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First Move with Julia Chatterley
A Sweeping Victory For Boris Johnson And The Conservative Party; Sources Tell CNN That President Trump Has Signed Off On This Phase 1 Deal; House Panel To Vote On Impeachment Articles. Aired 9-10a ET
Aired December 13, 2019 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:15]
JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR: A warm welcome to a Special Edition of FIRST MOVE coming to you live from Abingdon Green in London.
A historic day for the U.K. and the nation's future outside of the European Union. A sweeping victory for Boris Johnson and the Conservative Party and
I'll tell you what U.K. assets are loving it.
Markets: We always talk about this. They like certainty and this result virtually guarantees and exit for the U.K. on January 31st of 2020. U.K.
stocks: The FTSE 100 you are looking at right now, higher by more than two percent. Among the biggest gainers, the banks, the utility. We could
argue all those under the threat of nationalization if the Labour Party had somehow won the day, but I just think they were under a broader Brexit
cloud.
The pound, also rallying, too, up over 1.6 percent right now adding to the gains that we've seen in recent sessions. Now, to its highest level in
over a year and a half.
What about European stocks? Also joining in what feels like a broader relief rally here. Let's take a look at the United States as well, because
it's not just the only story. We're just off their best levels premarket as we await fresh details of a possible Phase 1 trade deal between the
United States and China. It's all happening.
Sources tell CNN that President Trump has signed off on this Phase 1 deal. As part of that agreement, the U.S. will delay tariffs on Chinese goods --
on further Chinese goods -- that were set to kick in this weekend. Existing tariffs apparently will also be lowered in exchange for a Chinese
agreement to purchase more U.S. farm goods. China is expected to hold a briefing on all the details soon. More on that later in the show.
But first, let's get to our top story. High drama in high office. The Conservatives get to celebrate as Labour's Jeremy Corbyn suffers a crushing
defeat. The British Prime Minister gets to stay in Number 10. His Conservative Party winning an absolute majority in Thursday's general
election, but now the hard work really begins including getting the U.K. out of the E.U.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, BRITISH PRIME MINISTER: As the nation hands us this historic mandate, we must rise to the challenge and to the level of
expectations, and Parliament must change so that we, in Parliament, are working for you, the British people, and that is what we will now do, isn't
it?
AUDIENCE: Yes.
JOHNSON: That is what we will now do.
(END VIDEO CLIP)
CHATTERLEY: Boris Johnson has made his way to Buckingham Palace earlier this morning to see the Queen to get that fresh mandate. Let's go live to
CNN's Max Foster.
Max, I don't think that we can just overplay enough, actually, the scale of the win here for Boris Johnson and the Conservatives, the number of
constituencies here that have legacy voting for the Labour Party that simply switched and have put their trust in Boris Johnson here.
MAX FOSTER, CNN INTERNATIONAL LONDON CORRESPONDENT: Yes, that's the point, isn't it? These Brexit supporting Labour supporters traditionally in these
constituencies have switched to Conservative. It may not be a long term thing, but it certainly gives authority to Boris Johnson's central campaign
message which was get Brexit done.
There is no doubt that that was his main message and has been voted in and it is a big vote; therefore, he has support for his Brexit plan. So the
whole idea of a Brexit referendum has gone away. Remainers now it seems accept -- certainly in England and Wales -- that Brexit is going to go
ahead and on Boris Johnson's terms.
Remember, he wasn't looking for a hard Brexit, it was always going to be a managed Brexit -- a deal that was negotiated with the E.U. He is going to
head towards that now at the end of January.
We do have to caveat though, don't we, Julia? Nicola Sturgeon's success overnight as well. Her party the Scottish Nationalists now dominate
Scottish politics and they are firmly remain and they are using that as part of their campaign towards independence, which is a big issue, a
potential constitutional crisis.
So there is still a remain feeling and it is being focused in Scotland though, the economic heavyweight of England, certainly on the way out.
CHATTERLEY: Yes, you make such a great point. So for Scotland here, if they don't get their way to remain in the E.U., they'll try and go their
own way and do it as an independent nation here.
[09:05:07]
CHATTERLEY: Max, to your point, though. Let's just talk about the next few weeks because we now have 48 days, I believe, until January the 31st
when Boris Johnson has promised ultimately that the U.K. will leave the E.U. Then the real fun and game start and the negotiations with the E.U.
How comfortable should he be at this stage that he can fulfill his manifesto promise and actually sign that trade deal before the end of 2020?
FOSTER: Well, I think, you know, everyone wants some sort of solution to Brexit. We do have some sort of solution now, it is that Britain is going
to leave the European Union at the end of January.
As you say, there is this now year-long process about trying to reach some sort of trade agreement. If there is motivation on both sides, it does
seem as though that can be done. It's really a technical matter.
But you know, it's a mammoth task, isn't it, negotiating some sort of trade deal like this. But there are sort of rough agreements, you know, between
the countries already. So perhaps the progress can be made.
It is worth pointing out that Boris Johnson tweeting overnight as well that Brexit will pave the way to a U.S.-U.K. trade deal which will be even
bigger than the E.U. one.
So in terms of international economy and politics, this is a really, really significant moment, but the momentum is behind Boris Johnson. It will be
tough getting that trade deal together, but he couldn't be in a better position than he is right now.
CHATTERLEY: I agree with you. The honeymoon period and on those trade deals, we shall believe it when we see it. Max Foster, thank you so much
for joining us.
All right. Let's move on then to the markets now. The pound soaring to an 18-month high, its biggest jump in some two years. The broader FTSE 250
also hitting records. This of course, U.K. focused firms rallying. Multinational firms though based in the U.K., the FTSE 100 pulling back
slightly here.
Clare Sebastian joins me now. We always have to make the point, Clare, with the FTSE 100, seventy percent of the revenues that these companies
generate outside of the United Kingdom. So when the pound goes up, then that suppresses their foreign earnings. But talk us through what we're
seeing here because there is relief in these markets.
CLARE SEBASTIAN, CNN BUSINESS CORRESPONDENT: Absolutely. Their relief, Julia, magnified by the fact that the drag of the stronger pound today is
limited. Let's take a look at some of the biggest winners on the market today.
Banks, as you were saying, they are soaring. In some cases, double digits. We're also seeing big gains among homebuilders -- all of this on the
prospect according to analysts of rising consumer sentiment, possibly rising inflows of capital investment. There you see RBS up 11.5 percent.
Taylor Wimpey, which is a big homebuilder, up 14 and almost 15 percent.
But on the flip side, as you were saying, it is not universal gains on the FTSE 100. Today, we are seeing the drag on some of those big multinational
companies, the likes of GSK and Unilever.
Now, having said that, this is under one percent in terms of declines here. So the gainers far outweighing losers today on the FTSE 100 off the back of
this result.
This is lifting, Julia, for the markets of a big layer of uncertainty, but going in to 2020, there are questions remaining on the budget in February,
how much stimulus there will be? How will that play into consumer sentiment?
And on the length of the transition, will there be an extension? That is I mean, the markets are digesting this morning.
CHATTERLEY: Yes, markets don't like uncertainty, and the idea that we cannot see a cliff edge in the next three, six months is a real relief. It
does give you a sense, though, Clare, when you look at the performance of the financials here just how reticent investors have been to get involved
in U.K. assets here because of this Brexit cloud.
SEBASTIAN: Yes, absolutely. This has been a major cloud hanging over. I think you can look at the pound, Julia, as a barometer, in some ways of
Boris Johnson's Brexit fortunes over the past two months.
It's now up about the best part of 10 percent since he reached that breakthrough with the E.U. in October, but it is still down the best part
of 10 percent since before the Brexit referendum three and a half years ago. So there is still a Brexit discount baked in and analysts are saying
that because of these overhangs going into next year, because of the budget issue, because of what will happen with an E.U.-U.K. trade deal and because
of what could happen potentially, if Boris Johnson extends the transition, that will limit the upside, at least for the moment.
CHATTERLEY: Yes, what may or may not happen over the next 12 months. Thanks to Clare Sebastian there. Let's talk about that then. This
election was closely watched, of course in Brussels, where European leaders are seemingly as keen as Boris Johnson to get Brexit done.
Melissa Bell is there for us. Melissa, would you agree with that actually, Brex-haustion not only here in the U.K., but also over in Brussels and
could that facilitate some kind of deal over the next six to 12 months?
[09:10:02]
MELISSA BELL, CNN PARIS CORRESPONDENT: There is definitely a sense of relief here, Julia, but also so many questions about what comes next. And
that's really what we've heard from the leaders emerging from the European Council meeting here today.
Both the leaders of the European countries and the incoming European administration, that fine, in a sense now the tough part begins, and a lot
depends on what kind of deal is struck.
We were just hearing from Clare there a moment ago about those remaining uncertainties that weigh on the market and that is because when you look at
the vast array of solutions, of agreements or non-agreements that might emerge from the forthcoming negotiations with the E.U., there are so many
different possibilities for the kind of relationship that the U.K. will have with its former E.U. partners once that is done.
There's of course the question of the time frame, and then we don't exactly know how keen Boris Johnson is to negotiate an extremely close trading
deal.
There is an option of course, that allows the U.K. to stay very close to the E.U. and to continue benefits from its various markets, but that will
require him to ensure that level playing field that you're going to hear an awful lot of out from European leaders over the course of the next few
weeks. That is that he continues to stick with the regulatory framework that really ensures that the companies with which he is trading in the E.U.
will not feel that he is undercutting them, that he is undercutting their markets.
So that would be on one extreme. You also have another extreme, which is over the course of the next year, and this is what people are saying
already. If he sticks that timetable of this transition period, ending at the end of next year, it is really a fairly bare bones Free Trade Agreement
is the best he can hope for.
Then there's the possibility that there will be no agreement at all and they will go back to the sort of WTO rules that govern the relationship,
the trading relationship between countries that don't have the kind of agreements that the E.U. and the U.K. had.
So there is a vast scenario of different possibilities. And of course, you can understand that until that has been resolved, there will be some
questions and some uncertainty over what kind of trading environment the United Kingdom can really provide -- Julia.
CHATTERLEY: Yes, you raise so many great points there and Boris not ruling out going to WTO rules if he has to ultimately, but at least with this
majority, he is not in the thrall of the arch Brexiteers, so we'll see what happens. Melissa Bell in Brussels there. Thank you so much for that.
We're going to take a quick break here, but up next, good news for stocks, good news for the currency, too, but how is Boris Johnson's landslide going
down with the C-suite. We will discuss with the British Chambers of Commerce. Stay with us. We're back in two.
(COMMERCIAL BREAK)
[09:15:39]
CHATTERLEY: Welcome back to FIRST MOVE live from the Houses of Parliament. Investors showing relief thanks to Boris Johnson's landslide victory, but
British business has been slightly more cautious.
This is the initial comment from one of the industry's biggest groups, "Campaign slogans must give way to a renewed focus on the details that
matter. Our business communities need to see swift, decisive action to avoid a messy and disorderly exit from the E.U. and to tackle the barriers
holding back investment and growth here in the U.K."
That comment was from Adam Marshall, Director General of the British Chambers of Commerce. He joins me now. You're still worried about a
disorderly exit from the E.U.
ADAM MARSHALL, DIRECTOR GENERAL, BRITISH CHAMBERS OF COMMERCE: It's hard to believe that it was last year we're here in December 19, still talking
about it, but there's got to be some swift action over the next few weeks to prevent it. And indeed, to prevent businesses from facing further cliff
edges down the line.
Companies are asking some really valid questions about how they prepare to trade in future, how they prepare to move people around, et cetera and they
need answers to those over the coming weeks.
CHATTERLEY: Boris is still not ruling out going back to WTO rules, i.e., not reaching any kind of an agreement on a trade deal next year with the
E.U. Do you want him to rule that out and say, look, even if we have to extend here by June -- by the end of June -- that's a better option for
business, because then they get three years' clarity, not another cliff edge potentially at the end of December.
MARSHALL: Well, the biggest priority for our businesses is getting the future relationship with the E.U. right. The time that that takes, you
know, we need to be flexible on that, I think.
Businesses are going to need to change the way they trade across borders. They're going to need to change the way they move people around, what
regulators they work with, and we still have a huge list of 24 unanswered questions where businesses still need that detail.
So if it takes a little bit more time, get it right, don't just do it fast.
CHATTERLEY: We haven't got the Northern Irish question and the border there sorted either. I mean, that's going to be a potential huge issue,
too, for the E.U. and products coming in and out and the risks that they can enter the U.K. or leave the U.K. and enter the E.U. without being
vetted and without being checked.
MARSHALL: Now, this again, is one of those areas where details are so hugely important. Our business community in Northern Ireland has actually
been raising the alarm on this for the past few weeks.
There are concerns that they're going to have new paperwork and new admin costs, whether they're trading within the United Kingdom or trading on the
Island of Ireland.
Anything that adds to business admin time, resource time, et cetera creates new costs and that in turn determines whether businesses invest or not.
CHATTERLEY: What about policy in the interim though? Because Boris Johnson did promise if he got back into power, he would have tax breaks for
research and development, tax breaks for construction -- an industry that's ground to a halt here in the U.K. in many regards, particularly on the
commercial side.
Is this going to be enough to galvanize business tax cuts for smaller businesses in the U.K.? He is kind of saying all the right things, but to
your point, action has to follow.
MARSHALL: Well, we had a manifesto that was extremely light on detail. So what businesses are going to want to see over the next couple of weeks are
those promises in black and white in things that they can actually action.
So we've got the problem of business rates, business property taxes here in the U.K., which are really stopping investment for a lot of businesses and
so many other issues besides.
If you cut the upfront cost of doing business in this country, I think you will see a lot more investment. So there needs to be swift action from the
incoming government in order to do that.
CHATTERLEY: I wanted to get really excited about the investment potential of the U.K. because I have had many conversations with international
investors who say the U.K. is simply uninvestable at this stage. Are you still saying, look, you know, the doors are creaking open, perhaps for
business, but they're not open yet?
MARSHALL: Well, this is an amazing country, and we've got great potential. I think a lot of investors will come back here if we get the business
environment, right.
So when the politicians return to the building behind us next week, I really want them to turn to the economy first. Our business communities
are saying, put the economy first, really start doing some things both symbolic and deep that make it easier to do business in the U.K.
CHATTERLEY: Do you trust Boris to do that?
MARSHALL: I think we have to trust the government and the party in power to take those actions. We have a great majority now -- a very, very
significant majority for that party in power. They have the decisive action that they need in order to move ahead with it. They've got to do
it.
CHATTERLEY: They've got the numbers. There's nothing to hide behind. Adam Marshall, great to have you with us. The Director General of the
British Chambers of Commerce. Thank you so much for that.
[09:20:06]
CHATTERLEY: All right, next, we'll be taking you to D.C. where a House panel is gearing up to approve the Impeachment Articles against President
Trump. A live report from Capitol Hill straight after this.
(COMMERCIAL BREAK)
[09:22:06]
ANNOUNCER: This is CNN Breaking News.
CHATTERLEY: Welcome back to FIRST MOVE outside the U.K. Houses of Parliament, but now we go to Washington where the House Judiciary Committee
is set to approve the Articles of Impeachment against President Trump just this morning and send them to the full House.
Today's vote comes after more than 14 hours of intense debate on Thursday. Suzanne Malveaux is live on Capitol Hill with all the details -- Suzanne.
SUZANNE MALVEAUX, CNN CORRESPONDENT: Right. We're just 40 minutes away from the House Judiciary Committee again reconvening this morning for that
very crucial and historic vote.
As you mentioned last night, I mean, the gasps were audible. You had a house of anger inside the House chamber as the Chairman, Nadler gaveled to
a close that session -- that marathon session -- that lasted 14 hours.
Republicans just furious over that call. Democrats quite pleased. A senior Democratic aide saying, look, this is a matter of transparency in
the process for the American people and the rest of the world.
(BEGIN VIDEOTAPE)
REP. JERROLD NADLER (D-NY): The Committee is in recess.
(END VIDEO CLIP)
MALVEAUX (voice over): House Judiciary Chairman, Jerry Nadler abruptly ending more than 14 hours of fierce debate, pushing the Committee's
historic vote on Articles of Impeachment to 10 o'clock this morning.
(BEGIN VIDEO CLIP)
NADLER: I want the members on both sides of the aisle to think about what has happened over these last two days and to search their consciences
before we cast our final votes.
(END VIDEO CLIP)
MALVEAUX (voice over): Republicans leaving the hearing outraged.
(BEGIN VIDEO CLIP)
REP. DOUG COLLINS (R-GA): They do not care about rules. They have one thing: Their hatred of Donald Trump and this showed it tonight because they
want to shine in these cameras, get prettied up and then vote and make it all happen. This was the most -- I'm just beyond words at this moment.
(END VIDEO CLIP)
MALVEAUX (voice over): The Democrats say they want Americans to see the vote.
(BEGIN VIDEO CLIP)
REP. JAMIE RASKIN (D-MD): We want to do it in broad daylight, so first thing in the morning so everyone can see exactly what's going on.
(END VIDEO CLIP)
MALVEAUX (voice over): Lawmakers battling over the two Articles during the marathon debate, arguing whether the President abused his power and
obstructed Congress.
(BEGIN VIDEO CLIP)
REP. ERIC SWALWELL (D-CA): There are no crimes here? The President committed the highest crime against the Constitution by abusing his office.
REP. MATT GAETZ (R-FL): That is just a Democratic drive-by to go and list crimes that you don't allege and that you don't have evidence for.
REP. JIM JORDAN (R-OH): This is about they're concern that they can't -- they can't win next year based on what the President has accomplished.
REP. VAL DEMINGS (D-FL): To protect this President at any cost is shameful.
(END VIDEO CLIP)
MALVEAUX (voice over): House Speaker Nancy Pelosi says top Democrats aren't working to lobby votes, with at least two party members stating
they'll vote against impeachment.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D-CA): This is a vote that people will have to come to their own conclusion on; and the facts are clear.
(END VIDEO CLIP)
MALVEAUX (voice over): But House Republican leaders are working to make sure their opposition is unanimous.
(BEGIN VIDEO CLIP)
REP. KEVIN MCCARTHY (R-CA): I don't think there's a need to whip the vote.
(END VIDEO CLIP)
MALVEAUX (voice over): The full House could vote on the Articles next week. Meantime, the White House is preparing for an impeachment Senate
trial in January meeting with Senate Majority Leader Mitch McConnell to create a game plan.
Sources tell CNN that McConnell's stressed a quick trial to the President in a phone call, despite conflict between the G.O.P. Senate leader and
Trump over the trial's format, there's one point where they agree.
[09:25:23]
(BEGIN VIDEO CLIP)
SEN. MITCH MCCONNELL (R-KY): If the case is so darn weak coming over from the House, there is no chance the President is going to be removed from all
of this.
(END VIDEOTAPE)
MALVEAUX: So today, expect some of that anger to continue to spill out into the process here as Republicans express their displeasure with having
this whole thing postponed to the next day.
What you will see happen, how it will play out, likely a possible roll call to a substitute amendment and then you would have procedural maneuvers that
could delay this even further, but not likely that it will take as long as it did yesterday.
You will have that historic vote later on this afternoon and they are very active confident that they'll have the full House vote for the Articles of
Impeachment potentially as early as Wednesday -- Julia.
CHATTERLEY: And we shall watch for that, Suzanne Malveaux. And of course we will bring you that vote later on today as we get it in what's been a
week of highs and lows for Donald Trump.
China is about to hold a briefing on a possible Phase 1 trade deal with the United States. Sources tell CNN, the U.S. and China have reached an
agreement. David Culver is live in Beijing with all the details.
David, I have to say we've had one or two false starts, but it does look like at least as far as Phase 1 is concerned, this could be the real deal.
DAVID CULVER, CNN CORRESPONDENT: And this press conference that's just a few minutes away, Julia, is perhaps another indication that we're getting
closer to seeing an ink with this deal.
The reality is the Chinese have been very tight lipped about this. They have been very restricted about what they say. Most of the leaks have been
coming out of Washington, the U.S. side of things, and quite frankly, they're hesitant because of something similar being put in place, a
handshake type deal back in October, and it was supposed to be signed a month later in mid-November.
And here we are now into December and we're talking about yet another agreement on similar issues. So it has been hammered out in specifics that
the U.S. will be able to sell agricultural products to China, a certain amount. China will agree to buy billions worth perhaps the $40 billion to
$50 billion that President Trump has pushed for that's important for his constituency.
As for China, they will in turn see some of the halt in tariffs. In fact, there was a big set of tariffs supposed to go into effect on Sunday - that
was the consumer goods one. That will be delayed according to those who are familiar with this deal.
And then this is huge. There will be a rollback on existing tariffs, as much as half. That has been a big sticking point for the Chinese. They've
been pushing that for several weeks now and several op-eds in Chinese state media have certainly stressed that.
What's interesting about that point is, that's something that Donald Trump has faced some opposition on from other lawmakers - China hawks in
particular.
Senator Marco Rubio has come out saying that the White House should keep those tariffs in place and should go forward with Sunday's tariffs. He
says those are really the only way that they can have leverage in the ultimate trade war with China. They're looking at this as a comprehensive
thing beyond Phase 1.
The concern for some is the technology aspect of this, the geopolitical aspects, the ideological aspect. So it's far bigger than just trade. But
right now, it seems that the trade one portion, the Phase 1 portion, based really around trade is coming to maybe some sort of agreement. Hesitancy
all around.
In fact, it was interesting, Julia, this morning here in Beijing, we heard the Foreign Minister, who, coming off news out of Washington that there
might be an agreement spoke against the U.S., lashed out against the U.S. and said that it's the U.S.'s fault that there's just erosion of trust
between China and the U.S.
So to have that kind of tone going into this Phase 1, it's not really speaking very positively as you look towards those structural changes, that
would be part of a Phase 2 or Phase 3. It certainly didn't suggest that those would come to fruition anytime in the near future.
CHATTERLEY: Yes, but I love the point that you make about the tradeoffs here over removing tariffs. So rolling back some of those tariffs which
China ultimately demanded. You just have to wonder whether the timing here with what's going on back in D.C. made President Trump go, okay, we will
capitulate here to get the deal done.
It is going to be fascinating to see the details. David Culver, thank you so much for joining us on that story.
All right. We're going to take a quick break now, but coming up, a crushing defeat. A look at why the British electorate turned their backs
on Jeremy Corbyn's Labour Party. That's coming up. Stay with CNN.
(COMMERCIAL BREAK)
[09:32:58]
CHATTERLEY: We are live outside the U.K. Houses of Parliament this morning and I want to bring it back to the top story that we are following this
morning.
A huge win for the Conservatives in Britain's general election. Labour suffering its worst defeat in decades. Party leader, Jeremy Corbyn already
said he won't lead the party in the next general election, but he has given further comments in the last few moments. Listen in.
(BEGIN VIDEOTAPE)
JEREMY CORBYN, BRITISH MEMBER OF PARLIAMENT, LABOUR PARTY: Obviously, very sad at the result we've achieved and very sad of those colleagues that lost
their seats in the election, and very sad for many people in this country who will now have a government that is continuing policies of austerity.
And many of the poorest communities, I think will suffer very badly from the economic strategy that I suspect the Prime Minister will take forward.
But also, I have pride in our manifesto that we put forward and all the policies we put forward which actually had huge public support on issues of
universal credit, the green industrial revolution and investment for the future.
But this election was taken over, ultimately by Brexit and we, as a party, represent people who both voted remain and leave and my whole strategy was
to reach out beyond the Brexit divide to try and bring people together because ultimately, the country has to come together.
QUESTION: So what went wrong?
CORBYN: Well, those in leave areas, in some numbers voted for Brexit or Conservative candidates, which meant that we lost a number of seats and we
didn't make the gains that I had hoped we could have done, particularly in the Midlands and Yorkshire in the north.
QUESTION: I was listening to some callers to obviously this morning and speaking to people who are knocking on doorsteps, and the same from the
Shadow Health Secretary before the election, saying the same thing that actually you're part of the problem. Is this now time to accept that
perhaps your leadership may have contributed to this result?
[09:35:02]
CORBYN: Well, I've done everything I could to lead this party. I have done everything I could to develop its policies and since I became leader,
the membership has more than doubled, and the party has developed a very serious -- radical, yes -- but serious and fully costed Manifesto.
And I've received more personal abuse than any other leader has ever received by a great deal of the media. Now, that happens all the time. I
will talk to our National Executive about what we do in the future.
I called for last night, a period of reflection in the party and obviously, the ruling body of the party, our National Executive will decide what
process we follow then to the election of a successor to me. But I am quite prepared and I was elected to do so to lead the party until that
takes place.
QUESTION: Some of those voters mentioned things like sympathizing with the IRA, anti-Semitism and failing to deal with it making a party that's too
London-centric, and ultimately being too left wing.
Again, do you not accept that those are some of the things that have attached themselves to you that have made you less electable?
CORBYN: Is ending universal credit and paying the WASPI women and having a green industrial revolution too left wing? They are huge issues that face
our country, and I think our Manifesto did face up to all of that.
All of the attacks that have been made on me, I have dealt with the issues that have been raised. I inherited a system that didn't work in the Labour
Party. On anti-Semitism, I introduced the rule changes necessary to deal with it and they are in operation, but I think anti-Semitism is an absolute
evil curse within our society and I would always condemn it and always do and always will.
QUESTION: Once again, the left -- when Labour has gone further to the left, as it did under Michael Foot, have lost badly to Conservatives. Do
you think that Corbynism is dead?
CORBYN: It's not Corbynism. There is no such thing as Corbynism. There is socialism. There is social justice. There are radical manifestos --
all of which are there.
QUESTION: And are they also unelectable?
CORBYN: No, I don't think they are unelectable at all. I think the issue that dominated this election ultimately was Brexit. Our policies -- I'll
name some and there are many others I could name -- were actually all of them individually very popular.
There was no -- and there was no huge debate or disagreement in the party about any of the policies in our Manifesto.
The issue was ultimately, the Prime Minister said he is going to get Brexit sorted. It is -- how should I put it? A mirage of nonsense because he
knows perfectly well that he is either have got to get an agreement with the European Union or he is going to spend seven years negotiating with the
United States.
And I am worried about effect on our manufacturing industry and our trading position in that period.
QUESTION: You don't think a more centrist David Miliband kind of character could have done better? Could have beaten Boris Johnson.
CORBYN: I don't think the result would have been any different because we have to make an appeal to people who voted both leave and remain. And we
appealed to all on a manifesto which would bring about more social justice in this country.
And I am proud of the campaign that we fought, the effort that I put into that campaign and the effort that hundreds of thousands of people did who
saw in what we were saying particularly young people who saw what we were saying, some hope for themselves, some future where they wouldn't go into
debt just because they wanted an education.
QUESTION: Some of your MPs have turned on you as -- or your candidates who didn't get elected. I'll just quote one prominent Labour Party figure,
Alan Johnson who said who summed up some of the feeling where he said, "I want Momentum gone."
He made it sound like it was a kind of parasite that has sucked the electability out of the party.
Do you accept that Momentum has been this kind of internal party within a party? How do you feel about Johnson asking for it gone?
CORBYN: Well, I don't agree with Alan Johnson on this. And there are many candidates who are not necessarily on the left of the party who were very
grateful and very happy for the support that momentum supporters gave them in the campaign.
And Momentum is an organization of lots of people, actually quite a wide range of political views. They see themselves as an activist space. They
see themselves as people that are organizing communities and community action in our society.
I think that's actually a very healthy democratic development and it's a different style of doing politics, but I think what we've shown over the
past four years since I became leader, this growth in membership and this growth of community activism actually is healthy for politics and healthy
for democracy.
[09:40:11]
CORBYN: And I regret those kind of comments because I think they're very unfair.
QUESTION: Do you feel also guilty that Boris Johnson has got another five years at Number 10? Do you feel at all responsible and guilty for that?
CORBYN: I did everything I possibly could to win this election. I did everything I possibly could in order to bridge the divide between those
that voted leave and those that voted remain because at the end of the day, they're going to live in a country where we're going to need that
investment for the future.
We're going to have -- if this government stays in office -- more homelessness, more divisions, and a bigger gap between the richest and the
poorest.
And so I did everything I could. Of course I take responsibility for putting the Manifesto forward, but I have to say the Manifesto was
universally supported through our party and throughout our movement.
So, as I said, in my own count to resolve last night, we don't give up on the eternal hopes of a more decent society and the urgent demand to make
our contribution for a sustainable world and that's exactly what our Manifesto, our Green Industrial Revolution would have done.
QUESTION: You talked about last night, a period of reflection. Before you stand down, you wouldn't lead the party into another general election.
When are you planning on standing down?
CORBYN: Well, the National Executive will have to meet, of course, in the very near future, and it's up to them. They will make that decision, not
me. But what I hope is there will be a period where we can have a good discussion within the party and I think that's healthy and that's to be
very welcomed.
And I hope those that were inspired by Manifesto will actually join the party and take part in that discussion and it is up to them to set a
program for when an election take place. It'll be in the early part of next year ...
QUESTION: Because quite often leaders bow down straight away after a general election defeat like this. I mean, this is a catastrophic defeat.
Many people would expect you to stand down straight away.
CORBYN: I was elected to lead the party and I think the responsible thing to do is not to walk away from the whole thing and I won't do that.
I will stay here until there has been somebody elected to succeed me and then I was stepped down at that point.
QUESTION: You talked about being misrepresented. Do you feel you've been misrepresented in the media?
CORBYN: Yes, absolutely.
QUESTION: In what way?
CORBYN: When you look at -- if you analyze the coverage that's made of the Labour Party, analyze the coverage it's made of me, you're looking at in
the 80s percent and above of negative, hostile or frankly, just downright abuse of individuals and character assassination and constant attacks on me
and my family and others.
I just think we need to have some consideration to the effect this has on politics when the whole political debate is seen through the prism of
personal abuse and personal attacks.
I never indulge in personal abuse or attacks. I never attack anybody personally. And the words I've often used is I won't get into the gutter
because I think our lives and our politics is too important for that.
QUESTION: Just two more questions. When the history books declare whether Jeremy Corbyn was for or against remaining in the E.U., what should they
say?
CORBYN: I hope the history books will say he is somebody that did campaign to remain in the referendum in 2016. We all know what the result of that
was. And after that, what I tried to do was negotiate an agreement with the E.U. so that we could have either remain, or leave, but leave with a
trade relationship with Europe.
What I don't want to see is this country cut off from the continent of Europe because of the obvious trading relationships and all the personal
and family relationships there are because I think for us to become sort of offshore tax haven here in Europe would be a very, very retrograde step and
we cannot allow ourselves to become some sort of trading arm of the United States on the shores of Europe either.
QUESTION: Who should be your successor?
(END VIDEOTAPE)
CHATTERLEY: I call that a poised, but defiant Labour Party leader there, Jeremy Corbyn saying and admitting that for many Labour voters, they were
on the wrong side of this U.K. leaving the E.U. debate and that many of them wanted to see the U.K. leave, but refusing to acknowledge that the
shift left and economic policy for this party was a turnoff for many voters, too, and saying he did everything he could to win this election.
Now, a constituency that was wants resolutely Labour, Dudley North in the English Midlands has gone blue for the first time in its history.
Earlier this year, the Labour MP quit the party and then urged the people to vote Conservative. Our Matthew Chance has been talking to people there
in Dudley and he joins us live.
Matthew, I know you were listening to that. I can't help but feel for Labour MPs listening to that, for people in Dudley, voters, Labour,
traditional Labour voters. They just have their head in their hands. He's got to understand what went wrong here.
[09:45:10]
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, you're right. I mean -- and to hear Jeremy Corbyn talk about how this was just about
Brexit and nothing to do with his personal leadership, I think it just really grates when you speak to ordinary people like I've been speaking to
here in Dudley North, the constituency that has been traditionally a Labour Party voting constituency.
And for the first time yesterday, the first time ever, it returned a Conservative politician as its Member of Parliament. Yes, it's a Brexit
voting area, 72 percent of the people in this area voted for Brexit, but that's not the only reason and they were very upset by the way that the
Labour Party under Jeremy Corbyn wanted a second referendum. They weren't enamored with that at all.
But that wasn't the only reason. There was something about Jeremy Corbyn's sort of personal leadership that sort of pushed them over the line to the
Conservative Party. I am just going to speak to some of these traders here. Come over here. We've got we've got Mike here. Mike, sorry to
interrupt your business. You're making -- you're selling these cakes.
We were talking about how, you know, Brexit wasn't the only reason that people in Dudley didn't choose Jeremy Corbyn. What else was it do you
think?
MIKE: I think it was time to express reality. I it he was down to his policies and he has thrown money without actually adding any penny. So he
had been able to promise things that he just simply couldn't deliver without bankrupting the country.
But a lot of it was down to Jeremy Corbyn's personality and I don't think people actually genuinely believed he was fits to run the country.
CHANCE: But Boris Johnson's personality as well, you know, not everybody is in love with him here, are they, to be clear?
MIKE: No, but I think a lot of people would have voted to do anything to prevent a Corbyn government.
CHANCE: Mike, thanks very much. There you have it. You know, so they are saying Brexit is a big deal, but, also just that personal leadership of
Jeremy Corbyn pushed this constituency and other constituencies all over the Midlands and the North of England, in Wales from red to blue. Back to
you -- Julia.
CHATTERLEY: Yes, Matthew Chance there. Thank you so much for that. And actually, just to reiterate, he said that Manifesto was universally
supported, of course. Wow. It's going to be an interesting a few weeks I think for the Labour Party.
But in the coming minutes, we are expecting a further statement from Prime Minister Boris Johnson. I've got a live shot for you as the red carpet
gets rolled out. Boris Johnson set to speak in the coming hour. We will take you there live when we get it.
But for now, we're going to take a quick break. Stay with CNN. Plenty more to come.
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[09:50:56]
CHATTERLEY: Welcome back to a Special Edition of FIRST MOVE live from outside the U.K. Houses of Parliament. Just to remind you, we are
expecting comments from Prime Minister Boris Johnson fresh from his historic victory overnight. A huge majority, of course, for the U.K.
Conservative Party. We will take you to that statement the moment it begins.
But for now, let me give you a look at what Sterling is doing this morning, holding on to strong gains and U.K. stocks rallying as the Conservatives
savor the general election win.
U.K. bank stocks among some of the biggest gainers this morning, including RBS currently up some 11 percent. Let's talk this through. Joining me
now, Gerry Grimstone. He is Senior Adviser to Fenchurch Advisory and the former Chairman of Barclays Bank and Standard Life. Fantastic to have you
with us on the show. What are we seeing here in U.K. assets?
GERRY GRIMSTONE, SENIOR ADVISER, FENCHURCH ADVISORY PARTNERS: Well, I think it's a relief. I mean, we've been stuck in a quagmire for the last
three years and the U.K. has been pretty much uninvestable during that period. People didn't know whether we were going to go to black or whether
we were going to go to white.
But now the future is clear. It's a massive relief.
CHATTERLEY: Is it?
GRIMSTONE: Oh, absolutely clear. Because the thing about the U.K. is, once you have a large majority in Parliament, you're in power and you can
get things and you can get things done.
And what this country has lacked over the last two or three years is the ability to get things done. So I think business will be very excited once
they absorb all the facts of this.
CHATTERLEY: You make a great point, the lack of checks and balances actually, when you do have a party here that has such a significant
majority here. But just very quickly on this, it is not just one side in the negotiation when it comes to a trade deal with the E.U. over the coming
six months and then the next year, do you believe that Boris has the capacity here to get an agreement within that time frame? You know him and
you've traveled with him. You understand this man.
GRIMSTONE: Well, first of all, I think there's a massive desire on the other side of the channel to get this done as well. I mean their business
has been troubled by this in the same way that our business has.
So now that we are where we are, everybody is going to want to get this settled and I think people are under estimating the desire now to get
things done. I am very confident this will be done during this year.
CHATTERLEY: Who is Boris Johnson? Because we are going to see him probably in power now for a long time to the point you were making, five
years, maybe even two, given the swing that we've seen in votes.
You've traveled with him. You've seen him make deals. You've seen him talk to people. Just talk about the response that you've seen him get
around the world and why this matters in particular now?
GRIMSTONE: Well, I think he is the most interesting I've met.
CHATTERLEY: Interesting word, too.
GRIMSTONE: Yes. I went with him to India and people asked me, is this the King of England? I was with him in China and people were asking him, do
you know Harry Potter? I was with him in the Gulf. And it was, as you were with Lawrence of Arabia.
So he is a person who can adapt to situations very rapidly. He is much smarter than sometimes he likes to admit.
CHATTERLEY: Is he a soft Brexiteer?
GRIMSTONE: He's a pragmatic Brexiteer. I think he will strike whatever the best possible deal is and negotiating and dealing, as you see with
President Trump, this is a matter of guile. Nobody tells their opponent before you go into a negotiation what answer you want.
CHATTERLEY: Can he get a good deal out of the United States and Donald Trump?
GRIMSTONE: That's a very interesting question. I think the United States may try and overplay their hand a bit. Britain is a global country.
Britain likes dancing with a number of people. And Britain is going to look for trade deals, global deals across a whole range of countries,
including China, including the U.S. and of course, primarily, including Europe.
CHATTERLEY: Very quickly, was it more powerful as part of the E.U. because it is a global country, but it's now a much smaller one in terms of
striking these deals?
GRIMSTONE: I think our voice was suffocated in the E.U. I think Britain doesn't like being told what to do. You should never forget that Britain
is an island nation and an island nation has special characteristics.
[09:55:09]
GRIMSTONE: And I think we will be much more global. Boris is a globalist. Everything I've known and seen about him tells me he is a globalist. This
is going to be a very exciting five years going forward.
CHATTERLEY: Yes. I am excited now. This is a good way to end the show. Gerry, fantastic to have you with us. Thank you for that.
Jerry Grimstone, Senior Adviser of Fenchurch Advisory.
A quick look at what we're seeing for the markets right now. Remember, because this is not the only story. There are hopes now that we've got a
Phase 1 agreement between the United States and China, of course.
A big week for the United States. Remember NAFTA Mark 2 also agreed in the U.S. Congress as well. So a lot fueling the rally that we're seeing
ultimately in these markets, not just in the U.K., of course, but in the United States and around the world, too.
We are of course counting down to that statement from Boris Johnson coming in the next few moments. We will take you there live to listen in to what
Boris has to say. What the future holds for the U.K. with a huge Conservative majority.
That's it for FIRST MOVE. I'm Julia Chatterley live outside the U.K. Houses of Parliament. Our coverage continues. Stay with CNN.
(COMMERCIAL BREAK)
END
