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Brexit Triggers Labour Party Revolt; Benn: Serious Questions About Corbyn's Leadership; Reports Of Racist Incidents After Brexit Vote; E.U. Leaders Call For Britain To Exit Quickly; Global Markets Face More Brexit Volatility; British Voters Feeling "Regrexit"; Parliament to Hold First Meeting Since Brexit; Brexit's Impact of the U.S. Presidential Race; Millions Sign Petition for Second Brexit Vote. Aired 1-2a ET

Aired June 27, 2016 - 01:00   ET

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


[01:00:22] MAX FOSTER, CNN ANCHOR: Hello and welcome. I'm Max Foster outside the houses of parliament in London.

JOHN VAUSE, CNN ANCHOR: And I'm John Vause here in Los Angeles where it has just turned 10:00 on a Sunday night. The U.K. parliament will meet in the coming hours in the wake of the historic referendum result to leave the E.U. They're expected to discuss Prime Minister David Cameron's resignation. At the same time, the opposition Labour Party is in disarray. Almost half of the shadow cabinet has quit or been fired, amid cause for leader Jeremy Corbyn to step down. The party revolt began after Corbyn fired his shadow foreign secretary, Hilary Benn, over concerns he was planning a coup. Benn later questioned Corbyn's leadership.

(BEGIN VIDEO CLIP)

HILARY BENN, MP, LABOUR PARTY: This has been a very difficult decision for me, because I agreed to serve in Jeremy Corbyn's shadow cabinet. I didn't vote for him. But I thought we had a responsibility to support him as the elected leader of the Labour Party, as I've supported every Labour leader since I was elected as a member of parliament. But it has become increasingly clear that there is growing concern in the shadow cabinet and the parliamentary Labour Party about his leadership.

(END VIDEO CLIP)

VAUSE: Busy day ahead in London. Let's go back to Max Foster outside parliament. So Max, let's start with that statement coming from George Osborne, the Chancellor of the Exchequer, that is scheduled for the next hour. What's he expected to say?

FOSTER: Well I've just got one very short note from his office late last night. Everything seems to be happening overnight. We have a lot of these events happening on Saturday night as well. But late last night, I had a note from their office saying, the Chancellor will make a statement to provide reassurance about financial and economic stability in light of the referendum result and the actions that he and the rest of the government will be taking to protect the national interest over the coming period. So he's not saying much beyond, I'm going to bring stability to the system. We've got the markets opening very soon here in just a couple of hours. He does need to do some of that. We haven't heard anything from the Finance Minister, extraordinarily. He was also right at the front of the campaign to remain in the U.K., with David Cameron. So the suggestion is, his position is untenable and he'll announce his resignation. But we have got no indication about what specifically he's going to say, but certainly no denials from his office so far.

VAUSE: And Max, the Labour opposition is in turmoil. There's an open revolt against leader Jeremy Corbyn. Is that revolt expected to continue today? Are more ministers or shadow ministers expected to quit?

FOSTER: Well, I think so. It's been an absolute mess. We had 11 resignations in the shadow cabinet just yesterday. One of them, Chris Bryant, saying the most extraordinary things in his resignation later, talking about Jeremy Corbyn potentially destroying the Labour Party unless he steps down. But again, a statement late last night from Jeremy Corbyn's office coming in saying, our country faces a huge challenge following Thursday's vote to leave the European Union. The British people have a right to know how their elected leaders are going to respond. So effectively, what he's saying is, he's going to stay in position because he was voted in by the wider Labour Party, much wider than the parliamentarians here, by the grass roots. And for them, he's going to stay in position. If there's going to be another leadership election, he will stand in it. But he's not going to stand down in reaction to the shadow cabinet standing down. He fired his key cabinet member, Hilary Benn, yesterday. He's been very, very strong on this. So I don't think he's going to move, but you may see more of a coup, more pressure on him to bring forward any sort of election date.

VAUSE: Also, there seems to have been a wave of racially motivated incidents since the Brexit vote, many of these documented on Twitter. Here's some of the examples. Father has a broken arm and possible neck trauma, son has facial fractures, broken jaw and nose. The victims in this case are believed to be Polish. Here's another. These cards have actually been put through letter boxes of Polish families in Huntington today. The cards read, leave the E.U., no more Polish vermin. Another person tweeted this out yesterday morning. A woman called me a dirty -- and that's a derogatory term for someone from Pakistan -- scum, and said -- that term again -- need to be rounded up and shot. There's a whole lot of these examples online, Max. What are police saying about this?

FOSTER: Well the police are responding both here in London and in Cambridge here as well, which is the vermin comment you had there. They've confirmed that those notes were left in letter boxes. We also had some pretty nasty signs going up around Hammersmith and West London. So it's getting very, very nasty. And what you've got here is this wider concern, really, that the far right is hijacking the exiters' campaign.

[01:05:00] And Baroness Warsi, who is a Conservative politician and a member of the House of Lords here, she has done a lot of work with hate crimes and she is saying that effectively that voice is being heard over the more rational side of the exiting campaign. She wants that to be heard more. But the problem we've got is, Boris Johnson isn't saying very much. He was very much the front of the exiting campaign. And he's written an op ed today saying that we need to take our time with this. It needs to be digested. I need to work with all parts of the political system on this. But he's not being very forthright in his views, or not saying what he's even going to do. Is he going to run for the leadership of his party, which would make him prime minister? So there is concern that those really nasty messages are floating to the top of a lot of the media here, and also, the far right politically. So Marine le Pen was very quick to come out in France, for example. So that voice is being heard, hijacking what is quite a mainstream debate, certainly here in the U.K. about whether or not Britain should be in the European Union.

VAUSE: Max, thank you. We'll speak again this hour. Now many leaders within the European Union want the U.K. out sooner rather than later. For more on that, international diplomatic editor, Nic Robertson, standing by in Brussels, as well as Atika Shubert who is live this hour in Berlin. Nic, first to you. Martin Schultz, the leader of the E.U. parliament, said over the weekend, Tuesday would be a good time for the U.K. to formally declare its intention to leave. How much pressure is there from Brussels for a quickie divorce, if you like, and what's driving that?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Well, there does seem to be pressure, certainly. David Cameron has indicated or it has been indicated at least that David Cameron, when he comes here Tuesday, will not be beginning those negotiations, not beginning the article 50, to bring formally -- formally announce beginning of article 50 to extricate Britain from the European Union. What is putting pressure on this, this is because of the European countries are concerned, A, about their economies, and B, about the potential for a further break-up of the European Union as other countries are potentially dissatisfied with the status quo that they may look for other changes in their relationship with the European Union. They may even succumb to right wing nationalist sentiment in their country and be forced into having their own referenda on the future of their status as part of the European Union. Those are the concerns. That's why European leaders are articulating, at least at the moment, that they would -- with the exception of Angela Merkel, we have to say, who's saying that there is some time to do this -- but the reality is, the overriding sense that we're getting at the moment is that this needs to happen quickly. Market stability is going to be very front and foremost in this as well, and we have U.S. Secretary of State, John Kerry, in Rome yesterday on his way to Brussels, later today, to meet with the Federica Mogherini, the E.U. Foreign Policy Chief, then heading on to London to meet with the Foreign Secretary there, Hammond. When he arrives here today, part of Kerry's message is that saying, number one, we're working with the European Union. They're important partners to us. Our special relationship with Britain is still in a good place. But the key message is one that is to try to promote some stability going through this process. This is what he said in Rome yesterday.

(BEGIN VIDEO CLIP)

JOHN KERRY, U.S. SECRETARY OF STATE: I am looking forward to my meetings tomorrow, when I will meet in both Brussels and London. Brussels with the E.U., and, of course, in London in order to determine what they're thinking about the transition and the process ahead. The most important thing is that all of us, as leaders, work together to provide as much continuity, as much stability, as much certainty as possible, in order for the marketplace to understand that there are ways to minimize disruption. There are ways to smartly move ahead in order to protect the values and interests that we share in common.

(END VIDEO CLIP)

ROBERTSON: And why? Because it is having an absolute -- as we've already seen, a huge ripple knock-on effect around the globe. Global markets, market stability further into the future, and of course, you know, simple things like people's pension plans are being affected. The global markets are roiled by this.

VAUSE: Let's go to Atika Shubert in Berlin. Atika, Germany's leader there, Chancellor Angela Merkel, is taking a leadership role throughout this crisis. As Nic mentioned, she's also taking a softer tone, it seems, when it comes to the U.K. and the timetable to initiate article 50. Will she push that softer tone when she has that meeting there in Berlin with leaders from France and Italy?

ATIKA SHUBERT, CNN CORRESPONDENT: It's very interesting. She's actually meeting -- she has a flurry of meetings today. She's meeting with the President of the European Council, Donald Tusk, who perhaps is more of Chancellor Merkel's attitude, which is, let's give the U.K. some time here to figure out how to transition.

[01:10:05] But what will be really interesting will be to see what she says after meeting with French President Francois Hollande who has been very clear that out means out and that there should be no favorable terms for this exit. So what we're seeing, of course, is this difference of opinion across the E.U., and it seems that for the moment, anyway, Germany's chancellor is playing the good cop, perhaps, to French President Francois Hollande's bad cop.

VAUSE: Yes, and this sort of view that Angela Merkel is taking, give the British some time -- in some ways, it does play into the reports which have been out there that the chancellor believes, maybe the British need space to reconsider what they've done.

SHUBERT: Yes. Especially as we've been hearing all the reports of Grexit, if you will, coming out of the U.K. there's been some question as to whether the E.U. would actually allow another referendum, for example, or whether something to perhaps disrupt this process of the U.K. leaving. And perhaps the biggest indication of that came from Merkel's chief of staff, Peter Altmaier. In fact, I'll read you what he said to the local (ph) RND paper here. He said, quote, politicians in London should have the opportunity once again to reconsider the consequences of a withdrawal. So that does seem to leave the door open. But it's not clear how other E.U. member states would welcome another referendum, or do-over, if you will. So it seems to be basically a diversity of opinion across the E.U., but Germany leaving the door open just a little.

VAUSE: OK. Atika Shubert live in Berlin, and Nic Robertson also live in Brussels. Continuing coverage of the historic event there with the United Kingdom. Thanks to you both.

European markets open in about two hours. They are expected to be volatile. Asia's markets were mixed on Monday's opening. There is some recovery after the worst of the turmoil on Friday. The Nikkei up by two percent. Keep in mind, it was down by about eight percent on Friday. With more on the Asian markets, Andrew Stevens joins us now from Hong Kong. Andrew, the markets, they've been bad but it wasn't catastrophic. How much impact are the central banks having right now?

ANDREW STEVENS, CNN MONEY ASIA PACIFIC EDITOR: That's a good point. It wasn't catastrophic, and it wasn't panic selling either. If you talk to traders, particularly around Europe, and also here in Asia about what happened on Friday. And certainly, to your question, John, the central bankers have been active. We saw Mark Carney, the governor of the Bank of England, on Friday, soothing markets with his talk about the Bank of England standing by, ready to take whatever reasonable measures were necessary to protect the British economy, and also to make sure the pound maintained an orderly procession one way or the other. And here in Asia this morning, there's been a meeting between the Japanese Prime Minister and senior officials from the Bank of Japan. And the message clearly from that was that we are watching the yen very closely. Now the yen has been soaring recently against the U.S. dollar, because the yen is seen as a safe haven currency. So people are piling into the yen. That has the effect of making -- or hitting profits in many Japanese companies. That's had the negative effect you spoke about on the Nikkei. And the governor of the Bank of Japan and the Prime Minister both saying today that they're monitoring things very, very closely and will take action if needed. So that's also calming some nerves, John.

VAUSE: And Andrew, big picture here. Asia does not export a lot to the United Kingdom. So in that context, the sell-off that we've seen on Asian markets, has that been overdone?

STEVENS: It's very difficult to say, because we are still in this sea of uncertainty as to where we go from here. No one expected a Brexit vote. If you look at the way the markets had been trading in the days leading up to that actual vote, the markets in Asia, the markets in Europe, any way you like, they were pretty convinced that the remain camp would win, and markets have been going up as a result. When the vote came through, we saw the knee-jerk reaction, and all those gains of the earlier days were wiped out very, very quickly, John. So we're sort of getting back to where we were, sort of say, one, two weeks ago. But as far as what could happen next, and it's really all about contagion or the threat of contagion of Europe, does Europe go the same way? Do we get an Ita-leave, as it's called? Do we get a de- Portugal? If those sort of things happened -- we just don't know what that means for the markets other than it will be bad. How bad, we don't know. So is it oversold at the moment? Just can't say.

VAUSE: OK, Andrew Stevens, our Asia-Pacific editor on watch there from Hong Kong. Thanks, Andrew.

A short break here. When we come back, many in Britain rethinking that Brexit vote, after seeing the immediate impact. We'll tell you how millions are coming together demanding another referendum.

Also ahead, Hillary Clinton blasts Donald Trump over his response to the Brexit vote after the billionaire Republican called the decision a good thing.

(COMMERCIAL BREAK)

[01:19:02] Welcome back, everybody. The economic fallout of the Brexit has been swift and severe. Some leaders are now also walking back some campaign promises, like extra funding that would normally go to the E.U. heading over to the National Health Service. So now, many voters are having second thoughts. Here's Michael Holmes.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN CORRESPONDENT: Days after the U.K. voted to leave the European Union, many voters experiencing a Brexit regrexit. An online petition demanding a second referendum on the decision has passed 3 million signatures -- 30 times more the signatures required for parliament to consider the issue. Many who voted leave say they would change their vote if given the opportunity. Some say they didn't realize the backlash of their votes.

MANDY SUTHI, "LEAVE" VOTER: I would vote differently, because obviously the facts are coming in now and we're more -- I've actually woken, (inaudible) actually seeing what's happening.

HOLMES: With at least one leader already peddling back on one of the most popular issues among leave voters.

UNIDENTIFIED FEMALE: The 350 million pounds a week we send to the E.U., which we will no longer send to the E.U., can you guarantee that's going to go to the NHS?

NIGEL FARAGE, LEADER, UKIP: No, I can't.

HOLMES: Other voters simply felt duped. One voter tweeted, when's the second referendum? Feel cheated. I voted "leave" based on NHS getting the extra money. They lied to me.

Another wrote, I voted "leave", and after seeing Farage admit on live TV the adverts about money going towards NHS was a lie, I am sick. Conservative MP Ben Howard confirmed via Twitter that the petition will be discussed by the House of Commons petition select committee on Tuesday. Further complicating matters, just when the opposition Labour should be banding together, it is falling apart. Labour leader, Jeremy Corbyn sacked Hilary Benn, the parliament's shadow foreign secretary, and then a number of other shadow MPs have penned their resignations, saying they don't have confidence in Corbyn's ability to win a snap election if one is called. Despite the turmoil, Jeremy Corbyn's spokesman tells CNN, Corbyn will not step down, leaving the Labour Party and the U.K. itself on the brink of political crisis. Michael Holmes, CNN, Atlanta.

(END VIDEOTAPE) VAUSE: Joining us now, British journalist Sandro Monetti. He's managing editor of the "L.A. Business Journal". Sandro, good to have you with us. A lot of those in the U.K., they now want a do-over, as Michael reported. There's talk the government may not even trigger article 50. And Nicola Sturgeon, who is the first minister of Scotland, raised the prospect that the Scottish Parliament could block the U.K. from leaving.

OK. We don't have the sound bite for Nicola Sturgeon, I think. But anyway, she is essentially raising the prospect of the obscure, that no one really knows if it would actually work or not work, could actually stop the U.K. from going ahead with all of it. But my point in all of this -- this does not seem to be a done deal.

SANDRO MONETTI, MANAGING EDITOR, L.A. BUSINESS JOURNAL: Well, you mentioned that article 50 -- whoever activates that, and it's going to have to be the new prime minister, will perhaps be activating a nuclear button on the British and world economy. There is a certain hesitation --

VAUSE: You think it could be that serious?

MONETTI: It could really be that serious. People are sort of waking up to that. David Cameron, who had said, well, if the vote goes against me, then I will activate article 50 immediately -- backed down from that. He resigned. He made it clear, he wasn't going to activate article 50. I'm going to leave it to the next person. And even Boris Johnson, the favorite to be the heir apparent, seems to be sort of hedging his bets a bit and admitting that the nation isn't entirely united. There are serious economic problems ahead. That's just what this is all about. People are waking up to that real possibility. And it will have to be pushed, because the will of the people is for the Brexit. People will talk all they like about a do- over. Yes, there will be a debate in parliament. It's not going to happen. It's never happened before. You can't suddenly say, oh, we're having a new vote. There's no sort of precedence --

VAUSE: If it's not going to happen, it will have to happen in parliament, and that's very unlikely politically.

MONETTI: Extremely unlikely.

VAUSE: OK. Boris Johnson, you mentioned Boris Johnson, the former London mayor, champion of the leave campaign, he wrote an op ed to "The Daily Telegraph". He said in part, I believe that millions of people who voted "leave" were also inspired by the belief that Britain is a great country and that outside the job-destroying coils of E.U. bureaucracy, we can survive and thrive as never before. I think they are right in their analysis and right in their choice -- here's the bit -- and yet, we who agreed with this majority verdict must accept that it was not entirely overwhelming. So Mr. Johnson is recognizing the fact that there is now a very deeply divided Britain, and with that comes a whole lot of problems. MONETTI: Well, yes. But Boris Johnson has won a lot of elections.

What he's doing is looking ahead. He knows that if he's going to be the prime minister, he has to be the prime minister for the whole country. He's got absolutely no chance of hanging on to power if he just goes with all the "leave" people, which is only 52 percent. There's already a very slender majority for the Conservative Party. So he's already reaching out to be a leader for everybody. I think this is the first shot in his election campaign.

VAUSE: OK. We talked about triggering article 50 which is the Lisbon Treaty which would notify the European Union that the U.K. wants out. Obviously, David Cameron doesn't want to do it. He's leaving it for the next guy.

MONETTI: I'm not touching that.

VAUSE: I'm not touching that. But even those within the "leave" campaign, they want to take their time for this to happen. I would have thought that after all of these years of wanting to get out of the European Union, the leave campaign, people like Boris Johnson and Nigel Farage, they would be the ones who, we want to be out of here yesterday. Why are they so hesitant to trigger that?

[01:24:55] MONETTI: Because they're thinking of their legacy, first of all. Yes, they have got what they wanted, but they want to just check the small print first of all. They don't want to leave behind a complete disaster and make the whole thing a dog's breakfast. Let us just check that we're actually getting what we wanted here. So hesitation, calmness, let's just go over the details. Let's negotiate and make sure this is fine. So, yes, they don't want to -- no one wants to push the button.

VAUSE: No one does, OK. Apart from the instability of the stocks and the currency markets, which we're seeing, it's going to be with us for some time -- it will be years, it will be a long time before anything of a practical day-to-day nature actually changes for the people of the U.K.

MONETTI: Oh, it will. Because we're talking at least two years. That's after article 50.

VAUSE: That's the period of negotiation with the United Kingdom.

MONETTI: That is the period of negotiation. So I would say my message, keep calm and carry on. Because no need to panic just yet. Because there's plenty of time -- everyone's got to get around the table -- Britain is a major banking center. We were the fifth largest economy in the world. I think we're the sixth as of five minutes ago, and we might be the 16th by next week. But we've been through worse. We'll get through it.

VAUSE: Cup of tea and a lie down.

MONETTI: Always the solution to everything.

VAUSE: Everything will be fine by morning. Thanks, Sandro. You bring props, too, which is great. Thank you.

We'll take a short break here. When we come back, are worries about the Brexit overblown? Apparently not according to Sandro. But, after the break, we take a close look at the possible global market impact as the new trading week (ph) gets underway.

(COMMERCIAL BREAK)

[01:30:00] FOSTER: Welcome back to special coverage of Britain's decision to leave the European Union. I'm Max Foster, in Westminster London, and it's at 6:30 in the morning.

VAUSE: I'm John Vause, in Los Angeles. We'll have much more on the Brexit it in a moment.

But first, some other international headlines we are following this hour.

(HEADLINES)

VAUSE: The U.K. parliament is said to meet Monday for the first time since the vote to leave the European Union. The Brexit will be on the top of the agenda, along with David Cameron's decision to resign as prime minister. This as the opposition leader, Jeremy Corbyn, insists he won't step down despite multiple resignations from his shadow cabinet.

Max, live outside the U.K. parliament once again.

Max, just days after winning this referendum, many from the Leave Campaign are now trying to walk back their promises and not just on the funding for the National Health Service.

FOSTER: Yeah, they -- there's a lot of frustration, I have to say, amongst those that voted Leave, on the basis that they wanted stronger public services, for example. One of the big campaign pledges was tht one that you're suggesting, that 350 million pounds a week would come back from Brussels and go straight into the National Health Service. They're now rowing back on that. During the campaign, the Remainers questioned that figure all along, saying it's actually a lot less. It doesn't account for the money that Britain gets back from the European Union. So that figure was never really realistic. And few in the Leave Campaign promising it would go in the NHS anyway. They weren't in government. We don't know who's going to be in government at this point.

But the other promise was around immigration. And actually, the Remain Camp were very careful not to put figures on whether or not immigration would go down by a certain amount. But they did imply, certainly, that immigration would be reduced. But they used the word "control." But now they're accepting that you may not be able to reduce immigration. Certainly, if you look at Norway, for example, one of the deals for remaining part of the free market in Europe, which is what Britain desperately needs to keep, is that there will be a freedom of movement of people. So that would apply to the U.K. probably as well. And anyway, reducing those numbers will be very difficult and satisfying demands for Labour in London, for example, where there's a huge immigration population to fill crucial jobs. So, yes, they are rowing back and it's causing a lot of concern.

VAUSE: You know, within hours of this result being known, a lot of legal experts put the opinion forward it's not a legally binding referendum and quite possibly the government does not have to implement this divorce from the E.U. Is that legally possible? Is it even politically a possibility here?

FOSTER: Well, this whole situation that we're in uncharted waters. Nicola Sturgeon, first minister of Scotland, putting a spanner in the works for London, saying if we leave the European Union, it has to get permission from Edinburgh, the Scottish parliament. And she's going to make sure that they block it there. No one say that coming. She's looking like the strongest leader in this whole political atmosphere right now.

But there's also this debate. Boris Johnson is basically saying he's going to take his time to invoke this two-year period where Britain negotiates its way out of the European Union. The reason, the suggestion tonight is that he wants to have some sort of settlement with Brussels about the deal that would come out it at the other end. We understand from Brussels that very clearly Britain has to start that process, the two-year process. He's not doing that. And there's no pressure on him to do that. But there's no pressure on Brussels to start negotiations before the two-year process with Boris Johnson on what sort of settlement might come out of it. So we've got a stalemate at the moment. And there's no actual requirement for the Leave Campaign or the next prime minister to invoke this two-year process at all. So it may never happen at this point. The referendum didn't start that process -- John?

[01:35:01] VAUSE: OK. Interesting times to say the least.

Max, thank you.

Asia markets remain uncertain heading into a new trading week. They did regain some ground after Friday's turmoil. And Europe's markets open in about half an hour. There are the latest numbers. The Nikkei up by 2.25 percent. Shanghai Composite up by 1.15. And Australia up by almost half of 1 percent.

For a close look now at how the Brexit could affect world trade, Eric Schiffer joins us now. He's the CEO of Patriarch Equity.

Eric, the stock market losses and gains, an early judgment of the impact of the impact of the Brexit. So look towards the short and medium term, while the negotiations about negotiations get under way. What will be the economic fallout in a couple of weeks, a couple of months from now?

ERIC SCHIFFER, CEO, PATRIARCH EQUITY: You've got all these situations where no one knows what's going to happen. Boris Johnson -- we don't know. I mean, this may not even occur. Investors like certainty. When you have uncertainty, it could be a lot of volatility for a long period of time, John. I would expect that that's probably going to be the situation.

VAUSE: You're looking at people, no capital investment, people pulling up stakes. Exactly what's going to happen?

SCHIFFER: I talked to a lot of CEOs. Why would I want to invest there right now with all this uncertainly? Who knows what's going to happen? Why would I want to do it? It makes no sense. So I'm hearing more and more of that. I think with that slowdown could come a lot of things. When corporations don't want to put money in, especially into the U.K., that used to be the base. This was the base to get through Europe. If they pull out, if they start slowing down, it will affect the U.K. That has ripple effects all over.

VAUSE: It's all gloom and doom. You have the lower pound right now. That's good for exporters. That's good for industries like tourism as well. So there will be winners.

SCHIFFER: There's pockets. But it devastates the film industry there in the U.K. It certainly will slow down hiring. It will slow down a lot of things. I think in the net-net, it's a negative. For investors, in the markets, it's absolutely. Because you don't know what's going to happen. They like certainty. Certainty is where you put the money.

VAUSE: Economically, the Brits, everyone believes they could be in for tough times ahead, slower growth, maybe even a recession. But why does it follow that the rest of the world will feel substantial pain as well?

SCHIFFER: Emotions.

VAUSE: Just that?

SCHIFFER: That's a big piece. I think it's not the largest piece, but I think if the U.K. starts to go into a recession, that can impact the E.U. We're dealing with a very thin, fragile, macro global economy. It's fragile. The central banks don't have the power that they used to have. All of these things add up. This is not a situation where you can have one thing and not expect some type of contagion. The reality is, with the uncertainty, with the fact that we don't know whether they're going to even implement this, people are going to stay on the sideline.

VAUSE: The bottom line, it will all depend on the kind of exit deal London can negotiate with Brussels. If it's a good deal, it should be fine. But if the E.U. wants to make an example of the U.K., go hard, play hard, no access to markets, then it's going to be really painful.

SCHIFFER: I think if they get a deal, yes, that will make a difference. But it's not so easy. You're talking about doing a deal that's very complex. Getting people to sign up on this, it's not going to happen immediately. Boris Johnson, he knows it. I think they're walking it real slow. They're not carrying about the markets, they're more interested in the U.K. But the global markets don't know what to think of it and they're concerned.

VAUSE: Yeah, exactly. Volatility for a long time to come, I guess.

SCHIFFER: Absolutely.

VAUSE: Eric, thanks for coming in.

SCHIFFER: Good to see you.

VAUSE: Short break here. When we come back, Hillary Clinton is speaking out about the U.K.'s Brexit vote. She's hammering Donald Trump over his response. Those details coming up next.

(COMMERCIAL BREAK)

[01:41:52] VAUSE: Hillary Clinton says the U.S. will bounce back from the economic turmoil triggered by the Brexit vote. On Sunday, the presumptive Democratic presidential nominee drew comparisons to what's been happening in the race for the White House and the decision by British voters to leave the E.U.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, (D), PRESIDENTIAL CANDIDATE & FORMER SECRETARY OF STATE: Just as we have seen there are many frustrated people in Britain, we know there are frustrated people here at home, too. I've seen it. I've heard it. I know it. That's why I've worked hard to find solutions to the economic challenges we face.

(END VIDEO CLIP)

VAUSE: CNN's senior political analyst, Ron Brownstein, joins us from Aspen, Colorado to talk more about Brexit and the race for the White House.

Ron, Hillary Clinton, you know, she acknowledges the similarities between the populist anger in Britain and Trump's rise to the Republican nomination. On top to that, the Brexit voters mirror Trump supporters. They are older, white. Immigration resonates, too, with both sides.

Even Bernie Sanders is drawing parallels on the economy. Listen to this.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS, (I), VERMONT & DEMOCRATIC PRESIDENTIAL CANDIDATE: What ordinary people are saying is, hey, give us an economy that works for all of us, and not just the people on top. And I think that is to a significant degree what the Brexit vote was about.

(END VIDEO CLIP)

VAUSE: So, does it follow that the referendum results in Britain, is it a warning sign for Democrats, a good sign for Donald Trump?

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: John, I think the Brexit vote shows both the power of the defensive nationalism argument, but also in the U.S. context, it also shows the limits. As you point out, there are important parallels. This kind of anti- globalization, anti-immigrant argument in Britain, worked very well with older, white, non college and non urban voters. That is essentially the same constituency that Donald Trump is mobilizing in the U.S. But there is one big difference, which is that those constituencies in the U.S. are a much smaller piece of the overall pie than they are in the U.K. In particular, 87 percent of the U.K. is white. Maybe 90 percent of the voters by the best estimate in the Brexit vote were white. In the U.S., it is going to be about 70 percent. And if you look at the results of the election day polls, Lord Ashcroft in the U.K., white voters (INAUDIBLE) And now for non whites, the votes was 3 percent for leaving, 4 percent for staying. Now, essentially 53 percent of the people, of the whites in the U.K. backed the argument, kind of the arguments against globalization, against immigration. If he wins 53 percent of whites in the U.S., he loses by a landslide because we're so much more diverse. So, yes, there are warning signs here. It also signals the limits of this kind of defensive nationalist argument, particularly among urban and college educated whites who are a bigger piece of the pie here than there.

VAUSE: Let's look at some of the poll numbers. Right now, Hillary Clinton has a 12-point lead over Donald Trump in the "Washington Post"/ABC poll. On Twitter, Trump called that a dirty poll, a disgrace, and said more Democrats were polled, or slated heavily toward Democrats, rather. There's also another poll out, NBC/"Wall Street Journal." But polling was an issue leading up to the Brexit vote. Online polling was a lot more accurate than polling done over a telephone. And that was for the Brexit. And there's been similar issues for Donald Trump here in the United States. Is that a significant number of respondents who are out there, they won't tell a human being they're willing to vote for Trump? Is that a real factor here?

[01:45:33] BROWNSTEIN: To answer the question, first of all, in Brexit, the polling was very close at the end. Most of it was a virtual dead heat. It wasn't like it was baffling off. Second, here in the U.S., I don't think there is a stigma attached to Donald Trump, that there is a hidden vote for him out there. Maybe post-Judge Curiel and some of these other episodes that more people will be reluctant to say they're for him. But his performance in the primaries was not systematically better than his polling. And so I think that what you see is what you get. What you see in this election are some very clear patterns, where he is struggling enormously among non white voters. He is running very well among white voters without a college education. Significantly, he is underperforming among the college educated white voters, who, like the minority voters, are likely to see some of his positions as racially divisive and even bigoted.

One quick point, as we talked about before, no Democratic nominee in the history of polling going back to 1952 has won college educated whites. But the last four national polls in the U.S. show Hillary Clinton leading Donald Trump among those voters.

VAUSE: It's interesting, after Donald Trump made the comments in Scotland, the Clinton campaign quickly released an ad criticizing Trump and his reaction to the referendum. This is the ad.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: Enormous shock waves from the historic vote to leave the European Union, global markets are plummeting.

ANNOUNCER: Every president is tested by world events. But Donald Trump thinks about how his golf resort can profit from them.

TRUMP: When the pound goes down, more people are coming to Turnberry.

Stocks tank around the world --

Brand-new sprinkler system.

CLINTON: He's talking about his new sprinkler system.

ANNOUNCER: In a volatile world, the last thing we need is a volatile president.

CLINTON: I'm Hillary Clinton, and I approve this message.

(END VIDEO CLIP)

VAUSE: Trump hit back on Twitter. He put this out there. "Crooked Hillary just took a major ad of me playing golf at Turnberry. Shows me hitting a shot. But I never did. Lie! Was there to support son."

If nothing else, does this show the differences between the Clinton campaign and the Trump campaign? The Clinton camp able firing off the rapid responses, very quickly.

BROWNSTEIN: Yeah. So far, if you look at the advertising in the big U.S. sweepstakes, she's outspent him $25 million to zero. Donald Trump's best asset in this campaign is that, at a time when many Americans are dissatisfied with the direction of the country, even more are dissatisfied with the performance of the political system, the one big lead he has on personal attributes over Hillary Clinton is people see him as more likely to bring change. This is an effort by -- part of the continuing effort to undermine that strength and say, yes, Donald Trump may bring change, but it is change that is ultimately too risky. It is somewhat risky for her to talk about stability at a time when people are dissatisfied with the status quo. But I think what they feel is that her core personal advantage is people feel she's more prepared to be president and is more temperamentally suited to be president, even if they feel he is someone more likely to shake up the system that they are dissatisfied with.

VAUSE: Ron, as always, good to speak with you. Thanks for being with us.

BROWNSTEIN: Thanks, John.

VAUSE: A short break here. When we come back, an online petition demanding a second E.U. referendum gaining a lot of traction. It turns out the person who started that petition was in favor of leaving. His response is next.

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(WEATHER REPORT)

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[01:53:10] VAUSE: From Brexit to re-Brexit. A U.K. parliament select committee says it will consider debating an online petition demanding a second E.U. referendum. That petition has now received more than 3.5 million signatures.

We get details from Samuel Burke.

(BEGIN VIDEOTAPE)

SAMUEL BURKE, CNN BUSINESS CORRESPONDENT: In spite of the fact that both Prime Minister David Cameron as well as opposition leader, Jeremy Corbyn, have both said there will not be a second E.U. referendum, an online petition calling for exactly that continues to gain momentum, vastly approaching the four million mark.

Now, there's an interesting twist in this story, though. The man who started this petition, Oliver Healy, said he's actually been campaigning in favor of a Brexit.

Take a look at what he wrote on his Facebook page. Quote, "This petition was created at a time over a month ago, when it was looking unlikely that Leave were going to win, with the intention of making it harder for Remain to further shackle us to the E.U."

Now, in spite of his intention, a member of the parliament says over Twitter that this petition will, indeed, be considered for debate this week. Another M.P., this one coming from the Labour side of the aisle, David

Lambey, tweeting, "Wake up, we do not have to do this. We can stop this madness through a vote in parliament." He goes said on his Twitter account, quote, "Our sovereign parliament needs to now vote on whether to exit the E.U. The referendum was an advisory non-binding referendum.

Now, at the same time, we see lots of people on social media saying even though they're not in the U.K., nor citizens of the U.K., that they've been able to sign this petition. And indeed, if you look at it, all you have to do is click, "I am a British citizen."

But the head of this committee that would oversee this online petition, Helen Jones, the M.P., has stated that her committee is investigating some fraudulent signatures and is going to try to weed them out. Though she does gives weight to the online petition, she says on her Twitter account, quote, "This doesn't mean that the committee will be deciding whether or not it agrees with the petition, just whether or not it should be debated."

The consideration for that debate is set to happen Tuesday.

Back to you.

(END VIDEOTAPE)

[01:55:33] VAUSE: Thanks to Samuel for that.

Finally here, Pope Francis has shared his thoughts on the Brexit saying unity is always superior to conflict. His comments came through a news conference on his flight home from Armenia. The pope said the E.U. should consider more independence for member states.

(BEGIN VIDEO CLIP)

POPE FRANCIS (through translation): There's something not working in the unwieldy union. But let's not throw the baby out with the bath water. Let's try to jump-start things, to recreate things, because recreation is human.

(END VIDEO CLIP)

VAUSE: That's all we have time for this hour. I'm John Vause, in Los Angeles.

FOSTER: I'm Max Foster, in Westminster.

And after the break, much more on the political meltdown here in London.

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