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Portugal Wins European Championship; Theresa May to Become Next Prime Minister of Britain; Beverly Hills Bakery Site of Human Trafficking Victims; Hong Kong's Tienanmen Square Museum Forced to Close. Aired 8:00a- 9:00a ET

Aired July 11, 2016 - 08:00   ET

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

[08:00:12] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream.

Now Theresa May is set to be the next British prime minister after rival Andrea Leadsom pulls out. And the agony and joy of sport, one little

Portuguese fan consoles a France supporter after Portugal's stunning upset in the final of Euro 2016.

And let's begin with breaking news. Only one candidate is left standing in the race to be the next British prime minister. Now, Theresa May is now

uncontested for the post, after Andrea Leadsom pulled out of the Conservative Party leadership race a short time ago.

(BEGIN VIDEO CLIP)

ANDREA LEADSOM, CONSERVATIVE PARTY MP: There is no greater privilege than to lead the Conservative Party in government. And I would have been deeply

honored to do it. I have, however, concluded that the interests of our country are best served by the immediate appointment of a strong and well

supported prime minister. I am therefore withdrawing from the leadership election, and I wish Theresa May the very greatest success. I assure her

of my full support.

(END VIDEO CLIP)

LU STOUT: Now, Max Foster's been following all the twists and turns. He joins us now live from London. And Max, with Leadsom pulling out of the

race, what happens next? And how soon could Theresa May become the next prime minister?

MAX FOSTER, CNN INTERNATINOAL CORRESPONDENT: Well, she is now the presumptive prime minister. She will become the next prime minister unless

there's some remarkable change in circumstances, which I'm not really writing off in the current atmosphere in Westminster.

But, if things go as we expect, then it seems odd that David Cameron would stay on as prime minister with all the machinery of government around him

when we know that Theresa May will be making all the relevant decisions.

So, what we need is to hear from Theresa May. She's expected -- she was currently outside London, but she's coming back to London early. She's

going to make a statement this afternoon. The prime minister's also coming back early. So, those two will have discussions about when the best time

to transition would be.

But, we're in a very unsettled environment currently in the United Kingdom. And what everyone needs to see is some sort of leadership. So the pressure

will certainly be on Theresa May to take over sooner, rather than later, to make those key decisions about Brexit, and about the whole lot of other

policy that is currently on ice because David Cameron isn't -- well he's on the way out. He's a dead duck prime minister. So we need to here from

Theresa May about her plans on when she's going into Downing Street.

I've spoken to Buckingham Palace because the queen needs to make that appointment. She's currently outside London, but she can get in to London

very quickly. So, we're all waiting on Theresa May.

LU STOUT: Yeah, and before Leadsom stepped out of the race, we did hear from Theresa Nay a couple hours ago. She put her thoughts on her platform,

economic policy, her thoughts on Brexit, shooting down the possibility of a second referendum. What more have we learned about her, and please

introduce her to an international audience? What would the leadership look like under her as a prime minister?

FOSTER: Well, it's interesting. I mean she's very well regarded. She's a very self-assured, very experienced politician, very well connected in

parliament, that's how she's got all of this support behind her. And she's seen as a very steady pair of hands. Lots of people have described her as

boring. I don't think she even takes that as an insult. She's a very serious politician. And she's been at the home office for a very long

time, six years I think, certainly more than five years.

And she's overseen security in the United Kingdom and there haven't been any major terror attacks over that period and she's been seen as a success

in that role. Obviously there's been some criticisms but broadly speaking she's seen as a very safe pair of hands.

She did campaign for Britain to remain in the European Union, but she didn't do it in a very forthright way. So she's not seen as a classic

remainer. And she's always been very tough on immigration, which is an issue, obviously, that was central to the whole referendum. So she's seen

as a credible next prime minister.

And people just want to see her in that position as quickly as possible.

The question really is about what she knows, about foreign policy, her thoughts on foreign policy, because we don't know much about that. That's

seen as her big weakness. Doesn't necessarily have to be. She may have those thoughts, but she hasn't publicized them.

All we really know about her in terms of Brexit is that she wouldn't have a snap election. She won't have another referendum. She absolutely accepts

the results of the decision, and you could probably say, you know, she lives up to that mantra, which we've got in the UK at the moment which is

we're all Brexiteers now, because the public voted for that.

[08:05:17] LU STOUT: As Theresa May is now uncontested. Why did Andrea Leadsom stand

down? Does it have anything to do with her recent interview, her comment about motherhood?

FOSTER: She didn't answer questions after her statement. Her statement was very much that she felt that Theresa May had the support that she

needed to become the prime minister and she was joining that support.

The language of it was that she didn't have what she needed to get any further in the race. But, yes, you're talking there about an interview she

did with the Times over the weekend, where she suggested that because she was a mother, she had a direct stake in the future of this country and she

pointed out that Theresa May doesn't have children herself and that blew up in the papers over the weekend, and she had to apologize for it today.

She did, though, couch that with a very clear view that she had had her comments taken out of

context, very critical about the media. And we've also heard from Ian Duncan Smith, another senior

conservative suggesting that there's some -- a bit of black ops going on to discredit her by the conservative establishment.

So, I don't think there a very clear sort of view that she had on whether or not you had to be

a mother to be prime minister, but certainly she came under such pressure because of it, many of the Westminster journalists are suggesting that that

did very much play into her decision. She was under too much pressure and she didn't want to carry on.

LU STOUT: All right.

CNN's Max Foster reporting live from London. Thank you.

Now, the Japanese Prime Minister Shinzo Abe declared victory in the parliamentary elections in

Japan a short awhile ago. His party now has control of two-thirds of the upper house. Now, Mr. Abe now says he will push forward with his economic

reforms otherwise known as Abenomics.

Now this win could also let Mr. Abe start a process for controversial reforms to the constitution, including moves to loosen restrictions on the

military. Now the U.S. has seen another weekend of protests. Now Black Lives Matter demonstrators again took to the streets over the killing of

two African-American men at the hands of police last week.

Now, the protests have been mostly peaceful, but police made arrests when violence broke out. In Baton Rouge, Louisiana, where one of the men was

killed, 48 protesters were arrested. Meanwhile, we're getting new details about that police standoff in Dallas, Texas, when a gunman shot 12 police

officers, killing 5 of them.

CNN's Victor Blackwell has more on that, and the community that is still grieving.

(BEGIN VIDEOTAPE)

CHIEF DAVID BROWN, DALLAS POLICE DEPARTMENT: We're convinced that this suspect had other plans and thought that what he was doing was righteous.

BLACKWELL (voice-over): Dallas Police Chief David Brown telling CNN the killer was plotting larger scale attacks.

BROWN: He was going to make us pay for what he sees as law enforcement's efforts to punish people of color.

BLACKWELL: Bomb-making materials and a journal found inside the home of the deranged gunman suggest he was practicing detonations and aiming for larger

targets.

BROWN: The materials was such that it was large enough to have devastating effects throughout our city and our north Texas area.

BLACKWELL: Police say the killer told them why he did it during a standoff, saying he was seeking revenge for the shooting deaths of two African-

American men last week. Cornered in a parking garage, negotiations with the killer lasted about two hours.

BROWN: He just basically lied to us, playing games, laughing at us, singing, asking how many did he get and that he wanted to kill some more

and that there were bombs there.

BLACKWELL: Officers ultimately using a robot armed with a bomb to end the gunman's life, a first for law enforcement in the U.S.

At the scene, an ominous message written in the shooter's own blood on the walls near his body. The initials "R.B.," a message police are still trying

to decipher.

This as we're learning more about the five officers whose lives were cut short protecting a peaceful protest.

VALERIE ZAMARRIPA, SLAIN OFFICER'S MOTHER: No, not my baby. Not my Patrick.

BLACKWELL: Thirty-two-year-old Patrick Zamarripa, the engaged father of two, was a Navy veteran and just weeks away from his 33rd birthday. His

family says his dream was to become a police officer.

LAURA ZAMARRIPA, SLAIN OFFICER'S SISTER: My brother loved his country and his community. I just can't wrap my mind around it. It's just so unreal.

RICK ZAMARRIPA, SLAIN OFFICER'S FATHER: Since day one, since he was born, he was a hero. He was my little hero. And he's a big hero -- he's a big

hero now.

BLACKWELL: Those who did survive the ambush, like Shetamia Taylor, are grateful to be alive. The Dallas mother protected her four sons when shots

rang out. She was hit in the leg as officers were shot in front of her. Taylor thanking police for their heroism in the hail of bullets.

SHETAMIA TAYLOR, DALLAS SHOOTING VICTIM: It hurt. Of course I'm thankful that my babies are OK, but somebody's dad, husband isn't.

(END VIDEOTAPE)

[08:10:13] LU STOUT: And that was Victor Blackwell reporting for us.

Now in the capital of South Sudan, security is rapidly deteriorating as fighting rages on between

political factions. The United Nations says at least10,000 people have been displaced since the fighting

broke out on Thursday.

And now the vice president says he's come under attack by forces loyal to the president. Now, CNN cannot independently verify the claim.

Now, there are fears at least 150 people have been killed. China says two Chinese UN peacekeepers are among the dead.

Now, David McKenzie is monitoring the situation for us in Juba (ph). He joins us now live from Johannesburg, South Africa.

And David, you know, there is this ongoing heavy fighting there in South Sudan. You've been reporting on this for days. And now we have these

tweets from the vice president revealing the chaos on the ground. What have we learned?

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, that's right. And Riek Machar, the vice president, Kristie, on his official Twitter account,

though we couldn't independently verify this info because of the chaos ongoing, saying that the situation where they are based in Juba, their

compound, was under sustained attack from government helicopter gunships and calling for calm, saying that their partner in the process, in this

case President Salva Kiir and his forces that are loyal to him, are not wanting peace, are not interested in peace, is that quote.

Again, very difficult to get a clear understanding of what exactly is going on in Juba other than the fact that it appears there is heavy fighting

between those forces loyal to the president, and those loyal to the vice president.

Several witnesses on the ground telling us that there have been sustained heavy artillery and helicopter gunfire throughout the day today, in Juba.

This comes after several days of fighting, Kristie, that kicked off Thursday last week from what appeared to be some kind of misunderstanding,

altercation at a checkpoint between rival factions, but has since definitely escalated.

Who exactly is behind some of the fighting, because the two leaders appear at times disconnected from the events on the ground, and where it's all

leading, is certainly unclear at this time -- Kristie.

LU STOUT: All right, David McKenzie reporting on the trigger and toll of the violence there. Thank you, David.

Now you're watching News Stream. And coming up next on the program, the morning after for football's most unlikely champions. Celebrations roll on

for Portugal, crowned kings of Euro 2016, after beating hosts France.

(COMMERCIAL BREAK)

[08:15:00] LU STOUT: All right. Coming to you live from Hong Kong, you're back watching News Stream.

And Portugal celebrating a historic triumph as their football team upset the odds and host nation to win Euro 2016. Now, the team are on their way

to the presidential palace in Lisbon right now after defeating hosts France in Paris 1-0 in extra time.

Now Portugal managed to win, despite missing star Cristiano Ronaldo for most of the match. He limped off early in the first half with an injury.

Now, what makes Portugal's victory all the more remarkable is that three weeks ago, this was the defining image of their campaign. Cristiano

Ronaldo, screaming in frustration as he and his team struggle in their opening two matches. And yet, three weeks later, this is the end result: a

triumphant Ronaldo lifting his country's first-ever international trophy.

Our Isa Soares is in Lisbon where celebrations went long into the night and continue to today. And she joins us now live. And Isa we know that the

new European champions, they are finally home. The parade has started. How is Portugal taking it all in?

ISA SOARES, CNN INTERNATIONAL CORRESPONENT: It's just incredible. If I show you the scenes, Kristie, we saw the plane arriving today. They were

being escorted by two F-16s, probably about 45 minutes or so ago. But I get my cameraman just to pan so you get a scene of the crowds. People have

been waiting here for hours to really see their team arrive. The marching band, the presidential marching band, has arrived. They've just left the

building.

And we are seeing, if I point to the presidential palace, they were going to the top of that presidential palace to the balcony, where they will lift

that trophy.

They're not the classic of champions like you were saying, Kristie. You know, they had what many consider to be one of the easiest groups, yet they

showed sheer grit and determination, and resolve.

And like you said, you know, they came from behind really in many ways in the sense that Ronaldo was injured in the first 25 minutes. When I was

there watching with the 66,000-plus people yesterday, that minute that Ronaldo fell and started holding his knee, put

his hand on his head, people actually did the same. They were really frustrated.

But then, what it really did, what happened to Ronaldo really united the rest of the team, and there are really many saying here that that was

really a victory for Ronaldo. Ronaldo, in the meantime, basically said it's a victory not just for the Portuguese people, but for

the many immigrants throughout the country, of course, embracing the thousands of immigrants in Paris who were there supporting them all the

way, Kristie.

LU STOUT: We know that the ceremony at the presidential palace is a closed one. Could you tell us what happens next, and when will the fans and the

people of Portugal finally be able to talk to or at least hear directly from their winning team?

SOARES: So, we know that they're going to come here with the president. The president was at yesterday's match. He was watching. We know they're

going to be having drinks with the president then and expected to come out to balcony, lift the trophy and actually say a few words. They were

actually testing the microphone in the early hours of this morning.

From there, they'll get on the bus once more and they will parade through Lisbon, lifting the trophy so that everyone will get a chance to see the

team. They will then go to a fan zone, Kristie, and they will say a few words.

Of course, people are spread out throughout Lisbon hoping to catch a glimpse of a team that

really many, rather well didn't expect to win, they were not expected to be kings. But people here were behind the team all, you know, nonetheless.

And of course we know that Ronaldo was a star player, is a star player of the team. But many were expecting Nani and Pepe to step up. And, in fact,

it was almost a name that you and I probably have never heard of before, you know, he was the one that scored, and he was the one that really is

bringing this cup home for us.

It's important to note that he is one of the heroes today -- not just him, but also the national coach, who has been praised here, Kristie, for his

strategy, and his tactics. In fact, he called it yesterday -- I'm going to tell you his words yesterday, the coach, Fernando Santos, he said we play

the simple as (inaudible) and as wise as (inaudible).

So as, you know, just praising him, thanking Eder. He scored in that 109th minute. And of course the rest of the Portuguese team, because this is an

historic day for this country, Kristie.

LU STOUT: And a hero's welcome for the winning team. Many thanks indeed for your reporting, Isa Soares live for us from Lisbon.

Now, the early days of Euro 2016 were marked by fan violence. But one video from Sunday's match shows a far more positive and inspiring

atmosphere. Now France were favorites to win on home soil. And this fan is clearly overwhelmed by his nation's defeat.

But consolation arrives in the form of this little guy, a little hand belonging to this young Portuguese

fan.

Now, the two fans, they shake hands, they embrace, united despite their very different emotions. Beautiful moment there.

Now, let's bring in CNN World Sport's Amanda Davies. She joins us live from Paris. And Amanda, it is the day after that disappointing loss for

France. We know that the French team is back home. What's the mood there?

AMANDA DAVIES, CNN WORL SPORT: Yeah, absolutely, Kristie. This was a city poised for a party, wasn't it? Given so many people were building up

France as absolute favorites for that final. But frankly, this morning, it's really, really flat here across France. It's seen as the one that got

away, or perhaps even stronger than that, the France coach Didier Deschamps said that his team wasted their chance, they threw their chance away to be

heroes.

This is how it's being reported in the papers this morning. La Keep (ph) front page saying overwhelmed. The picture of Paul Pogba hiding his face

with his short. La Parisian does have a picture of Portugal, but they basically say the head line is it wasn't our day.

And you suspect that things don't feel any better for the French side today despite the fact that they have been having lunch with the French President

Francois Hollande. In fact, we've seen pictures of the France goalkeeper Hugo Lloris in tears, meeting Francois Hollande.

Because, of course, this was the side that was billed as perhaps the most talented squad in the tournament in terms of the individual players. This

was their chance to unite a nation that has had such a troubled, turbulent 18 months, with the terror attacks here in Paris in November. The social

unrest, the civil unrest with the strike because of those proposed labor reforms. This was a side that had their moment to emulate the success from

1984, and from 2000, when France won the European championships in the past. They had a perfect opportunity to do it on home soil, but they just

couldn't finish it off.

And you have to note though it's not the whole of France commiserating this morning, because as we saw in that video with the Portuguese fan comforting

the older, French gentleman, this is a country with a very, very large Portuguese community. There are a million or so Portuguese immigrants here

in France. And they certainly weren't afraid to celebrate their success into the early hours here in Paris this morning.

LU STOUT: Yeah, love seeing that video again. Just a beautiful moment for the beautiful game. Amanda Davies reporting for us live from Paris. Thank

you and take care.

Now to the CNN Freedom Project. As you know it's dedicated to putting an end to modern-day slavery. And today we're going to focus on the case of

human trafficking in a place that you may least expect. A once popular bakery in one of the wealthiest spots in

the world -- Beverly Hills, California.

Sara Sidner reports.

(BEGIN VIDEOTAPE)

ARMELINDA DELA CERNA, BAKERY EMPLOYEE: It's like a trap that we cannot leave. Seven days in a week, no day off.

She scolded me and she threatened me that I should not speak again about going home.

SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT: Eleven workers who thought they were embarking on an opportunity of a lifetime only to find themselves

trapped in a scenario they say they couldn't afford to leave.

At first, it seemed like a sweet deal made by business owners they knew in their home country:

work in a new, fancy french bakery, use skills they already had, and receive a salary far beyond what they were making in the Philippines.

Their work visas, and trip to America, would be paid in full by their employers

DELA CERNA: It's really hard to decide because I have a good job in the Philippines.

SIDNER: So this was a huge decision for you.

DELA CERNA: It is. So bad.

It's my first time to be away.

SIDNER: Your son is how old?

DELA CERNA: I left him at 6 years old. For me, like, OK, this is a sacrifice that I have to make for a better future for my son. So I have to

do it.

SIDNER: So like the others, Armelinda Dela Cerna she agreedto fly 7,000 miles from home.

She was hired as a manager L'Ammande French bakery in sunny California.

The bakery was so popular, the owners Analisa and Gonzalo Moitin Hode Almeda (ph) opened a second bustling bakery. Their customers had no idea

that behind the counters the workers say they were suffering. The government says, they were victims of human trafficking.

But what really shocked people is where this was all taking place -- in one of the ritziest

neighborhoods on earth, Beverly Hills. The bakery was located just a few feet away from Rodeo Drive.

Do you think that the customers, especially in Beverly Hills, had any idea what was going on?

[08:25:12] DELA CERNA: I guess not because one of the rules at L'Ammande, when you are working in front, you have to smile.

SIDNER: Court documents say some were being paid less than $3 an hour, working more than 12 hours a day. And with no days off for weeks on end.

And when they complained to the owners, they say they were threatened.

YANIN SENACHAI, ATTORNEY: The workers were told if they did not continue to work under the unlawful conditions at the bakery, the defendants would

impose on them an $11,000 debt, unilaterally imposed debt, and that they would financially ruin the workers, and prevent them from working again in

the Philippines if they were deported there.

SIDNER: The workers say they were told they'd have to work three years to pay off the debt and that their work visas did not give them the same

rights as their American counterparts.

To survive, ten people crowded into two one-bedroom apartments.

So these was the first one.

DELA CERNA: This was the first one, yeah.

SIDNER: It must have felt really crowded.

DELA CERNA: It is. It is very crowded. But for us, just a sacrifice to save money.

SIDNER: Then, one day, investigators with the Department of Labor showed up at the bakery.

Were you afraid when they came in, started asking these questions?

DELA CERNA: Actually, I wasn't afraid. I was like, thank god you're here.

SIDNER: The investigation ended with citations, and the workers filing a lawsuit that they won. In a default judgment, a federal judge ordered the

bakery owners to pay $15 million in damages. So far, they haven't paid a cent.

The owners have denied the accusations, putting up a website filled with personal attacks on their former workers. Aand photos they say prove their

workers were happy, and free. They Almeda's (ph) did not agree to an on camera interview but in a statement to CNN said they wouldn't afford

attorneys fees at $80,000 to $100,000 a month to fight the lawsuit in court. So, they didn't show up.

The owners claim the lawsuit was simply a ploy by the workers to get permanent visas to stay in the United States.

The U.S. government did give them special visas, which protect trafficking victims, valid until 2019.

For Armalinda, it means she'll be reuniting with her son after three long years, and a new beginning.

This is sort of like a dream, kind of dream to nightmare.

DELA CERNA: Yeah, a dream to nightmare. But now we can start building our own dream now.

SIDNER: Sara Sidner, CNN, Beverly Hills, California.

(END VIDEOTAPE)

LU STOUT: Now on Tuesday, we will meet another survivor of human trafficking. Now, he was brought to the United States from Zambia to

perform in a boy's choir. And his dream was to earn money for his family and to build a school back home. But, as Isha Sesay tells us, he was

scammed by a Texas pastor.

(BEGIN VIDEO CLIP)

ISHA SESAY, CNN INTERNATIONAL CORRESPONDENT: After raising more than a million dollars from CD sales and school and church performances, it turned

out the deal he'd struck with the boys and their families was a lie.

GIVEN KACHEPA, TRAFFICKING VICTIM: They never paid us, we were never paid a dime for the work that we did, except after the government became

involved. They said, if you're not going to sing, then we're not going to feed you, or we're going to send you back

home to your country again.

(END VIDEO CLIP)

LU STOUT: Now, Isha Sesay tells us the story of how this brave man was able to rebuild this life in the U.S. It's all part of our Freedom Project

series, happening this week on CNN.

Theresa May is now the only candidate left to become Britain's next prime minister but even that could change in the unpredictable politics of the

UK. We have more on that as the nation reaches a critical junction.

(COMMERCIAL BREAK)

(HEADLINES)

[08:37:32] LU STOUT: Now, let's return to our top news story: the shake-up in the race for British prime minister, Andrea Leadsom has dropped out of

the Conservative Party leadership race leaving Theresa May as the only candidate left standing.

Now joining me now by phone is British Conservative Party MP Chrispin Blunt. And, sir, thank you for joining us here on CNN. We now know that

Theresa May is uncontested to become the next prime minister. What's your reaction to the news?

CRISPIN BLUNT, CONSERVATIVE MP: I'm delighted by the news. It's important that we get

through this period of instability and uncertainty as fast as possible and it was pretty clear that Theresa May after endorsement from the

parliamentary party started taking the temperature of my own conservative associates and I'm absolutely confident she would also have won the ballot

of party members and convincingly as well. And this just puts this uncertainty

behind us. And I congratulate Andrea Leadsom for having taken this decision.

LU STOUT: You're delighted by the news. You're a firm supporter of Theresa May. Just how much support does she have inside the Conservative

Party?

BLUNT: She has 199 MP, actually about 330 (inaudible) especially with all the different

candidates (inaudible) the party would have been presented with a choice between Boris Johnson and Theresa May, which would have been a wonderful

contrast in leadership styles. And it is (inaudible) Boris didn't run. And so we're now left with the only other really senior candidate and

strong candidate to be the leader of the party so it falls to Theresa May by default.

And in the (inaudible) getting a new prime minister in place as quickly as is absolutely the right thing to do (inaudible) some stability get a new

government going and (inaudible) the process of leaving the European Union.

LU STOUT: All right. Conservative MP Crispin Blunt joining me on the line there. Thank you very much indeed for that and take care. And our

apologies to our viewers for the quality of that connection.

Now, for more analysis on the story let's bring in Mark Garnett. He's a senior lecturer at Lancaster University. He joins us now.

And Mark how soon could Theresa May become prime minister? I mean, could it be a matter of hours?

MARK GARNETT, LANCASTER UNIVERSITY: I think that the mood in the party is to get this over as quickly as possible, the transition over; however,

there is a party board which oversees these matters. And I think what the party board will be anxious to establish is whether members in the

constituency parties will be satisfied with a handover of power which looks rather like an uncontested coronation.

I think quite a lot of members would actually have liked a contest. Members of parliament think that that is the kind of thing that causes

instability and they would want to avoid a contest. So, I think there will be some discussion just to make sure that the members will be happy with

this particular outcome.

[08:35:34] LU STOUT: That's right. Just now we talked to a member of parliament who said

that he wants this to be a transition that is very, very quick, especially given the economic uncertainty that's been gripping the UK.

Tell us more where Theresa May. How would you describe her style of leadership? And does she have the kind of leadership to be able to

navigate Britons through this uncharted waters?

GARNETT: Well, the second part of your question is that nobody knows, because nobody has been through such an incredibly complex set of problems.

But if anyone is capable of doing so, I think that Theresa May is probably the person who one would identify as a very likely person to do this,

because she has undertaken a lot of negotiations within the European Union already on very sensitive issues such as immigration, and justice -- and

crime and justice. So, she has the experience but she's also shown herself to be incredibly pragmatic. In other words, she

was in favor of remain but it was obvious that she had a lot of sympathy with the Brexit argument.

She stands in the middle of this incredibly divisive issue within the Conservative Party, and

within the -- within the country as a whole. And it seems to me that since she declared her candidacy, she's taken a lot of steps that show she is a

very hard-nosed politician. She's very much in the kind of mold, I think, of Angela Merkel, where she will be I think a formidable

negotiator who's prepared to do a deal.

She's not inflexible. She's quite prepared, I think, to give a little in order to gain something on the other side.

So I think the Conservative Party has chosen somebody, you can't say anyone is ideal in this circumstance, because it is so -- such uncharted waters,

but she's the nearest thing the Conservative Party has to the perfect candidate for this job.

LU STOUT: But inside the Conservative party there are those who support her, and those who do not. So what is the possibility that the

Conservative Party would allow another candidate to enter this race at this point?

GARNETT: I think there will be an awful lot of pressure on the party as a whole to forget the

idea of reopening this contest. I'm not certain about the rules,because this is such a completely different circumstance from what the rules would

have envisaged. But the fact is that candidates were nominated by a particular date, an election has been held in

accordance with the procedure. There's been no anomaly. The only thing is that the person who came third in the last election now I suppose formally

becomes the person who came second in that last round of voting -- that's Mr. Michael Gove.

Well he said that he wouldn't want to stand in any reopened leadership contest. So, although one would -- the drama has been considerable, I

think that this particular drama is over and it's now the Labour Party that's got its leadership problems to resolve.

LU STOUT: That's right.

And a final question for you about the bigger picture here. I mean, because this is a crucial moment for the UK, after the referendum and given

all the economic uncertainty, I mean just how significant is this leadership change for the UK?

GARNETT: This leadership change I think doesn't resolve the dilemmas facing the UK. At the moment there's a kind of conspiracy going on amongst

politicians to say that the Brexit vote was clear-cut. The fact is that it was a very narrow vote on an incredibly sensitive and controversial issue

and there's lots of evidence to say that some people voted for Brexit as a kind of a protest, hoping that it would send a warning signal to the

European Union. And they were shocked when the result was known.

In that context, we have just continued -- the only thing the markets now know is that uncertainty and instability is certain, but perhaps before the

referendum there was uncertainty about whether it really would be like this. Now we know that for a couple of years there is going to be this

uncertainty. And the intrusion of Theresa May into that particular context I think is reassurance. If it turns out that Brexit becomes a hazardous

step which Britain cannot afford to take, then somebody like Theresa may is fully capable of doing things to ensure that the verdict is revisited.

However, she said that she's completely happy with the Brexit result, and so either way I think you've got somebody with the kind of attitude which

will be practical and hopefully as successful as we can make it in these very perilous times.

[08:40:17] LU STOUT: All right, Mark Garnett, many thanks indeed for joining us, and helping us parse through breaking news story. Many thanks

indeed. Take care.

Now, you're watching News Stream right here on CNN. And up next, Hong Kong is the only

Chinese city that publicly commemorates the Tiananmen Square massacre. But now, it is closing down the June 4th museum. Find out why when we come

back.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. Now the only museum on Chinese soil that commemorates victims of the Tiananmen crackdown is closing down.

Now, Hong Kong's June 4th museum features videos, and newspaper articles that are strictly

banned in Mainland China. There's even a bullet-riddled helmet on display.

Now the pro-democracy group Hong Kong alliance runs the museum in a leased space, but the owner's committee is suing saying the alliance breached

lease terms by operating a museum.

Hong Kong Alliance says the owner's committee is pressuring the museum to close by forcing visitors to leave personal information.

Now, China regularly cracks down on any mention of the massacre. Relatives of those who died say that they are regularly harassed and imprisoned.

Hong Kong enjoys freedom of speech not allowed in mainland China, and some fear that the museum's closure is just another sign that Hong Kong's unique

freedom is eroding, and others worry that many are choosing to avoid the sensitive subject.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): The pressure that this museum faces now is exactly what us Hong Kong citizens are facing. 20 years ago,

everyone would have wanted this place to continue. Times have changed. Some people choose to forget what has happened.

(END VIDEO CLIP)

LU STOUT: A note of pessimism shared by many here.

And that is News Stream. I'm Kristie Lu Stout. And World Sport with Christina Macfarlane is next.

END