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Brexit: anti-Migrant Incidents Increase, No Confidence Vote Against Labour Leader Jeremy Corbyn Succeeds, European Parliament Calls for Swift Action, England's Shock Loss to Iceland. Aired 11a-12p ET

Aired June 28, 2016 - 11:00   ET

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


[11:00:23] BECKY ANDERSON, HSOT: This hour, the British prime minister is in Brussels for his first talks with European Union leaders since the

Brexit vote.

The president of the European Commission is calling for the UK to act sooner rather than

later. And one key leaver campaigner is raising the temperature in Brussels.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): I would like the United Kingdom to clarify its position not today or tomorrow at 9:00 a.m. but swiftly. We

cannot allow ourselves a prolonged period of uncertainty.

NIGEL FARAGE, UKIP LEADER: Why don't we just be pragmatic, sensible, grown up, realistic and let's cut between us -- let's cut between us a sensible

tariff-free deal. And thereafter -- and thereafter recognize that the United Kingdom will be your friend.

(END VIDEO CLIP)

ANDERSON: Hello. And welcome to Correct the World. I'm Becky Anderson live from London for you.

U.S. stocks rebounding this hour after a mass sell-off wiped a record 3 trillion from global markets on Friday and on Monday.

It's early yet and the drama just heating up in Brussels, so therein lies what's going on in

New York. Meantime in Brussels, EU leaders meeting with the outgoing British Prime Minister David

Cameron. He is trying to ease investor fears about the Brexit shakeup, but it may be too little, too late.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: I'll be explaining that Britain will be leaving the European Union, but I want that process to be as

constructive as possible and I hope the outcome can be as constructive as possible, because of course while we're leaving the European Union we

mustn't be turning our backs on Europe. These countries are our neighbors, our friends, our allies, our partners and I very much hope we will seek the

closest possible relationship in terms of trade and cooperation and security because that is good for us and that is good for them. And that's

the spirit in which the discussions I think will be held today.

(END VIDEO CLIP)

ANDERSON: Wel, CNN Money editor at large Richard Quest is tracking developments in Brussels, and senior international correspondent Atika

Shubert is reporting today from Berlin.

Let's start with you, Richard. And Nigel Farage, the leader of the UK Independence Party earlier on today saying simply grow up, let's get on

with this. Let's be realistic and let's just cut a tariff-free deal.

Is anybody listening to Nigel Farage? And does he make any sense?

RICHARD QUEST, CNN MONEY EDITOR AT LARGE: Well, nobody is listening to him for one good reason: he then promptly went on to insult the MEPs, basically

saying most of you in this room have never had a job, have never done a day's work, and have never created any jobs.

So, not surprisingly, when Martin Schultz, the leader of the parliament, then chastised him -- I mean, you have to remember that Nigel Farage was

the man who also insulted Herman Van Rumpoy when he became the president of the council calling him some very abusive terms.

So, everybody takes Farage's comments with a strong dose of skepticism, cynicism, disbelief,

or irrelevance.

That said, what he has said, this idea of come to a deal. It makes sense for both of us, somehow, Becky, they all know that here. The problem is,

there are some countries, notably France, who have specific problems that they are absolutely certainly they can't be seen now, Becky, to be giving

ground.

Finally, what people are telling me -- the one common refrain I'm hearing is, whatever deal Britain gets -- and it will get a deal -- whatever deal

it gets, it will be worse than full membership of the union.

What Britain will have to decide is whether that actually is compensated by not having the union on its back.

ANDERSON: Interesting. All right, Richard. Thank you for that.

Before I go actually, just give me very briefly, what's the atmosphere like there today?

QUEST: Oh, it's electric in here. It's electric. I have done more than my fair share of these events. I was here exactly a year ago for the Greek

deal following the Greek referendum and the deal there, and there is a much greater sense of tension, of what on Earth are

they going to do?

People are saying how the heck did we get into this mess? What's the way out? This is a very serious council and a very serious council, and a very

serious bunch of journalists here covering it.

[11:05:22] ANDERSON: Yeah, fascinating. All right, Richard, thank you for that.

German Chancellor Angela Merkel also in Brussels. She says Brexit negotiations can't begin until article 50 is in invoked.

(BEGIN VIDEO CLIP)

ANGELA MERKEL, GERMAN CHANCELLOR (through translator): After the vote in Great Britain to leave the European Union, this will be the first opportunity to hear the assessment by the British Prime Minister David

Cameron. What is important to me is that we only enter into negotiations when Great Britain has declared its intent to leave.

So this is not possible before the request under article 50 has happened.

(END VIDEO CLIP)

ANDERSON: That's not going to stop the rumor and conjecture, of course, and the speculation about -- just what a deal would look like.

Let's bring in Atika. Do you sense any change in tone from the German chancellor over the past, what, 72 hours?

ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT: I think I've seen a consolidation of her position, especially with French President Francois

Hollande and Italian Prime Minister Matteo Renzi who met yesterday. And clearly she has a slight difference of opinion to them. She's saying let's

give the UK a window, a brief window of time to invoke article 50. It can't go on forever, and it shouldn't be a stalemate, but, you know, let's

give them a few days at least.

But she's also made clear, there will be no unofficial negotiations until that article is invoked.

So, really, she is saying -- she is freezing out the UK in this instance and saying you have no

leverage over us now. And in her speech today she made clear there will be no cherry picking during the negotiations. And she says you can't leave

the family and except to have no obligations, but still get all the privileges.

So taking a harder line here, although, as Richard points out, eventually, a deal does have to be done.

ANDERSON: Atika joining us out of Berlin. Thank you for that.

Well, we are also watching the political fallout from Brexit here in the UK. Less than an hour from now. In fact, any minute now we are expecting

to hear the results of a no confidence vote against the opposition Labour Party leader Jeremy Corbyn.

Let's talk about all of this now with John Stevenson, who is a Conservative Party member of parliament. We're also joined once again by my friend and

colleague CNN political contributor Robin Oakley.

And Robin, as we await this result from the Labour Party, just remind us why this is significant within the big picture and the big play at present.

ROBIN OAKLEY, CNN POLITICAL CONTRIBUTOR: Well, the vacuum at the head of the Conservative Party, shambles at the head of the Labour Party. And in

any important political situation you need an effective opposition in the British parliament, that's why Jeremy Corbyn as leader of the opposition

matters.

His MPs desperately disappointed with his efforts. Labour wanted to see a remain result. The Labour Party was officially committed to it. Jeremy

Corbyn, long-time euro skeptic, didn't put his heart into it. But they weren't satisfied with his whole performance in parliament.

His position has become threatened because of the result of this referendum. Previously, they thought two to three years to a general

election, see how he goes this. This has concentrated minds there may well be an early election. Labour MPs fear they could be decimated, vote of no

confidence in him, which we will hear the result of within the next hour.

ANDERSON: Yeah, and John, I'm going to move on, because that's what's happening there at present. And I want to push us forward a little bit.

You are a Conservative member of parliament. You describe yourself as a reluctant remainer in all of this. Do you regrets-it now given that your

constituents voted overwhelming to leave?

JOHN STEVENSON, CONSERVATIVE PARTY MP: No, not at all. At the end of the day, I felt Europe had its faults, but nevertheless it was in the best

interests of the United Kingdom to remain, and it was a judgment call. And at the end of the day I thought we should remain.

Clearly my constituents thought differently quite substantially. And I totally respect that. and Now it's incumbent upon me, along with my

colleagues, to make sure that we get the best possible deal as to the negotiations with Brussels.

ANDERSON: Now your constituency is a working class area in the north of the country. And it was on the issue of immigration that many people voted

on, I believe.

Boris Johnson yesterday in a newspaper article that he wrote, rode back on the idea of

immigration. And people are feeling that Boris Johnson and others, who pledged to close the doors on migrants, and that's why many people voted to

leave, are being let down.

Are your constituents being let down.

[11:10:07] STEVENSON: Well, we'll have to wait to see what deal is finally struck. But quite clearly, immigration was a very, very big issue I think

for the country and definitely for my constituents. I was very aware of that.

And I think whatever deal is struck, something will have to be done with regards to the numbers of immigrants coming in.

I think everybody accepts immigration is actually a positive thing and a good thing. I think it was just the volume of people that were coming into

this country that was creating those problems.

ANDERSON: I'm just worried that constituents like yours who voted to leave the country overwhelmingly on the issue of immigration have been let down

by irresponsible campaigns and irresponsible campaigners. Have they?

STEVENSON: No, I don't think they have. At the end of the day, we have to accept there was a campaign, there was a debate about our membership with

the European Union. Quite clear that this country and my constituents voted quite clearly that they want us to terminate the relationship with

the EU, i.e. membership of the EU.

However, they still want a relationship with the EU. And that's right, and there should be. We will have to come to a deal about trade, about

immigration, and many other aspects of our relationship with Europe. I think that will take time. And we have to acknowledge that.

ANDERSON: Go on, Robin.

OAKLEY: There are huge divisions, aren't there, within the Conservative party now over what to do about immigration -- Andrea (ph) leads them. One

of the leading leave campaigners says that an end to the free movement of peoples is an absolute red line in negotiations. Boris Johnson, another

leaver, is now saying immigration isn't as important as continuing to be in the single European market. You know, you can't have both of those, can

you?

STEVENSON: But at the end of the day we have got to be very careful because we will have a new leader of the Conservative Party in a couple of

months' time and they will set the tone and the directions of those negotiations.

But I do accept -- I think there is an issue about immigration and we will have to have some sort of understanding that you cannot have the influx we

have had over the last few years, that's just what people want. That's what people voted for. And we have to recognize that.

ANDERSON: Right. We've heard from Angela Merkel who has said there will be no informal negotiations until the new British prime minister post-

September 2nd, because that's when he or she will be installed, hits the button, triggers article 50 and invokes this process, which will take some

two years.

What sort of deal does the UK need to your mind at this point?

STEVENSON: Well, I think very importantly trade. That must be our number one priority. And we want continue our relationships with the European

Union. But I also think we have got to recognize, we've got to look beyond Europe as well at the same time. We have always been a trading

nation. We are a very open economy, and we are an international country.

So, I think we have got to be careful that we don't get bogged down in just about Europe, but there's are things beyond that.

ANDERSON: The question is, do you get free movement of goods and services across the EU, but not people. Flip side, you get to cut some deals that

the EU simply hasn't been able to cut with the likes of China and other others, because it's too big of a behemoth, correct?

STEVENSON: Well, I think there's flexibility being a smaller country. We have international links. The Commonwealth being a prime minister example,

re-establishing those very links we have with Australia, New Zealand, Caledonia, et cetera

But we still, at the end of the day, are main trading partners of Europe, and don't forget one of the trading partners of Europe is the United

Kingdom.

So, I think practical, sensible politics will kick in at the end of the day.

ANDERSON: Keep calm and carry on keeps going through my head.

Stay with our continuing coverage of the UK's decision to leave the European Union. Robin, John, thank you. We will be back after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

[11;15:44] UNIDENTIFIED FEMALE: It's very unfair towards the younger generation. It really is. Who are now all going to be deprived of the

Erasmus scholarships, the grants and aid for research, for academic, scientific, nevermind the easy movement within the EU.

(END VIDEO CLIP)

ANDERSON: Well, welcome back to London. You are watching CNN. This is Connect the World with me, Becky Anderson.

Views like the one you just heard are echoed by many in this city. The vast majority of London

voters chose to stay in the EU. But that feeling isn't shared across the country. You can see just how much of England voted to leave colored in

red on this map.

Among the most determined to get out, the people in the city of Hull, which is on the east

coast.

CNN's Phil Black shows us why so many there are so fed up with Europe's club.

(BEGIN VIDEOTAPE)

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Europe is that way, across the North Sea. Every morning ferries disembark their cargo from The

Netherlands and Belgium here on the banks of the River Humber in northern England. This long (inaudible) trade convoy then disperses

across the United Kingdom. And every evening, trucks loaded with British products make the return journey to the continent. It's why this city,

Hull, is often called the gateway to Europe.

But that's a glamorous title for a long neglected city. Life in Hull is hard for many. Parts of this community are among the poorest and most

deprived in the whole United Kingdom. And they showed recently they are among the most fed up with the European Union.

Did you vote?

UNIDENTIFIED MALE: I did, sir, yes.

BLACK: How did you vote?

UNIDENITIFIED MALE: I voted out.

BLACK: By a ratio of more than 2 to 1 the people of Hull voted for Britain to exit the EU.

Why did you vote leave?

UNIDENITIFIED FEMALE: Just fed up with being told what we can do and what we can't do.

BLACK: That's something you hear a lot. They backed Brexit, because they feel they had nothing to to lose.

UNIDENITIFIED MALE: Nothing to lose, have we? I don't think so.

BLACK: Why do you feel that way?

UNIDENTIFIED MALE: Well, we haven't got (inaudilbe). Do you think? No. You can never get there. I mean, you're two weeks to get in your doctors.

BLACK: Another common view, the local result was punishment for the policies of British politicians, especially the ruling Conservative Party.

UNIDENTIFIED MALE: We were let down by the Conservative government.

UNIDENTIFIED MALE: They are sick and tired of not hearing their voice being said.

BLACK: For many, there is also the sense things have changed here too quickly, and for the worse, because of immigration.

A lot of people in Hull voted to leave. Big number.

UNIDENTIFIED MALE: Big, big numbers.

BLACK: Why do you think that happened?

UNIDENTIFIED MALE: The same reasons I'm thinking, it's just like -- it didn't seem to be safe anymore. It's better (inaudible) and it always was.

It was always like a really close-knit community but now so many gangs of Eastern Europeans going around.

BLACK: Were you surprised by the result in Hull?

ANGUS YOUNG, JOURNALIST: Yeah, I was.

BLACK: Angus Young covers politics for Hull's local newspaper. He says recent European immigration has energized parts of the economy with shops

opening on formerly abandoned streets. But there are social strains, too.

YOUNG: There has been a big influx and it's caused a lot of tension and displaced a lot of people, people feeling uneasy, put a lot of pressure on

services.

BLACK: There is money coming in to Hull: private, public, and from the EU. This is a huge project, more than 300 million pounds invested by the German

company Siemens and associated British port, to build a plant for making the blades for offshore wind turbines.

Some here are predicting jobs and growth, but too many believe they are being left behind in the wake of economic change. In angry protest, they

demand the EU flag and much of what it stands for must now be removed from the this gateway to Europe.

Phil Black, CNN, in Hull, northern England.

(END VIDEOTAPE)

ANDERSON: Well, the outlook there from Hull, then, where almost 7 out of 10 voters chose

to leave the EU.

In Scotland, a very different picture, nearly as high a percentage voted to stay in the European

Union.

So even as the UK pulls away, Scotland's first prime minister Nicola Sturgeon has told the Scottish parliament, she will do everything she can

to hold on to the country's relationship with the European club.

To get the details on what that means, let's speak to our David McKenzie who is in the Scottish capital Edinburgh for us. Explain, David.

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, that's right. And there are ongoing debates here in the Scottish parliament, Becky. And

Nicola Sturgeon, the first minister, has been trying to persuade those from across the aisle in the parliament to back her mandate to talk directly to

the European Union to allow, somehow, for Scotland to say. And that emotional plea to Europe is happening both here in Scotland and in

Brussels.

I want to show you some extraordinary moments from the European Parliament just earlier today.

(BEGIN VIDEO CLIP)

ALYN SMITH, SCOTTISH MEMBER OF EUROPEAN PARLIAMENT: My colleagues, there is a lot of things to be negotiated. We will need cool heads and warm

hearts.

But, please, remember this, Scotland did not let you down. Please, I beg you, (inaudible). Do not let Scotland down now.

(END VIDEO CLIP)

MCKENZIE: And repeatedly Nicola Sturgeon has said that they have the mandate that it's

undemocratic, in her words, to be removed from the European Union against the will of the Scottish

voters who voted, as you say, Becky, overwhelmingly to stay in the union.

She is also saying that the leadership vacuum in Westminster is unacceptable. And she is also saying that they need to, quote, "get a

grip."

So some strong words from the first minister here. And it does also play, of course, into her own political ambitions to potentially have an

independent Scotland -- Becky.

ANDERSON: David McKenzie there.

All right. Well, is it even possible for Scotland to veto Brexit?

Well, let's get into this more with Joe Murkens, who is an associate law professor at the London School of Economics.

Joe, pick this apart for me. In the fog of war, a lot is said. And there is lot of emotion. But does Nicola Sturgeon have a legal leg to stand

often at this point?

JO MURKENS, LONDON SCHOOL OF ECONOMICS: Well, you see, I think there are two ways of reading the referendum result: the one way is the result we

have seen, the result was 52-48. The other way to read the result is that the country is split in two. Two nations of the United Kingdom voted to

remain, and two nations voted to leave.

Now, ultimately, the place behind us is the sovereign body, and it is the Westminster parliament and the members of parliament that will trigger

Brexit. But it is incumbent upon them to think about what their priority is. Is it to take the United Kingdom out of the European Union or is it to

preserve the integrity of the United Kingdom?

And I think by considering that a majority in Northern Ireland and in Scotland voted to remain

in the United Kingdom (sic) that is a vote that needs to be very carefully by the members in the House of Commons and in the House of Lords in order

to prevent the breakup of the United Kingdom, which at serious risk now.

ANDERSON: And the reasons this is important is that it doesn't have implications for the UK, but implications for breakaway areas across the

rest of the Europe. And that is very important.

Let's listen to what Nicola Sturgeon told the Scottish Parliament just a short while ago.

(BEGIN VIDEO CLIP)

NICOLA STURGEON, SCOTTISH FIRST MINISTER: If we were to be removed from the EU, it would be against the will of our people. That would be

democratically unacceptable. It is for that reason that I have said that everything must be on the table to protect our place in Europe, including a

second independence referendum.

(END VIDEO CLIP)

ANDERSON: If we are to argue that a Brexit requires a majority of the constituent nations of the United Kingdom, otherwise it's constitutionally

challenging to justify, that would require overriding millions of voters. So, while Sturgeon talked about other options there, would you agree that a

second referendum is the most successful intersection of law and democracy here?

MURKENS: No. I am against a second referendum. I thought the first referendum was a mistake, and let's not repeat it.

You say that my solution would ignore millions of voters, but actually taking Northern Ireland

and Scotland out would not only ignore millions of voters as well who have clearly decided to remain, but it also puts a time bomb underneath the

United Kingdom as a structure. There are already moves under foot to -- at least people are discussing that Northern Ireland could now unite with

Iireland under the banner of European membership. And Scotland -- Nicola Sturgeon has already called for a second referendum and put the plans in

place.

Is that the price we are willing to play for taking the United Kingdom out of the European Union?

[11:25:14] ANDERON: A new warning today from Britain's finance minister, the Chancellor of Exchequer George Osbourne says there will absolutely have

to be spending cuts and tax increases after Britain's vote to leave the European Union. He spoke to BBC radio 4. Have a listen.

(BEGIN VIDEO CLIP)

GEORGE OSBOURNE, UK CHANCELLOR OF EXCHEQUER: It's very clear that the country is going to be poorer as a result of what is happening to the

economy.

(END VIDEO CLIP)

ANDERSON: Tell that to those who voted to stay in Northern Ireland and Scotland. The finance minister speaking.

MURKENS: Well, as I say, i think we need to -- we are a United Kingdom. We are a United Kingdom of four nations. And it is a -- I don't know what

prime minister would preside over the breakup of the United Kingdom just in order to put into legal effect a referendum that was purely advisory. And

it strikes me as constitutional madness.

I understand from a technical perspective that the Westminster parliament can do that. But the United Kingdom constitution has changed over the past

20 years. We have had devolution and devolution has only become more entrenched and given more autonomy to Scotland, Wales and Northern Ireland.

Westminster can, but it should not, ignore the voices in Scotland and Northern Ireland.

ANDERSON: Your best guess as to what happens next?

MURKENS: Oh, my word.

ANDERSON: Sorry.

MURKENS: I think that the MPs should realize taht they are representatives of the people. They exercise -- they make decisions based on the exercise

of political judgment, party affiliation, and their conscious. Their role is not to give effect to the will of the people as expressed in an advisory

referendum. We are a parliamentary democracy, not a direct democracy. And the MPs behind us should wake up and do their job to the best of their

ability.

ANDERSON: I think it was described as a momentous miscalculation by one commentator, this referendum, but it happened and we thank you.

MURKENS: Thank you.

ANDERSNO: Our coverage of Britain's divorce from the EU will continue after this short break.

Excuse my coughing. I'll got a glass of water. Thank you.

(COMMERCIAL BREAK)

ANDERSON: Welcome back.

Connect the World. I'm Becky Anderson for you this week live from London.

A quick update now on the Brexit fallout and Brussels and here in the UK. So, across the pond -- or not across the pond, across the water, EU leaders

are meeting with outgoing British Prime Minister David Cameron. Some are pressing him to speed up Britain's divorce from the EU. But he says he

will leave the process to his successor.

The Brexit fallout also affecting UK Labour Leader Jeremy Corbyn. His party is holding a no confidence vote on his leadership. And we could

learn the results of that in just a half hour's time.

Meantime, disturbing reports suggest racial abuse has been on the rise in the UK since the

Brexit vote. Police investigating several incidents, including some that targeted the Polish community

here in London.

Diana Magnay has more.

(BEGIN VIDEOTAPE)

DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: To find the Polish community in London, head down to the boroughs of Hammersmith and Ealing

(ph) in the west. There is long history of Polish immigration here. The Polish Center, the heart of a well integrated community, which is why an

act of vandalism here at the weekend has come as such a shock.

You can still see the traces of the yellow paint in which this slogan was daubed across the front of the Polish community center. Ans they stretch

all the way down across this glass facade right up to the Polish eagle at the end. I'm not going to tell you exactly what was said, but you can

glean it was go home, but in slightly less savory language.

The graffiti is gone now, the hate replaced with flowers and messages of support. But Joanna Mudzinska, who runs the center, says this isn't a one

off.

JOANNA MUDZINSKA, POLISH SOCIAL AND CULTURAL ASSOCIATION: We have heard reports, and we are seeing pictures of notes being pushed through people's

doors, you know, describing them as vermin, and scum, and verbal abuse.

MAGNAY: We meet Marianna Koli who moved here from Finland when she was 18. On Saturday, she experienced what she felt was the first racist incident of

her 16 years in the UK.

MARIANNA KOLI, ECONOMIST, NEW COLLEGE OF THE HUMANITIES: I was walking in my local street. I was talking to a friend of mine, speaking in English.

And a chap from just behind me a few feet away, shouted I like your accent in a very loud voice. And I did feel it was a bit threatening. It wasn't

a sort of -- it very clearly wasn't intended as a compliment.

MAGNAY: So, it was almost sarcastic like I like your accident.

KOLI: That's what it sounded like to me, yes. He was saying, I see you. I have noticed you are foreign and I would like to tell you you are

foreign.

MAGNAY: London's metropolitan police say they have seen a 57 percent increase in reporting to their stop hate crime website. A Facebook group

calling itself worrying signs had logged 1,000 incidents since it was set up on Saturday. Go home with the response, I am home, one of the least

offensive of the postings here.

One Polish girl we followed up with emailing to say she'd had full on excrement through the letter box and was planning on leaving the UK if it

didn't stop.

Britain's Prime Minister David Cameron raised the issue in parliament.

DAVID CAMERON, BRITISH PRIME MINISTER: I spoke to the Polish prime minister this afternoon to say how concerned I was about the terror attacks

that are taking place and to reassure her that we are doing everything we could to protect polish citizens in our country.

MAGNAY: But the prime minister's promises may ring hollow to European ears right now.

More, the messages was support at a grassroots level that will reassure Britain's European communities that they're still welcome in a country they

call home.

Diana Magnay, CNN, London.

(END VIDEOTAPE)

ANDERSON: Well, we heard from the chair of the Polish Social and Cultural Association in that report, Joanna Mudzinska is now live with me here.

And I by no means want to dismiss the horror of what was in that report, the idea that people are

being abused, but I have to say on the streets of this city, other cities in the UK and probably around Europe there are some probably some horrible

people who over the weekend are liable to say pretty nasty stuff. There is nothing we can to do about that unfortunately.

But is there a -- do you really feel there is a specific rise since this whole campaign and Brexit vote?

MUDZINSKA: Well, I have to say we have never experienced anything like this before. so, you have to think there has to be a cause and effect

there somehow. And certainly the instances that people have reported to us of actual face to face verbal abuse and these horrible cards with nasty messages.

ANDERSON: So was it the tone of the campaign?

MUDZINSKA: Who knows. But I think there must be something that has made people -- emboldened people, made certain people feel that they are able,

maybe, to say things which in the past they haven't.

ANDERSON: And by cutting a deal with the EU that effectively supported the we want out and we want to close our borders, that's going to make things

worse, not better, surely?

MUDZINSKA: Yes, I think so . And I think not just the Polish community, but all EU communities are wondering what's going to happen. None of us

know what's going to happen.

And the uncertainty on that score as well as all the other scores is quite un -- you know, disturbing to people.

[11:35:14] ANDERSON: You were born and brought up here.

MUDZINSKA: I was, yes.

ANDERSON: Your parents came after the war.

MUDZINSKA: During the war, yes.

ANDERSON: Right, so you feel at home here, right.

MUDZINSKA: Certainly.

ANDERSON: And always have.

MUDZINSKA: Yes, indeed.

ANDERSON: So, how do you feel you will continue to feel at home here? I mean, what sort of challenges do you think we now face?

MUDZINSKA: Well, I'm just very surprised that this kind of thing could happen. But I do have to say that we've been tremendously heartened by the

response we've had from the British community. We have been inundated with messages from the archbishop of Canterbury, from ministers, from just

ordinary people who have written to us from all around the UK, just emailed us. I mean, not to mention -- I mean you saw on that clip the flowers that

people have brought in, our local neighbors and so on, have been bringing in flowers a tray of sushi arrived today from the restaurant down the road.

So, people just responding.

ANDERSON: And with respect, David Cameron, in his statement to parliament yesterday.

MUDZINSKA: Absolutely.

ANDERSON: Started with the speech that said that we will not tolerate intolerance in this country.

MUDZINSKA: Yes, yes.

ANDERSON: It's important for you, I guess, to have heard that from the British prime minister.

MUDZINSKA: Very important, I think so, and from the leader of the opposition as well, and from other leaders.

You know, we've had our local MP there and counselors, as I side the archbishop of Canterbury sent this very nice email.

So, you know -- and I think that's what we need more of. We need reassurance for the communities and for the people who are saying these

kinds of things to be told actually you are wrong, you know, you can't say to people pack your bags and go home. There is no reason for them to do

that. And for the EU communities to be reassured they can stay there and nobody is going to be checking them out.

ANDERSON: Well, let's hope we get that.

Thank you for that. More than 17 million people vote for the UK to get out of the European club. And it's likely many of them were swayed by some of

the promises made by leave campaigners, promises that some leave campaigners are back pedaling on fast.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The total number of votes cast in favor of leave was 82,000.

ANDERSON: Just days after Britain's dramatic vote to leave the European Union, key pledges

from the leave campaign are already being broken.

Promise number one, the leave campaign said the EU cost Britain 350 million pounds a week. Money, some said, will be plowed back into the National

Health Service. UK Independence Party Leader Nigel Farage says he never made that promise and insists that the leave campaign should not have made

that pledge in the first place.

Well, now the vote is over, leave campaigner John Redwood says it's not that simple.

MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: It doesn't count the money that you get back from EU.

JOHN REDWOOD, BRITISH MP: We will get some of the money back to spend as we wish. And other money we will spend on exactly the things that the EU

spend it on.

FOSTER: But that's a very clear promise.

LU STOUT: Promise number two, we'll take control of the borders, leave campaigners said. Many leave voters thought that meant bringing

immigration down.

But the day after the vote, leave campaigner Daniel Hannan refused to say it would.

DANIEL HANNAN, LEAVE CAMPAIGNER: I have never, ever made any commitment on numbers, ever. On the contrary...

ANDERSON: You said no free movement of labor.

HANNAN: what we said is we would take back control.

ANDERSON: Promise number three, the economy will be fine. But the pound is significantly lower against the dollar. Companies are putting

investments on hold and growth forecasts for the British economy have been slashed.

For the leave campaign, this is no surprise. They stressed the economy will be fine in the long run.

(END VIDEOTAPE)

ANDERSON: Right.

Let's talk about how all of this is playing out with the British public. CNN's political contributor Robin Oakley is back with us.

And my last guest suggesting that, sadly, she has witnessed in her community, the Polish community in west London, an uptick in racist slurs,

daubing of walls. We have just reported there some of the -- one of the contention issues in this campaign was immigration. A number of major

leave campaigners now rolling back on those pledges.

But what the rhetoric around that issue, which seems to have been so stand out for so many leave voters, it seems the me is possibly providing some

momentum for this xenophobic behavior?

OAKLEY: That is a danger of that kind of campaign. And when you get an issue like immigration, which a lot of people have very basic feelings

about, any encouragement to extremism can have dire results. And we have seen a number of these incidents as you say, Becky.

All the parties are absolutely determined to stamp out any kind of race hate crimes, but there is a feeling that a genie has been let out of the

bottle here, a big, that this kind of protest, distasteful as it is, feels it has been legitimatized a little by the vote leave campaign.

[11:40:31] ANDERSON: It disappoints me because I have grown up in a country here in the UK -- I don't live here anymore, but I grew up here and

it was just unacceptable to make the sort of statements that believe people in some communities are having to put up with at present.

But look -- and I hope that goes away. And I hope...

OAKLEY: We all do.

ANDERSON: And I hope that the politicians who are making decisions next for what happens

for this country will keep that in mind.

I want to talk about this Labour vote of no confidence in Jeremy Corbyn. I'm getting reports that it has past in quite high numbers. I'm looking at

170 to 40, although I don't have that confirmed as of yet, so these are just reports at this point.

OAKLEY: Those are very much the expected sort of figures, it has to be said. We were expecting -- because when you have had 44 members of front

bench team walk out in disapproval of their leader, to get that kind of result in the party in general is not all together surprising.

ANDERSON: So I'm now just hearing that the no confidence vote has been passed. And the party has no confidence in their leader.

And so what happens next?

OAKLEY: Well, that is the parliamentary party, which has no confidence in the leader. What Jeremy Corbyn's coterie and around his leadership, and

have been saying firmly from the beginnign, is that this parliamentary group is not representative of the Labour Party in the country, which

elected Jeremy Corbyn by a pretty overwhelming margin.

And we could well see the next stage is either Jeremy Corbyn accepts this, stands down, and

there is a no contest for a Labour Leader, or he says, OK, come on and challenge me because I'm

going to stand again.

And we saw 5,000 or 6,000 supporters of Jeremy Corbyn turn out in Parliament Square the other night you know to say we want Jeremy to stay

on.

So he is going to take evidence from that, that the activists out in the country and the trade union support that he had are still there.

What happens then, if you get Jeremy Corbyn reelected in another leadership contest against the wishes the vast majority of his parliamentary

colleagues? Well, they've got two alternatives, then. They either have a leader within parliament and leave Jeremy Corbyn to lead the party in the

country, which has happened in the past, or else they start walking out of the party and forming a party of their own.

ANDERSON: Diana Magnay is back with us. He's been following what we've been describing as the chaos in the opposition Labour Party. This, of

course, with a backdrop to David Cameron facing humiliating Brexit talks with EU leaders. Angela Merkel offering bleak prospects of the UK,

negotiating a special Brexit deal.

And back at home, this is what's going on. And this was a big margin.

MAGNAY: This was a big margin. And I think it illustrates the fact that the Labour Parliamentary Party has no faith in Jeremy Corbyn, quite

clearly. Westminster has no faith in him. But he still have very strong grass roots support. I mean, we saw that when he was elected two years

ago.

I think that there is a sense, in a way, that Westminster Labour Party has hijacked this issue to get rid of a leader who they thought was not

appropriate to lead the party any longer. Because let's face it, at the end of the day this is still the Torry Party who brought us into Brexit.

And the Labour Party in a way, the turmoil at the top of the Labour Party is distracting from...

ANDERSON: Yeah, absolutely.

Let's give our viewers a quick reminder now about Jeremy Corbyn's career. He first entered Parliament in 1983 representing a north London

constituency. On his official website he says, and I quote, "prioritizing the needs of the poor and protecting human rights is what I do best."

Corbyn won the Labour Party leadership in September of last year and was handed a strong mandate. But leading up to the Brexit vote, he was heavily

criticized for what some call a very lackluster defense of the remain complain, and given that it seemed so many Labour voters voted to leave,

should we be surprised that he ran a lackluster campaign?

OAKLEY: They have got a confused picture from their own leadership. Many Labour MPs are complaining that Labour voters didn't know, really, what the

party expected of them. He simply didn't show any real enthusiasm for the remain case.

But let us remember, too, that what Labour MPs are doing now in showing no confidence in him is not purely altruistic and in the interests of the

country. They are doing this partly, because they don't see him as somebody who can win an election and the prospect of an early election has

arisen because of the Brexit vote. So, they are looking after their own home interests as much as anything else.

[11:45:22] ANDERSON: Let's remind ourselves it was only last year that the Conservative

Party won a majority, a decent majority, and a mandate to run this country. The Labour Party thought it would be some five years before there would be

another election. Perhaps it didn't matter who was running the party at this point.

But Robin, you make a very good point, so this is why this is a story that is play at present, Diana.

MAGNAY: Absolutely.

Jeremy Corbyn ran a lackluster campaign, because he just didn't believe in the case for remaining in Europe, that was the problem. And that was why

he doesn't carry the country with him.

He made it very clear throughout his long political life that he was a bit of a euro skeptic. So no one quite believed it when he said, you know,

let's stay in. And I think that was a major problem.

OAKLEY: And as we saw at the last election, Labours has been losing a votes to UKIP. A lot of former Labour supporters, particularly on the

issue of immigration, have got their worries, and they don't feel those worries have been sufficiently addressed by their own party or the

government.

MAGNAY: And they are not going to come back under Corbyn.

ANDERSON: Corbyn's troubles, of course, began snowballing after he sacked shadow foreign secretary Hilary Benn over reports that Benn was planning a

coup against his leadership. One by one, a number of Labour politicians began resigning from the party's shadow cabinet. Many made the

announcement on Twitter, attaching their letters of resignation.

One shadow secretary said it had become clear after the Brexit vote that Labour no longer looked like a government in waiting. Yeah.

OAKLEY: And all the more important.

ANDERSON: And quite frankly, they don't.

OAKLEY: No.

And when you have got a government which is itself a vacuum with no leader -- David Cameron is is not going to take any more decisions. He is there

as party leader for the moment, but he's not going to take any of the big decisions, that awaits his successor. And we don't know who that successor

will be, all the more important that we had an effective opposition who people could listen to and get some guidance from them.

MAGNAY: I think one of the major problems, too, is that a successor in the Labour Party at

the moment is not going to unite an incredibly divided Labour Party that has been divided for years now since Tony Blair sort of took on a reformist

element to the Labour Party and left the old left wing behind. No one in Westminster is going to be able to bridge that gap.

ANDERSON: Robin, you have been doing this for longer than most, let's just put it that way. I think I (inaudible) the other day, but you didn't want

me to bring that up again.

So, you know most of those who have been working there for some time. Is there a clear candidate to bring this party together?

OAKLEY: The Labour Party? No, at the moment, there is not. I mean, the kind of names coming forward, those of Angela Eagle, who was clearly

distressed at resigning from Jeremy Corbyn's team, she ran for the deputy leadership last time around. She is well

respected in the party. She is one who has seen as having some chance of uniting the party.

Tom Watson, the deputy leader, who told Jeremy Corbyn that he faced a revolt and that the parliamentary MPs didn't have any confidence in him,

he would possibly be a candidate for the leadership if he is prepared to run against Jeremy Corbyn. And he does the advantage that he was elected

to his role as deputy leader at the same time Jeremy Corbyn was elected leader. So, he has clearly has got some support in the party at large as

well.

But it's very difficult to see somebody who really spans the gap between the kind of people who turned out for Jeremy Corbyn in Parliament Square

the other night and the vast bulk of parliamentary MPs here behind us.

MAGNAY: And let's make it clear, just because there's been a vote of no confidence in Jeremy

Corbyn doesn't mean Jeremy Corbyn is going anywhere. He has made it very clear that he wants to stay as leader and keep fighting. He is showing a

fighting spirit that he didn't show throughout the referendum campaign.

ANDERSON: And what happened during this referendum, which is so interesting, particularly as an objective observer watching this as I do

these days -- or was from Abu Dhabi, is to have seen how uncomfortable some of these relationships were between, for example, Jeremy Corbyn who was

expected to campaign on behalf of the stay within the EU campaign with the likes of David Cameron and the chancellor here through George Osborne. And

they are diametrically opposed when it comes to political ideology.

Therein lies what has been so odd and confusing about this whole referendum debate.

OAKLEY: Well, yes. And we have had red on red and blue on blue, both major parties

divided on a key issue like this.

Jeremy Corbyn is one of those people who would not find it comfortable sharing a platform with a Conservative even on a single issue where they

were both supposed to believe in the same cause.

Some other parliamentarians found it much easier to do that, like Allen Johnson, Labour Party veteran who effectively lead the stay in Europe

campaign for Labour, but felt his efforts were sabotaged by Jeremy Corbyn's office.

[11:50:24] ANDERSON: Guys, the heavens have opened behind us. Nothing is normal in the UK at present. It's supposed to be the summer here. Well, I

won't say -- it is supposed to be the summer here. But, yeah, it's pretty wet.

We're going to be back after this.

(COMMERCIAL BREAK)

ANDERSON: Right. In tonight's Parting Shots, humiliating, catastrophic, a national embarrassment: just some of the ways the press here in the UK are

describing England's shock loss to Iceland at Euro 2016. But it was in Reykjavik that it was a different story. These fans were in dreamland.

Iceland's first international tournament and now they move on to the quarterfinals to play host nation, France.

Let's go to our London studio and speak to World Sports' Christina Macfarland.

Where on Earth do England go from here with respect to the guys there in Reykjavik. LOt's talk about the English team.

CHRISTINA MACFARLANE, CNN WORLD SPORT: Becky, my goodness, England dumped out of Europe for the second time in one week. And this moment will go

down as one of the worst in England's football history, not just because they lost out to a minnow side Iceland, but because they were completely

taken apart by this tiny nation who were rugged, ruthless and exceptionally well organized.

And this now, is a story that has captured the hearts and minds of football fans all over the world, a population of just 330,000 people. They have

only 90 professional footballers from the country, and they actually have more volcanoes, 130 in the country, than they do professional footballers.

Roy Hodgson, who resigned immediately after this game yesterday was on a salary of $4.6

million. His counter-part in the Iceland management team, well, he is a part-time dentist.

It just shows the huge disparity between these two sides.

And following the match yesterday, Becky, there were 4.8 million tweets. And among them, one particularly poignant one, one particularly cutting one

in the current climate from Donald Tusk, the president of the EU council, who took (inaudible) on Twitter saying, "UK 1, Iceland 2, winter is

coming."

And if that wasn't bad enough, Becky, he was inaccurate, of course. Because it was England, Iceland 2, so compounding Britain's misfortune this

week.

ANDERSON: That's right.

To learn more about the stories that we brought you today, including interviews and behind the scenes footage. Head over to our Facebook page.

You can also find stories from our team working all around the world.

That is at Facebook.com/cnnconnect.

So, as we were saying, it is pretty wet here in the UK. Nothing is normal, not even the football.

I'm Becky Anderson. That was Connect the World. From the team working with us here and those helping around the world good evening to you.

END