tv CNN Newsroom Live CNN June 23, 2016 9:00pm-1:01am PDT
the majesty of the process whether or not you like the result, the reality tonight, is that british people have voted. to leave the european union. all the major networks called it. it will be the smallest of majorities. the ballot has spoken. it appears tonight, that brexit has won. >> the british exit from the european union looks more likely than ever. the brexit camp will be victorious. this is what it came down to, performed better than expected across england and wales, and it has made the leader jubilant.
independence day is what he is calling it we don't have him. earlier in the evening, it seemed more uncertain, later on it, sounded like a victory speech. >> remember, this is not like a parliamentary election or u.s. presidential election. 51.6%, remain at 48.3, leave actually has a small, persistent gain at the moment. >> it is all you need. one person, one vote and a referendum. we have reporters in the two camps, max foster is at downing street, where the prime minister
has been campaigning hard. david cameron, will he have to step down? >> reporter: who know what is is going on inside that building behind me. crisis talks. their market is opening in a few hours tonight. the pound is tanking, the euro, tanking against the dollar. that is questioning the european project. and predictions that stock market is falling as well. not just here, but around the world. at that time, you need stability. he is not seen as a incredible leader, before this unfolded. the view was that if the remain campaign didn't win, the prime
minister's position is unattainable. does he resign or find a compromise, does he say he will stay n that in itself will cause uncertainty in the country as well. talks with the world leaders, this isn't just a enemy problem, it is a wrld problem p. >> you can see how the mood changedere as the night went on. once the vote was being called by the various big networks in this country. just screams of jubilation that went through this party that was taking place here. nigel was on hand here. he changed his mood considerably, as well.
he was skeptical. he said that he believed that the remain campaign may have edged it out. just a couple of minutes ago, he was raising both arms toward the sky, and saying dare to dream. he seems to be quite surprised at the success of the leave campaign of the i flat out asked him, when i spoke to him. whether or not he believed this was going to happen today. he said he didn't think it was going to happen. he said this is something that he has been dreaming of. many, in the leave camp, having spoken to them during the night, they believe they have achieved a lot more than they believed possible. there is a true sense of history, here. at the leave camp. and certainly, throughout
britabr britain. there is a sense of jubilation, and people here believe they made history. >> well, history is being made. it is simple. the u.k. has made a decision. it is going to leave the european union. if richard, i can get your attention. >> i was not ignoring you. >> will the prime minister resign? will scotland down the line say, we voted to -- we need another referendum. maybe the beginning of the break-up of the united kingdom. this is not an overstatement. this is how historic this result s. >> i am going to show the map of the united kingdom. to put it into perspective. vast sways of england, the
majority of people voted to leave. you have scotland, which is just about -- it is all blue. punch up london, you have mostly blue in london. the national picture shows that u.k. is completely divided. >> reporter: that is an absolute truism. that is what is going to make it difficult going forward it is about 5:00 out here. the sun has risen on a completely different u.k., and completely different eu. there is concerns that what will happen next, is a destiny shift perhaps not many in this country are aware of. look at the latest cover of the economist. which is one of the preeminent economic and political magazines
in the world. this is divided we fall. it said this victory, for which the man who forced this on prime minister cameron, he is now the face of this victory. where is boris johnson? where are the people who are the official leave campaigners? it wasn't nigel, he was there. what we are hearing about people worried precisely about this. they feel that this marks a victory for the kind of economic nationalism, to quote this article here for the kind of xenophobia, that will imperil the liberal world order that since world war two. the world will have to face. they add, brexit has been
pedaled on ap illusion. this is the economist. when the economy interfaces with brexit, will make england less strong, going as some saying, going from big britain to little england. the scientists, and the communists, and the sports people, the overwhelming majority said, stay in the eu. the people wanted to do something different. europe is concerned that this will be a run on their bank, politically, that their anti-establishment, nationalist, and xenophobic parties will get a wind from this, and spin off as well. this is a worst case scenario
people are afraid of at this point. >> we are under 135. stabilized. >> i am guessing what is happening with the pound now, the overnight trading in asia, and london overnight, has taken a tumble. nothing will happen to that pound until london opens in two hours from now. it has found the floor, it is 408ding that floor, it will remain that way. london is going down nine or 10 percent. circuit breakers will have to come in to prevent a panic setting into the market.
sgru mentioned mclaughlin in brussels, the european capital. >> just 48 hours ago, jean claude said out means out. there will be no renegotiation, his words, out means out. he will have a headache this morning. >> people in brussels will be waking up to a complete shock. the conversations i have been having with diplomats, and eu officials, people seem to think it would be close. they thought in the end, there would be a vote, a narrow victory for remain.
in the words of one official, it will be a tragedy, for the entire european project, with wide ranging ramifications for the eu. for what is happening here in brussels, plenty of closed door meetings, crafting a response to all of this. we know there will be a meeting in the building behind him. the president of the european council, and a radioitationing eu, the dutch prime minister. the wording of that response will have been carefully crafted. a key concern here, what is unfolding they are concerned
about the rise of nationalism, and populism in the eu. >> what is the early reaction? >> overwhelming for remain, that is right. the position of the scottish government has been clear throughout. in the event that schol land votes for europe, and the rest of the country does not, a referendum, to consider scottish independence. to discuss this, i am joined by joanna cherry. your reaction. to this result. did you expect this? >> we knew there it was a strong
possibility, i have to confess, the reality, that is what is going to happen is quite shocking. >> your party leader said that clearly, the scottish people want their future to be with europe. how quickly should scotland move toward independence? >> clearly, what appears to be the position, it will be an overall result, as you said to your viewers, scotland 62 to 38% to remain in the european union. during the referendum two years ago, we were repeatedly told, the way to guarantee the membership was to remain part of
the united kingdom. it was a big issue, i was at the heart of the campaign. if it now turns out that promise has been broken, there is the material, a significant change in circumstances, that would justify the scottish parliament in calling another rev rundum. >> reporter: the turn out in edenberg is 73%. the vote for remain, over 70%. i think i am right to say, the turn out has been 62 or 63%. two years ago in the independence referendum, we have a turn-out of 85%. at the end of a long campaign. there have been problems that the campaign to remain in the
european union, the parties have been decided. a negative scale. the fact that we had a resounding victory for remain, and the messages we put across. >> the scenario we put apart now, is not just a break up of the united kingdom. scotland remains, the rest of the u, k. wouldn't, there would be a border between them. how could it possibly work? >> it is an extraordinary situation. in the next 48 hours, as it unfolds. the will of people living in scotland, and protect the best interest of the scottish economy. one of the problems, is that
leaf campaign has been unable to tell us what it is. vague talk of trade deals with the european union. if england, and scotland were to become independent. there are ways around the border. we don't know yet what overall result s we know that scotland wants to remain part of the european union. that is what the scottish government will be doing, is that the democratic will is not disrespected. >> they are facing very much, the possibility of the united
kingdom breaking up as well. >> there is a possibility that this could mean the break up of the united kingdom, the scotts may decide to hold another referendum, they did hold one in 2014. >> they will hold another revereferendu referendum. we will take a moment break. it is one of those evenings that defies wording for what is happening in the u.k. tonight. we will take a break.
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>> the financial markets seeing an immediately reaction by the voting decision of the uk public. down 12.6%, 1.33.26. and the dow futures, off, london is expected to open down in an hour and a half. probably some nine or 10%, well expect to see some circuit breakers, in asia. all the markets in asia are lower. >> the pound heads fallen to the lowest level against the dollar
since 1985. >> that is 7.8%. one question that people are asking on twitter, again and again. this referendum is not binding on parliament. is it likely that government dare to signature that it won't follow the result and go into a negotiation t particularly bearing in mind, they could say, the country is split. this is a victory, but it isn't a mandate. renegotiate, see what comes out? >> the prime minister, david cameron has been clear on this. made a particular ponent, saying he will respect the view of the british people. if the vote goes against him, he will implement it straightaway. that is a technical possibility. it was a big part of the brexit
campaign. they had two referendums when t the -- it was a big part of the campaign, even if you vote for these guys, they may not implement it tomorrow morning, when david cameron comes to the steps of number 10, bound to do, you will see a vow to implement the will of the british people. >> will he survive politically? >> that is the question. >> how can he? split his promise, in order to unify his party. >> my guess is that we will see him longer than tomorrow. there is no chance he will resign straightaway, he will feel that, all of his party will want him to oversee the period.
joining us from london. we are seeing the pound down 12%, it seems to have found some sort of floor. would you expect much more volatility against the pound when london, the largest market opens in an hour or so? >> given the amount of volatility we have already seen, i think we will remain relatively stable. a lot of people have been at their desks in london, advising around the world. i think it is a question for opening of the stock market, see how that goes. i think the risks from it bank of japan, seeing their currency
rise, they could come out and cause disruption to markets. >> would you expect the bank of england to put luquiddity issues as a result of this. any turnulence would you think there would be intervention by the bank? >> i would be surprised to see intervention by the bank. i think that the finance minister is holding a press conference soon if not already. we are watching that. with closeness. i don't think this is an early 1990s style. i don't think the bank of
england at this point will be concerned about sustained controls. >> the dollar is rising against all comers at the back of the safe haven theory, isn't it? >> that is to be expected. most prevalent, to a degree on the dollar, all investors want to put on positive trades, holding back. let's see how it goes. the dollar will be -- 48 hours, into next week, i think it is looking at how things will pan out. the bank of england will
continue. >> thank you for joining us. you have a busy few showers ahead. we will talk more as the hours move on. we haven't heard from david can cameron, and leaders, and the president of france, and the governments of both leaders will be disappointed. elsewhere, we are expect disappointment. looking at that, and breaking down some of the results, across the yunlted kingdom, what it accounted mine for the transatlantic relationship between the u.k. and the united states. historic, unique, are over used. tonight, we are sailing into
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good day to you, as history is made. the possibility of a british exit from the european union is almost certainty. cnn predicts that the u.k. will leave the e.u. the leave camp performs better than expected in england and wales, even though not one seat has been won in scotland for leave, it doesn't matter. it has made news, the independence party, nigel farage, jubilant. it will go down in history he said as britann's independence day. >> ladies and gentlemen, dare to dream. the dawn is breaking on an independent, united kingdom.
if the predictions are now right, this will be a victory for real people. a victory for ordinary people. a victory for decent people. >> to the houses of parliament now. one thought, no matter what the pundits and experts say, tonight, the people have spoken. they made their decision. and the establishment may hate it, but they have to respect it. >> reporter: richard, ru right. therein lies the dilemma, because it has ever happened before. no country has withdrawn voluntarily from the european
union, how it goes forward in the parliament behind me, and forward in negotiations with europe. we will talk to peter. he is the brussels head of the office known as open europe. thank you for joining me. in your heart of hearts, were you expecting this? >> i was thinking it could be a possibility, the race was extremely tight. >> reporter: what happened h. what happens next? standing against great britain, or europe trying to do everything that it can to make it easy for a brexit britain? >> i system the second will
happen. you will see at the emptumpt levels, who think they should punish the uk, try to avoid what other countries consider leaving as well. given the stakes, if you were into the continent. you would drive up the cost of investments on the continent. if britain would impose tariffs on britain cars, you would see a massives development, and try to keep trade as open as possible. >> reporter: what about the political aspect? all we have heard from leaders is that all they are concerned about a run on the bank. you can see what is happening to the sterling right now.
i don't think this is related to the health of the banking system. the fall-out will be enorm ousz. what has happened, the british people have not expected so much desire against the idea of trade. those ultimate responsible for all of this is found is brussels, diverted a program that it was removing trade barriers, to something that was more political. mingling into budget decisions, and organizing transfers, into what is a sensitive issue all over if the world a silent --
>> reporter: we heard him saying, there is not going to be an ever closer, more irp response. people will think we are nuts, so what they are going to do? you say it is up to how can you see that happen? is it possible? he committed, there will be a conclave, why are we so unpopular, airlines can offer surfaces all over the eu.
clearly, people don't lig interventions into sensitive national budgets, with democracy. these this be ditched to put it bluntly. we go back to the studio now. >> the german economy minister tweeted. in german. the translated tweet s dam, dam, a bad day for europe. hash tag, euro referendum. this is how it looks, more than a million people have voted. a majority.
it is looking like it will get to 52%, before the night is over. and you can see, immediately. northern island was you can see there is one part of scotland that voted to leave. birmingham is their second largest city. by the narrowest of margins, reflecting the national vote, birmingham voted to leave right down through middleboro, 61%,
higher than what was expected. twice as much as the other. larger majorities, and dwindled down the vote. you get those places like manchester. third largest city, it voted 60% to remain on a low turn-out. put it together. london. the capital. the capital,/to scotland. with a couple of leaves on the eastern size, overall. majority is now over a million. it will be 52% by the time we close. >> when we saw the country is
>> what do you mean by neglectiveness? areas depressed, older, maybe. they feel like they have the establishment that made money off our banks and forgotten about us. after the scottish referendum, immediately, this notion of english laws came up. it is the largest, 85% of the population of great britain. those who identify themselves as english, not british. >> the whole thing, the
europeans should have seen this coming, to some extend. >> the government in london should have seen it coming. this was an accident waiting to happen. >> we have known for the public h hosti hoseverybody got this prediction wrong. >> we have live images from do ver. yes, looking at the map there. there was a vote to see.
you are for brexit. how do you react to the leader of germany, everybody is trying to figure it out, tweeted, damn, a bad day for europe. we have seen what happened. bad day for the pound. >> a difficult day for the european union. double effects of it not being remain, and brexit, unexpected. it will be a big market correction. the united kingdom has taken a very big strategic decision about their role in the world. everybody gettings used to the new reality, over the course of the next two years, what the new arrangements will be between the u.k. and the european union. it will calm down in due course, any big organization, this is a big, important country, that
makes a big change, there are likely to be unfront uncertainties and costs, we have to manage those. >> he talks about a smooth progression into the future. do you see that happening? >> i don't. obviously, both britain, will have to approach this as calmly as they k almost every economists, united on this one. the impact will be to damage the economy, because it damages the british economy. the other countries of the european union will take it badly. i think we are going to have a
period of difficult negotiations. >> damn, bad day for europe, does not suggest a leader is rolling out the red carpet. >> the prime minister is going to stay here. >> you say that really? >> that is what he said he will do. those who supported brexit have asked him to stay. i regarded it as his duty to stay. >> does that clear up the mess? >> he is the right person to conduct the negotiation with our partner over the next two years, there is only a year old. he has the party behind him. clear from support. taking a different position today. this prime minister is conscious of his duty. >> he said he would do it. i wanted to ask you. read you something that your own magazine put it.
the liberal leaders, uncontact with brexit, their plans will fall apart. if far from reclaiming the outlook, it will become p-- illusion and reality? >> i think there it was a vision associated with some of this. that britain would leave. people in eastern england, they are not interested in that, they want to restrict migration. they want more protection.
they feel free trade has been bad for them. where the have to except movement of labor. >> so strongly identified with the remain campaign. he said he would have reti retired -->> it is england volted to go. notice, northern ireland. scotland, potentially going to open up a new referendum. >> there was game, this was the overall result. that is going to have to demand a future choice, there was a manda mandate, to seek that these are
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370 seats declared. 382 in total. local authorities, in the united kingdom, and of course, northern ireland. 370 have declared. the total number of votes, you are good at this with your percentages, there are -- >> i know how to calculate it. >> 52 pillion. >> check quickly, with the pound. we can say fell off a cliff. down 12%. i wonder if circuit breakers will have to trading shut down,
made $1 billion betting against the british pound. >> he is not far off from if the 130. that is the prediction that many had. heard you say earlier on, the pound may have 1:30, at the moment. >> it all depends on what mark has to say later on. >> we will be back after a quick break. stay with us. show me movies with romance.
we are going will not want to lock in until they are sure it will continue. >> they wanted the referendum on their time. they decision may have been twak en we will see how it. >> reporter: one guest after another talking to us about what this will mean, in terms of interigration with europe, how to find a way forward for a goes
had here in britain, all the other wants to remain n from scientific, to become, to practical, to environmental, to security, to defense, in the best for the u.k. is to remain in europe. the people of english didn't buy did. the u.k., independent party, been speaking for this victory. we don't know how much of a roll he will have in further public
life. what it will mean. thrl is a victory, what did he say, for real people, for decent people. what does it mean for half of britain? it is decisive. see what happens in the weeks and months and years that come. >> what kind of preparations did leaders, did eu leaders make? >> this was a possibility they don't wanted to establish a reality, where they can get their own special teams.
>> reporter: we can expect at a flurry of meetings, there is also a feeting here at the building behind me. and in lexon berg. the response that comes out of those meetings, cl will happen. a fee it isicismmatic of a largest problem, they are concerned about the rise of euro skepticism. that will have an impact. on his words, there will be no
there you are two main colleges, it doesn't decide so quickly. and the first thought on his mind should be, how do we bring the countly back together. the foreign minister has just spoken. the early morning news from great britain was sobering. it looks like a i expect all will come out and the markets open. we will be right there.
transactions in the first five months, leading up to the referendum, down 20%, that is a big question mark going forward. and the u.k. built its reputation for left-hands of years as an open economy. compare it to singh pore, switzerland and the united states. you look at the european union, will others lineup up. press tinlg economics put out a quote, this may encourage the other european union members putting, we see them wrapping up today in the.
orlandoly situation. which nobody has tried before. the other 27 need to make absolutely sure this is not setting a precedent. they will try to play it hard. at the same time, not trying too address the undering. >> reporter: what needs to be done, without doing what you saw they don't want to do, speak to other countries to put out as many as britd ann it is clear. you would have to uniform it so everybody seeing what happened if you try to do the same thing.
there needs to be a deeper answer to all of this. giving answers to the pressing issues of the day. rev sgee crisis. i think this sdshl pressure will lead to lead, and we will see some mix of the two emerging over the next few days. >> you mentioned the refugee issue. that was a disaster. they couldn't figure out how to deal with a crisis that many in the rev reeve, a blot of 500 million could have a chance as a
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the next half hour will be crucial. we are expecting to hear from the governor of the bank of england, who is obviously going to try to soothe nerves. it is about 11%, it was 13%. all the futures, across the world. london, new york futures, all lowered. >> we are expecting to hear from dald. >> i thought i would hear from
nigel farage, your leader said it was a victory for ordinary people. >> yes. >> the fact is, if they said it would be cast adrift, wild cats running down the streets, then we would have won by a bigger majority. the fact is, most who remain are scare tactics. >> they scare people. >> some people find your party. >> that is wrong.
>> let me see if you disagree. this rev rundem, when nationalist sentiment is whipped up. the wort of the -- >> that poster came from a picture in the guardian. >> it poster was a news poster was legitimate refugees. >> european rev. >> ru defending the poster. i want to know if you are -- >> i am answering you. 80% of the people that were coming through, supposedly
syrians, they where not syrians, they were migrants. >> do you suggest that was a lie,are you prepared to continue with this divisiveness. >> we are not getting beyond this. he has been the face of the victory. when i asked the conservative chairman of the foreign affairs committee, is mr. farage, the face of this, they delivered the referendum, now, thank you very much, you can go away. what do you think mr. farage's future is? >> this is just getting in it door. none when it is activated and
leave. we want more and more local referenda, people have been used in the past, by the so-called main stream political parties. >> what do you think that nigel's fur is. he may -- future is. >> they are very, very divided, we may see, in a short area, a new general election. >> i want to ask you to comment on the following, there are a lot of people who are very, very angry about nigel farage.
these are people who are sglm . >> she was never a leaver. >> she said the leave lineup, bnp, donald trump, i wouldn't get on a night bus would them, would you? >> well, she's scaremongering. >> they're scared of you. >> no, they aren't. >> they're scared of what you want to bring. >> well, i want to bring a democracy. i want to bring democracy and fairness. we have nothing against foreigners. we have nothing against immigration. what we want is immigrants who will come to our country and be able to contribute.
we don't want open door migration where what happens is big business actually suppresses the wages and the aspirations of ordinary people by bringing in unlimited number of cheap labor. >> ray finch, thank you vetry much for joining kneme. >> thank you. >> we'll be back with much, much more as the implications of this vote unfold. be the you who doesn't cover your moderate to severe plaque psoriasis. be the you who shows up in that dress.
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the uk/eu referendum and this has very significant implications for ireland as well as for brit tape and the european union, so it's going to be very interesting to see some of these big areas, northern ireland, this is the irish government, but northern ireland would have preferred to have stayed in the eu, in the similar vein, scotland wanted to stay too. >> and it doesn't say how the change would be implemented but clearly now everybody is speaking about the subject. in the netherlands, gurt vild eavilders has tweeted, hurrah, for the britons, our turn, time for a dutch referendum.
>> christiane aummanpour has another guest. >> as we've been saying all evening, this kind of referendum with this kind of result was bound to have a catch-on effect among people like maureen le pen who have declared this is ha they want to do, and this is why europe is worried about it, not just because it could break up europe, but because who actually are the leaders behind these parties. let's go to tom fletcher, who is the ambassador to lebanon and joins us from abu dhabi. welcome to the program. you as a former british ambassador, how do you see this affecting british relations, not just with europe but around the world? >> reporter: well, good morning. obviously, it's been a very bruising and tdebilitating debate, but it's time to come
out and say what we stand for and to do that confidently and collectively. and we are a p-5 security council member, a global trader. we have huge investment in our armed forces. we a humanitarian super power and a global network which is the envy of many countries. and i hope what we'll see today is that more confident the message to our partners allies and opponents. >> mr. fletcher, you say all these things about what britain is, a great humanitarian super power, a great, you know, military, nato and all the other things many but you, as a former ambassador, can you explain why so many of the ambassadors and the security and defense establishment and foreign policy establishment thought that britain remaining in would be that much stronger. how does it hurt britain's ability to influence by standing on the outside? >> well, look, there was a very
clear government view that we were stronger inside. and that came through a course in a long, hard-fought campaign, and there were many predictions made during the campaign about what would happen next. but the important thing now is to rally together to make sure those predictions don't come to pass, that there is this collective british response to this, and that we come together as a political system, but also that our people, our network of ambassadors and business people and others around the world are out there trying to find together how we get through this next phase. our role in the 21st century won't be that but how we respond now. >> can you explain how this might further define what happens to europe? tell me how vilder's demand for
a referendum and marine le pen's depend for a referendum, how will they play out? >> clearly today we'll hear a lot of noise, a lot of noise from the hard left and hard right. we will hear a lot of silence from those who are more shocked, worried, fearful about what comes next. so it's important that we don't rush to any early judgments. we need to take a deep breath collectively at home in the uk and also across europe and work out what the implications of this are. but it would be a real mistake to rush to the early judgments and give too much of a platform to the more loud and extreme voices that will seek to dominate today's coverage. >> tom fletcher, former british ambassador to lebanon, thank you for joining me from abu dhabi. we're going to go back to you in the studio now. >> thank you very much. let's talk about the future of british politics here, david cameron is in trouble, politically. we don't know if he'll resign.
we don't know when, but who's going to be, who's kind of been now brought to, forward to prom nn nens? >> that's the big question. the cast of characters is a mixed one, and it's a small group. you have the whole might of the establishment were arguing to remain. all the main political party, all the big institutions, so there is one or two national figures. boris johnson, michael gove, nigel farage. >> he said he went to the country, he promised a referendum. he has a view on how that referendum should go. that view has clearly not won, but he can carry on and do the negotiation afterwards, that
might be westeishful thinking. >> the right wing has been pushing for decades almost, have had this moment now and are not going to stand by and allow david cameron to carry on, i think. he already has a fragile majority in the house of commons. he relies on his fellow conservatives to support him. and unless you see some totally extraordinary thing where he's supported by other parties, he's not going to be around for long. >> we were waiting for the prime minister, but right now we have the cat to contend with. >> and i don't see the microphone. we would expect to see microphones being put out there. we've got a cat instead. and he's not going to speak, but of course, realistically, he's not going to speak before the last two counting areas have declared. one of which is the western part of corn wall, and the other i can't really work out where. it's south of london, southwest
of london. he's not going to speak before jenny watson's given us the final number. >> unless he decides he has to say something before the markets open. >> less than an hour. >> not sure how that will work. in terms of what he says, when he does appear, it's going to be very interesting to see how he would choose to reach out to those people within his party who've been arguing against him this whole time. >> by the way, were you talking about the european leaders and how they were tweeting or making statements that they're sad. the french foreign minister also issued a statement saying "sad for the united kingdom. europe continues, but it must react and regain the confidence of the people." he says this is urgent. >> that sounds like a much wiser political statement, because even within france there issagetatiis ag
is agitation for this kind of movement. and they are some of the least happy citizens of all of the countries of you know with their government. >> and just before the top of the hour. in the 20 seconds, 30 seconds, help our viewers understand, how seismic is tonight? >> you have the whole establishment of the government, the celebrities, everyone was on one side of this argument and they've lost. it is the nearest thing we've had to a revolution since 1642 when oliver cromwell and we became lord protector and executed our king. we don't do revolutions in the united kingdom. we are known to be a tea-drinking and moderate people. today we've done something different. >> on that note, i'm going to sip my tea as we continue to wait for the prime minister david cameron, to step out of 10 downing street. the cat is still there.
first time ever, a nation has voted to leave the european union. i'm richard quest. >> i'm a halaw ga rahny. we've been hearing already from the foreign ministers of germany, france. but first the people of britain have spoken and spoken clearly. and with over the 90 districts reporting, the leave campaign is ahead. >> the last results have not come in. the last result has come in. basing stoke and dean came in for leave. cornwall has come in for leave. both with majorities. not huge majorities.
a 56-43. 382 counting areas have now declared. you see the picture on your screen, a total of 33.5 million votes cast out of an electorate of 46.5 million. >> so it looks like the final percentage will be 51.89. that might shift a bit. and a little over 48% for remain. so clearly the leaves have it with, and it's not as crow lose it could have been. in a year way, the leaves have it. the bank of england. >> do forgive pea me if i'm loo away. the bank of edgengland has put statement. it has undertaken extensive
conginsy planning and it is working with overseas banks. the bank of england will take all fenecessary steps, which is key, as the markets open in one our from now. the pound, however, remind us where the pound as been. >> absolutely. the pound has bounced back slightly. ye we're at 136.54. we were close to 133 and change. >> and i think we may see the pound bouncing back with a few soothing words from the bank of england. tare it goes down just a bit.
>> poland. britain's news to leave is bad news for poland. it is bad fnews for europe. we all want to keep the eu. the question is in what shape. >> i may interrupt you. we're expecting the national fum any employment. >> the effects will be felt throughout the world. the trends that underlie this vote are present in all country, certainly within the west. with the election coming up in the united states, you can be sure people will be looking at this to see what lessons can be learned. >> we were discussing the
foreign minister's statement. there is a reamization right now that something needs to change in order to prevent a scenario in which other countries will also demand their own exit referendum. >> throughout this campaign, the brexit side were painting the powers that be in brussels as out of touch bureaucrats, elite who did not care for the will of the people and would just plow on regardless, to matter what anybody says. at the need to be careful not to fulfill that. >> the americans have a phrase, a day late and a dollar short. all these words, juncker said earlier in the week, "out means out." now although tusk said europe needs to rethink itself, everybody coming out of the wood work now saying oh, dear, we've all got to rethink the whole european project. it's a bit late. >> absolutely. right back to the time when
prime minister david cameron was attempting to renegotiate our terms. let's not forget, the idea was not to ask people straight out, in or out, he was supposed to be going to the people with a renegotiated offer. we were going to be still members but in a different way, having negotiated different key differences. >> i wonder if brussels is regretting at that now. >> i'm sure they must be. at the weren't sure whether they sudden be threatening, to scold us, which after of the voices seem to want to do, or promising reform and sort of enticing the british people to stay, and at that was not a yeclear message, and i at this tare will be a rot of regrets in brussels this morning. >> this isn't just what happens with the uk's relationship with the eu. the uk's going to have to renegotiate so many deals with so many other countries.
as part of at that brloc, there are many deals at that it's going to have to go back to the drawing board on. at that's going to take pour tan two years. >> taerk. and barack obama made that statement, if we're talking about a trade deal with the united states, we're going to be at the back of the queue. and he made that statement using the word "queue", instead of "line." and it was wondered if david cameron urged him to make that statement. >> from david beckham to barack obama, please to stay in the eu, at that didn't have the final effect. >> the remain is 16 million 1
h 241. the percentages, as you see them on the screen, let pea call them up for you. nina dos santos is in the city of ron done ap london and joins. >> we are 50 minutes ahead of a new session. i'm here on the trading floor of a broke raj. there are people in a state of shock, how this feels like a bereavement, and they're poised for helpy losses. as you were pointing out. some soothing words tare from the bank of england, saying that it's monitoring the situation,
standing ready to act. it has plans if place. but the real concern is at that we could see the credit ratings agencies cut the uk's credit rating. standard & poors says it could be ready to cut the uk's aaa rating, it's the only agency at that has an aaa rating for the uk. it's been quoted by reuters saying that that position looks untenable. we have to confirm those comments and will be doing our due diligence. when it comes to the british pound, it's the 35-year low. many people on this trading floor have never seen a drop like that in the best part of 3 a years. that brings us back to the days of black wednesday, let alone black friday. and i should point out at that the british pound is not the only currency falling. almost all of the major currencies with one exception,
and that is the japanese yen. it is the ult pat safe haven. it is going to be a real headache for the bank of japan if people continue to plow their money back into safe havens like the bank of japan. it's not just up to the bank of england to start sharpening its pencil and figure out how to deal with it, other central banks will be kicked into action as well. >> nina dos santos, tank you. can i remind you what the bank of england says? >> it's either going to reassur the markets. >> the bank said it's upon torring developments closely and taking extensive contingency planning, working closely with treasury and other domestic authorities and overseas central banks. the bank of england will take all fess steps to meet its responsibilities for monetary and financial stability.
and we're seeing the ten-year guild, which is the ten-year bond at a record low of 1%. so interest rates tare ahere ar going up. >> we have found a floor over the last several hours for the pound, around 133 or so. we'll keep our eye on the markets. let's go to the houses of parliament. >> and tare are lots of people behind me. sort of the leave caucus if you like, keering, waving english flags, and i'm joined by the man who heads up eurasia group practice, and they're about managing risk for investors. did you predict this? >> it was a very, very crow call. we believed tahere was a 45% chance of brexit.
it wasn't something we thought was likely, but it was a very uncertain outcome. >> let's pick apart what has to happen next. there has to be a government at that can deliver the change that the people have voted for. is at that government headed by david cameron? >> no, i think not. there are a set of questions, who will succeed him. i at this our bet is that's going to be boris johnson or theresa may. that's very, very important. because that's going to determine what the renegotiation with the rest of europe looks like. and there's going to be a lot of pressure from angela merkle, francois hollande for them to quickly come to a decision on who is leading before the formal renegotiation begins. >> cameron said he will stay. he's had all this support from all the other brexiters, but you're saying it's not possible. but what about the brexiters who say we don't want to invoke
article 50, in order, the divorce, anytime soon. we want david cameron to help ease us into these negotiations. is at that fantasy? is that like trying for a little bit of soft padding? >> i think is. i think all of the leverage is essentially on the european side. because the fundamental question is what's the uk's access to the single market going to be, and what concessions does the uk have to give up in order to obtain that, in terms of free movement of labor. the longer at the wait, the pour likely it is that the rest of europe is going to come to a consensus as to what it wants to give to the uk. the uk as a strong interest in getting that discussion started early before the battle lines harden. >> we know the brexiters don't want free movement.
>> we have a monopoly in financial services. passporting rights are very important for financial institutions. if we want to maintain that comparative advantage we have to maintain those passport rights. that fess taits a degree of access to the single market. >> what you're saying is at that this whole, which was an anti-immigration referendum, let's face it, a referendum on immigration policy, could actually not driv at that because of the realities of needing to belong to the single market? >> absolutely. as a gdp we do far more trade with europe. it's not going to come for free. >> you know the brexiters are saying we don't need it.
a, we can renegotiate our own deals but we have so much more opportunity globally. >> i think they're going to be held accountable for the rest of europe. that's a far moore important driver, the growth and prosperity in the uk than any of the trade we do with the rest of the world. and i think that's the uncertainty that's going to prevail now really over the next two to five years. >> that's an incredible reality check. tank you very much indeed. and back to you, hala achl achh richard. >> the reaction is coming in from across the world. the australian prime minister malcolm turnbull has posted these comments. we respect the wishes of the british people. the australian economy is strong and resilient. tare will be a period of instability in the global
markets. and on he goes. japan's fee k japan's nikkei has closed the day. >> we saw sharp losses on other markets, including the shanghai composite. take a look here. the nikkei down almost 8%. the hong kong hang seng, four and a third lower. and the pound continues to sort of rest on a floor 1.33 per pound. and we're waiting for more reaction from the markets shortly. we'll take a quick break. we will be right back with a live shot of downing street as we await david cameron, the prime minister. ♪
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all right, we continue to cover this breaking news story. the uk has voted to leave the european union, a historic vote with very deep and long-lasting implications. we hope to hear from the prime minister of the united kingdom, david cameron, but also the official count has now been announced. >> let's show you what's happening in manchester, pan chester did not go anything the way it was supposed to go. now we've got the christiane who is at west minister with foreign secretary. >> and our first government
response to what has just happened. a defeat for you, for your prime minister, how, how is this in the anales of british history? >> it's pretty sies pick, momentous morning, but look, we have to draw a line under the campaign now. we always said we were the party that advocated it referendum. we always said at that we would carry out the instructions of the british people, whatever toes instructions were. and the british people have spoken. so our goal is to stabilize the markets and in the medium term to negotiate the best possible relationship we can with the european union in the best interest of the british people going forward. >> you've heard what's happened to sterling and markets are wobbly. but you say our job was to deliver the referendum. you know there are huge amounts of people who say it's a
self-inflicted wound. david cameron didn't need to do this. he should have said with the good of europe and britain we're going to continue with our strong security. why did he take this risk? >> this is a democracy. when you get governments and parliament saying, i tell you what, we'll ignore what the people are doing. >> it was nigel farage who was pushing you from the right. >> it was clear to us that the political ereceipt no longer had a clear democratic mandates for our arrangements with the european union. we needed to test at that. we needed to put that to the british people. the economic case, security case, the case about britain's place in the world for remaining in the european union. we've donna. we can and no doubt will pore over the way the campaign went, what was said, what was done, but the british people have made their decision. and our task now is to get the best possible outcome for britain. [ applause ] in the long term, and look, you
talked about the volume timt in the market. of course there's volatility in the markets this morning. >> sir, i just want to show you what's happening behind you. that is nigel fa rage, and he's doing his victory lap. and his fostpos posters said do let him speak for you. >> it includes some of my very sensible colleagues who have put their case in a very measured way. i happen to disagree with them. but they've put their case. this is not nigel farage's victory. i wouldn't like britain going forward and the british people going forward to think of itself as being presented in the image of nigel farage. i know from my own constituency at that many of the people who voted to leave the european union yesterday are perfectly
respectable, mainstream british people. they would not associate themselves with nigel farage. >> what happens next for the government? obviously, the prime minister said he would stay, and he's had all tease letters of support from 84 members, but nobody i've talked to for the last seven hours believes that the prime minister can actually stay as prime minister. but the brexit eeers would like him to because they believe the european union knows him and that they'll give soft padding to him. >> what we need is a calm hand on the tiller, and i think the prime minister is the person in the best position to deliver that. and that's why leading brexit campaigners are saying that he should remain. he's always been clear that
whatever the result, he would continue as prime minister. do the people's bidding. go and negotiate the best possible deal he can get with the european union, provide continuity and stability at what is a very uncertain moment in british political history. >> you are foreign secretary. you have dealt with all these actors, all tease leadhese leade european union. they say publicly, we respect what the british have done, but we don't want this to be a contagion, and already you've got marine le pen. >> this is the key issue that we've been trying to explain to britain during the campaign, that it isn't the leaders of europe will be vindictive towards us or wish us any ill will. it is simply as of this morning, their attention will move away from britain and to their own back yard. they will be looking at protecting their own interests,
dealing with their own domestic political pressures, and they will be driven by those considerations. our interests will not feature anywhere on their radar screens. and that's the challenge for us. but it's also clear, and you've mentioned a couple of european politicians this morning, it's also clear that we don't noah wi -- know what will happen in the european union in the context of other european countries. clearly there will be people across europe looking at this campaign in britain, looking at this result and also questioning the european settlement. >> you know, the president of the united states was very clear when he came here about trade, but also about the value of britain staying in the eu. how will britain's relationship with the u.s. change or just in terms of its influence and also on the stage, on the whole global stage.
bring the ta britain has wielded a very powerful force. you said europe won't be listening to you that much anymore. but what the rest of the world? >> i believe it, that britain's influence in the world will be diminished. we will be, we will remain an important partner of the united states and a good friend with the united states. of course we have a close security and intelligence and defense relationship, which is, which will endure. but look, we will just be that bit lower down the priority list of any u.s. president in future, because we, we're an important bilateral partner, but we won't have any influence on the u.s. relationship with the european union, which, as the world's biggest economic trading bloc is a key relationship for any u.s. president. >> and then, the flip side of that, you know, britain was there, helping to push sanctions on russia, helping to push sanctions on iran, having some
sort of loud voice when it comes to china and all the other challenges you have. europe will be weaker without that voice. >> that is my big fear, and i've said that several times during this campaign. [cheers and applause] it isn't just about the fact at that britain was made stronger by being part of the european union in terms of sanctions against russia, but i fear that perhaps my european colleagues, without our engagement would not have been as robust. >> what kind of world are we going to see. what kind of world are we going to see out there? >> well, i said during the campaign, i think it will be a more uncertain world. i don't want to overexaggerate the case. but clearly, i brief, or i wouldn't have been campaigning for britain to remain, that being in the european union gave britain more lief ran. i believe britain's influence in the world is an influence for good, so being able to leverage that voice for good i think made
the world a more stable and safer place, and it will be slightly less. so as a consequence of this decision. >> i mean, look, what did the prime minister do wrong? he obviously bet over and over again that the economy was going to trump any other, sort of issues and fears. obviously, the remain camp played immigration. and many said that this is actually a referendum on immigration policy. so two questions. what candidate prime minister do wrong? did he not take into account immigration enough? and b, what is going to happen to immigration policy now that britain is out of the eu? >> well, precisely we don't have any clear steer from the exit campaigners what they were expecting to happen. we heard a variety of different ideas, australian points systems, but we know australia has twice as many imgrantsds per head of population than we do in the uk. so i don't think that is going
to be the answer for britain. but all of these things we will now have to work out over the coming weeks and months. in terms of the campaign itself, i think we set out things as we saw them. but there is a political reaction going on. i don't think it's confined to britain. i don't think it's confined to europe. indeed, you've seen some of it in the united states, which is a reaction, if you like, to some of the changes that we're seeing as a result of globalization of the economy, and a lot of people who feel very disgruntled, very discontented by the impact of those changes on them, whether it's manifest through migration, whether it's manifest through fewer opportunities being available to them in the workplace. >> so, then what is the solution? because otherwise, we're going to have years of disgruntled people? what is the solution to the people who feel like they're shut out of this globalized world, to people who feel that
they don't share in the economy? >> clearly the medium to long-term solution is that in the developed world, we have to focus even more intently on upskilling our people, we have to make sure that the next generation really is a generation of skilled people who are able to benefit from the globalization of the economy, and in the short term, we have to protect those who find their interests adversely affected by globalization. what we can't do is unravel globalization. that isn't going to work. >> you can't put that gegenie b the bottle. >> we can't put in the bottle, the genie of the rich -- >> as you now, the spectre of so many hundreds of thousands, maybe even a million refugees from syria and elsewhere coming
to europe spooked ebverybody. so at what point do you world leaders say, okay, we actually have got to tackle the source. we have to stop the syrian war? >> well, we already saying that, of course. >> but not doing it, nobody's going against assad. >> as weigh fwe know, more tha5 not coming from syria at all. they were coming from the wider middle east. some from asia, some from africa. they were part of a much wider move of people. that's a big challenge, the pressure of migration from the poorer world to the richer world is not just a problem in europe. it's going to be a big challenge for the rich world to manage. and whether britain's inside or outside the european union isn't going to change that challenge. we are going to have to work together with our rich world
partners in responding to that challenge. >> thank you very much indeed for joining us today. >> thank you. >> back to you. >> thank you. and fascinating discussion from the foreign secretary. perhaps slightly more, i mean, i have to say -- >> quite candid there in his. >> a bit of shock about everybody this morning. even from the reality. >> he's basically saying that the uk, this is according to philip hamm, that the u.k. will have less influence, that this is bad for the country, he was firmly in the remain camp. david cameron, these are some live aerial pics of london, the ron done skyline. >> whilst the foreign secretary was speaking, jenny watson, the chief counting officer in manchester did give the official results. we knew what it was.
remain 51.89%. and remain, 48.11%. and let's listen to jenny watson. >> as chief counting officer for the referendum on the uk's membership of the european union, held on the 23rd of june, 2016, i hereby give notice that i have certified the following. the total number of ballot papers counted was 33 millio -- number of votes cast in favor of
leave was 17, 410, 742. >> so leave wins by about three point something percent. >> cities waany way, they've wo. nigel was behind the foreign secretary addressing supporters in what was an address at westminster and said the eu is dying. he told that group of journalists. he called for a brexit government and at that we've given ourselves the chance to rejoin the world. june 23 needs to become a national bank holiday and we will call it independence day.
>> 51.89% was the majority for the leave campaign. we've heard from the chief counting officer, max foster, when will we hear from the prime minister? >> we are expecting around the top of the hour when the markets will open in london. so he's going to have to say something reassuriinreassuring. he did leave that remain campaign, and the remain campaign has lost. so how does he move forward from this when he's lost credibility, in his own party, which was split from the very start of this along european lines. that's why he started the whole referendum campaign. he's got to find some way of speaking to the nation, speaking to the markets and to his party as well. we have to assume he's been speaking to the leaders of the leave campaign led by bosris johnson. we don't expect him to resign when he comes out today. it will be too unsettling
financially let alone politically, but he's under huge pressure and will have to word it somehow. this is going to be the defining poemt moment on him possibly. imagine the pressure as he prepares his words. >> i need to point out that the czech prime minister has been speaking. he says the british vote does not mean the end of the eu, and the bloc should agree, britain's leaving quickly and rationally. >> well, we're starting to see reactions from across europe that point toward a new environment where european leaders are saying to try perhaps to prevent another brexit scenario from happening are saying look, we need to take a very serious look at the eu, maybe a little too little too late. some might say. we're going to take a quick break. still expecting david cameron to
speak, we believe around the top of the hour when markets open here in the united kingdom. we'll be right back. ♪ you've wished upon it all year, and now it's finally here. the mercedes-benz summer event is back, with incredible offers on the mercedes-benz you've always longed for. but hurry, these shooting stars fly by fast. lease the gle350 for $579 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.
welcome back to cnn's special coverage of the uk's eu referendum. >> the final result has been announced in the northern city of manchester, and we now know obviously, that leave has won the referendum with a majority of 3.78% over remain. the reaction is now coming in at westminster, the palace at west
minu minister. >> this has profound implications, not just for the eu and uk, but for all of europe. people are waking up to aex extremely changed continent. the british voters have spoken and have chosen to leave the eu. so, as we were saying, what happens now? how long does the eu negotiate with the uk on trade, on a political union? what happens to trans-atlantic deals or international trade deals that the eu currently has with other countries? what happens to the uk's trade relationship with those countries? how long and complicated will it be? we know the pound has basically crashed this morning. >> do you have any answers to those questions? >> i have a feeling that just like the financial markets weren't really planning for this, i don't think that much planning has gone on inside the government either. you saw philip hammond looking quite poe faced and grumpy that
he hadn't won this. and he didn't really have a big message. he didn't seem to have a plan about how the country's going to go forward in a positive way. so it will be very interesting to see what david cameron says in less than half an hour when he appears on the streets of number 10 downing street. where is that plan? >> did you feel that it was surprising that the foreign secretary was saying this is really going to weaken us after the result was announced? >> i think it's a real political no-no for him. he is the foreign secretary of the united kingdom, for him to go out there and say we're going to be less important in the world will infuriate his colleagues and across the population. >> thank you. nowhere will this have been felt more strongly. the shockwaves will be reverberating around brussels where it is now coming up to 20
to 9:00 in the morning. erin mclaughlin is our kurpts in brussels. from what you have heard and what people are saying, are they in shock? >> reporter: and lieutenabsolut in shock. diplomats i've been speaking to have been saying this outcome was not what they expected. they expected something close, but they expected a remain. and we are now hearing reaction from leaders across europe. in fact, a short while ago the prime minister of belgium gave a press conference, charles michel in when i he called the outcome of the referendum a quote, slap for the european project. we've also heard from the german foreign minister, tweeting out that it is a quote, sad day for europe. and we are expecting very shortly to hear from donald tusk, the president of the council of the eu as well. and there is a flurry of meetings under way here at brussels at the european
parliament. a meeting under way there. we're expects a meeting to begin in a short while behind me, the european commission, also another meeting in luxembourg, as well as a variety of meetings under way in various european capitals as to how best to respond, how best to deal with the outcome of this referendum. i'm speaking to one eu official who told me that a brexit would be a great tragedy for the european project, a blow to the eu, symbolically, politically, economically, and there's a real concern about the rise of euro skepticism across the continent, the rise of nationalism as well as the far right. already we're hearing calls for referendums in countries such as the netherlands, as well as france. and going forward, we can expect that to have an impact on any sort of negotiations. brexit negotiations with the united kingdom. i was speaking with one diplomat
who told me there will be no niceties in those negotiations. they want them to happen wrappedly. i was speaking to another senior diplomat who took a more cautious tone and said they're waiting to hear from british prime minister david cameron. waiting to hear what he has to say, also expressing confidence in the european institutions that they can deal with any number of crises, whether it be a migration crisis to a financial crisis and now a brexit. >> thank you very much erin mclaughlin who is in brussels. and there will be reaction in the coming hours. >> the london skyline as seen from the air, some of the iconic buildings as britain wakes up to an extremely different reality. it is 7:45 a.m. in london. that means markets open in about 15 minutes. we're expecting sharp declines at the start of trade. >> the dutch prime minister has
been speaking. and he says the british brexit vote must be stimulus for more reform in europe. >> wow, this is a message we're hearing from pretty much all the leaders across europe. they, they're trying to, they're trying to keep this union together and not have other countries ask for similar referendums. >> he says the decision appears irreversible. but the process may take a long time. the bank of england put out a statement about 45 minutes ago, saying we'll take all necessary steps to meet its responsibilities for monetary and financial stability. >> all right. >> so they're go being to do whatever they can, but the marketing open in 15 minutes and it's looking far from cheerful, frankly. >> the count has dipped again below 143, we'll be back with more. think fixing your windshield is a big hassle? not with safelite. this family needed their windshield replaced
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the president of tf of the council, donald tusk is speaking in brussels. >> it is a historic moment, but for sure not the moment for hysterical reactions. i want to reassure everyone that we are prepared, also, for this negative scenario. if you know that it is not a fair weather project. over the past two day, i have spoken to all the eu leaders, i mean prime ministers and presidents, as well as heads of the eu institutions about the possibility of a brexit. today, on behalf of the 27 leaders, i can say that we are determined to keep our unity. for all of us, the union is the
framework for our common future. i would also like to reassure you that there will be no legal vacuum. until the united kingdom formally leaves the european union, the eu will remain in uk i mean rights as well as obligations. all the procedures for the withdrawal of the uk from the eu are clear and set out in the treaties. in order to discuss the details of the proceedings, i have offered the leaders an informal meeting of the 27 in the pmargis of the summit, and i also propose to the leaders that we start wider reflection on the future of our union.
finally, it's true that the past years have been the most difficult ones in the history of our union, but i always remember what my father used to tell me, what doesn't kill you makes you stronger. thank you. [ camera shutters ] -- written statement and -- >> it is a historic moment, but not one for hysterical reaction, says donald trump. >> tusk. >> i beg, forgive peme. >> you've been up for a while. donald tusk. thank you for that. he said we are prepared for this. i've spoken to all 27 leaders, and we are determined to defend our unity as 27.
>> and there will be no legal vacuum, donald tusk said, until the uk formally leaves the eu, and also significantly, and this is something we've heard from other european leaders, proposing to start a wider reflection on the future of the union, because, as he said, determined to keep the unity, as 27 will require some soul searching clearly. >> the, the way he talked tonight, just listening to that, basically saying eu law still applies in the uk until the uk finally leaves. but also the process has begun. they're going to start talking about how to negotiate in that. >> and now he says the 27. and that 28 minus 1. and that's the uk. so already he's talking about the 27. the future member states. earlier we were asking and speculating, is there any way it
will be delayed. maybe there would be shenanigans in parliament so it wouldn't happen straight away. not by the sound of it. the eu wants the uk out cleanly with as little damage as possible. >> to westminster, and christiane amanpour. you were listening, what did you make of what he said? >> well, really interesting. he was very, very clear that this was not going to be allowed to let the union split apart into all its 27 different components or however many may want to leave. that for us, the union and unity is still the vision of the future. he's also very clear that there won't be any legal vacuum. but he said that all the laws, the legal obligations, the rights and the, you know everything the uk, eu stands for, vis-a-vis the uk will continue to stand until the uk formally leaves. now this could be something that sticks in the craw of the brexiters. because they don't want some of
the provisions of the eu, which is why they voted this way. so while they may want the single market, they don't want the free movement of people. some here have suggested that they may sort of immediately try to say, even without having invoked article 50, even without having started the divorce procedures and in fact getting divorced, that they may immediately start imposing crackdowns and limitations on for instance free movement. he is saying no, he cannot cherry pick until you leave, until this negotiation, our laws will reman sacrosanct as they have in this regard over the years. and he said this is a process where we have to start reflection on our union, but presumably he is admitting there are challenges. people here have spoken. he knows there's disaffection in other countries about the purocracy of the eu, so they're going to have to look at where
they can trim their sails presumably he's saying, and in the end he says my father told me what doesn't kill you makes you stronger, sort of a rallying cry of the sword, that they're going to go on regardless. after hearing that, after my interview with the foreign secreta secretary, that they will be at a disadvantage, their voices won't be listened to as loudly and clearly as it was when they were a full member, it adds a pretty stark reality to the vote that's just taken place here. richard? >> christiane, thank you. stay with us, christiane, because we are heading towards the top of the hour. but i want to hear, i wanted to ask freddie, quickly, how, let me just ask you bluntly. how vindictive do you think the other countries will be in the
negotiations? if indeed vindictive they are? >> well, during the campaign, we already heard opposing views on that. just in the past few days there was president juncker, as you said who said out means out, trying to take a firm line, saying if you do this, we're going to make a lesson of it so the other countries don't get tempted to do the same. meanwhile, in germany, they put out a statement saying of course we need to trade with the uk. of course we'll do a good trading arrangement with them. so there's two voices, and it's going to be interesting to see which one comes out, is it the pragmatic voice or the political desire to protect the union from further rebellions. >> it's a tough one. if you, after brexit, the uk's voted for brexit, if you give the uk the best possible trade deal without freedom of movement for people, for instance, are you this not then telling our countries in the union, this is how we'll treat you if you decide to leave? >> that's exactly right.
so i think, you know, we said, from what the statements we had so far, they want the uk out and quite cleanly and quite quickly, i think. and so whether they're going to do a punitive regime to actually make it as painful as possible i think is unlikely. but there will be very few voices in brussels who want to make this too sweet a moment for the united kingdom. >> is it possible to get all this done in two years? >> it's going to be longer than two years. >> but then you'd prolong the period when the laws would apply? >> under article 50, that's what happens. but there has to be unanimity on the decision to extend the two-year deadline. it's not qmv. freddie, we're going to say goodnight to you in just a minute, but your final thoughts on what we've seen tonight, with your long experience of politics? >> this is what happens when the
unexpected happens is what we're witnessing now. people weren't prepared for this. not in the financial march kerkts and not in politics either. there isn't a shadow team. it's not like a government, where they lose and then there's a shadow team ready to take over. there is no team ready to take over. >> there's no shadow brexit government. >> there is no brexit government. so every day for the fex few days, it's going to be fascinating to see what happens. but this is clearly a momentous moment and i think it's got repercussions across the world. >> thanks so much. really appreciate all you've contributed during this breaking news coverage. a historic day. we continue to cover it for you on cnn. minutes from now, uk markets will open. >> and that will add a whole new dimension to a story that frank la ly is unique. frankly is unique.
a very good morning to you. it is 8:00 in the united kingdom, 9:00 in central europe. it is a historic morning, whichever way we look at it. britain and european politics will not be the same, as the country wakes up to the decision. the people have voted to leave the european union. a good day to you. i'm richard quest. >> i'm hala gorani.
8:00 a.m. the markets should open in the next few minutes. we're here to bring you news from the world and the markets where the pound has taken an absolutely brutal beating. 12% was the decline for the pound at one point. right now we're at about 133 against the dollar after having started at 151 before the brexit picture was becoming clear. here's the ftse, richard. this is a minute in. it's going to get worse just based on the futures that we saw. >> the range and extent and detail of this decision is extraordinary. and to give you a taste of it, if i may, i'm just going to read you two or three of the wires, briefly, that have just come out. for example poland's foreign minister says he sees no immediate impact of brexit for the polish people who are living in the united kingdom.
alex samond says that the british prime minister david cameron, quote, must resign today. he has no choice. he must resign after losing the referendum. everybody, wherever we look, is now, even the dutch prime minister, is saying that britain, regrets the british decision, but european cooperation will have to continue. we even heard in the last 20 minutes from donald tusk, the president of the commission, of the couns council who says a historic moment but not a moment for hysterics. >> donald tusk has already switched to the union of 27 members just a few hours after the official announcement that the uk has voted to leave the european union. >> the president of the european parliament, martin short, says
for 40 years, the uk's relation with the eu was ambiguous. now it is clear. the will of the voters must be respected. now need speedy and clear exit negotiations. so the parliament is, has got the bit between the teeth. >> nina dos santos is in the trading floor in the city of london for more reaction. she's live. you have a guest with you there. tell us what the, what the conversation is on the trading floor is all about. >> reporter: well, meetings like the morning meeting that happens about 30 minutes before the market opens have been basically dominated by one message here. keep calm, keep collected as your clients continue to call in. and the moment the ftse 100 started, we heard the phones ring hot. but as you can hear, the phones are a little calmer now.
so we are showing our viewers, it's down 1.5%. which is not what you'd expect based on the falls overnight. but volumes are so heavy. >> the magnitude of change on the currency overnight. and also on the international bosses as well. the ftse in its very early moments is struggling to price its assets. we will get a look in the next hour. >> do you think it could fall even further? if you're looking at a 10% plunge in the pound, the markets in europe and britain should fall further. >> did will >> it will be symmetrically. and there will be brave investors coming in looking at some of the transactions particularly those with heavy u.s. dollar revenues. it's probably for the only very,
very brave at this point. >> let's talk about what's going to happen now. market makers will be taking a look at those ftse 100 companies that get revenues from europe, reevaluating whether it's good to hang onto those stocks, but they're going to be looking at the bank of england. people are stahavinare starting about half a percent rate cut. but we'll see that immediately, right? >> i think the bank of england is under no pressure to change policy rates. i think they're very active behind the scenes in liquidity. what we will look for longer term as we get more of a position on the politics here in the uk is whether the committee deem that they need to protect demand and there fore cut
interest rates. that intersects with fiscal policy. >> the only major currency that's appreciating against the u.s. dollar is the japanese yen at the moment. is this kind of black friday, black wednesday scenario? is it looking not as bad as some expected even if the result is so wildly different from what people like yourself were expecting ten hours ago? >> you're absolutely right. it's taken a lot of people, myself included, by surprise. one of the things with today that differentiates with black friday, we knew immediately, once the bank gave up protecting against the deutsch mark. we don't know what article 50
will trigger. >> which is the actual article under the treaty by which the uk would leave. volumes are so heavy, the ftse is a bit touch and go. the dax is down by about 9%. the euro down. what do you make these kind of figures? we're talking about i believe the ftse 100 is down by 7% at the moment. so that as you expected. >> we're getting the pricing starting to come through more reflective of where other international bosses have been. >> the point is, this also has a big ramification for continental europe. and some are saying -- >> we have lost, we lost nina there just for the moment. listening to what they were talking about.
i think hala, we do need to spend a moment or two looking at the markets. >> this is augly picture across the board. the ftse started down because investors were trying to price these assets. the ftse down 8.5% just about. look at frankfurt, almost a 10% drop. >> this is knee jerk to some extent. but it is quite serious in the depths. and indeed, the ftse is extending its losses beyond 8% and beyond. the pound down, down 9%. at 1.36 as we watch to see further details on that. >> and japan seems to have found a level. it was low are at 1.33. >> i'm seeing on the wires, i
can't confirm it. but bearing in mind -- >> we'll wait to confirm that one. what are we doing now? christiane is at westminster. >> yes, hala and richard. as you see the markets, they are voting with downward arrows to the vote that the british people have taken. and joining me now is sir william cash, the conservative mp brexiter. and also emma hogan who's the european correspondent for the "economist." so, sir william, it's a good day for you. >> well, i campaigned for this for 30 year, yes. >> okay. what do you make of the immediate commentary on what just happened in the markets? >> well, quite clearly as far as the markets are concerned, there is a hit, but actually, the question we have to ask ourselves is the longer term question, and if you want to
actually have democracy and you want to be able to govern yourselves as a country, and america understands this, there's no chance in the united states you would allow yourselves to be governed by other countries or for that matter have your supreme court overridden by another supreme court. this is a very, very important issue, not really a principle, but a practical democracy, and therefore, yes, there are going to be consequences. but actually, the truth is, just as my father for example was killed in the last war fighting the americans in normandy, there are moments when you actually have to decide, do you really want freedom and democracy, and what flows from that. >> can i just ask you, emma, i know i feel like i'm interesting to -- listening to dictatorship being described. there is a pool on some extent
like climate and the whole single market. but how do you see it? i know the economist is a remainor. >> the way we have seen it is that britain had the best of both worlds, and that it was part of the emu. it was not part of schengen or the euro. so britain had stepped back from the eu, this is taking it quite a lot further back and will make getting trade deals even harder. i don't think the eu is going to be friendly towards britain right now. i think when, if article 50 of the lisbon treaty is invoked there's going to be a long, long haul of negotiations which britain is not part of. britain will be out of the room. it's a bit like having a divorce where one person's there with a lawyer and the other person's out of it. i think we will be punished for this in a sense. >> could i make a comment on that, if i may? you see, yes, we are out of the euro, but don't forget, it was all the people who said that we should join the euro, and also
proposed the exchange rate mechanism which caused a hit something like this back in 1992. >> but it was prime minister gordon brown who said no to the eu. but what i would ask you is to react to donald tusk who moments ago came out and said we obviously are going to continue with our vision of unity for europe, but more importantly, he said about great britain, he said, look, there'll be no legal vacuum until the eu foormly leaves, all laws and the rest of it will remain. you'll have to deal with it. >> that falls exactly within my constitutional duties in the house of commons. the position is this. it's a technical bit about article 50, the treaty. the fact is -- >> that's invoking the divorce clause. >> invoking the divorce clause as you put it. it's done under the existing treaties, which have just been
voted against by the british people, it's subject to the consent of the european parliament, organized on the basis of, in order, it operates on the basis of you are literally bound hand and foot when you are in those negotiations. z so the question that is currently being discussed is whether we can repeal the act, which is the basis on which all these laws flood into the united kingdom, and then look at whether or not article 50 is the right way to go about it. and all we're saying is -- >> you talk like you want your cake and eat it too, to leave and pick and choose when and how you can. >> no, we are going to repeal the european communities act, because this is what this decision says. however, in order to do it in an orderly manner, and as chairman i've already been talking to the parliamentary committees of the7 member states. and i have assured them that we will be doing it in an orderly manner. but actually, it does require
following certain prescribed routes. and one of those is to repeal the act and then do things in an orderly way so that we can regain the stability that is needed. >> i am absolutely sure that that's in your interest, but, again, you've heard -- >> it's in their interest, too. >> we've heard from european leaders that they're got going to be vindictive or hysterical. but they are not going to make it easy. the foreign sent hcretary has s he doesn't believe they are going to treat you with open arms. let me move on to emma for a moment because, regarding the economic aspect of this, the economist wrote that leavers are peddling an illusion which, on contact with the reality of brexit will mean their plans will fall apart. if britain leaves the eu, it's likely to end up poorer and far from obtaining the global outlook that you want, it will
become less influential and more paro parochial. it's a difficult thing for a secretary to admit that, and he did that openly. >> and it depends on what deal they get in the end. if they get a deal like norway, they will still have to accept free movement. >> do you want a norway solution? >> the norway solution is not necessarily the best one in itself, nor is the swiss one. this is a, this is something that's going to -- >> we may not be able to pick and choose. this is the thing. >> i have to wrap. i'm sorry. i have to wrap, i'm being told to go back to the studio. sir william cash, emma hogan. thank you very much indeed. back to you. >> -- downing street. we're expecting david cameron, the prime minister to make a statement. max, over to you. >> reporter: he's come out, we can assume he's about to come out. a lot of questions about what he's about to say. initially, we thought that he was going to come out and just
reassure the markets. the market's already open. they're pretty much crashing. that may be an exaggeration, but they're plummeting. so now the speculation is that he is going to come out and resign. we just don't know. it does depend on his conversations he's had with boris johnson and others in the leave campaign, but's coming out after the markets have opened. the damage has been done. there's not much he'll be able to do to bring that back up. so now the speculation is that he is going to resign. so there's the podium. a huge moment in his career, a defining moment in his career, possibly the defining moment in his career, because it was david cameron that started this whole thing off, this party was split. pro europeans, anti-europeans. he wanted to resolve at that by letting the british people decide. and they've had that referendum. he was with the campaign to stay in the european union and he's lost. so his position is untenable in
the long term. it's just depending even whether he decides to go right now. >> regardless of what he says right now, there's going to have to be a profound re-think of how the government of david cameron, now, is going to have to deal with the new reality that it basically has given itself two years to negotiate the uk's exit from the eu. i mean, this is going to be extremely complicated. no matter how you look at it and no matter what side you're on. >> reporter: where do you even begin? you have the diplomats you have to start negotiations with brussels. you have all of the laws that were linked to european laws have to be all unravelled. you have all sorts of connections and this whole regional independence thing bubbling up again, the scottish first minister saying that scotland has voted that they want to be in the european union. an indication that the independence movement is surging up again there. you have the leader, the party
in northern ireland calling for reunification. so you could see the breakup of the uk, not just the eu, and it's having financial impacts as well. i will just note, hala. that michael gove, the leader on the leave side did point out before this happened that it's up to britain to spark that lisbon treaty process, that two-year process you're referring to there. and we're looking for stability, certainly, the government, who ever's leading it will want to be ready to go into that lisbon process, that two-year process before's started. so not necessarily two years from today, but certainly,na's wh -- that's what we're looking at at this point. just imagine the pressure on david cameron who many have said has had a lucky career, and it's about to unfold here. the door is opening. here he is. david cameron and samantha cameron. i'll let him do the speaking.
>> good morning, everyone. the country has just taken part in a giant, democratic exercise. perhaps the biggest in our history. over 33 million people from england, scotland, wales, northern ireland and gibraltar have all had their say. we should be proud of the fact that in these islands we trust the people with these big decisions. we not only have a parliamentary democracy, but on questions about the arrangements for how we're governed, there are times when it is right to ask the people themselves, and that is what we have done. the british people have voted to leave the european union, and their will must be respected. i want to thank everyone who took part in the campaign on my side of the argument. including all those who put, put aside party differences to speak in what they believed was the national interest. and let me congratulate all those who took part in the leave
campaign. for the spirited and passionate case that they made. the will of the british people is an instruction that must be delivered. it was not a decision that was taken lightly. not least because so many things were said by so many different organizations about the significance of this decision. so there can be no doubt about the result. across the world, people have been watching the choice that britain has made. i would reassure those markets and investors that britain's economy is fundamentally strong. and i would also reassure brits living in european countries and european citizens living here that there will be no immediate changes in your circumstances. there will be no initial change in the way our people can travel, in the way our goods can move or the way our services can be sold.
we must now prepare for a negotiation with the european union. this will need to involve the full engagement of the scottish, welsh and northern ireland governments to ensure that the interests of all parts of our united kingdom are protected and advanced. but, above all, this will require strong, determined, and committed leadership. i'm very proud and very honored to have been prime minister of this country for six years. i believe we've made great steps. with more people in work than ever before in our history. with reforms to welfare and education. increasing people's life chances, building a bigger and stronger society. keeping our promises to the poorest people in the world and enabling those who love each other to get married, whatever their sexuality, but above all, restoring britain's economic strength, and i'm grateful to everyone who's helped to make that happen.
i've also always believed that we have to confront big decisions, not duck them. that is why we delivered the first coalition government in 70 years, to bring our economy back from the brink. it's why we delivered a fair, legal, and decisive referendum in scotland. and it's why i made the pledge to renegotiate britain's poogs in the european union and to hold the referendum on our membership and have carried those things out. i fought this campaign in the only way i know how. which is to say directly and passionately what i think and feel, head, heart, and soul. i held nothing back. i was absolutely clear about my belief that britain is stronger, safer and better off inside the european union. and i made clear the referendum was about this and this alone. not the future of any
politician including myself. but the british people have made a decision to take a different path. and as such, i think the country requires fresh leadership to take it in this direction. i will do everything i can as prime minister to steady the ship over the coming weeks and months. but i do not think it would be right for me to try to be the captain that steers our country to its next destination. this is not a decision i've taken lightly, but i do believe it's in the national interest to have a period of stability and then the new leadership required. there is no need for a precise timetable today, but in my view, we should aim to have a new prime minister in place by the start of the conservative party conference in october. delivering stability will be important. and i will continue in post as prime minister with my cabinet for the next three months. the cabinet will meet on monday. the governor of the bank of
england is making a statement about the steps that the bank and treasury are taking to reassure financial markets. we're also taking forward the important legislation that we set before parliament in the queen's speech. and i've spoken to her majesty the queen this morning to advise her of the steps that i'm taking. a negotiation with the european union will need to begin under a new prime minister. and i think it's right that this new prime minister takes the decision about when to trigger article 50 and start the formal and legal process of leaving the eu. i will attend the european counsel next week to explain the decision the british people have taken and my own decision. the british people have maidde choice. that not only needs to be respected but those on the losing side should help to make it work. britain is a special country, we
have so many great advantages. a parliamentary democracy where we resolve great issues about our future through peaceful debate. a great trading nation with our science and arts, our engineering and creativity, respected the world over. and while we are not perfect, i do believe we can be a model of a multi-racial, multi-faith democracy, where people can come and make a contribution and rise to the very highest that their talent allows. although leaving europe was not the path i recommended, i am the first to praise our incredible strengths. i said before that britain can survive outside the european union, and indeed, that we could find a way. now the decision has been made to leave. we need to find the best way. and i will do everything i can to help. i love this country. and i feel honored to have served it. and i will do everything i can in future to help this great
country succeed. thank you very much. [ shouting ] >> there you have it. david cameron is resigning. he's going to be in power the next three months. he's fallen on his sword, an extraordinary moment in british politics, but this also has international repercussions. we've seen the financial markets, massive fallout this morning, just in the first hour of trading. david cameron very clearly stating this referendum was his idea. he gave it his full backing in that campaign for britain to stay within the european union. he said he did all that he could, and ultimately, he lost that side of the argument. and he had no option but to step down. so he'll be in power for the next three months, we can assume he'll be going up the road to
buckingham palace to speak to the queen. i know she's in town ready to handle a situation like this. but an extraordinary moment here in london as david cameron, the prime minister steps down. it seems like just a couple years ago that i was here reporting on when he came in to downing street. it was in the dark then. it's bright sunshine now. and i have to say, just to describe what it's like to be here in the uk at the moment, this is pretty extraordinary. an unbelievable moment, because people knew this was a possibility. but so many people just didn't really see the reality. and now this process will unfold for britain to extricate itself from the european union. and no one really knows how it's going to work. a timetable needs to be set out. but what's it mean? what does it mean to politics? what does it mean to the economy? what does it mean for the international economy and ordinary europeans? the stock exchange?
ja germany is down more than the british one. christiane amanpour is just down the road. how do you put this into context? >> well, you know, max, just like you, you were there, you said, watching him, you know, become prime minister. we covered the election, not so long ago. wasn't it one year ago, just about, where he delivered a resounding, overwhelming election victory for the conservative people. people didn't think he would. he didn't think he would. but he led his party to an overwhelming victory, he didn't need to go to coalition. but two years before that, fearing that he might not win this overwhelming victory, he promised the country a referendum. having had nigel farage, pushing him, he decided to go for it.
many people believe he shouldn't have done it. and today he's come out and said he did everything he could to push for the solution that he thought would be best for britain. and that would be to remain, strong, in a strong europe. he did come out and say, though, that he believes that britain's economy is fundamentally strong. and that he wants to calm the markets. but he said with these big decisions you have to confront them. you can't duck them, and he said he would stay on for a period of time. he said at least up until october, the next conservative party conference, when a new prime minister should be chosen. and that new prime minister should start the negotiations with europe and invoke the divorce clause which is called article 50. so max, it is an extraordinary moment. prime minister cameron has said over and over an again and so have all his colleagues, that he would stay come what may, despite whatever the vote was, but there were a few people who said that it would never be
possible. and so that's what we're seeing today. max? >> i just want to ask you about the wider fallout here in london at least. we can assume, can't we, that george osborne's position is now seen as untenable as well, the finance minister may be likely to g the leader of the labor party jeremy corpsbyncorbyn. then we have the situation about who does replace david cameron? you've got boris johnson, michael gove. they'll speak behind the scenes to look at a transition. the conservative party will decide that. sbu it going to be prime minister boris johnson, do you think, by october? >> you know, it's really very difficult to tell. i mean, it's clear that both the prime minister and many other people believe that boris johnson took leave position in order to challenge for the party
leadership. and in some form or fashion he had to win the vote, and they have won the vote. but to be, to be the, you know, the answer to the grass roots of the conservative party. i'm going to turn now to lady barbara judge. she is the chairman, chair woman of the international institute of directors. the institute of directors. welcome to the program. you've been watching this incredibly closely. were you surprised that the prime minister announced that he would not stay for the long haul? >> i was surprised. i thought he brought the referendum to the people. he said he would stand by it. and he wouldn't want to give up the opportunity to try to make it work. i think it aeshs i am very surprised. and i think the country needs to now pull together. maybe he believes that the reason that he's resigning is in order to have a time of reconciliation. reconciliation among all the groups, because it's not the time for recrimination. britain has to be resilient. they have to deal with the rest of the world now. and in some degrees they're on
their own. so they need leadership in order to do that. >> now viewed from a purely economic and financial perspective. we've seen what the markets and the pound have been doing, and it's catastrophic this morning. he said, prime minister, that this is a fundamentally strong economy, and he wants to reassure the market. how do you see that playing out? >> i think britain is strong even before the referendum. we're looking at the entire eu. britain has one of the most extraordinary economies in europe. we're still here. we're still very good business, and we've been a trading nation for our whole existence. britain has been powerful, even though it's a small island over many centuries. i've lived in europe, asia and america. everywhere, britain is respected. we have to take the respect. we have to be resilient, and we have to get together as a group of business people in order to confront the world now, because we need partnerships. we need them more than ever. >> how do you get toes
partnerships? because all the experts have said it's going to take an incredibly long time to regain a market as big and powerful as a single market? >> we have asia. there's a huge market in asia. we have america. the america, is a huge march kit. >> you heard what president obama said. >> he did say that, back of the queue. but politicians say one thing when they're on the side to win, and another thing when they have to confront winning. it was in america's interest and in america's brief that britain should stay in the european union. but we're not there. and if we're not there, america has to deal with the new reality. the thing that worries me a little bit is what does this mean about trump? the same people in britain are the same people that are going to vote for trump? i don't know that. i wonder where marine le pen is today? >> she has called for a referendum for france. and this is why the world was looking at this vote, not just for the actual result that would come out, but what it would say
about these populist, nationalist movements that are now finding a strength that they haven't had in recent memory. what would that do to the financial world, to the global economy? because i've heard that even bankers are concerned about the political reality, about nationalism, about, you know, protectionism, all this political turmoil that's in that direction. >> well, i think the financial markets, as can you see, are not taking this well, and we never expected them to take it well. i think the shock of it is one of the things that's driving the markets down. in the next few weeks, the bank of england has to do what it said it would, try to preserve stability. the fed has to deal with what the issues are going to be in america. people have to come together and say we have a problem. we have a lot of resources in terms of brainpower and check power. we have to get together to solve it. america is not going to let britain down at this moment. obama's still president.
americans and bring t america americans and britons have had a strong relationship. i believe there will be a lot of phone kpauls calls to say all r this is where we are. >> on that note, lady barbara judge, thank you so much. and we are going to go straight back to you. >> all right, there you go. extremely significant news. a political casualty and the top political casualties, david cameron says he will eventually step down and that a new prime minister, richard just updating our viewers, could be in place by the conservative party co conference by october. this was not expected to soon. but he has acknowledged he is not the man to lead britain through this transition. yes. >> said we will need strong, determined, committed leadership to go into the negotiations with
the i27 wraremaining members of european union. he said he will steady the ship, but it is not right to be the captain to the next destination. he didn't give a timeline, but he did say that he believed the new prime minister should be in place by the start of the tory party conference in october. that means basically, the jockeying starts ten minutes ago. >> listen. here's the other thing, the other message before we get to max at 10 downing street. he wanted to reassure markets that business is strong. but also there are about a million brits living in the eu. >> and he basically said -- >> and he said that's not going to -- don't worry. >> his exact words were, there'll be no change. >> no immediate. >> no immediate change.
those people who are living overseas, there will be no change to their status in those other countries, and no change or status for those eu citizens who are living in the united kingdom. the core of what he said, though, which resonated with me, the people have voted to leave. and their will must be respected is what he said. under a new pm, we should help make it what the choice people have made, we feed to maneed to work. >> this just might be the defining moment of david cameron's career, not one he would have chosen for sure. >> the man has brought down the house around his own head. >> yeah. let's get to max foster who's at 10 downing street. let's talk a little bit about going forward, who the most likely talked about candidates are for david cameron's job, max. >> it would have been george osborne, his number two, but he's on the same side as david cameron, so he can't really step
into that role. you can't imagine he would. you would expect him to resign today. anything's possible. i can't predict anything today. it's happening so fast. the people we need to hear from are the people that really are steering the ship right now, boris johnson, michael gove. the front people of the leave campaign, and we haven't heard from them yet. what are their plans now? because the tori party will be looking to them for leadership at this point in the runup to the conference at the end of september, beginning of objecto when david cameron will step down. there will be a little campaigning now, so one of them it would be expected to go for the top job. it's hard to get your head around, but this instability is palpable, not just in a financial market, but people have had to question what it means to be british throughout this whole process. and there's a big divide in the country, and it's not down the
middle. you've got the situation where scotland and london, very strongly felt like they should remain in the european union. and other parts of england and wales for example, northern england in particular very fiercely wanted to pull out of the european union. so were they doing that because they didn't believe in the european union, or did they have wider grievances? did they have an anti-establishment feeling? did they feel disenfranl choiced? it seems those who voted to leave weren't as educated as those that wanted to remain. so there's a lot of analysis that needs to be done to ask why people chose this route. who chose it and how britain can define itself moving forward and come to terms with this massive decision. and the fact that david cameron, the prime minister's left is unsettling in itself. so that was a huge moment here not just for him but for the country. >> and max foster who's in
downing street, we're getting more reaction from other european leaders at the moment. apparently -- >> here it is. >> you have the details. >> one moment, francois hollande, we heard, france's president spoke with the german chancellor, angela merkle this morning after the referendum results. that's it. we know he's, we're expecting a statement soon. that's all we know. but certainly, one can imagine that that was the conversation of capital importance. >> the acting director general of the british chamber of commerce adam marshall joins me now. not the result that you wanted or your members wanted, you're going to have to live with it now. how difficult is it going to be? >> on the contrary, we remained very strictly neutral throughout the referendum debate because
local business communities up and down the uk have got very different views on this particular subject. and we saw an intense amount of variation there. i think what all of them were dismayed with, though, were the tone of the campaign, and they want to get on with. >> that's over with, that's over with. now a negotiation, now britain, your members have to do business with uncertainty, not only of a, now of a prime ministerial change, but several years when we don't know the trading environment for the eu/uk relationship. >> that's absolutely right. and i think we need to see some steps taken to reduce that uncertainty wherever possible. you'd need the government and the bank of england looking to reassure markets and business take those decisions like airport runways which we've talked about for a long time. investment in energy, broadband, et cetera, those things do reassure businesses and their confidence during this period. but businesses in britain are
pretty resilient, plucky and pragmatic. so quite a lot of firms will continue trading and adapt to this new environment, and that can get lost today as we enter into the postmortem on this ref rent dim debate. >> i'm just looking for the exact quote. but the ceo of astin martin has said this morning that basically, what needs to happen now is that britain, british business needs to make sure it is the most competitive it can be. and it needs to be the most productive it can be so it can withstand any tariffs that europe might impose in the future. >> well, i think that's absolutely right, given that we will find ourselves both in a period of uncertainty and in a strained trading relationship. all of us in business need to hone our teams, make sure we are investing appropriately and work to build up our global competitiveness as well. that goes just as much for small
firmts as harm o firms as large ones. >> do you believe this decision by british voters will invariably hurt the uk? to what extent would it hurt the uk economy or do you think the uk economy can withstand this and suffer or not suffer at all. >> there are some fundamentally strong things in the uk economy we can rely on. we have a strong record on employment, on very recent investment as well. but this period of uncertainty is going to cause some businesses quite a great deal of difficulty. others might say we might put off some decisions. that's why we're saying they need to look to measures that can boost confidence, things like infrastructure investment. >> there is a case for looking at this government's fiscal rules because they're going to have to support the government over that uncertainty. >> you see the pound is down some 6% to 9% this morning.
it may bounce back. it may not in the short term. that should help exports, but you now better than anybody, it's a double-edged sword because imports become much more expensive for manufactured goods. so how would you be advising your members to handle the fact that their principle currency has just fallen off the cliff? >> it depends on the type of business that's concerned. for many of our exporting businesses they're importers. they'll face both edges of that double-edged sword in the next try months a try months. for those that trade solely in the uk, i think we have to advise everyone to sit tight, look at what happens over the next few days and watch the situation. >> what should we be looking out for? >> they need to be looking to see whether sterling stabilizes for example. we need to look at what sorts of measures the bank of england and
the government puts in place to help companies and reassure confidence. i think those sorts of things will be very important, and what you'd hope for is that even if the prime minister has gone and is going to be gone by october that the government has the strength to make those decisions because businesses are looking for that in the weeks ahead. >> do you have a preference on who you would like to see as the next prime minister? >> absolutely none. we will await that political contest with some interest. >> just pause and take that, i thought it was worth a try. and we are waiting for art carney, the governor of the bank of england who is going to speak. the governor, they're putting the microphones out already. the bank has said it would take all necessary steps to meet its responsibilities for monetary and financial stability. but i'm guessing, adam, you want to hear more from governor karn ey y. >> we will be interested in what he has to say.
in addition to currency stability, the availability of capital. we've seen bank shares sliding. and a lot of people will be asking us, will we be able to get the capital we need when we need to take an expansion forward, or look into overseas. and steps by the bank to give those assurances are going to be hugely important. >> i've got to go through some ftse components for you. barclay's bank, roughly 23%. barrett development, which of course is a homebuilder, down 27% this morning. obviously, they're being clobbered. capital, and now we have the governor. >> the people of the united kingdom have voted to leave the european union. inevitably, there will be a period of uncertainty and adjustment following this result. but, as the prime minister said just this morning, there will be no initial change in the way our
people can travel, in the way our goods can move or the way our services can be sold. and it will take some time for the united kingdom to establish new relationships with europe and the rest of the world. so some market and economic volatility can be expected as this process unfolds. but we are well prepared for this. her majesty, the president and the bank of england have engaged in extensive contingency planning, around we have remained in close contact including through the night and this morning. to be clear, the bank of england will not hesitate to take additional measures as required as markets adjust and as the uk economy moves forward. those economic adjustments will be supported by a resilient uk financial system, one that the bank of england has consistently strengthened over the course of the last seven years. the capital requirements of our
largest banks are now ten times higher tan before the financial crisis. the bank of england has stress tested those banks against scenarios far more severe than our country currently faces. as a result of these actions, uk banks have raised over 130 billion pounds of new capital and now have more than 600 billion pounds of high-quality liquid assets. so what does this matter? well, that substantial capital and huge liquidity gives banks the flexibility they need to continue to lend to uk businesses and households, even during challenging times. more over, as a backstop, and, to support the function of the markets, the bank of england stands ready to provide more than 250 billion pounds of additional funds through its normal market operations. the bank of england is also able to provide substantial liquidity in foreign currency if required. and we expect institutions to
draw on this funding if and when appropriate, just as we expect them to draw on their own resources as needed in order to provide credit to support markets. and to supply other financial services to the real economy. in the coming weeks, the bank will assess economic conditions, and we will consider any additional policy responses. a few months ago the bank judged that the risks around the referendum were the most significant near-term domestic risk to financial stability. to mitigate them, the bank has put in place extensive contingency plans, and they begin with ensuring that the core of our system is well capitalized, is liquid and is strong. this resilience is backed up by the bank of england's liquidity facilities in sterling and foreign currencies, and all of these resources will support order ll lly market functioning.
the bank will continue to consult and cooperate with all relevant domestic and international authorities to ensure that the uk financial system can absorb any stresses and do its job of concentrating on serving the real economy. that economy will adjust to new trading relationships that will be put in place over time, and it's these public and private at that will determine the long-term progress. the best contribution we can make is to continue to pursue relentlessly our policies for financial stability. these are unchanged. and we've taken all the necessary steps to prepare for today's events. and in the future, we will not hesitate to take any additional measures required to meet our
responsibilities as the united kingdom moves forward. thank you very much. >> unique, unique environment this morning. i can't remember the governor of the bank of england ever making a statement in such a fashion. he said we're well prepared for it. we've had extensive planning for this. we will not hesitate to take additional measures as necessary. he said that twice. and there'll be obviously a period of uncertainty, what he described as economic and market volatility. but what i heard there, hala, i know you are here with me as well. what i heard there is we are going to flood the market. >> he mentioned 250 billion pounds. foreign currency also available in case it's needed. there's going to be no, this is what mark carney is saying, there's going to be no crunch
here. we're here to inject as much money as needed. he's trying to reassure markets. and the question is going to be whether or not that works. also the other important thing is he's saying, look, banks have ten times higher liqucquidity t in 2008. >> do you have confidence in what you heard from the bank? >> well, you know, there's a clear demarcation from where we are in wait and where we are today. that's the first thing that will give many businesses a real great deal of confidence. he talked repeatedly, mark carney did, about the real economy. those are the types of businesses i have in chambers of commerce and their memberships up and down the uk. what at the were looking for are questions about liquidity, access to capital and shoring up the currency markets, and all three of those areas were addressed in that short statement. and i think businesses will be watching the continued action over the bank over the weeks to come to see if that's followed
through, because that will give them important sources of confidence. >> the pound has just put on about two cents. it's at 1.38. we were around 1.36 when the governor started to speak. and now it seems to be at 1.38. >> so banking shares, barclays was down about 30% at the open. it's now down, it's now bounced back up from that level. it's now lower by 21%. >> lloyd's banking group is off 23%. nina dos santos is at the trading floor with the reaction of what people there made or what they heard from the governor of the bank of england. >> yeah, richard, well, a lot of people here were saying we're just waiting to see what the bank of england governor has to say, because anything i says at this point is likely to be positive. behind me they are talking about the brananks being down quite a
bit. you just reiterated 250 billion pounds, that's about $370 billion there of liquidity in both pounds and foreign currency if and when they need it. so they can call upon these extra funds if they need it. and throughout the course of the morning, we've seen big banks like barclays, lloyds, shares who are pummeled to the tune of 20%. it pains to reassure the markets to say look, we've been thinking about this. we've been shoring up our capital for quite some time. ftse 100 was trading a little bit higher since mark carney's intervention there, about 4.7, that's still half of what it was when it opened down in excess of 8% to 7%. but people are going to be looking at the british pound, the european stocks as well. the trading relationship between the eu and the uk is the biggest
trading partners for each side will also come into question as the uk continues to negotiate its way out of this. now there is one thing i should point out that people are potentially pricing in here in the markets from the bank of england, and we didn't hear any sign of that from mark karn eye, and that is a potential interest rate cut. it was coming through my inbox that they were pricing in about 1.5%. interest rates already stand at a record low. it could bring interest rates to rock bottom level, basically zero. so monetary stimulus from the bank of england and potentially fiscal stimulus from the treasury. osborne's future now stands in the future now that his boss david cameron has we signresign
hour ago. >> the market has been sold en masse. so you're seeing things down 10%. one surprise, rangold resources, >> what is that. >> gold. gold. >> gold is always a refuge investment when people semi-panic on the market, and we're sighing this. and i think you can see a 30% decline in a share price. safe way, it's a supermarket for our u.s. viewers. >> kroger's. >> businesses aren't changing. so the changes aren't justifying these types of movements on the market. let's see where it settles. >> good to have you, sir. >> all right. thank you as well. and i'm also going to head out. so we continue our coverage, though. after a break with richard. and the rest of our team here in
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♪ well, answer to that, in or out, the answer has been made. the uk is out of the european union. that's the way the vote went tonight in the referendum. a very good day to you. welcome to our coverage of the eu referendum decision. i'm richard quest. >> i'm hannah vaughn jones with you at the dawn of a new