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CNN International: Johnson's Government Criticized for Handling of Coronavirus Pandemic; Conservative Party Lawmakers will choose a Successor; Johnson: I will Serve as Caretaker PM Until new Leader in Place; Economic Impact of Boris Johnson's Resignation; Basketball Star Brittney Griner Pleads Guilty to Drug Smuggling; British Prime Minister Boris Johnson Resigns. Aired 11a-12p ET
Aired July 07, 2022 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[11:00:00]
(COMMERCIAL BREAK)
ANNOUNCER: This is CNN Breaking News.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, OUTGOING PRIME MINISTER: It is clearly now the will of the Parliamentary Conservative Party, that there should be a new leader of that party and therefore a new Prime Minister, and I've agreed with Sir Graham Brady, the Chairman of our backbench MPs, that the process of choosing that new leader should begin now and the timetable will be announced next week. And either today appointed a cabinet to serve as I will, until a new leader is in place.
(END VIDEO CLIP)
ISA SOARES, CNN HOST: Welcome back to our breaking news coverage following of course, the resignation of the man you just heard from British Prime Minister Boris Johnson! I'm Isa Soares it is 4 pm here outside the House of Parliament, London, we continue with our top story and that is the political crisis unfolding in the UK.
Over the next hour we'll be bringing in coverage from team on the ground really trying to make sense of what the next days and indeed weeks will bring? As you know from watching our reporting, he's not done it done yet.
Even though Boris Johnson confirms he's stepping down as Prime Minister. As you just heard, he says he's sticking around until a new leader is chosen. Earlier Scottish First Minister Nicola Sturgeon said the possibility of Johnson staying on as a Caretaker PM is far from ideal.
Political observers saying this is all about Johnson's personal integrity and it's not about policy and its successor will inherit of course, major problems as well as challenges.
Max Foster looks at Boris Johnson's nearly three years as Prime Minister Tenure really marked by scandal and cover ups as the UK hurtled through Brexit and the Coronavirus pandemic.
(BEGIN VIDEOTAPE)
MAX FOSTER, CNN LONDON CORRESPONDENT (voice over): A tumultuous tenure, Boris Johnson's career was built on everyman informality, but defined by serious crises. He began his path like so many of his predecessors at the country's most elite schools.
He cut his teeth as a journalist, but was truly enter public life in 2001 as a member of parliament, and in 2008, as London's Mayor. He governed as a relative moderate and an affable figure famous for his high-jinx during the 2012 Olympic Games.
But it was his campaign over whether Britain should leave the European Union that would fuel his path to Downing Street? He tried to maintain his comedic character. He suspended parliament and muscle through a Brexit deal fairly similar to his predecessors.
2019 was meant to be a year for realizing his Brexit vision then came Coronavirus. From the start he was accused of not taking the virus seriously enough.
JOHNSON: I'm shaking hands because I was at the hospital the other night where I think there were a few - there were actually a few Coronavirus patients and I shook hands with everybody. You'll be pleased to know.
FOSTER (voice over): Then the gravity of the pandemic hit home.
UNIDENTIFIED MALE: We learn moments ago that UK Prime Minister Boris Johnson has tested positive for Coronavirus.
FOSTER (voice over): Soon he was moved to hospital, then to intensive care. It was only weeks later that he returned home to Downing Street.
JOHNSON: Who stood by my bedside for 48 hours when things could have gone either way?
FOSTER (voice over): But his brush with death only removed the spotlight on his government's pandemic response for so long. The government had sent some elderly patients back to care homes from hospitals, it had abandoned its mass testing regime early on and delayed locking down. A top adviser later said that decision likely cost tens of thousands of lives.
Then Johnson controversially chose to lift all Coronavirus restrictions in July 2021 until the fast spreading Omicron variants forced him to once again bring in new measures.
JOHNSON: We must act now.
FOSTER (voice over): Then at the same time, allegations of multiple parties held inside Downing Street and by government aides during strict COVID restrictions the previous year emerged. Dubbed Party Gate, the scandal ultimately sparked an investigation by senior civil servants Sue Gray, who criticized the culture of lockdown rule breaking events, including an illegal birthday party for Johnson himself in June 2020.
[11:05:00]
FOSTER (voice over): Some of his closest aides were brought down by the scandal.
UNIDENTIFIED FEMALE: I'm truly sorry.
JOHNSON: That there was no party.
FOSTER (voice over): Johnson told parliament, there was no party and no COVID rules were broken. But after the Sue Gray Report, the Prime Minister eventually conceded.
JOHNSON: She's identified a number of failings some official, some political, and some that I accept are entirely my own, which I take full responsibility.
FOSTER (voice over): Just last month, the Prime Minister was booed in public before narrowly surviving a confidence vote by members of his own party. The damage had been done as yet another crisis surfaced, leading to mass government resignations Johnson and his office being held to account over the handling of allegations over sexual misconduct by a member of government who was promoted by Johnson.
After Johnson initially denied knowledge of the allegations a former top civil servant broke grounds, saying Johnson had been briefed personally regarding the claims that the Prime Minister promoted the Member of Parliament anyway. Johnson later admitted he didn't know about the allegations.
JOHNSON: We can win.
FOSTER (voice over): Johnson's career was rocketed as a champion of Brexit, what he said would level up the country bring new trade deals or new prosperity. He leaves Downing Street with a legacy now defined by COVID-19, and his response, mired in a series of scandals.
JOHNSON: Thank you all very much.
FOSTER (voice over): Max Foster, CNN, London.
(END VIDEOTAPE)
SOARES: Now I want to talk more about Boris Johnson's really lasting impact on the UK with CNN Chief International Anchor Christiane Amanpour. And Christiane before we talk about really the legacy, I really want to get your thoughts, your analysis of what you heard from Boris Johnson today, because I didn't see him shed a tear didn't see very any much emotion or remorse, or, in fact, any reference to his own conduct. What did you make of it?
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL ANCHOR: Well look, you're absolutely right. And I think the proof is in the pudding in which he said I'm resigning but you know there's no departure date, as you've been talking about and analyzing, you know, what does this mean? What is the party going to do?
You saw the Former British Prime Minister, Sir John Major, send a letter which he said he would release to the media because of the gravity of the situation just a few hours ago, to the Head of the I think it's the 1922 Committee, basically saying that the Prime Minister must go now for the good of the country and then for the good of the party.
You cannot have this litany of wrongdoings this tsunami of self- inflicted wounds, this stampede of ministers and Cabinet Secretaries, and then say, oh, but I'm going to stay. It just does not resonate. And that is I think one of the major take outs because this resignation speech was totally lacking in self-awareness.
Totally, as you outline unwilling to take any share of the blame or any blame at all, and just put it on, you know - the breaks. It's very, very, very strange behavior, but it's vintage Boris Johnson, who digs his toes into the very end, even on the streets of Downing Street when he's meant to be resigning.
SOARES: And that's exactly what I've heard from several members of the Conservative Party here today. Really, that senses of bewilderment that there is no timeframe that he's hanging on until really - until perhaps the autumn. But just explain to our viewer's right around the world Christiane. How we really got here because this isn't so much a question of policy. This is a question really, of character?
AMANPOUR: Well, it is. And I spoke to a Former Tory Minister Rory Stewart last night on the program, you know, about 13 hours before this announcement from inside Downing Street on the BBC Radio this morning that actually he was going to resign.
At that point Rory Stewart said to me that, frankly, at this point, anybody would be a better Prime Minister, even in his words, Larry, the Downing Street cat because he has shown himself incapable of governing and furthermore, to be so personally flawed in terms of abiding by the rules of the road of politics and of the law.
Let's not forget, he's the first Prime Minister to have been found to have broken the law. This is what Rory Stewart laid out to me as long ish. But that just goes to how long the so called rap sheet is take a listen.
(BEGIN VIDEO CLIP)
RORY STEWART, FORMER BRITISH CONSERVATIVE MP: To run through the events he provoked parliament to try to drive through Brexit in other words, try to shut the door of Parliament. He expelled 21 members of his own party including me in because we tried to vote against him. That again is something that's almost never been done by a prime minister.
That was the beginning of challenging the Constitution. He broke the ministerial code by lying to Parliament and then he tried to rewrite the ministerial code to say that one didn't need to resign if he lied to Parliament. [11:10:00]
STEWART: He tried to rewrite lobbying rules when one of his close friends was found breaking lobbying rules he tried to abolish the committee to deal with them. He got illegal money from donors to wallpaper his flat he tried to get another donor to spend $200,000 on building a tree house for him.
He presided over extraordinary parties in Downing Street during a time when Britain had some of the most severe COVID lockdowns in the world. So people literally couldn't visit dying relatives in a hospital or attend funerals was a famous picture of the Queen sitting isolated a Prince Philip's funeral at a time when Boris was having glasses of wine in Downing Street.
But most recently, he appointed as a Deputy Chief Whip a man who he knew to have been guilty of sexual assault earlier who lost his job for sexual assault, he was warned repeatedly, and he appointed him.
(END VIDEO CLIP)
AMANPOUR: So Isa and all of our viewers. There you have it. That is a very long list of personal malfeasance and wrongdoing that finally in its accumulation, got the party to just say enough is enough. And so this is what's happened.
Furthermore, as you know, he has become an electoral liability instead of an electoral asset. Because the last few by elections, the local elections, you saw the Tory Party and Tory MPs lose very secure seats and very important seats. So in that regard, he's also become a poison chalice. So how the party will allow him to continue, you know, in a caretaker position at this point is you know what we'll have to see?
SOARES: Yes, and I'll be speaking to a member of his party in just a few moments. Christiane Amanpour, thanks very much, Christiane I appreciate it. Well, earlier British Labour Party Leader Kier Starmer offered his reaction to Boris Johnson's eventual departure and to have a listen to this.
(BEGIN VIDEO CLIP)
KEIR STARMER, BRITISH LABOUR PARTY LEADER: He needs to go. He can't cling on in this way. His own party has finally concluded that he's unfit to be Prime Minister. They can't mount inflicting on the country for the next few months. It's obvious he's unfit to be Prime Minister. That's been blindingly obvious for a very, very long time.
(END VIDEO CLIP)
SOARES: Well, British Conservative MP Tobias Ellwood joins me now. And I just want to bring up a tweet, Tobias really, that's something you've tweeted, I think it was yesterday, perhaps we have a patriotic duty tweet to conclude this is not just damaging the conservative brand, and diminishing our own electoral prospects also undermining the nation standing internationally. Britain is better than this. Now, of course, that you said he is stepping down. Are you happy with the timeframe? We don't have the timeframe? Are you happy if this drags on until September or October?
TOBIAS ELLWOOD, BRITISH CONSERVATIVE MP: Well firstly, just to put that tweet into context, it has been painful. I put my letter in back on the second of February. This is a number of months ago. And it's taken a while I think for colleagues to recognize that he has gone from being a lateral asset to a liability.
It took those by-elections those local election results to show that the next election would likely lose if we kept this leader in as well. But more importantly, our stock has gone up because of what Britain has done to support Ukraine. And this was being damaged.
People are watching this across the world, saying this isn't how the mother of all Parliaments' should be actually operating. We're now see the Prime Minister stepping back. But you're right to point out there are now question marks over his willingness to then see those powers those powers, and it allowed the election leadership to then conclude big questions here. Can we then expedite that leadership contest?
SOARES: What are you hearing about that? I mean, those within the cabinet trying to expedite this process, you think?
ELLWOOD: Well, it won't be the cabinet itself. It'll be the 1922 Committee this strange backbench organization that runs these things. We could probably get through the first bit of that leadership contest, because it's MPs that choose two candidates out of about 10 or 15. And those two names then go to our party membership who then does the final decision?
SOARES: How soon do you think that can happen?
ELLWOOD: So I think that first process could probably happen in the next sort of 5 to 10 days.
SOARES: All right.
ELLWOOD: Very, very quickly, indeed, for the very reason that you said, because there isn't a trust now. Had Boris Johnson recognized this was all ending on Tuesday night when we had those two big resignations from the cabinet members, then that trust would still be there.
But he tried to still to cling on. And there's a worry now and no one to bring any flashbacks from United States. But look what Donald Trump tried to do with Iran and - General Mark Milley then had to step in. I'm not saying that what happened here.
SOARES: Yes.
ELLWOOD: But there is a concern--
SOARES: The comparison-- ELLWOOD: --sort of laws being brought in, which will be against the flow of where the party needs to go? We need to rebuild trust with the British people.
SOARES: Can I just ask you then that decision from the 1922 Committee you think it can happen soon?
[11:15:00]
SOARES: You haven't? Do you have any sense of how quickly that may - how soon that might come?
ELLWOOD: We'll just throw in another dimension without getting too complicated. But on Monday, we have fresh elections of the 1922 Committee.
SOARES: Right.
ELLWOOD: They will decide to then those on the slate that want to stand absolutely want to expedite this process. So you're likely to see the rule changes everybody leaving and to make sure we can conclude. You talked about policy, the fact that it's not policy, it's about personality, and we can't get back to policy if the personality was always doing firefighting the entire time.
What is the vision of the Conservative Party? Where do we want to take the nation? We can't get onto that, because of Boris Johnson, we can now once we conclude this leadership.
SOARES: How damaged is the Conservative Party? I mean, we've been hearing so much in the last 24 to 48 hours the question of honesty, integrity. Sajid Javid made a very strong speech, of course, during Prime Minister's questions, how damaged is your party? Do you recognize it, Tobias?
ELLWOOD: Absolutely. I'm and this is why I said he wasn't fit for office back in February, that this was damaging our electoral prospects damaging our international standing. We've got to rebuild that trust with the British people. And we've got limited time the next election is coming over the horizon very, very fast indeed; the new leader has got his work cut out.
SOARES: And in terms of policy, then if we're waiting until if - let's just say goes on until September, October what does it mean, in terms of passing through any sort of legislation any policy?
ELLWOOD: Well, it won't go on that long for the very reasons that I've outlined. But yes, you're right. We're in this conundrum of having to have a new leader and also run the country at the same time.
SOARES: Who is the - who would you say is the top candidate here?
ELLWOOD: Well, they've not even press the buttons on their computer to get those websites. Certainly we've got the two groups. There are the serious candidates and then there's a high I exist, please include me in the next cabinet grouping of people as well. SOARES: OK, serious candidates then who you would say?
ELLWOOD: Nadhim Zahawi, I think Tom Tugendhat might be there certainly, Jeremy Hunt. These are the people that I think are going to be considered - as well.
SOARES: Your favorite?
ELLWOOD: Well, I'm not going to say just yet, I will make up my mind. And I unfortunately, because of Brexit, that horrible--
SOARES: I do remember that.
ELLWOOD: You remember that? Unless you have this tattooed on your head, the chances are that you are a - still, even though most of the world is post-Brexit. That's what's going to appeal to our base, and they're the ones that are probably going to get elected.
SOARES: Tobias, great to see you thank you very much!
ELLWOOD: Thank you.
SOARES: We'll have much more of course to come on the resignation of Boris Johnson when we come back. What will his legacy be? That is next. Thank you Tobias!
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[11:20:00]
SOARES: Welcome back everyone! Despite the Prime Minister's stunning resignation in the UK is back on familiar ground asking yet again how long would Boris Johnson stay on at 10 Downing Street? In his announcement just hours ago Mr. Johnson said he'll reveal the timetable for conservative party elections next week.
[11:20:00]
SOARES: And he indicated that for now, he'll stay on in a caretaker role. But some say that the sooner he goes, the better that's what you heard there from Tobias would. Well, Mr. Johnson's controversial run ended after dozens of fellow Tories quit the government. In his resignation speech, Mr. Johnson indicated the UK will not waver in its support, though, of Ukraine have a listen.
(BEGIN VIDEO CLIP)
JOHNSON: And let me say now, to the people of Ukraine, that I know that we in the UK will continue to back your fight for freedom for as long as it takes.
(END VIDEO CLIP)
SOARES: Well, the UK is also dealing with post Brexit issues, namely problems around Northern Ireland's border, the UK's Northern Ireland Secretary if you remember Brandon Lewis was among those who resigned, saying, "A decent as well as responsible government relies on honesty, integrity, as well as mutual respect. I no longer believe those values are being upheld" as you can see that on your stream from his resignation letter to the Prime Minister.
CNN's Nic Robertson has had a front row seat in all of this and joins us now from Downing Street. And Nic, let me start off really with Ukraine because President Zelenskyy and Boris Johnson were close allies what might this development mean for the UK support of Ukraine here?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Well, interesting that Boris Johnson called President Zelenskyy this afternoon to say that he has a cross bench support to say that he has the support of all the people in the UK. The Prime Minister has been very proud of the way that the UK has been among the first and leading members of the Europe to contribute weapons and real material support to Ukraine.
Of course, it's been going on since before Boris Johnson was Prime Minister since Russia invaded Ukraine back in 2014 Britain has been training - trained some 22,000 Ukrainian military officers. So what this relationship between Boris Johnson and President Zelenskyy has certainly grown and strengthened since Russia invaded earlier this year.
And what President Zelenskyy has been telling our Wolf Blitzer is that his support of Boris Johnson as well has been stronger than it's been a strong relationship. And he thinks Boris Johnson has been a good leader. This is how he framed it.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: Unfortunately, I didn't hear the resignation speech, which I will have a listen after our interview. But I will talk to him. And I will try to understand the details of his resignation. And when it comes to supporting Ukraine, I think that he's a very deep person. And the fact that he's going to resign, he'll be talking to people; he'll be talking to me too. And I understand that for some time, he'll still be working, still performing his duty, so it's not going to stop.
(END VIDEO CLIP)
ROBERTSON: And that, I think, is the key message and the key understanding that the support was there before Boris Johnson for Ukraine. It's been stronger under Boris Johnson, and it's very likely whoever replaces him will continue that strong support for Ukraine.
That seems unlikely to change, in part because some of the leading contenders in the competition to become the next Prime Minister Ben Wallace, the current Defense Secretary has been very staunch on these issues too Penny Morton, also in the running a former and the First Female Defense Secretary in the UK, as well as Liz Truss the Current Foreign Secretary has also been strong in supporting Ukraine.
So I think in these terms, the relationship and the military aid and support and the commitment that Britain has to Ukraine and to his allies, the United States in particular, and sort of bringing all this effort together that that was so much part of the last NATO Summit in Madrid just a week or so ago, that commitment in the UK's position stays there.
Perhaps what might change is the strength and dynamicism of the relationship between President Zelenskyy and the new Prime Minister, it was seen in part that Boris Johnson was developing a strong narrative on Ukraine to distract in part from the problems he was having at home. Nevertheless, we've seen that strength of relationship endure.
SOARES: And Nic, of course, Ukraine has been a challenge this year for Prime Minister Boris Johnson, but he has faced a rather contentious issue for much of his premiership and that is really the Northern Ireland protocol. How do you think - how do you see this being handled now that his resignation, you know that he has resigned at the resign the last few hours?
ROBERTSON: Yes, really interesting, isn't it? And this is the one that the EU is going to be watching very, very closely. Right now the British government is passing through legislation that would allow it to break out of some of the agreement that it made with the European Union. [11:25:00]
ROBERTSON: It would break out of some of the conditions of the protocols that govern how goods get into Northern Ireland and back into the UK? So this is something of course, which is going to be very keenly felt by the Irish government.
They feel that Britain has been taking unilateral measures. And it's been very interesting to see that the Irish Taoiseach the Irish Prime Minister Micheal Martin has been one of the first to comment hoping that whomever in Prime Minister and government replaces Boris Johnson and his government takes a softer approach towards breaking those protocols with Northern Ireland that decides not to do that.
At the moment, the UK and the European Union seemed to be on a collision course for a potential trade war at this moment if the government continues on that path. But I think the reality is, and certainly Bianca is, is getting this sense from people she's talking to as well.
And if you listen to some of the leadership contenders, speaking of what they've said, over the past days or so that they would tend to take a very tough position as well, that they, in order to win the leadership contest would need to take a position that would be sort of stronger, if you will, in what would have been known as the old Brexit camp within the within the Conservative Party.
That they're going to have to lean in that direction so it will mean they will be tough on the Northern Ireland protocols and changing them. So in that regard, it's not clear at the moment that the path thing of this government is on would change with the next one, the tone might change slightly, but the path may not change much.
SOARES: Yes, the challenge is very much still there very important contacts there from our Nic Robertson outside 10 Downing Street. Thanks very much, Nic! And we're going to take a very quick break. We'll have more of course on the fallout from Boris Johnson's resignation and the legacy he leaves in UK politics when you come back thank you.
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[11:30:00]
SOARES: Welcome back everyone! I'm Isa Soares coming to you live from London following our top story today the British Prime Minister Boris Johnson has resigned. I want to get straight to our breaking news because all eyes really on who will become the next leader of the Conservative Party here in the UK.
Boris Johnson, having faced one too many scandals, has been forced to step stepped out. Yet he says he will serve as a Caretaker Prime Minister until the new Tory Leader is chosen but some leaders including the Former British Prime Minister, John Major say that move would be unwise as or as was and maybe unsustainable.
[11:30:00]
SOARES: With the future of leadership in the UK really hanging in the balance, as well as economic pressures, of course from the pandemic and the war in Ukraine pressing down on the country. The UK already has the highest inflation in the G7.
Now, the International Monetary Fund warns that the next year, UK will see slower economic growth, as well as worse inflation than any other major economy. The projection was part of its World Economic Outlook that was published on Tuesday. Our Max Foster spoke with Ed Davey in the last hour have listen to what he had to say.
(BEGIN VIDEO CLIP)
ED DAVEY, BRITISH LIBERAL DEMOCRATS MP: British economy's in a very poor state where proved to be the lowest growth in the OECD only slightly higher than Russia, who was sanctioned. So our economy isn't a disaster state that's Boris Johnson's legacy.
(END VIDEO CLIP)
SOARES: Well, there are lots of course of factors that play in all of this, including the cost of living crisis. For more now I'm joined by Anna Stewart and Anna talk us through those IMF figures. I mean, just how bad is it compared to other countries here because we're all facing inflationary pressures?
ANNA STEWART, CNN REPORTER: The world is facing inflationary pressures, but looking at the UK is facing the worst inflation of the G7. Inflation is already over 9 percent in the UK. The Bank of England expects it to top 11 percent by the end of the year.
And then you have to look at the economy which, frankly, is flat lining. It actually shrank in March and April in terms of GDP. So this is a country that needs a government that can govern and it needs a government that is united--
SOARES: Stability.
STEWART: In the military you days particularly looking at the outgoing Chancellor, what he said about economic policy and how he didn't agree with the Prime Minister in terms of taxes? He thinks it's time for tough policy to rein in spending and increase taxes for corporations.
Clearly, Boris Johnson wanted to cut taxes, a much more popular policy.
SOARES: And that's what we've heard from the incoming Chancellor - give us a sense of what - where he stands on his main kind of economic theory, his economic vision here Anna?
STEWART: Well, we don't know very much, because he's been in the job for what 24 hours, how long he will be in the job?
SOARES: --already for the Prime Minister to resign.
STEWART: But yesterday in interviews with Sky News, he said that he certainly supports tax cuts as part of the policy to rebuild the economy. Again, this is what I expect, you will see from all of the contenders going for the leadership given this is a popular policy move at a time of a cost of living crisis.
The problem will be those speaking to economists that if you've cut taxes, and you don't raise them elsewhere, you actually add to inflationary pressures.
SOARES: Yes. And then we had a list of contenders. I'm not sure if we can bring it up. Is there one that the business community prefers? I mean, we know very little in terms of their economic policies so far, but is there one that the markets that investors are keen on?
STEWART: It's interesting, isn't it? There are lots of different contenders that we're all talking about, but none of them necessarily put the hat in the ring. And so we don't know what their policies are.
We are looking at people that are more fiscally loose, and that's possibly a bad thing for the pound and for investors. So in that bucket openly but Foreign Secretary Liz Truss also Penny Morton International Trade Secretary. I'd say Rishi Sunak, Former Chancellor, perhaps he's the one given he's already said he would like to raise taxes.
SOARES: And he's done the job. He's been on the job?
STEWART: Energy companies weren't a fan he does suggest a windfall tax, of course. So these are the things we have to look at. But quite a wide variety we need to narrow this list down. I think.
SOARES: And clearly what people in this country want is not an economic, it's not a political crisis. They want stability right now, given all these economic pressures, the cost of living is a huge problem in this country is just something that this government had until so far really tried to pay attention to?
STEWART: And it's interesting to think that yes, lower taxes are probably going to be the policy that a Tory leader will go vote for the Tory members, you get to vote if this was a general election.
SOARES: Yes.
STEWART: What would the policies be because the whole nation facing a cost of living crisis, they want more support? They want protection from rising energy prices. But they also want an economy that's growing. And that is a very delicate balance to have when we're of course Bank of England's also raising rates all at the same time.
SOARES: Anna Stewart thanks very much, Anna! Well, I want to get more talking more about really Boris Johnson's impact on the British economy and what his resignation may actually mean for the economy.
I'm joined now by Jonathan Porter's, an Economics Professor at King's College, London. Jonathan thanks for joining us! Look, the Pound, Sterling and FTSE 100 I think last time I saw I think they were up. How are the markets reacting you think to this news is the date already price it in you think?
JONATHAN PORTES, ECONOMICS PROFESSOR, KING'S COLLEGE LONDON: I think they've priced it in. As I've said there really hasn't been that much reaction. There's probably a bit of a sort of positive mood in that it's hard to think of a government that could have been more dysfunctional than the Boris Johnson government.
So in that sense, change is likely to be for the better, at least in terms of the way in which the government conducts itself if not necessarily in terms of broader economic strategy on which as you say it's very hard to tell since we have no idea at this point who the next Prime Minister is going to be.
[11:35:00]
SOARES: Yes, and what did you make, really of the IMF outlook? I mean, it sounds pretty dire, the worst performing G7 country. Do you think this resignation will help or hinder the UK's kind of claw back to the top of that table?
PORTES: Well, I think we shouldn't be overly - you know read too much into short term forecasts from the IMF, which of course, like all four, economic forecasts are always wrong first and second, looking over the entire sort of period from the pandemic to now. The UK is performance is not noticeably worse than France or Germany, actually and that's hardly surprising since mostly what is going on in the short term our global forces, energy prices, the war in Ukraine post pandemic reopening.
The UK faces more medium to long term structural challenges. The legacy of the past 12 years of economic mismanagement, if you like, low business investment, and of course, the ongoing dragging anchor of Brexit. But I think it's important, I've always described Brexit as a slow puncture rather than a car crash. These are long term problems with require a long term strategy. And we should be worrying less actually about the sort of short term growth outlook, which actually is not dramatically worse than the rest of Europe.
SOARES: And just - put it in perspective for us. I mean, in terms of his, we've heard so much about his political legacy, Boris Johnson's, what about his economic legacy? What has he done right? Where has he gone wrong?
PORTES: Well, I mean, the most important aspect of his economic legacy fairly, obviously, is the form of Brexit that we have a very hard Brexit, which has led to a very large increase in trade barriers between the UK and its largest trading partner.
So, you know, that is a sort of long term fundamental structural transformation of the British economy, which as I've said, we will likely experience as a slow puncture rather than a car crash. In terms of the, you know, other things.
The UK pandemic response was actually quite similar to that of other countries, particularly other European countries like France, Germany, Spain, and I think was broadly successful in limiting the damage, whether you attribute that to Johnson or to Sunak, or just the fact that what most countries tend to be did, I don't know.
But that I don't think can be described as particularly notable one way or the other. Otherwise, that Johnson has done very much, you remember, he's not fundamentally that interested in economics, and he didn't fundamentally do that much.
So you could describe it as you know, some sense, you know, a period of stagnation from that point of view. But actually, most of the economic problems that we have at the moment are much more medium to long term things.
And I don't think, you know, despite his, you know, frankly, overall disastrous nature of his Prime Minister identity, you can attribute most of the UK fundamental economic problems to Boris Johnson.
SOARES: Jonathan, have always great to get your insight. Thank you very much. And hopefully you could hear me over this music here. I appreciate that. Jonathan Portes there from King's College London thank you Jonathan. That's exactly not a bad call. Do stay with us. After a short break we'll continue off course of breaking news coverage along of course with the other big news of the day. You are watching CNN.
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[11:40:00]
SOARES: Welcome back everyone! Ukrainian President Volodymyr Zelenskyy calls Boris Johnson, a true friend of Ukraine, but he's confident the UK support for Ukraine will not change once Mr. Johnson leaves 10 Downing Street, have a listen to what he had to say. (BEGIN VIDEO CLIP)
ZELENSKYY: Unfortunately, I didn't hear the resignation speech, but I will have a listen after our interview. But I will talk to him and I will try to understand the details of his resignation.
And when it comes to supporting Ukraine, I think that he's a very deep person. And the fact that he's going to resign, he'll be talking to people. He'll be talking to me too. And I understand that for some time, he'll still be working still performing his duties, so it's not going to stop.
(END VIDEO CLIP)
SOARES: Well, meantime on the ground in Ukraine Russian forces are consolidating their hold on the Luhansk region and targeting areas in Donetsk as they press on with their offensive in the Donbas. Earlier today a Russian aircraft attacked Snake Island as Ukrainian flag was raised there our Scott McLean is in Kyiv with more.
SCOTT MCLEAN, CNN CORRESPONDENT: Isa it took the Ukrainians four months to finally push the Russians off of the strategic Black Sea outpost of Snake Island. Since then, it's taken them about a week to actually reach the island and plant their flag. And yet it's taken mere hours for the Russians to strike back.
The Russians say that an airstrike has killed some Ukrainian soldiers and forced others to flee. The Ukrainians acknowledged the strike but mentioned nothing about casualties. This all comes just as the pace of bombing and shelling is increasing in the southern part of the country.
The Ukrainians though have managed to push the Russians back or at least hold the line around the City of Mykolaiv an area that they have had enormous amount of success defending since the outset of the war.
The Ukrainians also say that they've been holding their own in the Donbas region. Of course, after the Russians took the Luhansk region they have swiftly moved on to focus on the Donetsk region. There have been missile strikes reported north and east of the City of Slavyansk and now, missile strikes have been reported in the City center of Kramatorsk.
Now, what's getting in the way for the Russians in that area is the - Donetsk River which they seem to be unable to actually cross and so in the meantime, they seem content just to bomb whatever they can on the other side?
It is a similar picture in the northern part of the country around Kharkiv, the Russians not really able to move the front lines and so instead, yesterday in the early morning, we saw a missile strike that absolutely obliterated the main building of a Teacher's College in Kharkiv. And then, today, there has been a second missile strike against a boarding school amazingly, no casualties had been reported, though, Isa. SOARES: Thank you very much Scott McLean there! Well, support for Ukraine is rolling out from another EU member that's Ireland. Ireland has taken in more than 30,000 Ukrainian refugees since Russia invaded Ukraine. Yesterday, the Irish Prime Minister met with Ukrainian President in Kyiv and had this to say.
(BEGIN VIDEO CLIP)
MICHEAL MARTIN, IRISH PRIME MINISTER: I'm here first of all, to express Ireland's solidarity with the government and people of Ukraine. We admire you and we are with you. Russia's brutal war against this beautiful democratic country is a gross violation of international law.
(END VIDEO CLIP)
SOARES: Well, Russia Women's Basketball Star Brittney Griner has pleaded guilty to drug smuggling. Griner appeared in a Moscow courtroom on Thursday and admitted to bringing Cannabis oil into the country back in February. But Greiner said she had packed her bags in a hurry and had not intended to break the law.
[11:45:00]
SOARES: A source close to Griner says she alone made the decision to plead guilty. Griner's wife spoke to U.S. President Joe Biden on Wednesday who reassured her he is working to bring Griner home. CNN's Kylie Atwood is following developments from the State Department joins us now. Kylie, give us a sense of what else was said during that conversation with the President?
KYLIE ATWOOD, CNN U.S. SECURITY CORRESPONDENT: Yes, well, the President spoke with Cherelle Griner Brittany Griner's wife earlier this week. That phone call was the result of Brittney Griner writing President Biden a letter on July 4th making a very personal please to him to get her out as quickly as possible, with all means possible, saying that she believed in him and that she was fearful that she would be in Russia for forever.
Now, this sentence - this trial today, excuses me, and is the second one as part of this ongoing trial. We do know as you were saying that Brittney Griner pled guilty, and she explained that she pled guilty because she had no intention of bringing drugs into the country. Or of actually carrying those drugs with her but it was the result of essentially a mistake. She was packing up quickly and hastily when she was gathering her bags for Russia.
Now what we are watching for is next week there is a third hearing as part of this trial on July 14th, there is not yet a sentence for Brittney Griner. And today is key because I am told by a senior U.S. official that Biden Administration officials expect that Greiner would have to admit guilt, and that she would also have to have a sentence before any potential prisoner swap could actually go forth.
Now, we don't know if that's going to happen. That has been part of this conversation, particularly because Trevor Reed, who is another American who was wrongfully detained in Russia, was released earlier this year as a result of a prisoner swap.
Now we should also note that Paul Whelan another American is wrongfully detained in Russia and the Biden Administration today is calling for Russia to release Griner. They are saying they're working to secure her release to secure Paul Whelan's release. They're doing it with all means available to them aggressively so. And so we will wait and see how those efforts result and what happens in this third hearing next week?
SOARES: Thank you very much Kylie Atwood there at the State Department I appreciate it Kylie! And of course, we'll have much more on Boris Johnson's resignation after a very short break.
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SOARES: Now Boris Johnson's resignation announcement is raising some questions really about what happens next. First, does his decision to step down trigger a general election? The answer to that is no? It starts the Conservative Party process of choosing a new party leader. The Conservatives still hold the majority in parliament so the new head of the party will become the Prime Minister.
How is the New Conservative Party leader choosing you may ask? Well, leadership candidates need the support of at least eight lawmakers MPs vote until two are left party members then vote by mail to pick their next leader. So what happens when Boris Johnson finally does leave Downing Street?
Well, he'll have to submit his resignation to Queen Elizabeth in person's the Palace will formally announce the Queen has accepted his resignation and reveal who she was invited to become the next Prime Minister.
[11:50:00]
SOARES: Right now Bianca Nobilo is here with us outside the UK Parliament. Bianca, we just outlined pretty much the process. But it seems a bit muddy at the moment because we don't know exactly - we don't have an idea or a timeframe here from Boris Johnson?
BIANCA NOBILO, CNN CORRESPONDENT: We should learn more about a timeframe next week so Boris Johnson said when he gave that resignation speech today, where he didn't mention the fact that he was resigning in any actual verbal explicit way.
He's spoken to the Chairman of the 1922 Committee, Graham Brady, who's an important figure when it comes to matters of replacing the Leader of the Conservative Party. And so they'll agree on a timeline and announced that early next week.
Now, we'd expect this process to take place over the summer. Typically, summer is recessed down, but there's been a huge amount of political activity, but so all of the leadership campaigns will be in full swing by then. And these things can take many months. They can be quite quick. It all depends on how quickly those candidates are whittled down to the final two. SOARES: But I've been speaking to some MPs with a Conservative Party, who are basically saying this needs to happen quicker. You've seen that sense of nervousness they want this timeline just to be brought forward. What can be done here?
NOBILO: I hear conflicting things, because there's concern about Boris Johnson staying well beyond when he's welcome. That point has already been reached. And there's concern that he'll plow on with the policy agenda that may need to be undone.
But there's also worry that if it's expedited, because of that concern, they might end up with a leader that isn't actually the best leader for the party, just because they want to get it done as fast as possible.
And that means, for example, when Theresa May became Leader of the Conservative Party, she became leader because there was a knockout and she was the only one left over. So she wasn't tested in any campaigning capacity. And then what happened?
She became Prime Minister, and they all realized they might think she has integrity, they may agree with her policies. She doesn't have charisma, she can't campaign, and she doesn't have personality. Oh, dear, what do we do? So they want to avoid that situation, again, where they haven't properly tested the candidate in all ways that are possible.
SOARES: So out of those two options, then what do you see as the best scenario, even waiting it out, or among them, picking a possible leader that they think might be the best person to take on these challenges?
NOBILO: Well, the options are really threefold. It looks like Prime Minister Boris Johnson is going to stay off. But if they did replace him with an interim, they're still concerned about Boris Johnson staying on given the level of opposition to him and the amount of vacancies in the government.
SOARES: Trust of course at the--
NOBILO: Exactly. But then I suppose the question is, is it more destabilizing to change Prime Minister and have someone who's never been Prime Minister before isn't you know, comfortable with the office? He doesn't know how government works in the same way, or to continue with Boris Johnson, who's a known quantity, but still quite unpredictable.
SOARES: But if it's a question of trust Bianca, and integrity, isn't it more important to remove that element first, and support whoever may come in as interim?
(CROSSTALK)
NOBILO: I think this is actually the key, the core issue at the heart of politics, usually, between pragmatism and idealism. So you've got the pragmatism of wanting to keep some elements of continuity and stability. But then you have the moral issue of the Prime Minister, lacking anyone's trust, lacking integrity, where is the balance and MPs come down on different sides of that argument?
SOARES: So let's take one side of that argument, and that he stays perhaps until the autumn, what does that mean, in practical terms in trying to get any sort of policy through, or any sort of legislation here?
NOBILO: So what we'd usually see like, for example, when David Cameron and Theresa May remained on as Prime Minister after they both resigned, knowing that leadership contest is happening, someone else will be elected, but they're still Prime Minister. So we in this country must have a Prime Minister, there is no such thing as an Interim Prime Minister. But we all know that just a caretaker.
Now, what's expected of someone in that position is not to do anything too bold or set a direction that a predecessor will have to unravel or undo. But there are obviously some projects that matter to them. And they might try and preserve their legacy, they might have some nods to policy matters that are really important to them and the politicians that they are.
So you'd expect to see both a respect that you're not going to be in office long. So don't do anything major. But also, you're not going to be offices long so if there's anything important you still to be done, do it.
Boris Johnson is more complicated in that respect, because a lot of MPs are concerned that he's going to use this time to really redirect government and try and be bold and give himself that legacy which is now crumbling in the eyes of people in history.
SOARES: We've got about 30 seconds - tells me. Give me a sense of who your hearing is the top candidate likely I know they haven't not many people are throwing their hat in the rings. But what name has been thrown around as then likely as the most possible Prime Minister of the stage?
NOBILO: We were discussing earlier this poll has come out Conservative Party membership who ultimately do elect this leader has Ben Wallace at the top his Defense Secretary.
[11:55:00]
NOBILO: Former Chancellor, Rishi Sunak coming up second Liz Truss is also in there. So these are all people to watch out for. But often in these cases, it's a dark horse because if people backstab knock each other out, you can be left with a candidate that no one expected that just happened.
SOARES: Back stabbing - who would have thought that would happen in politics?
(CROSSTALK)
SOARES: Bianca thank you very much! Well as the story moves, the memes move with it among the good to see you go and sack to see you leave posts on social media. We picked some of the most viral memes to come out of Boris Johnson's resignation.
The first jokes about Mr. Johnson's recent visit to Ukraine, the user tweeted that at least he got a nice photo op before he resigned. This one plays on Mr. Johnson's unwillingness to leave this job showing him and a poor disguise replace himself as PM inspired by a cartoon no doubt. And lastly, no Downing Street meme segment can be complete without the one and only "Larry the Cat". He's seen here making a statement on a tiny podium expressing his willingness to serve as Caretaker Prime Minister, a true evil no noble creature I think it's fair to say. That does it for me for this I'll be back after a few minutes or so. Do join us right here on CNN.
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