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Britain Votes to Leave EU; PM David Cameron Steps Down; People Left to Face Uncertain Future. Aired 10-11a ET
Aired June 24, 2016 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[10:00:10]
BECKY ANDERSON, HOST: Hello and welcome. I'm Becky Anderson live from Abbington Green in London. It is 3:00 in the afternoon here where the
staggering news is now sinking in. Britain voting overwhelmingly to leave the European Union.
(BEGIN VIDEO CLIP)
ANDERSON: To say that, people here face an uncertain future is an understatement. Prime Minister David Cameron, who begged voters to stay in
the EU, is on his way out. This hour, we'll be covering all angles of what is a historic vote.
(END VIDEO CLIP)
ANDERSON: We'll have reaction from across Europe as nations get ready to lose a partner and from the United States, where the issue is playing out
both in the markets and on the campaign trail. And we'll check on those world financial markets which have been dropping sharply.
I'm going to start with the big winners today.
(BEGIN VIDEO CLIP)
ANDERSON: The leave campaign, led by former London Mayor Boris Johnson, who may now be poised to become the next British Prime Minister. He or whoever
that is, will be charged with laying the groundwork for the long process of extricating Britain from the EU.
Well Johnson spoke earlier about Britain's role moving forward.
BORIS JOHNSON, FORMER LONDON MAYOR: This does not mean that the United Kingdom will be in any way less united. Nor, indeed, does it mean that it
will be any less European. We cannot turn our backs on Europe. We are part of Europe. Britain will continue to be a great European power, leading
discussions on foreign policy and defense and intelligence sharing and all the work that currently goes on to make our world safer.
(END VIDEO CLIP)
ANDERSON: Well, for David Cameron who put all of his eggs in the stay basket, his career obituary is written at least for now.
(BEGIN VIDEO CLIP)
ANDERSON: Mr. Cameron says he will step down as Prime Minister by October. As far as a referendum goes, he says the people have spoken.
DAVID CAMERON, BRITISH PRIME MINISTER: The country has just taken part in a giant democratic exercise, perhaps the biggest in our history. Over 33
million people from England, Scotland, Wales, Northern Ireland and Gibraltar have all had their say. We should be proud of the fact that in
these islands we trust the people with these big decisions. We not only have a parliamentary democracy but on questions about the arrangements for
how we're governed there are times when it is right to ask the people themselves and that is what we have done.
The British people have voted to leave the European Union and their will must be respected.
(END VIDEO CLIP)
ANDERSON: David Cameron got support on the inside from the new Mayor of London. Now that the votes are counted the Mayor Sadiq Khan says the Brexit
should not be a setback for Britain.
(BEGIN VIDEO CLIP)
SADIQ KHAN, LONDON MAYOR: The British public have spoken. My message to friends and businesses and investors in America is be an open-minded,
outward looking country. My message to the new Prime Minister will be it's really important when we negotiate with the EU, that we ensure we have a
single market access for our businesses, so use an American company, an investor, a business person, can still do business here and have access to
the European Union. What's really important is that we carry on being a leading global city.
(END VIDEO CLIP)
ANDERSON: Well, labor party activist John Mills is the chair of Labor Leave, that was the campaign to get Britain out of the EU. He says that
Britain will reap many economic benefits from the split with the EU. He joins us now. You are also an extremely successful businessman and also the
top donor to the labour party.
How can this be better for Britain when its biggest trading partner can effectively going forward say we're not interested in negotiating with you,
we don't want to do deals with you Britain anymore.
JOHN MILLS, LABOR PARTY ACTIVIST: Well I think it's extremely unlikely that's going to happen, but even if it did I don't think that would stop us
trading with Europe. We don't have to be in the single market to trade with the countries who are in the single markets. The tariffs now that would
apply if we were outside the single market are so low, about 2.5 - 3% that a small devaluation, actually we've got a rather larger devaluation would
make up for that, so I think that's a real scare story.
ANDERSON: Are you satisfied, though, that was why people voted to leave and it wasn't because of the contentious issue of immigration, the rhetoric
around which got quite frankly vile in the run up to this?
[10:05:05]
MILLS: Well I'm not so sure it was vile. I mean some people went over the top, but I think most people are worried about immigration for entirely
respectable reasons.
First of all, because the effect of having a large number of people coming in, to compete at the bottom end of the labor market really does have a
negative effect on people's wages and I think that's entirely understandable. And secondly, because our population is growing very
rapidly, at 550,000 a year and this is putting enormous stress on housing and on schools and on roads and hospitals. And people feel very resentful
about that. Now these are entirely respectable. These aren't racist arguments. These are entirely understandable arguments that a lot of
people, all over the country, feel.
ANDERSON: I want to talk about the business argument going forward and the effect on the markets because it has been a tumultuous morning on financial
markets all over the world. It may have been a vote here and a pivotal moment in the U.K. but this has far reaching repercussions as shown on the
markets today going forward.
But just one more question to you, if I were a young, European citizen, who has been working and paying my taxes, wherever I live in the U.K., am I
still welcome here?
MILLS: Yes, you certainly are. And I think there's no question of anybody who's already established here working here, happy to be repatriated. Well
I think in future what we want to do is have a fairer system, rather like they've got in Australia, which isn't actually quite a racist system we've
got, because at the moment there's more preference given to people who come from Europe than from the rest of the world, and I think what we need is a
fairer system.
ANDERSON: All right. John Mills, are you concerned when you go to bed at 4:00 in the morning, as you told me you did, knowing that this was a vote
to leave the EU, and you wake up to see the state of the Asian markets, the state of the European markets, on the open, and as we are looking at it
now, the Dow Jones index which is down 378 odd points is coming back, but down some 500 on the open. I mean the repercussions here as far as the
investor is concerned around the world, are daunting.
MILLS: Well, I mean there is a recovery taking place as you mentioned. The U.K. FTSE is now above 6,000 again, so, you know, there's been some
resurgence back from the figures that it had dropped to this morning.
I mean I think that the decision taken by the British people is an important one and it has got all sorts of ramifications, but what I would
say there are adjustments in the world which are going to have to take place sooner or later. I think what's happened is that Brexit has been a
trigger for changes that would have to take place anyway.
ANDERSON: John, I just want my producer, if you will, to bring up the European markets as we look at the Dow down at 386 points off this morning,
it's a bit of a blood bath on the opening, it's got to be said.
(BEGIN VIDEO CLIP)
ANDERSON: But the European markets are fascinating because you rightly point out the FTSE has come back from its lows on the opening. But look at
Paris, and look at Germany. Paris off still nearly 7%. Germany off 5.75%. A pivotal moment here in the U.K. but the repercussions for Europe are quite
something. And I think that is indicative in the way people are selling off the European markets today. Do you expect to see a contagion effect?
(END VIDEO CLIP)
MILLS: I think there is an adjustment taking place because there is just a gulf that has opened up between what most people in Europe want to have,
which is by and large democracy built around nation state.
ANDERSON: Peace and security as well.
MILLS: Yes, they want peace and security, that's for sure. But what they don't want is the United States and Europe, but because of the single
currency and because of the aspirations of the political class in Europe, what they're doing, is something different from what most people want. And
I think it's this disjunction which has caused this instability.
ANDERSON: Can you remember a time in the last 40, 50 years, when we had a morning like this?
MILLS: I can. I remember what happened when we came out of the exchange plate mechanism in 1992 and there was very similar turmoil in the financial
markets and the pound went down about 20%. But what actually happened then was inflation went down, investment went up, we had 15 years of unbroken
growth after that, so all this doom and gloom and pessimism I think will very probably turn out to be unwarranted.
ANDERSON: The U.K. was a member of the economic project at that stage, of course, but we'll - I rest my case, you've rested yours. And we'll move on
and see what the hours and days to come will bring. Thank you, sir.
David Cameron may not be the only political casualty of the referendum result. The House of Commons reconvenes on Monday. That place just behind
me on the table, a no confidence motion against the labour leader Jeremy Corby.
CNN's Nic Robertson joins me now from Downing Street with the very latest. First it was David Cameron with his resignation this morning. Should we
expect to see the demise of the labour party leader at the beginning of the week?
[10:10:07]
NIC ROBERTSON, CNN CORRESPONDENT: There's certainly going to be pressure on Jeremy Corbyn. The reason is quite simple. There was a sense in the last
two weeks or so of the referendum campaign that he hadn't done enough to get out and energize.
(BEGIN VIDEO CLIP)
ROBERTSON: The labour supporters hadn't done enough to tell them why the labour party thought Britain was better off in the European Union. He was
one of the only leading labour figures who refused to take a platform with David Cameron and campaign together on a common project, of Britain better
off inside the European Union.
So there will be and there are clearly among his MPs people who are dissatisfied with that position over the past few weeks and now believe
that it is time for him to move on. Look he hasn't been a popular leader with many of his MPs since he took office. He had a groundswell of support
from a younger voter, younger campaigner if you will, within the labour party itself, but amongst the ranks of his MPs there were many dissenting
voices.
(END VIDEO CLIP)
ROBERTSON: They've fallen if line, united behind him over the recent few months but now they, perhaps, these voices who have been hoping that he
would be challenged at some point, are perhaps sensing this is the moment, this is the time, this is the place, political upheaval is around us Jeremy
Corbyn may be part of the casualties of that upheaval.
ANDERSON: Nic Robertson is outside number 10 Downing Street, it's been a very busy morning there. It should come as no surprise. Thank you, Nic.
(BEGIN VIDEO CLIP)
ANDERSON: The U.S. markets plummeted at the bell in less than an hour of trade. The Dow has dropped some 331 points. It has to be said, clawing back
some of its losses, down as much as 500 at one point. Investors don't like unknowns, they hate uncertainty, like the long-term impact of the Brexit on
global markets. On the bright side, the Dow has circuit breakers to halt trading if the numbers fall too far and the U.S. Federal Reserve says it
can step in to help as well.
(END VIDEO CLIP)
ANDERSON: Well the shock waves from the Brexit vote are being felt in financial markets around the world as we've been pointing out.
(BEGIN VIDEO CLIP)
ANDERSON: In Europe, London's FTSE plunged as much as 8% in the first few hours of trade. Back significantly now, but the Dow, sorry the DAX in
Germany, seeing big falls and the market in France even bigger falls, down more than 6%. Zurich off nearly 2% as well.
And currency taking a hit - the pound lost nearly 8% against the dollar at one point. Let's get an update on the markets and the effects of Britain
leaving the EU.
(END VIDEO CLIP)
ANDERSON: Nina Dos Santos joining us from London. You're on a trading floor or you certainly have been most of the morning. What are people telling you
there?
NINA DOS SANTOS, CNN MONEY EUROPE EDITOR: Yes, don't worry, Becky, I'm still here and I'm not going anywhere until these markets are shut.
People are trying to stay calm and carry on. They're also wondering what's going to happen this time next week. A lot of people digesting not just the
ramifications of what's happened overnight which by the way came as a real, real shock to traders here in the City of London.
They were only expecting a 20%, 25% chance of a Brexit happening and when eventually it seemed as though we had had that vote well people literally
ran out of the subway stations out of the underground stations as I arrived here earlier on in the morning, to run to their desks to try and figure out
how to trade a market that was falling like a knife.
Then of course we have bigger, longer term questions that people have. What about the staff here. There's a number of staff across the City of London
who come from the European Union and maybe further afield. Does this mean that they'll have to have visas to work here in the future? These are
people who have been invested in this country for a long time, they've also brought a lot of strength to the City of London and helped it to be a
gateway to a bigger market of 500 million people.
I want to try and bring in a guest though who has a lot of stake at well. Sir Martin Sorrell is the CEO of WPP. I believe he can join us now on the
line from Cannes where we have the Cannes Lions Festival having. Sir Martin, thanks very much for coming on the show.
Now I know that you were in favor of remain vote here.
SIR MARTIN SORRELL, CEO OF WPP: Good afternoon.
SANTOS: We talked about it many times on my show here on CNN. Good afternoon to you. But that is not what you got. And you've said now that
you're very disappointed in the result, but where do you take it from here? You have 130,000 staff around the world.
SORRELL: Well, 193,000 to be precise in about 112 countries. But Nina it is a very disappointing result. I nailed my flag personally, not corporately,
to the remain mast and we've seen a failure of the campaign. I think the campaign focused too much on the economy. There were two other big issues
sovereignty and the even bigger issue of immigration.
This was not a general election, this was a referendum and it was different. But you know that's history now and we have to focus on the
future. There is considerable turmoil and we've seen the resignation on a delayed basis of the Prime Minister.
[10:15:12]
SORRELL: You said, I heard you saying that there is a vote of confidence around Jeremy Corbyn that will create further uncertainty. There's
uncertainty about whether we'll have a Scottish referendum, an Irish referendum, maybe even a Welsh referendum and then into Europe whether
there will be Brexit-type votes in the Netherlands, in Scandinavia, and elsewhere.
So clearly there's a lot of uncertainty and uncertainty is the enemy of growth. It's the enemy of investment. And therefore I feel quite concerned
about what the -- what is going to happen in terms of the growth of the U.K. economy, the growth of the European economy and I would say the world
economy.
So there is a shock to the system. It is very, very disheartening, I know, having talked to a number of people here in Cannes, but the problem is that
we talked to one another in the London bubble and clearly, one of the reasons why nobody saw this coming or very few people saw this coming, our
polling actually interestingly on the night before, showed 41 remain, and 43 leave, with 16% undecided and the undecideds broke evenly between remain
and leave.
So essentially we didn't see it coming because we talked to ourselves and I think that is the problem. So there's a lesson here, it's to do some more
basic research and understanding about what's going on not just in the U.K., but in the rest of Europe and, indeed, in the United States.
Very interestingly, people here in Cannes are saying what does this mean for the U.S. election in November. Does this mean that populism is going to
have a major -- an even bigger role because it's had a big role already with Bernie Sanders and Donald Trump.
So a considerable turmoil - from our point of view, we will be more focused ironically on Germany, France, Italy and Spain, which are four of our top
ten markets, they will become relatively more important for us to be able to compete. And we're focused on our strategy and we'll take it, we'll rev
it up a notch or two to the bricks of the next 11 where we have to develop our businesses and data and digital.
SANTOS: Martin Sorrell, we have to leave it there. But just before we go, are you going to have to cut staff because that's the big question people
are asking across the City of London. The big international companies they may have to shed jobs?
SORRELL: Well, our business, Nina, has grown by a third in terms of number of people to 17,000 people after -- over the last three to four years. As
long as we continue to grow in the U.K., perhaps by a diminished rate, we will add people to our group and add people to ourselves.
Having said that, the incremental growth, the real incremental growth will be coming in Germany, France, Italy and Spain because we'll be turning our
attention even more, this is the paradox of what happened overnight and happened this morning, we will be focusing even more on those four markets,
which are four of the most important markets in our top ten. So there will be more growth. It will not be the end of the growth for us. I think we'll
see further consolidation in our industry but it will be more muted than in the past.
SORRELL: All right. Sir Martin, Sorell, the CEO of WPP, the world's biggest advertiser, thank you very much for giving us you your knee-jerk reaction
to the outcome of this vote live from Cannes.
SORRELL: Thank you Nina.
SORELL: So Becky, as you can see there, a lot of questions here. Perhaps this referendum has brought forward many more questions than it answers for
the British public. It's also left not just the business community wondering where we go from here but the people of the U.K. divided as well.
ANDERSON: Yes, Fascinating analysis from Martin Sorell uncertain times ahead.
(BEGIN VIDEO CLIP)
ANDERSON: Still to come, the European Union responds to Britain's historic vote. And a look at why the Brexit will take two years to complete. Taking
a very short break, back after this.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
[10:21:20]
ANDERSON: Welcome back. You join us here on Abbington Green just outside the Houses of Parliament, the political seat of power. And boy, what a
moment and morning it has been today in the U.K. with Britain voting to leave the European Union. Not today, not tomorrow, but within a certain
period of time. And the ramifications for Britain of that will be huge and the ramifications for Europe as a whole, perhaps, even bigger.
I'm joined now by parliament member Crispin Blunt who's a member of the "Tories" or the Conservative Party on the leave side. So diametrically
opposed to what the Prime Minister was saying who has effectively said he's standing down, not today, not tomorrow, in three months' time. Is he right
to go?
CRISPIN BLUNT, BRITISH PARLIAMENT MEMBER: No. That was a pity because he was in a position to carry out the negotiations with our partners. They
could hardly blame him for the direction the country voted because he obviously worked very hard to get a different result and he frankly had the
confidence of his parliamentary party to go on and do that. Which is why 84 of us signed a letter asking him to stay, making clear it's his duty to
stay. Anyway he's chosen not to.
ANDERSON: So you haven't gotten the chap who you wanted to negotiate Britain out of what many people say is a mess going forward?
BLUNT: Well I don't think -- I think we should relax. It's not a mess. I think the situation is rather clearer than people think. Indeed, I chair
the foreign affairs committee in the House of Common which was split evenly between people who wanted to leave and people who wanted to stay and we
unanimously agreed this report about six weeks ago, which wasn't really picked up in the media here. But if you want to see what the answers are,
I think we've largely already done them and you can go and see what the implications are. And the worst the position can get for the United Kingdom
is we end up on world trade organization terms having spent two years of negotiations and the negotiations going nowhere.
ANDERSON: Because European leaders may simply say, out is out. There's certainly a sense of shock across Europe today with those --
BLUNT: And they will --
ANDERSON: countries who are still members of the EU--
BLUNT: And they will - It would appear that our European partners are going to probably split into two groups. One who said an example must be made, we
can't be seen to give the British anything because of what implications that would mean for other countries thinking they might take this option.
And those who will go well hang on a minute, the balance of trade is massively in our favor to the United Kingdom and if we impose tariffs on
them they will be imposed back and we lose. This doesn't make any sense.
ANDERSON: I've spoken to a number of leading businessmen this morning and so have my colleagues, not least Martin Sorell from WPP, and we asked him
quite frankly will this mean job losses for people who work for your companies in the U.K. and he couldn't rule that out, nor could Airbus this
morning.
BLUNT: Well because nobody - well nobody can rule that out. Of course they can't. They've got to work out what the deal is going to be.
ANDERSON: But why is that good for Britain and the British public.
BLUNT: Well, you've got to work out what - this is -- we haven't made a decision for next week, or for today's markets or indeed for the next year.
We've made a decision for the next 20, 30, 40 years. That is a strategic change for the United Kingdom and a strategic change for any big
organization is very likely to come with a degree of upfront costs before you take the long-term benefits of having made the change.
Now, if you look at the structure of our economy, our unique selling points, the things we're really good at are global, the financial services,
education, legal services culture all of these things have a global market.
ANDERSON: OK, I understand, I understand -
BLUNT: And we can then regulate here in the U.K.
[10:25:00]
ANDERSON: Tell that to Nicola Sturgeon overwhelmingly in Scotland they voted to stay in the EU. So there may be a second independence referendum.
There are calls in - there are calls in Northern Ireland for taking down the border. A united Ireland going forward. Wales say they benefit. They
are a net beneficiary of the EU. Again, voted overwhelmingly. So do you concede that Britain may look like little England going forward, a small
country with a lot less power?
BLUNT: Well, Wales voted to leave, the same as England. There's, obviously, the Scottish issue to address, but she doesn't have a mandate or a majority
to -- in a Scottish parliament after the last elections to seek a referendum. So they frankly will have to wait until after the United
Kingdom has left and then if the Scottish parliament is re-elected and she wins a mandate for a referendum no doubt then she will be able to have one.
That's not until after 2020. So we don't need to get too exercised about that right now.
There will plainly be issues about Ireland and this is, obviously, a very serious decision for the Irish public and we are going to have to have a
proper conversation with the Republic about what the implications are. But the Republic has always enjoyed a very status in the United Kingdom anyway.
I mean their citizens can vote here in our elections, for example. And so a way will be found to make sure this doesn't impact unnecessarily on the
Irish. All of this - all of this can be addressed. And I'm perfectly satisfied that there's a comfortable ways through all of these
constitutional issues, but we've made the right long-term economic choice.
ANDERSON: All right. With that, we'll leave it there. Thank you very much indeed for joining us.
Well the European Union is responding to the monumental vote by Britain to withdraw its EU membership saying it regrets the decision, but respects it.
(BEGIN VIDEO CLIP)
ANDERSON: Part of the EU statement reads, "This is an unprecedented situation, but we are united in our response. We will stand strong and
uphold the EU's core values of promoting peace and the well-being of its peoples. The union of 27 member states will continue."
(END VIDEO CLIP)
ANDERSON: Well, the process of essentially divorcing the European Union will take at least two years, at least. CNN's Erin McLaughlin explains what
happens next.
Erin? Sounds as if we haven't got Erin at the moment, I tell you what, let's take a very short break. Still ahead, perfect timing for U.S.
Presidential hopeful Donald Trump who is in Scotland right now for the grand opening of his new golf course.
(BEGIN VIDEO CLIP)
ANDERSON: As you might expect he has a lot to say about the outcome of the Brexit vote.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
[10:30:30]
ANDERSON: Welcome back to London on the morning after or the afternoon after the night before as it were. Britain has voted to leave the European
Union. Both sides in the Brexit debate looking ahead quite literally now to a new world.
(BEGIN VIDEO CLIP)
ANDERSON: Britain's moment of soul searching then is over viewers as the U.K. resoundingly voting itself out of the European Union. Prime Minister
David Cameron on his way out. But more reaction first from financial markets which are certainly or were plummeting.
We saw some -- only described as a horrible mess on the Asian markets, similar mess on the European markets on the open and as you see the Dow
Jones currently trading off some 388 odd points.
(END VIDEO CLIP)
ANDERSON: Let's bring in Alison Kosik who is at the New York Stock Exchange. Where, Alison, the market's significantly lower on the opening.
What are people telling you there?
(BEGIN VIDEO CLIP)
ALISON KOSIK, CNN MONEY CORRESPONDENT: Yes, I mean, you make a good point. At the opening keep in mind the Dow fell as much as 539 points, Becky, but
you're seeing stocks really pair those losses. The Dow down I say only 383 points. It's less than it was so it could have been much, much worse.
You know on the floor here at the New York Stock Exchange the concern is the uncertainty. What does it really mean the Brexit. To the U.S. economy,
to U.S. companies. We're really seeing bank stocks get hit hard. We're seeing stocks like Citigroup down 7%, Bank of America, Goldman Sachs down
more than 5%. There's concern because London is considered one of those big financial centers and there's a lot of concern of how these banks are going
to conduct their business now that there is a Brexit.
So it's that uncertainty that is fueling this sell-off that we're seeing and its fueling investors fleeing to other safe haven investments like gold
and U.S. Treasuries. We are watching gold up more than 5% right now. We haven't seen that kind of jump since the financial crisis. And once again
we're seeing people buy up U.S. Government bonds. That's pushing yields lower, interest rates on a ten-year note are actually seeing their biggest
single day fall since 2011 and that's when the world was worried about the European debt crisis and the U.S. Debt downgrade.
Now the positive for Americans in that is that it's going to bring overall interest rates lower, it could make mortgage rates lower as well. Becky?
ANDERSON: Alison Kosik on the U.S. market's view the Dow currently trading just down about 2%.
(END VIDEO CLIP)
ANDERSON: But as we've been reporting significantly lower for U.S. stocks on the open. And the assets that are being bought, basically they're the
ones that people buy when there is so much uncertainty they run for cover. Let's bring in CNN's global economics analyst Rana Foroohar.
Your reaction firstly to what you have heard, what you have seen in the U.K. and how this is playing out on these international markets?
RANA FOROOHAR, CNN GLOBAL ECONOMICS ANALYST: Well, I think what's really fascinating is that markets were only pricing in about a 25% chance of a
leave vote and to me, that makes sense because markets have been very, very wrong about populism, about nationalism, not just in Europe but in the U.S.
You see the pundits and the prediction markets not being able to expect the fact that Trump was going to be such an incredible candidate -- incredibly
strong candidate in the U.S. again missing the Brexit vote.
To me what this underscores is that there is a huge trust gap between political and economic elites and the math in almost every population right
now. And that's a dangerous gap, it's a gap that reflects the difference between Wall Street and Main Street. This is something I've written about
actually in my new book and this is something that is going to eventually get bridged. I think that this correction that we're seeing now, even
though you've seen losses come back a bit since market trading began I think we're going to see that kind of volatility in the next few days,
weeks and months. In part because you have a lot of votes coming up, you've got the Spanish election on Sunday, you've got the U.S. election,
obviously, in November, you've got a lot going on both in the continent and in the U.S. that is going to give people another opportunity to say hey,
globalization is not necessarily working for us. We want some new rules of the game.
[10:35:05]
ANDERSON: Let's talk specifically about how you think this might play out in the Donald Trump narrative. He's already spoken. He's in Scotland today,
coincidentally, perhaps, opening his new golf course there. He was, it seems, absolutely delighted about this Brexit vote. He certainly believes
that it's going to benefit him in the long term. Do you think that's the case?
FOROOHAR: I think it's possible that this may give him a boost up. It's going to be interesting to see whether this is sort of the reverse of what
we saw in the terrible Orlando shooting in the U.S., where his incredibly tone deaf response to that actually took him down in the polls for the
first time and people thought hey, we do want to come together, we don't want to be divisive.
This is going to be very interesting because, you know, Brexit is in part about labor mobility. It's about migration, it's about immigration, and
those are themes that he has struck at home in the U.S., somewhat successfully, and his idea that sure, yes, we should build a wall, you know
maybe this is going to get some pick-up now with the idea of Europe saying hey, we don't want to be part of the European Union. It's going to be very,
very interesting to see.
ANDERSON: Rana, with that we're going to leave it there for the time being but thank you very much indeed for your analysis. Let's get you just a
little of what Donald Trump said earlier on as Rana and I have been discussing that is the U.S. Presidential hopeful praising the United
Kingdom's decision to leave the European Union.
(BEGIN VIDEO CLIP)
ANDERSON: He is in Scotland right now and he did speak earlier on at his luxury golf resort. He was quick to compare the Brexit vote to the choice
that American voters will face in November. Have a listen to this.
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: People want to take their country back. They want to have independence in a sense and you see
it with Europe all over Europe. You're going to have more than just in my opinion, more than just what happened last night, you're going to have I
think many other cases where they want to take their borders back, they want to take their monetary back, they want to take a lot of things back.
They want to be able to have a country again.
(END VIDEO CLIP)
ANDERSON: Well, let's bring in CNN's Sarah Murray who is in Turnberry in Scotland. Fascinating to hear Donald Trump's response there because, quite
frankly, he doesn't share the views of most of Scotland, which voted overwhelmingly to stay within the European Union. And the first minister in
Scotland today, Nicola Sturgeon suggesting that Scotland has been well let down and she would like to see certainly the possibility of a second
independence referendum. I wonder what Donald Trump would think of that?
SARAH MURRAY, CNN POLITICS REPORTER: Well, trump actually said you know it's up to the people of Scotland. Obviously they voted to remain and they
lost that vote. You know the Brexit was successful.
(BEGIN VIDEO CLIP)
MURRAY: But trump said look, it's up to the people of Scotland to decide if they want to remain part of the United Kingdom or if they would like to
have their own referendum and decide to remain part of the EU. And as you said he drew a lot of parallels to what we've seen playing out here to
what's happening in the United States saying that people in the U.K. and in America are sharing a similar angst over the state of the economy and over
immigration and he really feels like he's speaking to that demographic in the U.S. election.
The other interesting comment he made is he was talking about sort of the economic impact and the fallout we might see from this, and he essentially
said look, if the pound takes a hit, that's good news for my course here in Turnberry. It means that more people will be traveling, more people might
come visit, it's better for business. I can't imagine that's the kind of comment that's going to sit well with people here in the U.K. who,
obviously, don't want to see this kind of economic fallout. But we'll see how they take that.
And as for the repercussions for the American economy, Trump kind of shrugged those aside and said we'll have to see what happens but he said
that he firmly believes this is the right move and that of this will kind of work itself out and eventually be beneficial for the U.K.
(END VIDEO CLIP)
ANDERSON: Sarah, briefly, since his comments on banning Muslims from the U.S., he hasn't been very welcomed certainly down at Number 10 and
comments made by the Prime Minister here David Cameron at that point. How has he been welcomed there? What's the response to Donald Trump being there
in Turnberry?
(BEGIN VIDEO CLIP)
MURRAY: Well, certainly the people who are at his golf resort here in Turnberry are big fans of him, they like the upgrades he's made to the golf
course but no doubt this is a very unconventional trip for a presidential candidate. Usually we would see a candidate over here having meetings with
foreign leaders. We don't see any of that on Donald Trump's schedule. He's visiting one of his properties today, he's going to be in Aberdeen visiting
another Trump property tomorrow. So this really isn't the kind of diplomatic visit that we're used to seeing that the candidates do to sort
of prove that they can be a statesman on the world stage or to shore up their credentials in meeting with foreign leaders abroad.
[10:40:00]
MURRAY: And we talked -- he talked a little bit about sort of his relationship with foreign leaders and how it's been a little bit rocky and
he essentially shrugged all of that aside today saying you know look at where David Cameron is now.
(END VIDEO CLIP)
ANDERSON: All right and with that we're going to leave it there. We thank you very much, indeed, for joining us, and you do join us back in London.
We are outside the Houses of Parliament here in what's known as College Green as people begin today to digest the news that the U.K. has voted to
leave the European Union. As we've been discussing. That's not going to happen today or tomorrow but will be happening in the months and years to
come. I'm Becky Anderson, we're going to take a very short break and back after this.
(COMMERCIAL BREAK)
ANDERSON: All right. Welcome back. We've been watching reaction both on the financial markets in Europe and around the world to the decision by Britain
to leave the European Union at some point in the future. And the reaction both in Germany and in France so far as the financial markets have been
concerned, well it's been pretty dire and we've heard words from European leaders, those who are members of the European Union, calling for calm this
morning.
I think it's fair to say that there's shockwaves sent around not just Europe but the world in response to this decision. Erin McLaughlin joining
me from Brussels and the question is now, what happens next?
Article 50 of the Lisbon Treaty and agreed set of rules signed by all 28 EU member states will need to be triggered at this point and somebody will
have to lead the U.K. through those negotiations. David Cameron the now outgoing British Prime Minister who has quit this morning says that
somebody else will lead those negotiations. What do we know about what happens next? Because we're sort of in the realm of uncertainty, given that
this is completely unprecedented.
ERIN MCLAUGHLIN, CNN CORRESPONDENT: That's right, Becky. And this process will be fraught with uncertainty and it will also be incredibly complex EU
officials I've been speaking to tell me.
EU leaders have come out today saying they want speedy negotiations and they want them quickly and yet we heard from British Prime Minister David
Cameron on the steps of Downing Street say that he plans to resign by October and at that point, his successor will then have to invoke article
50 of the EU treaty, known as the escape clause, so to speak, and only then will negotiations begin. And at that point, pretty much everything will be
on the table from treaties to trade deals requiring the input of all 27 remaining EU member states. We're looking at incredibly complex
negotiations.
[10:45:07]
I've been speaking to senior diplomats here in Brussels who tell me that those negotiations will not involve niceties because right now, here in
Brussels they are very concerned about the idea of contagion. That Euro skepticism is on the rise in Europe. The worry that other member states
might want their own referendums and the last thing they're going to want to do is make it look like a Brexit is an appealing option for other member
states.
ANDERSON: Thank you, Erin. Well as we've been discussing the U.K. leaving the EU is not just about Britain. The other 27 European Union states are
all impacted by this split.
(BEGIN VIDEO CLIP)
ANDERSON: The German Chancellor Angela Merkel spoken this morning; she says that member states must make sure the rest of Europe knows the EU wants to
improve their lives. And she expressed regret about the U.K's decision, but says that she is confident about the EU's future. Have a listen.
(BEGIN VIDEO CLIP)
ANGELA MERKEL, GERMAN CHANCELLOR: (As translated) Today is a cut for Europe. It is a cut with regards to the European unity. For the coming
weeks, months, years, what exactly that means, that will very much depend on whether we, the other 27 European Union members, are willing and also
capable to act.
(END VIDEO CLIP)
ANDERSON: And she said we need to stay calm and composed. She also said it is unclear what the future holds for the remaining 27 members of the
European project as it were.
Atika Shubert joining us from Berlin. What's been the reaction there to what is a pivotal moment for the U.K.?
ATIKA SHUBERT, CNN SENIOR INTERNATIONAL CORRESPONDENT: I think people here are very surprised, they're baffled by this. Many here were convinced that
ultimately the U.K. would vote to remain in the EU. So convinced in fact that one German paper actually printed up the headline, Great Britain
stays, clearly before the results were announced.
So what we're seeing now is this sort of sinking in, trying to figure out what the repercussions will be. Germany is not that worried about the
financial or economic fallout from this. It's really the political crisis. And Erin is exactly right it's just as she was saying to you earlier it's
all about making sure of two things. One is that anyone else thinking about leaving the EU realizes that there is no benefit to it and that means
probably coming down quite hard on Great Britain, but also making sure that there are reforms that are going to be had so those staying in have their
grievances addressed, have their concerns addressed and make sure they know that there will be reforms to the EU. And that's what Angela Merkel was
referring to in that speech.
She also made clear, however, that this is a big blow. She referred to it as a cut or a wound to Europe. And now, she has the responsibility, as the
leader of the largest member of the EU, to really hold the EU together and that is going to be a tough job.
ANDERSON: Atika Shubert is in Berlin. Let's get you to France then this morning or this afternoon, and the far right applauding the vote for
Brexit.
(BEGIN VIDEO CLIP)
ANDERSON: They see it as an endorsement of their anti-Europe stance. It could also bode well for the leader Marine Le Pen in next year's
presidential bid. French President, Francois Hollande expressing disappointment over the U.K's decision. Here's what he had to say earlier.
FRANCOIS HOLLANDE, FRENCH PRESIDENT: (As translated) This painful choice, which I deeply regret, for the United Kingdom and for Europe, this choice
is theirs and we must respect it.
MARINE LE PEN: (As translated) This is a day of joy. It is not Europe that has died. It's the European Union and the nations that are being reborn,
and they must form amongst themselves a new European project that of cooperation. The EU, which is breaking apart with multiple failures,
exposing European people to all failures both economic and migration, this must leave the place for a free and sovereign Europe.
(END VIDEO CLIP)
ANDERSON: Fascinating times. Jim Bittermann joining us from Paris to add perspective.
Let's start with Marine Le Pen who is the leader of a party that some would put in the bucket of the sort of far right nationalists, and many people at
this point concerned across the continent as to whether those sort of parties might capitalize on this debate and certainly the suggestion from
Marine Le Pen is it seems that she will.
[10:50:10]
JIM BITTERMANN, CNN CORRESPONDENT: Absolutely. She in fact tweeted within hours after it became clear what the British vote was this morning, that,
in fact, now it's time for a referendum, of exactly the same sort, in France. It's funny, though, Becky, when you listen to both those for and
against the Brexit in Europe, in continental Europe they have - they come up with the same thing when they're talking about it, and they say that
maybe this is a wakeup call for Europe.
The reformers, the people who would like to stay in Europe and want Europe to be more unified say exactly what Atika was saying, and that Angela
Merkel was saying, and that is it's got to be made clear to people that there are reforms in the works, that things can be changed and the European
Union is listening to people and it's not a union of a lot of stuffy old leaders who aren't listening to what the people's needs and wants are.
And you hear exactly the same thing from the Marine Le Pens of the world. I should just point out too that in addition to Marine Le Pen the far left
was crawling about those results in London as well, saying that in fact, they're for a withdrawal, a French withdraw from the European Union as
well, Becky.
ANDERSON: Well that - and that also briefly, Jim, stacks up to what the French President suggested when he suggested if Britain were to leave the
EU that the entire project would be in play, correct?
BITTERMANN: Exactly. And I think that's what the big fear is. And I've talked to a number of people today, European Union leaders, and people that
have been involved with the European project for many, many years, they're deeply saddened by this but they say, too, the object of now shouldn't be
to blame Prime Minister Cameron or to blame the British for what they've done or try to exact a high - a tough price from them, but rather to take a
look at the lessons that have been learned, the exact reasons why people voted against the European Union and put those reasons into play so that
the European Union can continue on here among the 27. Becky?
ANDERSON: Jim Bittermann, in Paris for you today, we're going to take a very short break. It's a beautiful day here in the U.K. But a very big
day so far as politics are concerned. We'll be back after this.
(COMMERCIAL BREAK)
ANDERSON: Right well the U.K. Prime Minister, David Cameron says the country requires fresh leadership. He's stepping down after fiercely
competing for Britain to remain in the European Union, but the people in Britain chose otherwise.
CNN's Max Foster looks back at Mr. Cameron's six year stay and to the issue that led to his political downfall.
(BEGIN VIDEO CLIP)
CAMERON: This is a decision that is bigger than any individual politician or government.
MAX FOSTER, CNN CORRESPONDENT: And so it turned out to be. David Cameron's promise of a referendum ultimately the death nail of his leadership. The
argument over Britain's place in Europe bringing his time at 10 Downing Street to a dramatic end.
[10:55:05]
FOSTER: When Cameron took office in 2010 it was against an unfamiliar backdrop, a coalition government for the first time in generations.
CAMERON: We are announcing a new politics.
FOSTER: In this new era, Cameron oversaw the country's gradual economic recovery, a shrinking budget deficit and a record number of jobs created.
Although the process of austerity was painful for some.
Cameron maintains Britain's special relationship with America, joined the international coalition against ISIS and welcomed the world for highly
successful London 2012 Olympics. When it came to re-election last year, even Cameron was taken by surprise when he won a majority but that win came
at a cost. Pressure from an increasingly disgruntled group of Euro skeptic MPs within Cameron's own party forced him to make a pledge.
CAMERON: Yes, we will deliver that in/out referendum on our future in Europe.
FOSTER: The Europe issue has divided Cameron's conservative party for decades.
CAMERON: I am not a British isolationist but I do want a better deal for Britain.
FOSTER: In February he went to Brussels to renegotiation Britain's position in Europe. He declared it a success but as critics including high-profile
members of his own cabinet said little had change.
JOHNSON: Explain to the house and to the country exactly what way this deal returns sovereignty over any field of law making.
FOSTER: having failed to convince some of his closest political allies Cameron's position going into the referendum was vulnerable. He had already
announced he would step down before the next election in 2020.
CAMERON: I'm not standing for re-election. I have no other agenda - I have no other agenda than what is best for our country.
FOSTER: As Cameron steps down the race to fill his shoes will quickly heat up.
Max Foster, CNN, London.
(END VIDEO CLIP)
ANDERSON: And I'm Becky Anderson in London. I'll be right back with more on what is this breaking news coverage of the U.K's historic decision to quit
the European Union.
END
