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Examining the Blowback From Britain's Withdrawl From the European Union. Aired 4-5a ET

Aired June 25, 2016 - 04:00   ET

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


[04:00:00] BECKY ANDERSON, CNN ANCHOR: Clear look at some of the constantly historic day, the word getting a clearer look at some of the consequences it can expect from this decision.

MAX FOSTER, CNN ANCHOR: Foreign ministers from E.U.'s six founding countries are meeting in Berlin and the wheels are turning within the U.K., as well.

ANDERSON: Scotland holding a cabinet meeting as first minister Nicola Sturgeon says, "Another independence referendum is likely on the way."

FOSTER: Just moments ago the French President Francois Hollande, the U.N. Secretary General Ban Ki-moon said they would maintain strong ties with the U.K. despite their decision.

(BEGIN VIDEO CLIP)

FRANCOIS HOLLANDE, FRENCH PRESIDENT (Through Translator): I was very concern about the British votes, I had to close it, but it is democracy, but at the same time, we need to draw all the conclusions and consequences within the framework of the European Union and the participation of the United Kingdom.

We now have to organize this separation, but we have to do this in the right order and following the rules which must be implemented. But we're also going to maintain our relations with the United Kingdom particularly concerning economics, promises, relations, concerning questions of migrants and refugees.

BAN KI-MOON, U.N. SECRETARY GENERAL (Through Translator): United Kingdom and the European Union now will have to undertake intense discussions about the steps that follows. I trust the fact that these talks will take place in a positive and pragmatic way.

(END VIDEO CLIP)

ANDERSON: Meanwhile world markets saw in a state of disarray with the Brexit triggering a significant downturn around the globe.

FOSTER: Nic Robertson is in Downing Street today.

Nic, an extraordinary day there yesterday, but the authorities sort of left the building behind you in a way hasn't it? This is it all about who's going to replace David Cameron. NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yeah really, and his authority has diminished I mean he's left the building physically as in checkers for the week and we understand the Prime Minister's come to residence outside of the capital. But, yes, I mean he no longer has the power that he had before he stepped out to the podium and announced his resignation and it is now all about who will replace him.

Boris Johnson who is one of the leading figures of the "Leave" campaign has widely been seen and jugged to have been angling for the Prime Minister's job for many years. He went to school with the Prime Minister, went to a university with the Prime Minister, they were close friends. He was Mayor of London for many years. But when he announced that he was going to be joining the "Leave" campaign, strong rumors began then that this was really a sort of availed leadership challenge.

And indeed it does seem to have come to this, his name is top among the list of possible leaders of the conservative party, perhaps, he may be judged as too divisive for that role, but at the moment he does seem to be top of the list.

Theresa May, the home secretary. She was in the remain camp but it was widely seen before us being something of the Euro Skeptic but stuck to the sort of security line that Britain was better of in terms of security by being inside the European Union. Of course, the home secretary, her role to keep Britain -- British people safe. That's the line she's stuck with.

Could she emerge as leader that she's long been seen as a figure sort of rising through the ranks, through the conservative party ranks towards a leadership role like that.

Could it be her? Definitely I think we're ruling out of this as George Osborne Chancellor of the Exchequer far too close, he associated with A, David Cameron and B, the "Remain" camp. So also play for at the moment.

ANDERSON: Nic, David Cameron quite frankly looked shell shocked yesterday as he made the announcement that he would resign. He said, "He had campaigned for Britain to stay within the E.U. with his heart, his head and his soul", but he said that he wasn't the man to lead the U.K. into what will be these messy negotiations about how to separate from the E.U. but maintain trade deals and other deals that will allow this economic -- the story of the economy here to continue to grow.

So how difficult is that separation process and deal making negotiation process going to be?

ROBERTSON: Well, I think a lot of that is going to depend on what we hear from the foreign ministers in Berlin today. They're going to set the stage for how the European leaders at large, 27 of them will tackle this task. The six them then the original sort of founding EEC member states, Italy, France, Germany, Belgium, the Netherlands and Luxembourg. The foreign ministers all there they'll begin to set the stage. [04:05:03] So where will they send the bar part of their message is going to be that they don't want to see further splinterings of the contagions spreading of a British exit from the European Union. They didn't want to see other countries spinning off in the European Union as well.

So the terms they may set are going to look, you know, they will want to set tough terms, the will want to do it relatively speedily but there's a full process here in Britain that if you play this process relatively slowly, then you'd may get more favorable terms.

So you already have a difference of opinion there, fast as the European view it appears that that's what's going to emerge. Slower is the British view at the moment. But still the potential that Britain may get some slightly special more preferential relationship, you know, Britain has been in that club of European nations for a long time now.

But, you know, it's we really don't know which way it's going to go. And I think even amongst those European leaders, they got to figure it out amongst themselves, how they're going to manage to handle this sort of moment.

ANDERSON: And it's that lack of clarity which is worrying so many and so many. Nic, thank you on the markets on Friday.

FOSTER: That was frightening wasn't it and they closed on Friday and they will have a weekend of political maneuverings to digest when they open on Monday. The Brexit though, really did spark a massive global bout of chaos I think we can call it that get in trash.

Alison Kosik breaks down the numbers for us on what could happen next from the New York stock exchange?

(BEGIN VIDEO CLIP)

ALISON KOSIK, CNN MONEY CORRESPONDENT: Britain has decided no more E.U. And the fallout is staggering. Global markets reacted with a selling frenzy. Asian markets tanked on the news. Japan's benchmark index hit especially hard down 8 percent. Stocks in London fell about 3 percent. Surprisingly stocks there still up for the week.

The damage was much worse elsewhere in Europe. The German Dax plunging 7 percent, its worst day since 2008. Here in the U.S. the Dow and S&P 500 dropped about 3.5 percent. The Nasdaq fell more than 4 percent. It was the worst day since last august. But this may be the most stunning chart of the day. The British pound versus the U.S. Dollar, the pound plummeting to the lowest level, a level we haven't seen since 1985.

Here is the problem. Markets hate uncertainty. This yes vote caught markets off guard. Investors are running scared dumping money into gold and bonds and now there are a lot of questions for what this means for businesses, that U.K. and the global economy.

Now investors have the weekend to think it over. Was this frenzied selling an overreaction or just the beginning? Alison Kosik, CNN, New York.

(END VIDEO CLIP)

ANDERSON: Well, immigration was one of the biggest issues leading up to this referendum, many people think was the lynch pin of the "Leave" camp success.

Rodney Barker is professor Emeritus of Government at the London School of Economics and he joins us now with we hope all the answers to so many of the questions ...

FOSTER: He doesn't know. No one knows.

ANDERSON: Yes, if you don't know, nobody knows and such a lack of clarity and the results of the sort of mess we saw in global markets share, what happens next?

RODNEY BARKER, PROF. EMERITUS OF GOVT. LONDON SCH. OF ECONOMICS: What happened? But what happened was that the referendum campaign was actually like an asymmetric war. The two sides were simply not fighting the same battle with the same weapons on the same issues.

The "Remain" campaign never I thin really realized what it was all about. And the "Leave" campaign recognized that it wasn't about the E.U. at all.

FOSTER: What was it about?

BARKER: It was about large sections of the population feeling very unhappy, very insecure, very hard to come by their public services were not as good as they used to be, their jobs were not as secure, their children and other members of their family were on zero hours contracts. And they want ...

(CROSSTALK)

FOSTER: On the E.U. they're both against the system?

BARKER: Yes.

ANDERSON: So I guess that begs the question what will the impact on those who voted to live be of Britain leaving the E.U? Is there any difference or whatsoever?

BARKER: Well, the awful possibility and these are rather nice note in the financial "times" this morning about that is that it might be -- if it is bad for anybody, it might be particularly bad or precisely the people who voted for it.

And that there is a whole range of areas where membership of the E.U. protected the rights of workers, of pregnant woman, of the sick, those people are not going to be better off. And if we speculate about what sort of a government we might have post-Cameron, the three names that have been mentioned, none of them are to the left of David Cameron. [04:10:00] And he at least at one level represented or tried to represent a kind of caring conservatism, Go (ph), May, Johnson do not. They're tough, they're hard, they're on the right of the party.

FOSTER: I'm interested in how if the logistics of it, as well. How do we extricate ourselves in the European Union? Is the government -- is parliament going to be spending the next few year using uphold all to that parliamentary time that it could be using on other issues just to try to get this system through and what lasting damage will it do to you to the politics?

BARKER: The lasting damage that you have implied, and that it will push all kinds of things which most ordinary voters might consider really important. The standard of living, their employment, their public services to the side and was all these complicated disentanglements from Europe. And also we have seen even this morning with Francois Hollande's statement to reentanglement with Europe.

(CROSSTALK)

FOSTER: ... People to get out they're going to go back in, is that what you're saying yeah?

ANDERSON: It sounds to me as if politicians are elected officials have been rather irresponsible that is. If those who voted to leave seem not to have actually understood the impact on them, that speaks to the point you made in the beginning which is neither camp ever really had a cogent argument as to why Britain decided to stay or leave the E.U.

The flip side of that is that there seems to have been a vote about how people feel about their leadership. There was a -- it seems a deficit of leadership at present, not just in the U.K., but in the E.U.

BARKER: Yes. And a feeling that whatever is going on, it's not of great benefit to ordinary people and the discussion is at a level which doesn't really engage with what worries them.

ANDERSON: The ordinary people.

BARKER: If you listen to the "Remain" campaign, it was always the times like an economic seminar.

FOSTER: Yeah.

BARKER: Very cogent, very well informed, but does it engage with the concerns of the voters, in many cases, no.

FOSTER: It's Fascinating, isn't it? And that analysis of why there vote went the way it did is very important is it for future politics because they will have to start addressing the needs of the country and they obviously didn't want locate them probably before.

ANDERSON: Yeah, and also important for -- there was 75 percent I think of 18 to 35-year-olds who voted to remain in the E.U. It will be important in the end to provide an argument for them as they grow up -- I know they're grown up, but as we move through. If the impact of the U.K. leaving the E.U. is damaging for their prospects, we better come up with a reason why we voted them out.

BARKER: Yes, and if they want to go and work in other countries, gain work experience abroad, go to foreign universities, come to the other states, go from the other ...

(CROSSTALK)

ANDERSON: Yeah.

BARKER: It comes more difficult.

ANDERSON: Thank you

FOSTER: Thank you very much indeed, Professor Barker.

ANDERSON: Ahead, Scotland may eventually make its own exit plans. Most of the country voted to stay in the European Union.

Now there is renewed talk of a potential Scottish pullout from the United Kingdom.

[04:13:28] FOSTER: Plus, the leader of France's far right party is celebrating the U.K. vote to leave the E.U. Marine Le Pen is also calling for similar in referendum in France. Details on that next.

(COMMERCIAL BREAK)

ANDERSON: All right, welcome back we are going to take you straight to Berlin where later on today, the foreign ministers of the six founding members of the European Union will be meeting to try to hammer out what they do next after the U.K. voted to leave the European Union.

Atika Shubert is standing by. Atika, what's the buzz?

ATIKA SHUBERT, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, actually those foreign ministers of those core E.U. countries have met at a breakfast meeting this morning with (inaudible) and other food.

And basically what we're talking about is the German Foreign Minister Walter Steinmeier hosting this really urgent meeting to figure out what to do next.

The core countries Belgium, Luxembourg, Netherlands, Italy and of course, France want the U.K. to leave the E.U. as quickly and as painlessly as possible. They have made that clear. And now their main mission and the goal today is to sort of map out some way out of this and then to figure out how to best do this by showing that no other E.U. country should attempt to do this and leave the E.U., make it clear to the U.K. that there will be no benefits.

So most important part of course, will be access to the single market of the E.U. So these are the issues they are discussing. But the sticking point here is that while they can discuss and negotiate and come up with plans, nothing really moves forward until the U.K. submits its article 50, this is the official notice that it wants to leave the E.U. And that will not happen until there is a new prime minister in the U.K. Becky.

FOSTER: And they're going to drag that rise out aren't they because they don't want to rush this one through. They got what they wanted, they know it's going to be an absolutely nightmare in terms of logistical extrication from the system, but those in Europe, those leaders want this dwelt with as quickly as possible. Could they not argue that that, you know, that chapter has already been invoked and that the two year process have already started?

SHUBERT: Well, what we're going to see is that even though legally, you know, the wheels aren't moving yet, behind the scenes as you can imagine a flurry of negotiations and diplomacy. So it starts with that meeting today. On Wednesday, the E.U. will formally meet with its 27 members, not the U.K., to discuss what to do with this now that the referendum is done and dusted.

[04:20:01] But ultimately it's all negotiations and all trying to leverage for position at this point. And this is why the longer that goes on perhaps it is in the U.K.'s advantage to try and get a better negotiating position. It's all about trying to get the best possible trade deal and what the E.U. wants to show is that if you leave the Union, then you no longer get any of the benefits of accessing its single market and of course, from the U.K.'s perspective they're going to want to negotiate a deal that give some kind of specialized access and we're going to see this long drawn out process that could take months if not years.

FOSTER: OK, Atika in Berlin. Back with you as you get the results of those meetings.

ANDERSON: We are also monitoring how Northern Ireland stop and don't react into Brexit, those countries has voted to overwhelmingly stay in the European Union, the Sinn Fein party which shares power in the Delfos government is calling for the Republic of Ireland and Northern Ireland to hold a unification vote in the wake of Brexit.

FOSTER: That's right and Scotland's first minister says a Scottish's referendum to leave the U.K. is now highly likely lightly.

Our Phil Black has the latest from Edinburgh.

(BEGIN VIDEO CLIP)

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Democratically unacceptable, that was how Nicola Sturgeon the First Minister of Scotland described the possibility that Scotland could be pulled out of the European Union after the people of Scotland had voted so overwhelmingly in favor of staying with the European Union.

62 percent of Scottish people voted in favor of that. The First Minister said it was clearly the democratically expressed aspiration of the Scottish people to state part of the European Union, part of the common market. And she was prepared to do everything possible to make sure that happened, including calling another independence referendum.

Now, it was only back in September 2014 that the Scottish people voted through a referendum on the issue of independence. That vote decided that Scotland should stay with the United Kingdom.

Now the First Minister says there has been material and significant change in Scotland's circumstances. Through her political party's recent elected manifesto, she said under those circumstances, a second referendum would be reasonable.

More than that, she now says "that her government is already preparing legislation within the two year time scale that the United Kingdom has to disengage itself from the European Union.

NICOLA STURGEON, SCOTTISH FIRST MINISTER: I can therefore confirm today that in order to protect that position, we will begin to prepare the legislation that would be required to enable a new independent referendum to take place if on going parliament so decides.

To conclude, this is not a situation that I wanted Scotland or the U.K. to be in today. That my responsibility and I claim of uncertainty is to seek to lead us forward with purpose.

BLACK: Nicholas Sturgeon said the Scottish people had clearly voted for their country to be more than outward looking and inclusive and she felt it was inconceivable for the British government to stand in the way of another independence referendum if the Scottish parliament decided to proceed.

Phil Black, CNN, Edinburgh.

(END VIDEO CLIP)

FOSTER: Well, The E.U. is urging stability in the wake of the Brexit knowing full well that the decision could inspire other countries to follow suit, Italy's Prime Minister saying he intends to be a steadying influence.

(BEGIN VIDEO CLIP)

MATTEO RENZI, ITALIAN PRIME MINISTER (Through Translator): The government in the European institutions are in a condition to guarantee in every way the security of the financial system and the security savers. Italy is now solid once again and today it has a role. Its role is to offer the solidity to other European partners too and to this end, we will work from tomorrow with the foreign ministers of the founding nations.

(END VIDEO CLIP)

ANDERSON: That meeting already started of course. The president of the European commission echoed those sentiments. He said the decision is done with and E.U. must move forward accordingly.

(BEGIN VIDEO CLIP)

JEAN-CLAUDE JUNCKER, PRESIDENT, EUROPEAN COMMISSION: Where they got this decision, personally I'm very sad about this decision, but of course we have to respect it.

(END VIDEO CLIP)

ANDERSON: And across the English Channel, leaders and these people of France also reacting to their neighbor's vote to leave the European Union.

FOSTER: A lot of shock as you just saw there.

Our CNN International Correspondent Jim Bittermann has more from Paris.

(BEGIN VIDEO CLIP)

JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: France was in at the beginning European Union and it was clear from president Hollande's reaction he did not want to witness its demise.

FRANCOIS HOLLANDE, FRENCH PRESIDENT (Through Translator): The choice of the British is a serious trial for Europe. We need to show our strength, our solidarity and bring about the necessary responses in order to control the financial and economic risks in the departure of the United Kingdom.

[04:24:59] BITTERMANN: But if her president regretted the British vote the leader France's Extreme Right Party applauded it, and immediately call for a similar referendum in France.

MARINE LE PEN, LEADER, "NATIONAL FRONT" IN FRANCE (Through Translator): The British people have brought the European people and also the entire world a real and great lesson in democracy. Not to give into fear, not to give into the apocalyptic prediction, and they chose a path of freedom.

BITTERMANN: but not all agree that the British vote was so positive. Those who have long follow the construction of the European Union were saddened by the result and understand its implications.

JEAN-CLAUDE TRICHET, FORMER PRESIDENT. EUROPEAN CENTRAL BANK: It's a loss for Europe as a whole. We need more democratic legitimacy, more democratic accountability in Europe at this stage and it clearly called for European parliament to have more say.

BITTERMANN: some here directly blame the British Prime Minister for what they call a catastrophe.

DOMINIQUE MOISI, FRENCH FOREIGN RELATIONS INSTITUTE: The problem today is not to punish the British for what they did. The problem is to integrate what their message was and what it means for us.

BITTERMANN: And France some folks shaking up the E.U. was a good thing. UNIDENTIFIED FEMALE: To ancients or should we do kind of a new Europe. I don't really know. I think unity is the answer. I don't think it's going away from the Europe. So we'll see.

UNIDENTIFIED FEMALE: I think it's a disaster. A disaster for London, a disaster for Europe also and for French people.

UNIDENTIFIED MALE: I think its going to be tough for all of us. Even for English people.

BITTERMANN: What comes now is what the European Union has seen a lot of over the past six decades, meetings and hammering it. For or against the E.U., you heard people here say the same thing after the British vote. It should be a wake-up call to E.U. leaders. Now that they're up and awake, the real question is can they deal with the issue it s it has raised?

Jim Bittermann, CNN, Paris.

(END VIDEO CLIP)

FOSTER: Well, would you notice the Prime Minister here in the U.K. he is out of it. He took a political gamble, now David Cameron is stepping down.

ANDERSON: Absolutely, were going to take a look at the political events that led up to his resignation.

FOSTER: And later this hour, why many had joined parallels between the UK's decision to leave the E.U. and Donald Trump's own brand of politics. Stay with us.

(COMMERCIAL BREAK)

[04:30:51] FOSTER: In the United States and around the world, we continue our coverage of the U.K.'s vote to leave the European Union. I'm Max Foster.

ANDERSON: And I'm Becky Anderson.

Here in London, a new image of Britain is taking shape as the dominos start to fall, we saw the markets react first as they plunged in the wake of this decision. There is still major uncertainty in the financial sector. And Monday could bring further decline.

FOSTER: But the political fallout has been no less severe. Foreign ministers from the six founding nations of the E.U. are in Berlin discussing the next steps for the block. And the U.K. is facing more turmoil as well. Scotland looks poised to set another independence vote of its own.

ANDERSON: And the Prime Minister, David Cameron gambled his political future over this historic vote. Cameron campaigned heavily you may remember for the U.K. to remain in the E.U.

FOSTER: And now Cameron is stepping down and wants a new prime minister in place by October.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: I will to everything I can as a 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 interests to have a period of stability.

(END VIDEO CLIP)

FOSTER: Well, the other 27 E.U. nations will discuss the terms of Britain's divorce on Wednesday. That will happen in a meeting without the British prime minister there. And before that Cameron will have to discuss have a chance to discuss the results of the referendum with the E.U. leaders I think that's on Tuesday.

ANDERSON: That's right, that's just one of the last meetings that Cameron will attend as Britain's lead up here is a look at the political events that have led up to his resignation.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is a decision that is bigger than any individual politician or government. And so it turned out to be. David Cameron's promise of a referendum ultimately the death knell of his leadership, the argument over Britain's place in Europe bringing his time at 10 downing street to a dramatic end.

When Cameron first took office in 2010, it was against an unfamiliar backdrop, a coalition government for the first time in generations.

CAMERON: We are announcing a new politics.

UNIDENTIFIED MALE: In this new era, Cameron oversaw the country's gradual economic recovery, a shrinking budget the deficit and record number of jobs created, although the process of austerity was painful for some.

Cameron maintains Britain's special relationship with America, joined the international coalition against ISIS and welcomed the world for highly successful London 2012 Olympics.

When it came to re-election last year, even Cameron was taken by surprise when he won a majority. But that win came at a cost.

Pressure from an increasingly disgruntled group of Euro skeptic M.P.s within Cameron's own party forced him to make a pledge.

CAMERON: Yes, we will deliver that in/out referendum on our future in Europe.

UNIDENTIFIED MALE: The Europe issue has divided Cameron's conservative party for decades.

CAMERON: I am not a British isolationist, but I do want a better deal for Britain.

UNIDENTIFIED MALE: In February, he went to Brussels, to re-negotiate Britain's position in Europe. He declared it a success, but his critics including high profile members of his own cabinet said little had changed.

BORIS JOHNSON, "LEAVE" CAMPAIGNER: Explain to the house and to the country exactly in what way this deal return sovereignty over any field of law making.

UNIDENTIFIED MALE: Having failed to convince even some of his closest political allies, Cameron's position going into the referendum was vulnerable. He had already announced he would step down before the next election in 2020.

CAMERON: I am not standing for re-election. I have no other agenda than what is best for our country.

[04:35:05] UNIDENTIFIED MALE: As Cameron steps down, the race to fill his shoes will quickly heat up.

(END VIDEO CLIP)

ANDERSON: So it will.

FOSTER: Let's take look at who will replace David Cameron that was leaded because that's his party, that's pretty of the story now.

ANDERSON: Yeah, it is. First, can a 48-year-old Michael Gove, the British justice secretary is always been seen as a close ally of David Cameron, but decided to campaign for Britain to leave the E.U.

FOSTER: One of the favorites before the referendum was Theresa May, a 59-year-old she is the current home secretary may supported the remain campaigner. Ans also said that the U.K. should look at further reform on the freedom of movement.

ANDERSON: Interesting choice of image. This one, finally the British current favorite Boris Johnson, the 52-year-old, is former mayor of London and currently serves as a member of the British parliament. Johnson surprised some by coming out as a leave campaigner. Certainly because in the past he is a -- has been -- was a -- has been an out and out favorite of Europe, but he certainly hasn't been an outed Euro skeptic as it were.

FOSTER: I know, there's some confusion there because that is future and the consequences of Brexit are unknown politically and economically.

William Cash, a British member of parliament and least supported joins us now to discuss where he sees the country going. And Becky and I were discussing earlier how -- this is such a wonderful moment for Nigel Farage it's been 25 years he's been campaigning for Britain to leave the European Union. We just looked out. You've done it for 32. You're happier than Nigel. BILL CASH, BRITISH MEMBER OF PARLIAMENT, CONSERVATIVE PARTY: Well, I run the master of referendum campaign, the calls, the master treaty was about Europe and government. I read a book called "Against the Federal Europe" which actually pointed out that this would lead to riots and protests in Europe if it collapsed as it has been doing. And also that it would leave to massive unemployment, waves of immigration at least in Central Europe and rise in the far right which I'm very much against. But I said that this would be a destabilizing force because of the centralization creating a compression favor. That's what's happened.

And I've now written another book called from "Brussels with Love" which 24 hours went to the top of the Amazon list. I mean literally last week or the week before and actually the point is that understanding the nature of the impact that the centralization is undemocratic creation which now causing a lot of discontent all over Europe. Half the countries in Europe now want referendums.

ANDERSON: Why is it that -- sorry -- Why is it that you believe that Britain is better off out?

CASH: Well, just at the single market for example, everyone who keeps on talking about it and of course we traded 44 percent with our exports to Europe. But when you look at the trade balances with us and the other 27 member states, we run a deficit of 68 biil1ion a year. And it went up by 10 billion last year alone.

Our trade service with the same goods and services with the rest of the world is 31 billion and that went up by 10 billion last year, as well. Germany on the other and which is a very crucial factor in this and hasn't been properly looked at makes a trade surplus with the same 27 of 82 billion a year.

Now, that demonstrates something very clearly which is that enormous that the german is benefit to the sigle market but it's significantly not for the U.K. and that is a very important factor that I think needs to emphasize. The compression chamber I've described is a democratic question because this vote ultimately is about democracy and the American public will understand this, they think back to 1770s and Boston tea party and remember the fact that they rebelled against the centralization of the U.K., no taxation without representation.

FOSTER: No one has argue with democracy campaign and actually people are celebrating it on every side today. But -- a very well regarded professor who I speak to earlier disagrees with you that this was a vote against the European Union, it was actually a vote against disenfranchisement from the system and people from the north of England feeling as if there was a London metropolitan elite and that they are suffering in their everyday life because they're not getting enough.

ANDERSON: And this would make it worse not better for them.

FOSTER: ... well, people have voted ...

CASH: He and I know one another quite well and we've just had a very interesting discussion before I came on there. And we'll go back to it. Well, the points (inaudible) there is an element of a reaction against centralized government, but there is also a reaction within the labour party against the fact that they have been telling them to do things which actually they didn't want to do.

ANDERSON: Bill, can I ask you one very brief question.

FOSTER: Yeah.

ANDERSON: ... get a very short break after this. The U.S. presumptive candidate, a Republican Party Donald Trump has and is likely going forward to capitalize on what has happened here. Is that a good thing do you think? Are you proud to know that what the U.K. has done here will be taken advantage of by Donald Trump?

[04:40:03] CASH: No wait a minute, no, because it's -- that you're miss representing it if I may say. What he actually says is they have taken the country back and it's a matter of fact that is true. But it is actually as I said to you with regard to the American experience, actually the fact is that all over Europe, people are saying and in America because they are getting very fed up with the centralization there as well. That's why I think Donald Trump is getting so much support.

The fact is Democratic consent been locally based, it should be based on people having their on democratic consent expressed. And through the European Union, the laws are imposed on you, they decided behind closed doors in corridors run by officials and it's not sufficient, in fact it's not democratic at all in the minds of many, many people. And it's caused enormous amount of disturbance.

Europe has created the instability. This event is not in itself creating the stability. It's actually inherent in the way that the European Union is itself constructed. That's the problem.

ANDERSON: So Bill Cash, you will not be surprised if you open (ph) this at the beginning of this conversation to hear is a Euro skeptical has been for many, many years.

CASH: Well I would say with good reasons, I think.

FOSTER: OK, there we are.

ANDERSON: Thank you.

CASH: Thank you very much.

FOSTER: And we'll be right back.

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ANDERSON: Britain's vote to leave the E.U. is reverberating across the Atlantic. American politicians from both major parties expressed their respect from the choice of British voters.

FOSTER: It was Democratic U.S. President Barack Obama had urged Britain to remain in the E.U. though in the run up to the referendum. But on Friday he gave assurances that the special relationship between the U.S and the U.K. is still solid.

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[04:44:56] BARACK OBAMA, U.S. PRESIDENT: I do think that yesterday's vote speaks to the ongoing changes and challenges that are raised by globalization. But while the U.K.'s relationship with the E.U. will change, one thing that will not change is the special relationship that exists between our two nations. That will endure. The E.U. will remain one of our indispensable partners. Our NATO alliance will remain a cornerstone of global security.

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FOSTER: The U.K.'s decision to leave the European Union has been compared to the rise of Donald Trump in the U.S.

ANDERSON: Since both highlight voters' dissatisfaction with the political establishment.

FOSTER: Democracy (inaudible) campaign is rejecting the comparison they are saying in part that Trump is more concerned with himself than his fellow Americans. But the presumptive Republican presidential nominee disagrees.

Our CNN Sara Murray reports.

(BEGIN VIDEO CLIP)

SARA MURRAY, CNN POLITICS REPORTER: With Scotland's lush hills at his back, Donald Trump is applauding the U.K.'s decision to turn its back on the European Union.

DONALD TRUMP, (R) PRESUMPTIVE PRESIDENTIAL NOMINEE: People want to take their country back. And they want to have independence.

MURRAY: Trump sensing parallels between the voter angst driving the British exit and the anxieties fueling his campaign in the U.S.

TRUMP: You're going to have more than just in my opinion more than just what happened last night. You're going to have I think many other cases where they want to take their borders back. I think it's happening in the United States.

MURRAY: Trump even claiming President Obama bears some responsibility for the Brexit after he pushed for the opposite outcome.

TRUMP: I actually think that his recommendation perhaps caused it to fail.

MURRAY: As he argued both Obama and Hillary Clinton are out of touch with American voters.

TRUMP: She's always misread anything. The only reason she did it is because Obama wanted it. And if Obama wanted it the other way, if he said leave, she would have said leave.

MURRAY: Clinton campaign fired back.

JAKE SULLIVAN, CLINTON'S SENIOR POLICY ADVISER: He's not concerned with foreign policy, he's not concerned about the American people, or their retirement accounts or their security. He is concerned with himself and that's it.

MURRAY: Trump who just days ago admitted he didn't spend much time brushing up on the Brexit felt little need to do so with his foreign policy advisors.

TRUMP: I've been in touch with them, but there's nothing to talk about.

MURRAY: And Trump wanted the thread of immigration.

TRUMP: People want to see borders. They don't necessarily want people pouring in to their country, that they don't know who they are and where they come from.

MURRAY: Vice President Joe Biden cautioned against politicians playing to people's fears.

JOE BIDEN, U.S. VICE PRESIDENT: All this provides fertile terrain for reactionary politicians and demagogues, peddling xenophobia, nationalism, and isolationism. It is has been un-American what we have been seeing.

MURRAY: And from the ninth hole of his Trump turn Berry Golf course.

TRUMP: A lot of people think this will be the greatest par 3 anywhere in the world.

MURRAY: Trump defended his unconventional foreign trip which come at a momentous time. Still he doesn't have a single diplomatic meeting on the books. Instead he's dismissing questions about his rocky relations with leaders like David Cameron, the British prime minister who just announced his resignation.

TRUMP: Where is David Cameron right now?

(END VIDEO CLIP)

FOSTER: Oh, wow. It makes me ...

(CROSSTALK)

FOSTER: ... felt like it, isn't it?

ANDERSON: I was just wondering whether all those Scottish caddies with those red caps on ...

(CROSSTALK)

ANDERSON: Making America great again. FOSTER: Yeah, I know it's extraordinary. But I mean it's a beautiful scene, a beautiful place. You know, he's a mix -- people have very mix (inaudible). He has brought lots of jobs into the area. But he's a controversial figure, you know, the P.R. that he bring is something what controversial.

Much more on the fallout though, not from the Trump visit. But from the British referendum, we'll check on other stories as well after the break.

ANDERSON: Yes, we will. And we'll be right back after a very quick break. Don't go away. You're watching CNN.

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[04:52:37] NATALIE ALLEN, CNN ANCHOR: This is Natalie Allen live from Atlanta. We'll get back to London in just a moment. But right now we want to bring you some other stories we're following.

Pope Francis is continuing his visit to Armenia. He so far attended an outdoor mass and a wreath laying ceremony at the Armenian Genocide Memorial.

On this trip, Francis has once again called the mass killing of Armenians under Ottoman rule in World War I a genocide in this visit and those comments will likely anger Turkey which rejects calling the killings genocide and maintains there were losses on both sides.

Twenty countries recognize the event as a genocide including France, Canada, Russia and Italy. The U.S., U.K. and Israel do not. Turkey and Armenia also differ on the number of people killed in the event. Armenia says 1.5 million died. Turkey puts the number at around 300,000.

Brazil's only accredited lab to test for doping says it hopes to get its license back in time for the summer Olympics that's six weeks from now. The Brazilian doping control lab was suspended on Friday.

Here is CNN's Nick Paton Walsh with why.

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Typically we don't know the precise reason why they have suspended this key laboratory in Brazil, the Brazil doping control laboratory where 6,000 samples will be processed or should have processed during the games.

But they are clear this isn't a series of misdemeanors because when the facilities are inspected they can for small issues end up incurring points which in a recent threshold results in a suspension. That was in a situation here, I'm told. This was one issue that was serious enough that merited the suspension.

Now, a spokesman from WADA when pressed whether or not this could be clarified before the games said it is possible it won't be, that this facility will not be used and they will have to go to contingency planning potentially like they did in the world cup using facilities in Europe or maybe using facilities in North America. That would call into question the speed of their functionality, can they process samples fast enough to satisfy the appetite for clean slates here during the medals process at the games.

And also too what really was the issue. They spend millions on clean new state-of-the-art equipment in that facility that we saw ourselves just a matter of days ago now. So maybe there is another issue there. We simply don't know what that is we may never know what that is before the games actually start.

[04:55:04] And we do know the laboratory have issued a very clear statement saying they believe their work is in the pursuit of excellence and that they think the next inspection will actually enable them to have a clean slate and carry out the tests for the games.

One confusing discrepancy, why they were clear that they told the laboratory about the suspension two days ago, but actually the laboratory say they only heard about it from the wider statement release late on Friday.

So a lot of questions to be answered here still, a laboratory convinced they have a clean slate, while they convince those one serious issue so serious that they can't fill this vital role at the game. But this adds yet another problem to the myriad of issues that these Olympics are facing and it's one that goes straight to the heart of perhaps the most sensitive part of the sports, will be plated. Russia already under great scrutiny here, many of its athletes won't be able to compete, many will have to go through increased testing to be able to make it to game fields here. Kenya perhaps too, under similar scrutiny, and now the one facility that was supposed to sweep through all of that and be a shining beacon of clarity here is in severe trouble if not simply out of commission for the games themselves, yet another problem and a very serious one on the list of issues here for Rio 2016.

Nick Paton Walsh, CNN, Rio de Janeiro, Brazil.

ALLEN: In France the Euro 2016 football championship continues with three matches set for Saturday. It's the knockout stage of the tournament and Poland and Switzerland kick things off.

Next, cut off news of the Brexit at home. U.K. teams Wales and Northern Ireland meet on the pitch. It's the first time either has reached the elimination stage of a major tournament in 58 years.

Portugal and Cristiano will now go round out the day taking on Croatia.

And that's the news from Atlanta. We'll have more from Max Foster and Becky Anderson live in London on the U.K.'s exit from the E.U., next.

You're watching CNN.

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