. Labour leaders have criticized Corbyn for not campaigning hard enough to remain in the E.U. Some Labour politicians are calling for his resignation but as we just said, Corbyn says he's not going anywhere and that he will seek reelection.

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JEREMY CORBYN, LEADER, U.K. LABOUR PARTY: Our policies on trade, economy and migration will have to change in light of the referendum vote.

But that cannot be left to the likes of Johnson, Farage and Gove. Labour will fight to ensure that our agenda is at the heart of the negotiations of the withdrawal from the European Union that lie ahead, including the freedom to shape our economy to work for all, maintain social unemployment protections that benefit all and that whoever leads the government is intensely held to account, to democratic account, throughout the whole process.

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WARD: For more on this possible development, our Diana Magnay joins us now from outside 10 Downing Street.

Diana, the hits keep on coming.

What can we expect to see next?

DIANA MAGNAY, CNN CORRESPONDENT: Clarissa, you wouldn't have thought that British politics could get more dramatic. And yet this Sunday morning it keeps, keeps on going. It's really extraordinary.

We have this midnight telephone call between Jeremy Corbyn and Hilary Benn, his shadow foreign minister, where Hilary Benn tells him that he doesn't have confidence in him anymore as Labour leader and Corbyn then dismisses him.

We can expect to hear more from Hilary Benn. He's appearing on a very important Sunday political talk show, "The Andrew Marr Show," right now. And you can expect that he'll have some very forthright things to say about the Labour leader.

And we've had one member of the shadow cabinet, Heidi Alexander, the shadow health secretary, resign already and there are expectations that there will be more of her fellow cabinet members following suit.

Most people, in fact, all the shadow cabinet backed Remain and, of course, Jeremy Corbyn, too, asked the country to follow him on the Remain side. But the fact is, the Labour heartlands did not.

Even though -- even if the entire shadow cabinet does resign though, if that's what it comes to, it doesn't mean that Jeremy Corbyn will have to go. As his spokesman in that statement Max quoted a little earlier, he is elected democratically with a very powerful mandate, the Tory -- the Labour membership are partly behind him, even if the Labour leadership is not.

But it does look as though his position would become increasingly untenable if more and more of the cabinet resign. It will be very interesting to see how today pans out.

FOSTER: Yes, just illustrating what you're saying there, Diana, for the wider audience, is that, as you say, when he was elected, he didn't have a huge amount of support in the parliamentary party. It was all in the grassroots, wasn't it.

And he's there to change the party. So he's going to throw to that support he has with the grassroots.

But at the same time, is he adding to instability in the country, isn't he?

We had Chuka Umunna as well coming out today, another key member in his shadow cabinet, saying he's going to back Benn.

So what point does he accept he should go for the stability of the party or for the party rather than saying he represents the grassroots?

MAGNAY: Well, exactly.

And, Max, why does his fighting spirit suddenly come out now?

Whereas throughout the actual referendum campaign he was pretty lackluster. He's never been particularly convinced about --

[04:05:00]

MAGNAY: -- Europe. But now, all of a sudden, he's going all guns blazing with the possibility of a general election coming up, depending on what happens with the Tory leadership. It's an incredibly confusing, unstable situation both within the Conservative Party and within the Labour Party.

As you said, Chuka Umunna, the shadow business secretary, saying in a tweet just a few minutes ago, "Either you look your flaws in the face and address them or you stick your head in the sand, destroy the Labour Party and the country suffers."

These are very, very harsh critiques coming from very key members of the Labour parliamentary party. And it remains to be seen how long Jeremy Corbyn can stick it out in the face of that kind of criticism and what that will do for the already very, very divided Labour Party.

FOSTER: Thank you, Diana. It's really difficult isn't it for the British public right now. They've lost their prime minister. The Labour Party is in disarray with its internal stuff.

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WARD: -- a vacuum.

FOSTER: And then you've got the markets opening up and there's this sense of fear.

WARD: A lot of uncertainty.

FOSTER: In Berlin, the six E.U. foreign ministers, of course, with the U.K.'s swift departure from the E.U., this after European Commission president Jean-Claude Juncker said the Brexit isn't an amicable divorce.

We're going to go to Atika Shubert; she's in Berlin for us now. What they're looking for there, Atika, is clarity. They want to speed

this whole thing up. London can't provide it. No one knows who's in charge.

ATIKA SHUBERT, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, no. And this is exactly the situation that the E.U. did not want to see. But, basically, the stand that many countries here are taking is, if you want out, then leave. Out is out. And let's make it as quick and as painless as possible.

At the same time, however, we've also seen Germany's chancellor, Angela Merkel, take a more conciliatory and perhaps more practical point of view, where she's saying, listen, it's going to take some time. We know this because nothing moves forward until the U.K. invokes Article 50, which is the legal mechanism to leave the E.U. That's not going to happen until there's a new prime minister. So let's take this time to calm down, and as she said yesterday, let's not get nasty about negotiations.

But we can't let negotiations last forever either. So we're bound to see this in the coming days and weeks as sort of "good cop, bad cop" as the E.U. wrestles with how to deal with Britain leaving the E.U., which is a process that will take months, even years.

WARD: And Atika, obviously there's been some discussion about possible referenda taking place in France, in the Netherlands.

What do you think when you look at the broader European landscape?

Is there really a sense of potential danger that this so-called contagion could spread, that many other countries will want to follow the British example?

SHUBERT: There is definitely that sense. And the biggest challenge -- and this was said by Germany's foreign minister, Frank-Walter Steinmeier yesterday, the biggest challenge right now is to hold the European Union together.

And it falls upon Germany, most of all, as the E.U.'s largest member but also France. And for this reason, there really need to make, in a sense, an example out of Great Britain, to show that there is absolutely no benefit to leaving.

We've heard from Marine Le Pen that -- the head of the Front National, that she wants to hold a referendum in France, a Frexit, if you will. That has been rejected by French President Francois Hollande.

But also the Dutch far right leader, Geert Wilders, has called for the same and of course Germany has its own far right eurosceptic movement here, the alternative for Germany party.

And none of the governments in power here want to see these parties move any further, so they're closing ranks and saying, fine, Great Britain, you want out, leave now, leave quickly. We're going to make sure that this doesn't happen in any other countries here in the E.U.

WARD: OK, Atika Shubert, thank you very much, a lot of uncertainty in the weeks and months ahead for Europe.

Now pollsters are saying that people under the age of 30 voted overwhelmingly to remain in the E.U. in Thursday's referendum, while those over 65 voted to leave by a wide margin. That has led to an eruption of anger on social media from many young people directed at the older generation.

FOSTER: You can definitely say that. On Twitter, one user called the vote "a referendum nobody called for, decided by generations whose future it won't affect. Fantastic."

Many shared this quote from the comments section of the "Financial Times" website, "The younger generation has lost the right to live and work in 27 other countries. We'll never know the full extent of the lost opportunities, the friendships, marriages and experiences that will be denied."

WARD: Not everyone thought the criticism was entirely fair. One teenage user tweeted, quote, " I don't agree with the result of the referendum but a lot of people slagging off the elder generation are forgetting that those people fought for our country."

Now the impact of the Brexit could be very different along these same generational divides. And for more on how the decision will affect the country's youth --

[04:10:00]

WARD: -- we're joined by Felix Marquardt, he is the executive director of Youthonomics and the CEO of Migration.

Clearly a lot of young people feeling angered, feeling incensed.

Why do you think it is that they're feeling that?

What difference is there from the older generation?

FELIX MARQUARDT, FOUNDER, YOUTHONOMICS: Well, people's, young people's allegiances are no longer strictly national or mostly national. I call them the "Star Wars" generation.

They're a bit like -- you know, in "Star Wars," characters don't care what planet you're from. They don't really care what color your skin is. They don't even care whether you're a Wookiee, a droid, a human or a big, fat, slimy creature. The only thing that counts is on what side of the force you are.

And young people are no -- not so interested in where you're coming from. They want to know where you're going. They're values driven. They want to know if you're a racist or not, they want to know if you're an individualist.

They want to know if you actually think that global warming is a myth. Those are the questions that they identify with.

Whether -- and their allegiances are very local and broad. They feel like citizens of the world. They feel much more than their elders. They feel -- they feel strongly about the very local, their city, their neighborhood.

But the thing in the middle, the nation?

The island?

It's not really, really central to their world view.

FOSTER: It's going to have lasting damage, isn't this?

Whatever your view of the referendum or Europe or immigration, what we definitely do know is there's been this big divide exposed between young generations and older generations, which was already there because there's this massive frustration as well with the amount of debt that's been built up, which they're going to have to pick up on.

In London, they can't afford to buy a house, for example, and that's across the U.K. in fact.

So what sort of generation is going to come through after the one that's currently in power?

MARQUARDT: I think you really have a point. A lot of people have been, over the past 25 years, talking about clash of cultures, civilizations, religions. My chairman and I at Youthonomics, we have a strong, strong feeling that the biggest clashes of all in the coming years might well be a clash of generations.

Because, as you mentioned, what we just did over the past 10 years is we took a lot of privately accumulated bad debt that was accumulated by Baby Boomers, wrongly, because of, I would argue, sort of a sense that, you know, that for very ideological reasons that purported not to be ideological, sort of a, you know, a modern version of Adam Smith's invisible hands that was actually for the greater benefit of all, in the end, turned out not to be for the benefit of all.

And all this bad debt that was privately accumulated was converted into public debt. And the burden of paying it back, we haven't really started. And so it's people either who are kids now who're going to be paying them back or people who are not even born.

These people, when they grow up, are going to be -- you know, there's a good chance, fair chance that they'll be pretty upset. And so I think like we need to look at the ways that young people can actually sort of reclaim power in the coming years, because, basically, as I said, national allegiances don't really work for them.

Essentially, I think most of them, they get the fact that the central issues of our time -- global warming, nuclear proliferation, terrorism, forestry depletion, fishery depletion -- those issues, the answer to those issues will be transnational or they won't be real solutions.

FOSTER: But those issues also, as people get older, I mean, this is a generational thing in the sense as well, those issues, they will take on some of the issues that the older generations do care about now, because they're just in a different place in their lives.

MARQUARDT: Of course. But there's a real evolution there and we need to look at it. And one of the ways that young people can reclaim power is by migrating, voting with their feet. And that's what the E.U. was all about and that's what the young Brits are going to miss out on.

FOSTER: Felix, thank you very much indeed. Obviously a huge, huge issue this has exposed.

Scotland also considering its future, a whole country within the U.K. considering its next move following the Brexit vote. Why the country's first minister says Scotland is likely to hold its second independence referendum.

WARD: Plus we'll take a look at possible successors to British Prime Minister David Cameron, including the larger-than-life former mayor of London, Boris Johnson. That's coming up.

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FOSTER: Well, who could have imagined this last week, Scotland's first minister is saying the country will likely seek independence from the U.K. again.

WARD: Nicola Sturgeon says a second referendum is very much an option as the government considers its next move following the Brexit vote. CNN's David McKenzie is in Edinburgh, Scotland.

David, tell us, what's it looking like?

Will there be another referendum?

DAVID MCKENZIE, CNN CORRESPONDENT: Well, it's too early to tell but certainly the words of the first minister say it's very much, quote, "on the table."

And if you look at the press here as we enter a very different scenario politically this week after that shock vote in the U.K., 59 percent, yes. This is what the "Sunday Post" says and that's an online poll of Scots, certainly not necessarily scientific. But that 59 percent yes is what they would vote if there was another independence referendum.

You know, Scotland tried it in 2014. It was defeated. And one of the main platforms were those saying that Scotland should stay within the United Kingdom, would that if they went independent, they would not necessarily get back into the E.U.

Now the opposite has happened, England predominantly voting to leave the European Union and the Scots are seeing this as being dragged with them, effectively against their will and so the --

[04:20:00]

MCKENZIE: -- first minister, popular figure here in Scotland, is trying to see any means necessary to stay within the union.

FOSTER: Yes, because the idea of it is all well and good. But actually making it happen is extraordinarily complicated, isn't it, because she is going to be dragged out of the European Union with the U.K. But she has to somehow tee up a referendum, saying Scotland's going to stay within the European Union, so she's got to cut some sort of deal in Brussels, which, you know, they've got enough on their plate right now.

MCKENZIE: Well, they do have enough on their plate. But this is a side issue maybe, you could say, but a very crucial side issue. But it is complex, like all of this, and uncharted territory.

If they do make some kind of deal, that certainly isn't a deal that some countries in the European Union, like Spain, which is dealing with the Catalan region, trying to form their own nation, people like -- groups like -- countries, excuse me, like Spain will try and push against Scotland getting a separate deal after the U.K. leaves the union.

So there's also a timing issue. If the Scottish National Party, which has made their reason for being, in some senses, having a Scottish statehood, try to push through their referendum, they'd probably have to do it relatively quickly or at least start the legislative process because there's that window of uncertainty.

While Westminster is basically in chaos with the resignations left and right and a new government forming in potentially October, that's the window possibly, people say, that Scotland can push through some kind of move toward an independence vote.

But legally and diplomatically, it doesn't mean they vote for independence here and then suddenly they're in the E.U. Could be a whole complicated procedure after that. And it does seem, though, Max and Clarissa, that the sentiment here in Scotland is to stay. And they want -- the Scottish government wants that sentiment to be respected.

FOSTER: David, thank you very much indeed. It's so hard for people to digest and in Scotland they've got these extra dynamics.

And another major vote happening right now in Europe. David was talking about Spain there and they've got an election, haven't they, of a new parliament.

WARD: That's right. And the country's center right party is expected to be the big winner. But Spain's anti-austerity party is also expected to make some big gains and that would leave Spain's Socialist Party in third place.

The last election in December was ruled inconclusive. Voters are hoping to avoid a third round of voting.

FOSTER: And most Catalonian campaigners will be absolutely looking --

WARD: Looking at Brexit.

FOSTER: -- in the U.K. But then they have got that problem about Scotland as well. And if Scotland goes ahead, then you could expect Catalonia to push back.

We'll continue our Brexit coverage and all the implications. But first Natalie Allen has some of the other news of today from CNN Center.

NATALIE ALLEN, CNN ANCHOR: Max, Clarissa, thank you.

And, hello, everyone. The death toll has risen in the state of West Virginia, President Barack Obama declaring a major disaster there. At least 24 people have died. That number has just risen by one in the past couple of hours.

And this is the deadliest flash flooding in the United States in six years. As you can see what it has left behind, downed trees, power lines, all kinds of debris and mud.

And just a side note, the PGA, the Professional Golf Association, was to have played there but has canceled a major tournament in the area because of all of what you are seeing. You really can't play golf there or think about it with all of the people that have had their lives suddenly disrupted.

Derek, it just came on so fast.

DEREK VAN DAM, AMS METEOROLOGIST: Changed in a moment. It's a matter of having too much rain in a short period of time, also with these communities living on the edges of rivers, right at the base of some tall mountains.

So you can imagine water seeking its own level, it's going to funnel into those regions and ultimately rivers are going to flood.

Flash flooding leaving scenes like this. We're want to replay you just what they're having to deal with there because you need to get the scope of what these people are dealing with. The cleanup is going to take weeks, if not months to take care of the. The livelihoods of people just trying to get back to normal.

Of course, you can see the sun shining there. But that doesn't make it any better. They still have major efforts underway and, by the way, this is considered a 1,000-year event by the National Weather Service, meaning there is a chance of this happening in any given year is one in 1,000.

It has unfortunately killed more than all tornado fatalities that have occurred in the United States so far in 2016.

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VAN DAM: By early Friday morning local time, the Elk River burst its banks. It's a 125-year record. And that majority of the rise in the river occurred within that six-hour period of the heavy rainfall. So the river actually rose about 17 feet in six hours, unbelievable stuff.

Now the good news is that the rain has moved away. The sun is shining, so the water levels will drop very quickly. But as you saw from the video just a moment ago, they've got massive cleanup effort ahead of them.

Take you to the other side of the United States, where they're dealing with not floods but fire. Extreme drought in California ongoing for the past five years has left very volatile conditions across this area. It's almost like a tinder box across Southern California.

And this particular fire in Kern County just outside of Bakersfield, is also considered the Erskine fire, over 35,000 acres burned. They had 5 percent containment; it's now dropped to 0 percent containment. So this thing is rampant. It is out of control. And weather conditions continue to fuel the flames, high temperatures low humidity and strong winds. It has been a very active year for wildfires, over 2 million acres burned so far.

Take a look at the footage from this region. People trying to deal with this. The governor, Jerry Brown, declaring a state of emergency in Kern County, over 150 homes destroyed -- Natalie.

ALLEN: And people killed there in California, unusual.

VAN DAM: Unfortunately.

ALLEN: All right, Derek, thank you.

That's the latest news we have for you from here. We return now to London for more of our Brexit coverage with Max Foster and Clarissa Ward.

FOSTER: Thank you so much, Natalie.

British prime minister, he has stepped down, of course. We'll look at the candidates who could succeed him and we'll discuss the future of the Conservative Party as well.

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MAX FOSTER, CNN HOST: We are welcoming our viewers here and in the United States, around the world. You're watching special coverage of the Brexit. I'm Max Foster. CLARISSA WARD, CNN HOST: And I'm Clarissa Ward.

The headlines this hour:

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FOSTER: It's moving very quickly. We're following developments of the political repercussions of the U.K. vote to leave the E.U. And we are seeing some sharp internal divisions, particularly in Labour's leadership today. That's the opposition party. As we mentioned, the party's shadow health secretary resigning. Local media are saying as much as half the cabinet may quit.

WARD: And we have just gotten a statement from a spokesman for Labour leader Jeremy Corbyn.

It says, quote, "There will be no resignation of a democratically elected leader with a strong mandate from the membership."

FOSTER: And Corbyn says he will actually seek reelection and we'll stay on top of that story as it develops for you.

With David Cameron stepping down as prime minister and leader of the U.K. Conservative Party, there's a -- here's a look at the successors who may be chosen for him by Conservative members of Parliament who wish to lead the party must be nominated by two fellow members.

WARD: If more than two candidates are nominated, the 331 Conservative MPs will hold a series of votes until they select their top two choices. Then the entire party -- about 150,000 members -- votes in a postal ballot to make the final decision.

FOSTER: Since the Conservatives hold the majority in the U.K. Parliament, that person also becomes the country's next prime minister.

So much to digest. Let's discuss who could be the next British prime minister, who could be the next Labour Party leader. So much to talk about.

Robert Saunders is the expert. He's a lecturer in history and the director of admissions at Queen Mary University here in London.

First of all, we need to talk about Corbyn because that's the breaking story that we've got right now.

How does it work with the Labour Party?

How does the next leader get installed?

We have got the cabinet, half the shadow cabinet as we understand it, about to come out and call for his resignation. But he's staying put.

How does it work? ROBERT SAUNDERS, QUEEN MARY UNIVERSITY: Well, this is the difficulty. And we're in completely uncharted waters here.

The Labour Party changed its election procedure last year to allow the membership and anyone who paid 3 pounds to vote in a leadership contest. Now we know that that particular constituency adores Jeremy Corbyn and that constituency is still absolutely in his corner.

The problem is that while the membership think he's the messiah, the party membership think he is driving the party -- sorry, the parliamentary party think that he is driving the party off a cliff. So there is no route to removing Jeremy Corbyn that involves the party membership.

FOSTER: I must ask you, why is he staying put?

What's he trying to prove in this time of massive political instability?

SAUNDERS: He feels very powerfully that he has a democratic majority -- a mandate from the party membership and he believes also that he speaks from a much wider constituency in Britain. He feels that the parliamentary party lost the last election heavily and that they are continuing a path that is not going to carry Labour back to office.

WARD: Just looking at the spectrum here, you've got Prime Minister David Cameron announcing he's stepping down. You've got the Labour Party now clearly in complete disarray.

Is this unprecedented, this sort of political vacuum?

When was the last time we saw anything like this here in the U.K.?

SAUNDERS: I don't think there is any historical precedent for what we're seeing right now. And that's partly because it's exposed an absolute chasm between the views of the voters in the country and the views of those they've elected in Parliament.

Let's be clear about what happened on Thursday night. The voters didn't simply reject the judgment of --

[04:35:00]

SAUNDERS: -- David Cameron. They rejected the judgment of the leader of the opposition, four-fifths of the administration, three-quarters of all members of Parliament, the confederation of British industry, every major trade union in the country.

FOSTER: Heads of every security service.

SAUNDERS: Absolutely. So this was a massive, nationwide vote of no confidence.

FOSTER: Against...?

SAUNDERS: Against really the political establishment in general. FOSTER: Well, that's the point, though, isn't it. They weren't voting on Europe.

SAUNDERS: That's right.

FOSTER: That's frightening.

SAUNDERS: One of the ironies of a referendum is that it's supposed to be a single-issue campaign. And yet precisely because it becomes detached from wider party allegiances, it actually grows into something much bigger.

WARD: Now we're already seeing the Leave campaign backtracking on some of the central platforms that won this referendum.

Do you think that they can deliver on those promises and steer Britain out of a possible recession?

SAUNDERS: I think this is the big question of British politics for the next 5-10 years. Some very powerful promises were made to the British public during this campaign and 17 million people voted for them.

Now this campaign has exposed an enormous crisis of trust in British politics. If the Leave campaign now fails to deliver on these promises, where that physical anger goes next, I think, essentially takes us to some very dangerous places. So in regards to (INAUDIBLE), they have to (INAUDIBLE).

FOSTER: Just back to the Labour Party, Hilary Benn, a hugely respected figure, isn't he, in Parliament but also in the wider world and he's from this great, historic family in Parliament, very credible, he had a fantastic speech which won the world around.

That became an international story we were coverage quite extensively, weren't we.

He is lining up now to take over from Jeremy Corbyn. Chuka Umunna, who is the other likely candidate, who's put his support behind Hilary Benn, will Hilary Benn become the leader?

SAUNDERS: I see no path to Hilary Benn becoming the leader of the Labour Party principally because the membership is so supportive of Jeremy Corbyn. They will not support accept somebody who voted for the bombing of Syria, somebody who made that great speech which was an attack on his party leader and someone who has now become the process of removing Jeremy Corbyn from power.

So I see no possible route to a Hilary Benn leadership. I think what we're looking for, if Jeremy Corbyn goes -- and that is not at all clear -- if he goes, what we're looking for is someone younger in the party, who is not associated with either of the --

FOSTER: Chuka?

SAUNDERS: I think not Chuka. I think it has to be someone who's seen as being on the soft Left of the party, someone that the membership can live with.

FOSTER: Give us some names.

SAUNDERS: One name that's been thrown around is Owen Smith, the shadow secretary of state for work and pensions. I think that's possible.

FOSTER: He doesn't have a profile, though, does he?

SAUNDERS: He doesn't. But I think we are probably looking at someone that has no profile.

WARD: Maybe that's for the best in this environment.

FOSTER: Amazing.

SAUNDERS: Well, everyone who has a profile in the Labour politics, other than Jeremy Corbyn, is associated with the previous regime.

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FOSTER: OK, Robert, thank you very much. It needed some explaining.

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FOSTER: -- looking ahead as well, we'll need to.

Meanwhile, the pope is ending his trip to Armenia on Sunday, very historic. We'll tell you why his remarks on Armenians have seriously angered Turkey.

WARD: Plus: more than a dozen people are dead, dozens more wounded after an attack at a hotel in Somalia.

A government official killed and who is claiming responsibility?

That is coming up.

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NATALIE ALLEN, CNN ANCHOR: I'm Natalie Allen, live in Atlanta, from CNN Center. We'll return to London in a moment and our coverage of the Brexit. But right now we want to bring you some other stories we're following.

In the state of California, a fast-moving wildfire has scorched nearly 35,000 acres of land or about 14,000 hectares. The fire has killed at least two people and destroyed 150 homes.

Hundreds of people have evacuated but there are fears that some were not able to get out in time. We just don't know at this moment.

The fire was about 5 percent contained on Saturday -- just 5 percent. But it grew overnight. Drought conditions, high winds and all the heat in California are making battling this one more challenging for these very skilled fire crews.

Pope Francis is wrapping up a three-day visit to Armenia. His trip has been marked by significant moments and also controversy. Let's bring in CNN senior Vatican analyst, John Allen, also the editor of cruxnow.com, a website that covers the Vatican.

John, thanks for joining us. We're looking at video -- this was just a couple of hours ago -- of an Orthodox service that the pope attended.

Talk to us about the significance of it.

JOHN ALLEN, CNN SR. VATICAN ANALYST: You're right. This was the Sunday divine liturgy of the Armenian Apostolic Church, which is the main branch of orthodoxy here in Armenia.

But probably one of the main thrusts of the pope's trip to Armenia has been to promote closer ties between Catholics and Orthodox. Of course, it's a rupture that goes back a millennium to the split between East and West in 1054.

Yesterday, Catholicos Karekin II, who is the head of the Armenian Orthodox Church, attended a papal mass. Today, he returned the favor by attending his liturgy.

Really, Natalie, it is a remarkable show of unity. Now it's not unprecedented; we've seen this sort of thing from popes and patriarchs before. But it is exceedingly rare and, certainly, with the -- here in Armenia, where orthodoxy is their overwhelming national tradition, but there is a very small Catholic minority and they get along quite well, I think this day will be seen as highly symbolic, a kind of milestone on the path to full Christian unity.

NATALIE ALLEN: And we also mentioned the controversy associated with this trip, John, the pope using the word "genocide" to describe a massacre of Armenians by Ottoman Turks during World War I. Turkey has never agreed it was a genocide and using that word is significant and Pope Francis did.

JOHN ALLEN: Yes, it's ironic, isn't it, Natalie, that he came here to promote unity in one sense -- that is between Catholics and Orthodox -- but stepped right into division in another way that is the very bitter and long-standing disagreement between Turkey and Armenia over how to describe those massacres in 1915 as the Ottoman Empire was falling apart.

Now Pope Francis had used the word genocide before to describe it. He used it last year in Rome in a special ceremony marking the 100th anniversary. In the run-up to this trip, the Vatican had actually played down expectations that he was going to do it again. In fact, in his prepared speeches, the word never appeared. But on

Friday night, in a major address to politicians and diplomats, he went ahead and used it. Obviously, it was important to him to do so.

And as you know, we have already seen some blowback from the Turkish side, including comments by the country's deputy prime minister, saying that the pope's language was just baseless and it reflects what he called a Crusader mentality, meaning a kind of Christian assault on Muslims.

[04:45:00]

JOHN ALLEN: So quite clearly, while the pope's language has played extraordinarily well here in Armenia -- he got a standing ovation at the end of that talk -- it has also sort of stirred the waters one more time on the -- with Ankara.

NATALIE ALLEN: John Allen, senior Vatican analyst coverage the pope's trip for us, thank you, John.

The Islamist militant group, al-Shabaab, is claiming responsibility for a deadly attack at a hotel in Somalia. It happened Saturday in the capital, Mogadishu. At least 15 people were killed, including a Somali cabinet minister; 25 others were wounded.

Authorities say gunmen stormed the hotel after detonating a car packed with explosives. A suicide bomber also blew himself up inside the hotel. Police spent hours in a gun battle with the attackers. Somalia's national news agency reports the siege is now over.

The Brexit vote triggered a sharp drop in the world's markets but it's the uncertainty of what is coming next that has some investors in crisis mode. We'll have the latest from London as the U.K. begins to see some of the aftermath of its Brexit decision. Stay with us.

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FOSTER: In France, football fans from across Europe are cheering for their teams, of course.

WARD: Of course. The Euro 2016 tournament is a great place to find what people think about the U.K. vote to leave the E.U. Our Will Ripley talked to fans in Paris.

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WILL RIPLEY, CNN CORRESPONDENT (voice-over): Politics and football: few things have such power to unite and divide. Flags and jerseys, colors of national pride, competitors fighting to win or lose.

UNIDENTIFIED MALE: Happy days. If we leave, we leave.

RIPLEY (voice-over): Even before kickoff of the Wales-Northern Ireland game, these Welsh fans felt like winners.

UNIDENTIFIED MALE: We got our country back. Same as that. We got our ball, it is back. And our government by Brussels.

RIPLEY (voice-over): Fans from Northern Ireland...

UNIDENTIFIED MALE: We voted that we stay in.

RIPLEY (voice-over): -- worry what the United Kingdom's departure from the European Union will mean for their mobility, their jobs, their future.

UNIDENTIFIED MALE: The whole day, we might let on that we do, but we do. I'm still having the time of my life here. I'll worry when I go back home.

RIPLEY (voice-over): Outside the Parc des Princes, we find fans from three of four countries of the U.K. represented.

RIPLEY: The fans here seem to be divided based on where they live. The Welsh fans backed the Brexit whereas Northern Ireland voted largely to remain. And those from England, they are split right down the middle.

RIPLEY (voice-over): These fans from West Yorkshire and Birmingham backed the Leave campaign.

UNIDENTIFIED MALE: And I think that moving out of England is the best thing that could happen to Britain.

UNIDENTIFIED MALE: A lot of people voted because of immigration.

UNIDENTIFIED MALE: Terrorism, that's the fear. Terrorism, that's the fear.

RIPLEY (voice-over): They admit much of that fear fueled by a lack of knowledge about what leaving the E.U. really means.

UNIDENTIFIED MALE: You've already said to yourself so it -- we won't be educated much about it.

RIPLEY (voice-over): This student from Northwest England voted to remain.

RIPLEY: Do you think people were aware of the consequences when they voted to leave?

UNIDENTIFIED MALE: No, I really don't. And I have seen many videos of people on Facebook, saying if they'd realize what would happen to the pound (INAUDIBLE) overnight that they wouldn't have voted leave. RIPLEY (voice-over): No matter who they root for or how they voted, all these fans share the challenge that lies ahead: pulling off a win for the U.K. no matter what Brexit leaves behind -- Will Ripley, CNN, Paris.

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FOSTER: The Brexit vote is the biggest decision the U.K. has made in decades and it's bringing in an entirely new set of questions.

WARD: Our Nina dos Santos looks at what we can expect from the markets come Monday.

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NINA DOS SANTOS, CNNMONEY EUROPE EDITOR: It's not sure whether the markets will rise or fall, what is sure they will be listening out to every single twist and turn. At a time when the prime minister says he is going to be stepping down over the next three months.

There's questions hanging over the leadership of this country and also this week on Wednesday, markets will be very finely listening out to what's said in Brussels because we've got a big E.U. heads of state meeting that will be happening there.

As one CEO of a bank put it to me over the course of the weekend, Friday was tough but at least that was just buying and selling the news. The news of being a decision in favor of a Brexit was much harder, he said, is to buy and sell the rumor that will come over the next few weeks to come -- Nina dos Santos, CNNMoney, London.

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FOSTER: Well, the U.K.'s now become the first country to vote to leave the E.U. and there remains a lot of questions about exactly what will happen next.

How does the products work?

WARD: From the early ballot results to the bombshell resignation of Prime Minister David Cameron, let's give you a walkthrough of how it all has unfolded so far.

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HALA GORANI, CNN CORRESPONDENT (voice-over): It's 10 o'clock in the United Kingdom and polling stations are now closed across the country.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: The British prime minister called this referendum, staking not just his political career but the future of the country on its outcome.

RIPLEY: Here in France, the president has said the outcome of this referendum across the Channel could affect the entire future of the European Union.

UNIDENTIFIED MALE: The total number of ballot papers counted was 78,325. The number of votes cast in favor of Remain was 53,928.

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RICHARD QUEST, CNNMONEY EDITOR AT LARGE: At 10 to 3:00 in the morning and we've bounced backwards and forwards between Leave and Remain but now you actually have a 50-50 split. It could not be any closer.

UNIDENTIFIED FEMALE: The total number of votes cast in favor of Remain was 51,930. The total number of votes cast in favor of Leave was 82,000 --

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GORANI: ATV News has conducted a results analysis and --

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GORANI: -- according to them, a 75 percent probability of a Leave win in this referendum.

UNIDENTIFIED MALE: If this result holds, it's end of Britain. It's just simple as that.

NIGEL FARAGE, UKIP: I hope this victory brings down this failed project. Let June the 23rd go down in our history as our independence day.

QUEST: The people have spoken. The majesty of the process, whether or not you like the result, the reality tonight is that the British people have voted every before (ph) to leave the European Union.

DAVID CAMERON, PRIME MINISTER, GREAT BRITAIN: The British people have made a very clear decision to take a different path. And, as such, I think the country requires fresh leadership to take it in this direction.

I will do everything I can as prime minister to steady the ship over the coming weeks and months. But I do not think it would be right for me to try to be the captain that steers our country to its next destination.

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FOSTER: The question is, who will steer the country to its next destination?

We're trying to work that out as well, who's going to lead the opposition. We're bringing you all of the updates on this fast-moving story. Thank you for joining us. I'm Max Foster in London.

WARD: And I'm Clarissa Ward. We'll be back after the break with more of our continuing coverage of the U.K.'s decision to leave the European Union. Stay tuned.