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Global Markets Jolted By UK Vote To Leave EU; UK Votes To Leave EU, Cameron To Resign; Could Other Nations Vote To Leave European Union?; How Does UK Vote Impact Presidential Race?; Bracing For Brexit. Aired 6-6:30a ET
Aired June 24, 2016 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
[06:00:00] UNIDENTIFIED MALE: -- maybe the same in America. It's the Trump style, the haves and have-not's, and I think that's what's playing out now. There's been, I think, a huge anti-political result.
CLARISSA WARD, CNN SENIOR INTERNATIONAL CORRESPONDENT: A key motivation behind the leave movement -- immigration.
NIGEL FARAGE, LEADER, UKIP: What we want is immigrants who will come to our country and who will be able to contribute.
WARD: The leave campaign railing against the influx of migrants from other E.U. countries, pledging to control their own borders.
RAY FINCH, BRITISH MEMBER OF EUROPEAN PARLIAMENT, UKIP: We don't want open door migration. What happens is big business actually suppresses the wages and the aspirations of ordinary people by bringing in unlimited number of cheap labor.
WARD: Nigel Farage, leader of the anti-immigration UKIP party and one of the most vocal campaigners to leave, says it's time for Britain to cut itself from the E.U.'s complicated bureaucracy.
FARAGE: It's independence day. The ordinary, decent people in this country have overturned the establishment, the big banks, and the big businesses.
WARD: What's next? A long period of negotiations, as the world's fifth largest economy tries to disentangle itself from the European Union.
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WARD: The concern now is, will the contagion spread to other European countries? Will we see other countries try to leave the E.U.? We've already heard today, Alisyn, from right wing leaders in the Netherlands and in France, demanding their own referendum.
ALISYN CAMEROTA, CNN ANCHOR: Just incredible to think of the ripple effect that this might have. Clarissa, thanks so much for all of that reporting. Well, the Brexit vote sending the British pound into a tailspin. It's jolting markets around the world, including the U.S. For the latest on global market reaction, let's bring in CNN Money correspondent, Alison Kosik. Alison, what are you seeing?
ALISON KOSIK, CNN MONEY CORRESPONDENT: Alisyn, I am seeing the global financial markets in crisis mode. Let me just go right to them. You're seeing worldwide just how the markets reacted. Asian markets right now are closed, but you see they fell deep into the red, especially in Tokyo. In Tokyo, the Nikkei falling almost eight percent. Right now, London, Paris, and Frankfurt markets are open. All the European markets are open. You're seeing them deep in the red as well. Although there has been some recovery, it's still not easy to take when you see these huge percentages to the downside. One of the more stunning charts of the day, I would say, is the pound versus the dollar. We're seeing the value of the pound dropping to its lowest level since 1985, and you see the quick reaction. As soon as that vote came in, the tally of the vote, around 1:00 am here, and then suddenly just plunging throughout the morning. The good news here is that if you decide that you want to go to the U.K. to travel, now may be your time, because you're going to get more bank for your buck if you're carrying dollars in your pocket, with $1.38. Just a couple of days ago, it was at $1.50. So that's good news if you're looking to travel. What do we look for for our 401(k) though? Expect a really rough day. Already, we're seeing futures down. The Dow could open as much as 500 points lower. We are just a couple of hours, three hours from that opening bell. The good news here, if you're diversified, if you're in for the long haul, if you've got a strong stomach, I would say today is a day for opportunity. Alisyn and Chris --
CHRIS CUOMO, CNN ANCHOR: Well, you're putting the silver lining spin on it, and that's good. The problem obviously with all these analyses is, it's this uncertainty. So that's why the markets are plunging. They don't know for sure what the Brexit will mean. They don't even know what the procedures are to get out yet, let alone the impact, and that's what the markets don't like. So we'll see where that goes. Let's try to get some perspective on how we got here. Let's bring back Clarissa Ward and bring in CNN chief international correspondent, Christiane Amanpour. She's in Westminster in front of the houses of parliament. I've been watching you all morning, Christiane, dealing with the outcome here, and the perspective for it. So let's do something here for the American audience. Let's take one step back, Christiane. Tell us how we got here. What is driving this situation that led to the vote?
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well look. In short, there is a lot of populist anger around Europe. You see it in the United States as well. And the people of Great Britain who've been historically, at least half the country euro skeptic, have directed their anger at globalization, at immigrants, and at this faceless, what they say, European bureaucracy. So that is basically what's happened, and it's been fanned over the decades by right wing tabloids here who have perpetuated all sorts of myths about the E.U. That is not to say that there are not legitimate concerns about all the crises the world has been facing, and particularly, concerns over immigration. All of that created a perfect storm and that is what has led to this vote, although it did take everybody by surprise. The whole world is watching because of its political implications. But you know, the Mayor of London, the first Muslim mayor, as you know, London went overwhelmingly for remain, said this to me. He said he really wanted to reassure America and the world that this was still a stable and prosperous country. Listen.
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[06:05:05] SADIQ KHAN, MAYOR OF LONDON: We will recognize the will of the British people. They voted for us to leave the European Union. I mean, London voted quite decisively to remain in the E.U. as did Scotland and Northern Ireland, but the British public have spoken. My message to friends and businesses and investors in America is we're going to carry on being an open-minded, outward looking country.
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AMANPOUR: So Chris, you ask, how did we get here. The bottom line is sort of simple. David Cameron, a few years ago, thought he was being outmatched on his right flank by UKIP, the U.K. anti-immigration party here. It's leader, Nigel Farage, has forced him to this referendum, and he made that gamble, that they would have a referendum, settle the issue once and for all, but of course he thought he would win. He's lost, he's resigning, and today, at this moment, the face of this leave victory is the face of Nigel Farage. None of the others have come out and spoken publicly yet about this. So Nigel Farage is claiming victory, and that also concerns Europe and others, because it's a very nationalistic, white identity politics of xenophobia and anti-immigration. Chris --
CAMEROTA: Clarissa, let's talk about how quickly this -- how much surprise people were caught by with this vote as well as David Cameron's quick resignation. So what does happen now? How is this all supposed to come to be over the next two years?
WARD: Well, so what you heard, Alisyn, was that the Prime Minister said that he himself will not invoke article 50 of the Lisbon Treaty. That is the article that would essentially start the process of Great Britain leaving the E.U. He said, that is for the next prime minister, for a Brexit government to enact that. Now, this next prime minister is likely to take place or come into power in the next three months, before the Conservative Party conference, which will take place here in the U.K. in the month of October. So right now, we're in this period of absolute uncertainty, where we don't know what the next three months will look like. We've heard from various European leaders. We heard from David Cameron, that nothing is going to change overnight, and certainly it's fair to say, Alisyn, that nothing will happen until article 50 is enacted. That won't happen for another three months. Then you're looking at two years as the negotiations begin. What will a Brexit actually look like? And at the end of the day, the reality is, we are in uncharted territory here and nobody has any answers.
CUOMO: It's one of those situations where as Clarissa talks, as Christiane talks, as this sinks in, I'm thinking about all the umbilical ties that the E.U. created among its member states that are now -- the U.K. is going to have to not just negotiate an exit, but a continued relationship. And you have to remember, U.K. isn't Portugal -- not to disparage Portugal, but in terms of its role within the Union, and the need for the weaker states to rely on the stronger states which was really just Germany and Britain right now, has become increasing over time, so the concern, Christiane, in hearing you this morning, now that we kind of have our heads around how we got here, is, who's next? Fears of immigration, what you're calling the xenophobia that took root in the U.K. -- that's not unique to the U.K. as you know better than anybody. So we're hearing about other member states wanting to have referenda -- what do you see in terms of the momentum?
AMANPOUR: Well, I mean, that is exactly what's happened. The right wing, Marine la Pen, the National Front, again, anti-immigration, anti-E.U., that party which is going gangbuster, and there's an election in France coming up next year -- she has immediately called and demanding a referendum. Over in the Netherlands, another country that is consider ripe for a Nexit, the very anti-immigration, anti- E.U. politician, Geert Wilders, is also demanding a referendum. So one of the most concise comments, after this result was clear, was from Germany's Social Democrats in the coalition there in Germany, and the leader said, damn, a bad day. So they are very cognizant that they are in a really, really tricky, uncharted moment. They want to be nice to Britain but they don't want to be too nice because they don't want to give any carrots to any other countries who think they're going to spin off and do the same thing. It's an extraordinary and unprecedented moment right now, and it's going to take a lot of careful politics to get this back on an even keel if indeed that's possible.
CAMEROTA: So Clarissa, what's the thinking, philosophically? That things were just happening too quickly? That the face of Europe was just changing too fast, given the migrant crisis from Syria and elsewhere, that people just wanted to sort of apply the brakes here?
[06:10:03] WARD: I think that's absolutely right, and there's no question that particularly, when you look at the events of the last year, the massive influx into Europe of refugees. It really hit a sore spot, a real bone of contention, particularly here in the U.K. And what you saw, if you look at the breakdown of the demographics, what you saw is just how divided this country is. It was very interesting. Scotland overwhelmingly voting to remain in the E.U. But England, with the exception of London and Birmingham and a few other key cities, essentially voting by a landslide to leave the E.U. So it gives you a sense of just how divided this country really is, and I think it's a wake-up call for people in power that there is this growing voice of people who feel that they haven't been heard, that they're tired of the establishment, and that they want to have more of an active role and an active voice, and essentially, I think you're seeing the same thing in the U.S., too, Alisyn.
CAMEROTA: It sounds very familiar. Clarissa, thank you for that breakdown. Christiane, thank you, as always, for all of your insight into this. It echoes exactly the argument that we've been having during this political election.
CUOMO: It does, on some levels. There's no question that there is an inflection point because of immigration that's going on there and what they've seen with recent waves of violence, but the Brits have had a problem with the E.U. for a long time. There was a lot of talk in the beginning of this formation about them having conditional membership. They never wanted the pound tied to the euro. So there's been some sophisticated problems over time made manifest by this crisis. So we're hearing about the reverberations back here in the U.S. Certainly a fair story line at this point. Donald Trump especially has jumped on this ahead of his opponent, Hillary Clinton, because he believes this type of referendum plays to advantage for him about what he wants to see in the U.S. election. So he supports the Brexit, calling it a great thing. He just put out a very long statement on Facebook about it and interestingly, Trump had been underselling relations with the U.K. and Cameron. Maybe we'll have bad relations? Sara Murray is with Donald Trump right now, and Sara, we're waiting for him to speak, and now in his statement, he's saying, we'll be tighter to the U.K. than ever.
SARA MURRAY, CNN POLITICS REPORTER: That's right, Chris. It's pretty clear that Donald Trump sees parallels between the Brexit and between what's driving his own presidential campaign and the success he's had so far in the United States, and when he was speaking to reporters a little bit earlier this morning on his way into the golf course, he called it a great thing. Take a listen.
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DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I think it's a great thing. It's an amazing vote. It's very historic, and (inaudible).
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MURRAY: Now, obviously there are a lot of questions right now about how the Brexit will impact U.S. markets, but also how it will impact American relationships with Europe and with Britain going forward, and as you said, Donald Trump released a lengthier statement, essentially pledging a very close relationship to continue with Britain. He said, a Trump administration pledges to strengthen our ties with a free and independent Britain, deepening our bonds in commerce, culture, and mutual defense. And Chris, it'll be interesting to see how he continues to address this here. Remember, Scotland did not vote to leave. Scotland voted to stay. So there are many people right here in Scotland who are not going to be particularly happy to hear this from Trump today. Back to you.
CUOMO: You know, you had the different nations there. Ireland came out differently on it, but now they're all going to have to be united in this result to figure it out together. Sara, we'll check back with you in a little bit. Again, we're waiting for Donald Trump to make some statements on the ground here. We'll bring them to you when he does. The themes that played out in the Brexit, Britain's exit from the E.U., they will sound familiar to you. Immigration, borders, nationalism, these are the themes that Trump talks about all the time. They were at the center of the Brexit vote. So, how will he spin this to play to advantage in the U.S. election, and what is the reality about what all of these tanking markets will mean for you? We'll take a closer look, next.
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TRUMP: I think it's a great thing that's happened. It's an amazing vote. It's very historic. People are angry, all over the world, they're angry. Angry over the borders, they're angry over people coming into the country and taking over, and nobody even knows who they are. They're angry about many, many things. This will not be the last.
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CAMEROTA: That was Donald Trump in Scotland this morning. He's there for personal business, but of course he's already weighed in on what's happening there, calling Britain's vote to leave the E.U. quote, a great thing. Let's discuss this with our CNN panel. We want to bring in political analyst and host of "The David Gregory Show" podcast, David Gregory. CNN political analyst and editor in chief of "The Daily Beast", John Avlon. Guys, great to you have. John, is there any way this morning at this point to figure out what this means for the U.S. presidential election?
JOHN AVLON, CNN POLITICAL ANALYST: This is resonant to the U.S. presidential election, as distant as it may seem. Because, as Chris pointed out earlier, there's a flow through on the issues that motivated this vote, on the populist right -- anger at immigration, frustration with trade, distant bureaucracies, and concerns about borders. Those are many of the same forces that are fueling Donald Trump's rise and conservative populism within the United States. So he, already in his brief statements today, as we await that press conference, is drawing a direct line between this vote and the forces that have propelled him to the Republican nomination.
CUOMO: He has a much more extensive statement on this, that we'd like to read to you.
CAMEORTA: Oh, would we?
CUOMO: Yes.
CAMEROTA: Let me do that right now. Here's Trump's full Brexit statement. The people of the United Kingdom have exercised the sacred right of all frees peoples. They have declared their independence from the European Union and have voted to reassert control over their own politics, borders, and economy. A Trump administration pledges to strengthen our ties with a free and independent Britain, deepening our bonds in commerce, culture, and mutual defense. The whole world is more peaceful and stable when our two countries and our two peoples are united together as they will be under a Trump administration. Come November, the American people will have the chance to redeclare their independence. Americans will have a chance to vote for trade, immigration, and foreign policies that put our citizens first. They will have the chance to reject rule by the global elite and to embrace real change that delivers a government of, by, and for the people. I hope America is watching. It will soon be time to believe in America again. [06:19:57] CUOMO: So David, Trump is in the right place at the right
time. By planning or by chance, it's good to be in Scotland right now to weigh in on this, especially with its outcome. However is there risk in being too early on his enthusiasm for the outcome? You know there's going to be pushback from the bigger member states. There's going to be confusion about what this means in-house for the U.K. and how they move forward together.
DAVID GREGORY, CNN POLITICAL ANALYST: Yes. I think those are all good points, not to mention, the to mention the President of the United States, who has already called for Britain to remain in the E.U., but I think as John was saying, there are ties, there are parallels here between U.S. politics. It's economic stress, it's national ID, it's a fear of immigration -- it's distrust in large institution or as global elites, something he used in his statement. And I think for Trump, there's a political boost in this which is, there's a kind of common theme that's coursing through this part of European politics and U.S. populist politics as well. But there is the danger, and I think it's this -- there is a huge split in this vote in Britain. It's certainly going to divide the E.U. Just like there is a split in our politics in America as well. Trump still needs to navigate this in a way where he has to think about how he would govern through something like this. You can't just allow the populism to course through your body and the body politic when you're president of the United States, and I think that's the line that he's going to have to walk, especially being so early. And of course, He's in Scotland, which voted to stay. So he's not going to find that kind of support on the streets.
AVLON: I mean look, I don't think Donald Trump is particularly interested in the nuances of governing, right? He is a broad brush, bumper sticker politician. He himself right now is blurring on this trip the lines between personal business and presidential politics. I think governing is an afterthought to this campaign to date. Now that might change. But what's different about today is, is the flow- through between that Britain first impulse and Trump's America first slogan. The fact that populism is at its heart a reaction to globalization, often driven by fear, but also real concerns about increasingly distant bureaucracies governing folks and localities, and that in the urban/rural divide we even saw in this vote that we see in American votes so often. Because London voted overwhelmingly to stay in the E.U. So there are flow throughs. It is a high moment, and Trump, I think you can already see, sees it as a validation of a larger wave that he just might just surf into the White House.
CAMEROTA: David, what lesson should Hillary Clinton draw from this?
GREGORY: Well let me just say, I think all of that was well said by John and I agree. You know, I think Hillary Clinton, this is another reminder of I think the potency of the Trump message. We've been focused in the last month on all of his missteps and self-inflicted wounds. In some ways, what I think John is saying too, that this wave that he's able to surf a little bit today, it gives him a political boost. It's a reminder of the kind of politics, the messaging, that populist angst that he brought into the primary campaign. It may scare a lot of people, but there's a lot of people who are going to embrace it. And I think Hillary Clinton needs to recognize that. I think she, in her own response to this, needs to find a way to acknowledge what is coursing through British politics and understand what the parallels are to America and how to try to respond to that in a different way than Donald Trump is responding to it, because as John said, he's a broad brush bumper sticker politician. He's not recognizing, of course, the benefits that immigrants provided to Great Britain, for example, to the United Kingdom. Just as he's understating what kind of impact immigration has in the United States. So I think, this is the role that he's got to play in trying to provide a broader context for all of this.
CUOMO: But not getting too deep on the implications is smart for Trump, here, intentional or unintentional. Because the U.S. is in a different situation. We're not part of a union. We are in many ways an island here, and you know, even he would say, other than immigration, which he does believe he introduced into the national dialogue, he'll say, no, no, no. You guys still have it wrong about me. I didn't create this. I had the right read on the people from jump, and that's how I knew I could win this election, because you guys were all still talking to yourselves and I was listening to people about how angry they are, and that's what he's pumping up right now. The question is how he tries to translate that in his message about what happened in Brexit, and we'll give it to you as soon as it comes to the podium.
GREGORY: Can I just say, whatever economic dislocations there are, the impact on the markets, all of that turmoil, that could actually be a real problem for Trump as he sells his populist message, as people around the globe take all this in and really worry about it.
CAMEROTA: That's a good point. There's always unintended consequences of every victory. So, guys, stick around. We do want to get your insights further in the program. Later this morning, we'll talk with Senator Bernie Sanders. How does he feel about the Brexit vote and why is he still refusing to concede in this race that he cannot win? That's coming up at 8:30 Eastern. Also, we are waiting for Donald Trump to speak in Scotland. He is there, as we've said, on personal business. But we do expect him, of course, to weigh in, as he already has a bit, on the Brexit vote. So we will have that for you live as soon as it happens.
[06:25:03] CUOMO: All right. And one domino leads to another. So you have the U.K. by referendum voting to separate from the E.U. Well, now what? What is this article 50? How does it happen? Where does it leave the U.K.? And what does it mean for the other E.U. members? Next.
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CUOMO: That music makes it sound like this is some kind of opera that's going on, and it has played out that way. People were given the power in the U.K. and they have spoken. Britain is going to exit from the European Union. The markets are going crazy, because of the uncertainty and the surprise, and we don't even know what happens next. How does this divorce look? How long is it going to take? How real is it? It's never happened before. CNN's Erin McLaughlin is live in Brussels, Belgium, with how this process plays out. What is the theoretical anyway, Erin?
ERIN MCLAUGHLIN, CNN INTERNATIONAL CORRESPONDENT: Well, Chris, British Prime Minister, David Cameron, has said that he intends to step down in October and it will be up to his replacement to invoke what's called article 50 of the E.U. treaty. It's essentially an escape clause. And only then can negotiations begin.
