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Turmoil Erupts in Britain after Brexit Vote; Brexit Volatility Grips Global Markets; Clinton & Warren Team Up to Take on Trump. Aired 6-6:30a ET

Aired June 27, 2016 - 06:00   ET

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

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: The Brexit turned into a regret it.

[05:58:15] UNIDENTIFIED FEMALE: Political parties in incredible turmoil.

UNIDENTIFIED MALE: It's an act of economic self-harm.

DONALD TRUMP (R), PRESUMPTIVE PRESIDENTIAL CANDIDATE: I think you're going to have this happen more and more.

HILLARY CLINTON (D), PRESUMPTIVE PRESIDENTIAL CANDIDATE: Bombastic comments in turbulent times cause more turbulence.

UNIDENTIFIED FEMALE: Chaos in California. A rally turns violent at the state capitol.

UNIDENTIFIED MALE: A number of scuffles broke out. And a number of assaults took place on the capitol grounds.

UNIDENTIFIED FEMALE: They're not welcome. And if they trip and fall in the process of that, good.

UNIDENTIFIED MALE: It's the worst I've ever seen.

UNIDENTIFIED FEMALE: We smelled gas in the house. We didn't know if it would catch fire.

UNIDENTIFIED FEMALE: It's been devastating. We've lost everything.

UNIDENTIFIED MALE: Everybody started screaming, "The water is coming; the water is coming!"

(END VIDEOTAPE)

ANNOUNCER: This is NEW DAY with Chris Cuomo and Alisyn.

ALISYN CAMEROTA, CNN ANCHOR: Just a staggering number of casualties there in West Virginia that we'll get into.

VICTOR BLACKWELL, CNN ANCHOR: It will take a long time to clean up after all that.

CAMEROTA: Sure is.

CHRIS CUOMO, CNN ANCHOR: Dozens of people lost their lives. It's not over. We'll be talking to you about what's going on in West Virginia, but let's say good morning here. Welcome to your NEW DAY. It's Monday, June 27, 6 a.m. in the east.

We have Victor Blackwell joining us. It's great to have you.

BLACKWELL: Good to be here.

CUOMO: We need it. A lot of heavy lifting this morning. The big story is Brexit and a big slice of be careful what you wish for. The political turmoil in the U.K. intensifying this morning after the vote to leave the European Union. Already, Brexit leaders are walking back some of their biggest promises amid a flurry of resignations.

David Cameron will be meeting with his cabinet, and Parliament convenes in just hours from now to address this crisis. All this as Secretary of State John Kerry heads to Brussels and to London.

So let's begin our coverage with CNN's senior international correspondent, Nic Robertson. He is live in Brussels. Give us the latest, Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Secretary Kerry will be arriving soon here very soon in Brussels. So -- to, if you will, become an intermediary in a position where the United States is a friend of the European Union and has a special relationship and is a friend of Britain, at a time where the European Union is essentially saying to Britain, "Show your credibility. Show you're honest. You've taken this vote. Let's see you move towards extricating yourself from the European Union," where the message that's emerging from Britain is one that has been very clear, as well, which is "We're going to take our time about this."

This is how Secretary Kerry put the importance of his visit here.

(BEGIN VIDEO CLIP)

JOHN KERRY, SECRETARY OF STATE: The most important thing is that all of us as leaders work together to provide as much continuity, as much stability, as much certainty as possible in order for the marketplace to understand that there are ways to minimize disruption. There are ways to smartly move ahead and in order to protect the values and interests that we share in common.

(END VIDEO CLIP)

ROBERTSON: But here's the harsh reality. As much as the United States has a special relationship with Britain, Britain is in a political mess right now. There is no real leadership. David Cameron has stepped down. There is no really strong political figure to lead the country as the European Union wants it to. The opposition, the Labour Party, is in free fall and breaking down, questioning their leadership. And you have Scotland at the same time, saying that it may go for a

second independence referendum to leave Britain and stay part of the European Union.

There is so much going on, so many moving pieces. This is the environment Secretary Kerry comes back into -- Victor.

BLACKWELL: And it's all happening very quickly. Nic Robertson there in Brussels, thanks thanks so much.

Well, after a massive selloff on Friday, U.S. and global markets are looking to smooth things out, steady the ship, as we started the trading week. But here's the question. Will it be another ugly day for investors?

CNN chief business correspondent Christine Romans joins us with the latest on that angle -- Christine.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Good morning.

Well, it certainly was an ugly day on Friday. No question. So does it stabilize today? This is what I can tell you is happening right now. You have U.S. futures still down a little bit here. Not a big surprise. You often see a little more selling after a really big bad day like that.

Really closely watching -- if this holds at -- this morning at the opening bell, 9:30, you'll see maybe a little bit of losses here. But really we're watching Europe and how Europe is continuing to process this really earthquake news.

You've got London down about 1 percent here, Paris down 1 percent, Frankfurt down, as well. So still more losses there. You saw mixed markets in Asia. So that was a little bit of a relief there.

We're really watching the pound here. The pound just devastated on Friday and continuing to lose a little bit of ground here. Take a look at this. This is the move here. Really a big, damaging move for the pound.

And it means that the dollar is stronger, so that's going to hurt -- could hurt earnings for big U.S. multinationals. So that's something to watch.

A lot of the money rushing into the gold market, into the bond market. And that means the treasury yield below 1.5 percent. That means mortgage rates are probably going to decline. That's really the only silver lining I can give you guys -- Chris.

CUOMO: Every time that pound drops and inflation comes, there are going to be more questions to the Brexit leaders...

ROMANS: That's right.

CUOMO: ... about where's the end of the rainbow here?

ROMANS: Absolutely.

CUOMO: All right, Christine. Thank you very much.

Presumptive Democratic nominee Hillary Clinton slamming Donald Trump's reaction to the Brexit vote. This as she prepares to team up with one of Trump's most vocal critics, Senator Elizabeth Warren. CNN senior Washington correspondent Jeff Zeleny is live in Cincinnati with more.

What can we expect?

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: good morning, Chris.

The fallout from the Brexit referendum certainly reverberating on the campaign trail. It's one of the reason Hillary Clinton wants this populist message from Elizabeth Warren to be front and center in her own campaign.

Now, Hillary Clinton has admired Elizabeth Warren from afar. Today for the first time on the same stage, she'll get an up-close look.

(BEGIN VIDEOTAPE)

ZELENY (voice-over): This morning, Hillary Clinton and Elizabeth Warren to make their campaigning debut, testing their chemistry in Cincinnati.

CNN has learned the Massachusetts senator is on a mates being vetted by Clinton. A choice that could potentially excite liberals and Bernie Sanders' supporters to enthusiastically back a Clinton/Warren ticket. Warren has emerged as one of Donald Trump's harshest critics.

SEN. ELIZABETH WARREN (D), MASSACHUSETTS: A small, insecure money grubber.

ZELENY: Appearing with Clinton as she prepares a new line of attack against the presumptive Republican nominee.

UNIDENTIFIED FEMALE: Stocks tank around the world.

TRUMP: Brand-new sprinkler system, the highest level.

UNIDENTIFIED FEMALE: He's talking about his new sprinkler system.

ZELENY: The Clinton campaign releasing a new ad, slamming Trump's response to the U.K. split from the European Union.

UNIDENTIFIED MALE: In a volatile world, the last thing we need is a volatile president.

ZELENY: Trump, touring his new golf course in Scotland the day after the vote, calling the economic fallout a good thing for his business.

[06:05:07] TRUMP: When the pound goes down, more people are coming to Turnberry, frankly.

ZELENY: And comparing the outcome of the Brexit referendum to the same momentum that's carrying him to the GOP nomination.

TRUMP: People want to take their country back, so I think you're going to have this happen more and more. I really believe that. And I think it's happening in the United States. It's happening by the fact that I've done so well in the polls.

ZELENY: While rallying support on Sunday from the nation's mayors meeting in Indianapolis, Clinton cautioned against a Trump presidency.

CLINTON: Bombastic comments in turbulent times can actually cause more turbulence.

(END VIDEOTAPE)

ZELENY: Now, all this comes as Clinton's lead appears to be widening in this race with Donald Trump, yet conflicting signs over the weekend of just how much. One poll shows her with a five-point lead. That's the NBC/"Wall Street Journal" poll. And the ABC/"Washington News Post" -- post -- poll shows a 12-point lead.

So Chris and Alisyn, still a Clinton advantage at this point. But having Elizabeth Warrens as a tryout today behind me here will be one of the first steps in terms of who she picks as her vice president. Of course, other people are on that list, as well -- Chris and Alisyn.

CAMEROTA: Jeff, we'll be watching along with you. Thanks so much for all of that.

So now let's discuss the fallout of the Brexit vote with our panel, CNN political analyst and presidential campaign correspondent for "The New York Times," Maggie Haberman; CNN political commentator and political anchor for time Warner Cable News, Errol Louis; and global affairs and economic analyst Ali Velshi. Great to have all of you here.

So now, days after the Brexit vote, the dust should be settling, but it is not settling. In fact, there's this phenomenon called regrexit, or regret. Ali, what's happening?

ALI VELSHI, GLOBAL AFFAIRS AND ECONOMIC ANALYST: Well, I don't think the leave campaign -- and I thought this before -- did a very good job outlining exactly what Brexit means. As we know, a lot of U.K. citizens didn't really understand what the E.U. was, certainly didn't understand the implications. And they led a campaign that was about immigration, that was about haves and have nots, and they didn't focus on the actual mechanics of a very complicated trade deal. Trade deals are boring. Nobody ever campaigns on a trade deal.

And now they're realizing this trade deal may fall apart. There will be inflation. The currency continues to be at almost a 30-year low. So there are consequences that the leave campaign didn't tell them about. And now we're starting to face them.

CUOMO: You know, the euro versus the pound versus the dollar. You know, Ali could talk to you about this all day. It's something that people don't want to pay attention to. But now they're watching their pound, and every time it goes down versus the dollar, people are getting more angry there. That's a tough thing to deal with politically.

But they're just starting to see what this is going to mean. We had the leaders come out and say, "Well, we're not going to get out of this that quickly." That's a huge selling point, Maggie: "We're going to get out like that." And the vig to the E.U., which they were talking about, this money, you know, depending on how many tens of millions of pounds you want to put it. Well, that was supposed to shore up the health care system. "Well, we don't know what we're going to do with it." Where could this lead?

MAGGIE HABERMAN, CNN POLITICAL ANALYST: A massive amount of uncertainty. We don't quite know where this is going to lead. We know in terms of here, it is having a roiling effect on the stock markets, and that is going to have an effect on the presidential race, potentially. Normally speaking, not to take it away from looking across the pond, but in terms of our election...

CUOMO: You Americans. It's all about you.

HABERMAN: In terms of -- in terms of our election, normally speaking on a time of economic uncertainty, that should be a strong case for a change agent. And that would be Donald Trump.

The problem is, Donald Trump, I think has had trouble grasping the fallout from this. He happened to be in the U.K. right after Brexit. He sounded as if he was cheering for economic calamity, saying that he does well when the pound goes down either way, because people show up at his resorts. This could be a problematic message. I think that we don't know where this goes there. We don't yet know what the impact is here. But the short-term economic impact is not good.

CAMEROTA: To Chris' point, let's -- let's look to see if some of the leaders of Brexit did overpromise in what they claimed would be the wonderful upshot of all this. So one of the architects, Nigel Farage, seemed to be backpedaling on the idea that this would save millions of dollars every week, because Britain wouldn't have to give it to Europe. So listen to this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The 350 million pounds a week we sent to the E.U., which we will no longer send to the E.U., can you guarantee that's going to go to the NHS?

NIGEL FARAGE, LEADER BEHIND BREXIT: No, I can't. And I would never had made that claim.

UNIDENTIFIED FEMALE: Seventeen million people have voted for leave.

FARAGE: Yes.

UNIDENTIFIED FEMALE: Based -- I don't know how many people voted on the basis of that, but that was a huge part of the propaganda. You're now saying that's a mistake? FARAGE: We have a 10 billion pound a year, a 34-million-pound-a-day

feather bed that's going to be free money that we can spend.

(END VIDEO CLIP)

CAMEROTA: So maybe they should have had those details before they voted.

ERROL LOUIS, CNN POLITICAL COMMENTATOR: Yes. Look, the U.K. and that leader in particular, they have made the most inflammatory comments. I mean, really what was driving people were sort of primal emotions. It wasn't really about sort of saving a little bit of tax money here and there. It was really more about the immigration fears that have really roiled the continent, the fact that the leadership, especially U.K., have never really come clean with the fact that the population of Europe and country after country is collapsing. Not just declining but collapsing. And they actually need immigrants.

[06:10:22] So for over a decade, the quiet encouragement of movement of people and of immigration has really changed the nature of Europe. And by not coming clean with people, they really sort of sold them a bill of goods. And I think now the bill has come due.

CUOMO: Too bad. It's like one of those movies, Ali, where you get the slap and your face goes like this and the hand comes the other way and goes back.

VELSHI: Right, right.

CUOMO: The first one was, wait a minute, we already control our immigration? It's not the E.U. that's making these people come in and this bogus ad about going to Slovenia. And then it came back the other way, which was, wait a minute, we're going to have to negotiate trade deals now as what number powers the U.K. versus the E.U.?

VELSHI: On Thursday, they were the fifth largest power in the world. Now they're the sixth largest power in the world. They were an instrumental part of one of the world's biggest powers. So America is roughly equal to the E.U., which is roughly equal to China in terms of trade weight.

So these three groups were punching at their own weight. The U.K. was a leader in the E.U. Now they're the sixth largest power in the world. So as much as President Obama doesn't want to reiterate this, they do kind of go to the back of the line. Trade negotiations will take years. They're the most boring thing on the earth, but they're necessary. So the U.K. can't do without this.

To Errol's point, immigration in the U.K. and through Europe and in Canada and in the United States and in Australia is a net economic positive all the time. Nobody wants to figure that out. And the United Kingdom is an island. You can't get into it but for getting there by boat, swimming, or by plane or a train from underground. No matter how you go into the United Kingdom, you have got to show your passport every time. If you're an E.U. citizen, you have an electronic passport or an electronic... CUOMO: It was already that way.

CUOMO: It's not like -- if you walk into Greece, you can walk all the way to northern France unmolested. You cannot do that in the United Kingdom. They control their borders more than any other country in the European Union, possibly except for Switzerland and Norway, because they don't have full integration into the E.U.

So the whole thing was a farce. And that 350 million a week that Nigel Farage keeps talking about, it's not. They give 350 -- 350 million pounds and get about 120 million back in other benefits. So it's just been lie after lie after lie, and people bought it.

CAMEROTA: Maggie, let's talk about the parallels between what we saw there and here in the U.S., including one of the leaders of the leave movement, Boris Johnson, who many have likened to sort of Britain's Donald Trump. What are the similarities?

HABERMAN: Similarities are sort of, among other things, a stylistic approach, among other things. Boris Johnson was a major proponent of the leave campaign. You've seen Donald Trump as a major proponent of, you know, similar fears, as you were saying, about immigration, about trade, about borders.

The problem is that there is certainly an anti-globalist sentiment that is there, that is in the United States. The difference is, the electorate there -- this was an up-down referendum. We do not have up-down presidential races in this country. We have the Electoral College. The voters there were primarily white. This is going to be a lot of black voters, a lot of Hispanic voters, a lot of Asian- American voters are going to play a role in the presidential race here. That is where there are not parallels.

Where there are parallels, as well, to your point, in terms of the factual claims or lack thereof, in terms of making statements that just turn out to be broadly untrue, claims that, for instance, a staple of Donald Trump's campaign has been that President Obama and Hillary Clinton want to bring in, I think it's a 550 percent increase in immigrants. That is not true.

You know, we've seen in this presidential race throughout the Republican primary especially, but we also saw some in the Democratic primary, but more on the Republican side, claims of fact that just were not there. We had seen these broad based statements, and it played into people's fears. People are angry. There's a lot of voters out there who have not had a wage hike in a very, very long time.

And the problem for these voters -- and we were talking about this earlier -- is when this election is over, if Donald Trump loses, there's not going to be a whole lot of incentive to help those voters. And that is going to be something that this country is going to have to grapple with, just as we are seeing what happens post this explosive vote.

CUOMO: It matters. You have the same bloc that motivated the vote there could motivate the vote here this time. And they've been skipped over for a generation. So Errol, when we come back, we want to unpack how it plays out here, looking at what Brexit is as a lesson going forward. We'll do that.

CAMEROTA: Let's get to Victor for what's coming up.

BLACKWELL: All right. Let's stay with the race for president here. The troubled marriage between Donald Trump and the GOP is getting tense. The Senate majority leader was asked if Trump is qualified to be president. What's his response? Find out next.

(COMMERCIAL BREAK)

CUOMO: Here's something new. The Senate majority leader, Mitch McConnell, offering tepid, not too hot, not too cool, support for Donald Trump as the presumptive GOP nominee slips in the polls a little bit.

Meantime, a conservative heavyweight so fed up with Trump, he says he's leaving the party.

Let's get back to the implications with our panel: Maggie Haberman, Errol Louis, Ali Velshi. Errol, we have been talking as we went to the break about, all right, so how do we diagnose what's going on here in this election looking at what happened with Brexit?

Maggie pointed out the narrative is something to look at. You're angry, you're angry, you're angry. We'll change, we'll change, we'll change. Now they don't deliver. What happens? This slice of be careful what you wish for, how do you project onto this election?

LOUIS: Well, right. I mean, that's been on one level the story of the Republican Party for the last several cycles, is that they promised, they promised, they promised, then they don't deliver. People get even more angry. The next group comes along and says, no, I'm really going to do it, or I've got a more extreme promise. And that has led us to Donald Trump.

And so now he says, I'm going to do all kinds of different things. "I'm going to stop Muslim immigration somehow. I'm going to find and deport 11 million people and somehow do that in a way that's constitutional and feasible." And some people have bought that.

The polls are suggesting that far from a majority are buying that at this point, but that's really what the election has turned into, to a great extent. Now Hillary Clinton, I think, does not want to go down that rabbit hole.

And so she has been really trying to sort of avoid that and sort of point out that you don't want the kind of turmoil that we're seeing now in Europe. You don't want to have a question in front of you like Brexit. You know, if you turn the election into that, you're going to end up with all of the disappointment, all of the confusion, all of the economic dislocation that we're starting to see in Britain.

[06:20:23] Now, all of those things are putting, I think, a political sort of template on top of something that's completely different. I mean, as Ali talked about, I mean, immigration and trade, these are boring things for a lot of people. So if you turn it into politics, you start talking about images, you start making the kind of statements that we've heard, especially from Donald Trump, it all turns into a very different kind of a question. The separation between the facts and the vote really starts to widen, unfortunately.

CAMEROTA: So Ali, over the weekend, three high-profile Republicans say that they won't be voting for Donald Trump. George Will went so far as to say he's leaving the Republican Party as a result of things Donald Trump has said. Brent Scowcroft said that he would be voting for Hillary Clinton. Hank Paulson said he can't vote for Donald Trump. You know, we've interviewed scores of Trump supporters. They won't care.

VELSHI: Right. So the problem is the three people you named are policy wonks. They're guided by policy discussions. They are conservatives in the way that they -- they can speak about it from different angles, from a social policy perspective, from a defense policy perspective, and from an economic perspective.

This is where Donald Trump's weakness is greatest, when he has to speak in specificity. We're a month away from the -- from both conventions having been done, after which we're going to get into debates, during which they're going to have to speak with great specificity about things.

That's where Hillary Clinton, whose campaign speeches are a little torturously dull, is going to start to shine, because she'll have specific answers to things. And Donald Trump's vague generalities about it's going to be great. Russia's terrific, I had a Miss Universe there. Scotland is ecstatic over Brexit.

This is going to start to hurt him, because he's going to start to be pressed, hopefully by people like you, with very, very specific questions. And then, Errol, that distance between fact and fiction is going to start to narrow again.

CUOMO: But here's the pushback on that. You check Trump all day long on facts. Believe me, we've got the scores here. His supporters say, "I'm still angry."

And then they look over to the other side, Maggie Haberman, and Hillary Clinton is pitching and selling the worst thing to pitch and sell in politics, which is the status quo. That's not an easy compromise for voters to make. "I'm angry. This guy, Trump, maybe I don't know if I can believe it. I look at you and you're telling me the same old, same old? That's what you promise me?"

HABERMAN: There's a reason that there have not been that many third- term cases of essentially the same party over the last 50 years. We've had it once. We had it with George H.W. Bush after Ronald Reagan.

It is hard to get elected as a member of the same party for what is essentially a third term. CUOMO: Of course, he was a sitting V.P. It's a little different

here, but...

CAMEROTA: It's not really that different. I mean, she's essentially -- she is running essentially as a continuation of Obama's legacy. She's going have to go for some separation at some point in the fall. We're not really sure what that's going to look like. We're going to assume that the economy holds and that will be good for her. If we don't assume that, that is problematic for her.

What is good for her is that President Obama's approval rating is quite high. And it is, I think, partly in contrast to this very sort of toxic presidential race that we've seen play out over many months, but that it's certainly much higher than her numbers or than Donald Trump's numbers.

To your point about his supporters, he doesn't at the moment -- we saw two polls come out in the last two days. They both showed -- they've showed a widely different gap in terms of support. But he's behind in both, Donald Trump. He is losing to Hillary Clinton in both. He has not been ahead in a horse race poll in a month, and that is a long time. And we saw Mitt Romney have a similar struggle in 2012, not to this degree.

But at a certain point -- and this is the risk for Trump -- when voters think that you are insulting them, when voters think that you are saying you don't matter, they don't hear anything else. They don't hear the rest of what you're saying. So for Trump, the question is going to become, can he turn these negatives around? He doesn't have enough of his own supporters who he had in the primary to get him elected in the general election. He needs to make new supporters. It's not clear yet that he's going to be able to do that. He has a very small amount of time.

He has not been up with ads. The super PACs supporting him have not done any battleground ads. He is very low on cash. Hillary Clinton is obliterating him on television in key battleground states. At a certain point, you can say, and he will say, "I'm -- I'm closer than I could be or I'm closer than I think I should be, and I haven't spent that much money," but losing is losing. So he has to make up that ground at some point.

CAMEROTA: Meanwhile, during the Sunday shows, Mitch McConnell, Senator Mitch McConnell, was asked if he thinks that Trump was qualified to be president, and he would not basically answer that. I mean, he said, "Basically, I'll leave it up to the voters." This has been a real predicament for various Republican leaders when they're asked direct questions like this.

LOUIS: Well, that's right. And it's actually in some ways the most devastating thing Mitch McConnell could have said. Because the question of whether or not you're qualified, whether you even belong in the race, whether it's possible, you know, not a good policy or a bad policy, but you're just not ready to do any of this, that is Hillary Clinton's knockout blow. That's what she's trying to do. [06:25:07] Now, Donald Trump is trying to do the same thing to her. And so they're really sort of polarizing the electorate. That's why we see so much anger. That's why we're seeing some of the extreme statements. That's why we're going to see the numbers go in the direction that they're going to go. But for Mitch McConnell, for the head of the party to say that we have a nominee that I can't really come out and just say he belongs in the White House, that's tough for Trump. He's got a lot to overcome with that.

CUOMO: Especially from politicians. You know, if there's one thing they do well, you know, it's give a false positive. You know what I mean?

LOUIS: Right, right.

CAMEROTA: Panel, thank you very much. Great to talk to you.

Let's get over to Victor for what's coming up.

BLACKWELL: Alisyn, thanks.

I wonder if you've seen this, the chaos in California. A rally turns violent at the state capitol, leaving several in the hospital. Look at this. What prompted this violence? That's next.

(COMMERCIAL BREAK)

BLACKWELL: Welcome back to NEW DAY. Bottom of the hour now. Violence breaks out at a rally in California.