tv DW News PBS June 24, 2016 6:00pm-6:31pm PDT
berlin. a vote in favor of leaving the eu has thrown british politics into a tizzy. the prime minister and leader of the remain camp is stepping down. >> everything i can to steady the ship over the coming weeks and months. i do not think it would be right for me to be the captain that steers our country to its next destination. >> cameron aims to hand over to a new leader by october. coming up, and go it a turning
point for the european unity process that warned against drawing hasty conclusions. she will meet key leaders monday. and local market selloff. the dow loses 500 points. germany is key index plummets 10%. welcome to the program. britain, europe in the world is coming to terms with the historic decision to leave the european union. just over half, 52% voted to go it alone. it was called by david cameron. after it did not go his way he announced his resignation. >> if leaving the european union
wasn't enough, britons will get a new prime minister and perhaps a new leader of the opposition. as scottish nationalists say they will do all it takes to stay in. the result left david cranmer cameron with little choice. >> i do not think it would be appropriate for me to be the captain to steer this country to the next destination. this is not a decision i have taken lightly. the new leadership required. after a divisive campaign, johnson sought to strike in solitary -- can solitary tone.
>> this does not mean we will be less united north will it mean we will be less european. labor's leader jeremy corbyn has a challenge. this after many traditional voters showed the strongest push for leave. nigel farage is the big winner. it was once only an obsession. they have made it a reality. with the parties split down the middle you could gain momentum
leaving out there politics in disarray. north of the border it was a clearer picture. scotland's nationalist first minister says she will do anything it takes to keep a country in the european union even if it means another vote in independence. >> as things stand we are facing the prospect of being out of the eu against their will. >> before negotiations can begin the country first needs to decide who will leave the talks and what kind of united kingdom the next premise to believe presenting in brussels. >> we have team coverage of this result.
i want to begin with you and ask what comes next. the eu wants to start negotiations immediately. we've heard from the leave camp they want to take their time. >> what doris johnson says, they will be no less united, i don't know what he means. the united kingdom is anything but united. scotland possibly breaking apart. northern ireland where the peace process is intertwined with eu laws. a huge problem may room -- loom at this problem. london does not want to remain. and the rest of england and scotland who want to go.
saying it is not united in the question is what's going to happen next. he has said he wants to take his time before he triggers article 15 which would start the process. there may be a pressure by other european union's to act quite swiftly. there is so much that he will have to sort out. who is going to be the successor. there is so much ahead and it's a big unknown. this is only day one. >> we solve this vote coming down including region, age and wealth. you are in london today. what have people been saying?
>> people are saying the thing has happened of course. the issue is the main debate amongst people. we have a monumental decision. there has been a long process of taking the u.k. out of europe. we will see how that goes. many are concerned. i took a train to the brexit tier hotspot for the out campaign. many people voted out of the 70%.
let's listen in with what some of these folks had to say. >> it was a difficult decision. i understand why people did that. i can understand why they did it. i think because they have experienced tension. it's not necessarily leaving the eu's fault. it was our government and neglecting communities. people wanted a situation to blame, people wanted a new situation, some form of hope. they thought leaving would give them that. >> they say europe controls britain, that migrants will flood the country. did people buy into these arguments? >> yeah. they did. we don't want the country taken over. it's like someone else is telling us what to do. so we don't belong here.
>> in the long run it will be better for my children. we have taken that control now. hopefully they will be less immigration. it's good to have diversity but less immigration. more jobs for us. the nhs, it will free up a lot. it will make things easier hopefully. >> t very passionate sides among this debate. it seems the remain camp failed to get its message across. what went wrong? >> jeremy corbyn is leader of the labour party he is like a lot of people down. his party wanted to stay in.
he failed to reach across a divide. he appeared alongside him. he has been very lackluster in his support. they did not know this was the case. that labor wanted them to stay in. and nobody really made a positive case of the european union. it was always this project fear that the remain campaign has displayed. the european union has had such a reputation over the last year. probably even decades. not a positive. not many positive messages about what is good about europe. and this has hardly ever come
up. these are the main reasons. >> a lot of active opposition. we saw this anti-establishment push. rolling out in the markets we have seen a big selloff. how big is the fear we could see an economic impact? >> different opinions. a number of people i talked to hear in the remain heartland of london has said of course they are disappointed. this is exactly the scenario they wanted to avoid. now that it is there, some of them have told me they are not all that concerned. they think it is a two-year process now. there will be one way or another to get forward. others feel it is difficult.
>> tnk you. the u.k.'s decision to leave the eu has caught the attention of world leaders including barack obama. >> a few hours ago i spoke with david cameron. david has been an outstanding support. the u.k. has committed to a orderly transition out of the eu. we agree our teams will remain in close contact. i spoke to chancellor merkel of germany and we agree the united states and our european allies will work closely together in the weeks and months ahead.
>> we are joined now by our washington correspondent who is standing by with more on how the vote has been going down. the u.s. and the u.k. pride themselves on their special relationship. it's pretty clear the child does not approve of its colonial parents. what will this mean? i'm sorry. i'm hearing we don't have the interview. we apologize for the technical difficulties. we can tell you in the wake of britain's decision to leave the eu european leaders have been reacting. they seem to recognize the decision is as much a challenge to the eu as it is to the u.k..
>> the british people's vote is a tough test to europe. europe must show its stability and force under the circumstances. it must bring the necessary responses to manage the economic and financial risks of the u.k.'s departure. the world to come is in great need of the year of humanism which for centuries has marked our civilization. we must remind those who demand more safety and more peace of mind that are 70 years of history that demonstrate he's has been possible thanks to the union. >> the arrogance and condescension do not resonate. they in. the european people. we need a new vision and new
>> together we can end global hunger. please download the app. >> welcome back. a quick reminder of our top story. david cameron will resign after the eu referendum. he said he would step down by october. he led the campaign to remain. 48% opted to stay. as we heard earlier barack obama says he does not approve of the decision. i hope that we can hear her now,
tell us, these countries have an historically close relationship. what does this decision mean for that going forward? >> yes, indeed. britain is the motherland of the united states. the relationship is traditionally very strong. not only an economic basis both in military and this is what obama focused on in his first statement, saying great britain will remain one of the reliable, important relationships. they will treat great britain to continue to lead an authoritarian style. i assume barack obama doesn't want to go that strict and handling this crisis.
>> this decision has implications outside of written and the eu. we appreciate the insight. brexit it is. what happens next? no one really knows. we are in aren charted -- uncharted territory. we have this report on what the next steps will be as it organizes its exit of the european union. the script may seem surprising. it's about to become a reality. what exactly will happen now that written has voted to leave the european union? the document that would make an exit possible was signed by gordon brown. article 50 of the treaty of lisbon regulates the departure of an eu member state. that is the only guideline there is for a brexit. the procedure would start with a former letter from the british
government. that would set the clock ticking. the u.k. in the eu would have two years to complete the process. experts say brussels is not fully prepared for the situation. >> there is nothing extremely specific that is spelled out. it has never happened before. we've never seen a brexit. we only have article 15. what article 50 tells you is the council negotiates and mandates the european commission to negotiate with a country that is leaving. >> what will happen to britain's who work in the eu? the british prime minister will not be able to take part in the european council discussion on written's exit -- britain's exit.
so much for the easier questions. >> a lot of technocratic issues that will have to be discussed. the big political issue will be on migration. we've heard major players clearly saying as of june 24, we will start restricting migration. that would be lawful in terms of law and could lead to a nasty political reaction. >> even if the members managed to solve these issues within two years one of the biggest obstacles remains. the future relationship of the united kingdom with the european union. the former member state would need access to the european economic area. the eu is britain's most important trading partner. britain exports half of its products to european countries
and imports more than half of its products from the continental. to maintain this level the u.k. would need a free trade agreement. without won the u.k. would have to pay tariffs. brexit supporters are banking on the fact they will be able to cut a special deal with the eu. >> the special access is wishful thinking. it is not going to be easy to come to a special trade arrangement for the united kingdom. the european union has a huge body of law that sets the rules of the single market. >> it is likely to be complicated and messy. the stage is set for nigel farage to take a much bigger role in british politics. >> global markets have reacted swiftly to the brexit vote. daniel winter has more on that.
>> there is a huge drop in the value of the pound. emergency managers were hit by the brexit shockwave. we will get the latest in just a moment. first a look at what economies are feeling the pinch. >> asian market sold off heavily overnight. european stocks open sharply lower. >> it will depend on the final decision taken by central banks. we can't say we are going toward an economic crisis. it is much too soon.
stocks in greece took a harder hit. they plunged 15%. shares slid almost 30%. across the globe investors had no place to run, no place to hide. >> the bow has taken everybody by surprise. in terms of the global economy and the political scenario. >> the stock exchange join the global route. investors dumped shares bringing the index down over 800 points. britain is a major investor in the market. the absence will affect the market globally. the british referendum results wiped out $2 trillion in stock market value and more insecurity is looming.
>> the markets on wall street have just closed aig job -- big dp. falling more than 600 points. tracking the fallout from the stock exchange. there you are. what is your assessment on the end of the week? >> it is uncertainty. that is what we got. that did hurt u.s. stocks. we ended the day on the low of the day. that's not an encouraging sign for the markets. looking ahead we had losses on wall street. down by 3.4%. we had the dollar trading quite
a bit. we had commodity prices being crushed. so, certainly, not a good end of the week on wall street either. >> a huge correction as markets went from optimism to damage limitation. the falls are huge. is there some hysteria about the losses or is the fear justified? >> the traders i talked to and did -- said there may be opportunity to jump back in the market that a lot are concerned about the financial sector. we saw banking stocks getting hammered in london. the market is about trust. would you give anybody money if you don't trust them?
that is the situation we saw in 2008. there is some concern the european union banks may not be stable. if they are not this could also spread on this site of the atlantic. financial stocks are the biggest loser. it is to earthly -- it is too early to tell. >> the post brexit hangover continues. it is all business news for now. >> that is all we have time for. i'm sarah kelly in berlin. we leave you now with impressions of the historic decision to leave the european union. we will seeing you soon -- we will see you soon. >> i will do everything i can to
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