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Brexit Fallout Continues; Markets Watching U.K. Politics; Contenders for British Prime Minister; At Least 23 Dead in W.V. Floods; E.U. Leaders Call for Swift U.K. Exit; Escaped Residents Languish Outside Fallujah; Pope Wraps Up Visit to Armenia; Newly Expanded Panama Canal Reopens. Aired 1-2a ET

Aired June 26, 2016 - 01:00   ET

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


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MAX FOSTER, CNN HOST: Well, hello and welcome to CNN's special coverage of the United Kingdom's decision to leave the European Union. From London, I'm Max Foster.

CLARISSA WARD, CNN HOST: And I'm Clarissa Ward. Reactions to the U.K.'s Brexit referendum continue. Many are still in a state of shock following Britain's vote on Thursday. The foreign ministers of the six founding E.U. countries met in Berlin.

In a statement Saturday, they called for exit negotiations to begin as soon as possible.

FOSTER: Back here in the U.K., Labour leader Jeremy Corbyn is under pressure from members of his own party. The British Press Association says Corbyn has sacked shadow foreign minister Hilary Benn after reports that was planning a coup against him.

Corbyn backed the Remain campaign but was criticized by some in his party for what they saw as a lackluster effort.

WARD: Meanwhile, more than 2.7 million people have signed a petition on the U.K. Parliament's website, they are demanding a second referendum on whether to leave the E.U. For more on the reactions to the Brexit, our Diana Magnay joins us now from outside 10 Downing Street.

Diana, there appears to be a difference of opinions between the Europeans, who say this should start as soon as possible and the British, who are saying, hold on, let's take our time here.

DIANA MAGNAY, CNN CORRESPONDENT: Absolutely, Clarissa. The British want to make sure that they have a structure in place so that once they trigger Article 50 of the Lisbon Treaty, which starts the two- year process of exit, they have the best possible terms; whereas the European Union ministers want stability and they want this process to begin and they don't really want to be made a fool of and European Parliament president Martin Schulz said that the U.K. was essentially holding the European Union hostage by waiting to trigger Article 50. This vote has divided the political parties in this country. You have

basically a leadership contest, not just in the Tory Party but also in the Labour Party. Jeremy Corbyn just sacking his shadow foreign minister overnight, Hilary Benn, and you can expect though that that is probably going to cause even more turmoil within the Labour Party and a very divided country.

I spoke yesterday to many Europeans living here in London about how they felt about a Brexit and what it would mean for them. Let's take a look.

FOSTER: OK. We're going to listen to that a bit later on.

But, Diana, in terms of the -- no problem -- Hilary Benn, we need to sort of emphasize his significance that we -- within the Labour Party, so he's always seen -- been seen as a rising star and someone that could bring the Labour Party to a mainstream again when Jeremy Corbyn was very much to the left.

So his sacking is a massive story for the Labour Party. And it says a lot about Jeremy Corbyn as well, doesn't it?

MAGNAY: It really does He defined Jeremy Corbyn earlier, the end of last year, when he backed the British to get involved in the campaign in Syria. And there were calls then for his betrayal, essentially, of Jeremy Corbyn, to result in his resignation. But did he not go then.

Jeremy Corbyn is clearly trying to take a stand and show the sort of constancy and resilience that many criticize him for not having shown throughout this campaign.

The Labour Party was incredibly split and the old Labour heartlands voted against their leader. And Jeremy Corbyn himself had always essentially shown himself not much of a friend to the E.U.

So when he turned around and said, you know, I am standing for Remain, he wasn't able to pull his party with him; he wasn't able to pull the country with him. And there will be a general election coming soon and Labour wants to have a proper candidate in place. And I think you will find in the coming weeks that there will a parliamentary meeting of the Labour Party and you can expect to see the tide of revolt against Jeremy Corbyn really take greater form -- Max.

FOSTER: OK, Diana, thank you very much indeed.

All eyes on the other members of the shadow cabinet today. Scotland's first minister, meanwhile, met with her cabinet on Saturday to discuss the country's next move.

WARD: Nicola Sturgeon says her government is seeking immediate discussions with E.U. institutions and --

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WARD: -- other E.U. member states to, quote, "protect Scotland's place in the European Union." Right after Thursday's Brexit vote, Ms. Sturgeon said Scotland will likely seek independence from the U.K. again.

FOSTER: Here we go again. Scottish voters rejected independence from the U.K. in 2014. CNN's Phil Black has more on the current mood in Scotland in the wake of this Brexit.

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PHIL BLACK, CNN CORRESPONDENT (voice-over): Across Scotland's dramatic landscape, you will find its most iconic beast, the Highland cow. These cattle are stubborn survivors, bred to endure the cold, windy, often mountainous conditions of their native land. They can also be curious and friendly.

Every year, the finest of the breed are trucked to Edinburgh for competition in the Royal Highlands show. It's a chance for farmers to admire each other's animals and catch up with friends.

This year, they have a lot to talk about.

UNIDENTIFIED MALE: Yes, it's a very woody and pain for us, for us all.

BLACK (voice-over): Alistair McIntyre (ph) says many Scottish farmers voted against Britain's exit from the European Union.

UNIDENTIFIED MALE: A lot of farms and (INAUDIBLE) are dependent on European subsidy money to make the farms work.

BLACK (voice-over): A clear majority of Scots, 62 percent, voted for staying with the E.U. But hey were outvoted by the rest of the United Kingdom.

BLACK: Why do you think it matters more to the Scottish people than the rest of the U.K.?

Because we have seen that divide, haven't we?

UNIDENTIFIED FEMALE: Yes, we've seen that divide but I think the U.K. is the U.K. but all part of the U.K. And I don't think that Scotland should ever be on the run and close enough a lot of animosity.

BLACK (voice-over): But Scotland is, again, talking about going it alone. The head of the government here, Nicola Sturgeon, says it's highly likely Scotland will have another referendum on independence because Britain is now leaving the E.U. against the will of the Scottish people.

BLACK: Is it fair to describe you as a proud Scot?

DAVID CUTHBERTSON (PH), SCOTTISH CITIZEN: Yes, very much so. I'm also proud to be a Brit.

BLACK (voice-over): David Cuthbertson (ph) thinks Nicola Sturgeon is banging the wrong drum at the wrong time because it's been less than two years since Scots last voted to reject independence.

CUTHBERTSON (PH): But she just gets her heat together, what's this, people have said they doing their thing the wrong way.

(LAUGHTER)

That's my --

(LAUGHTER)

BLACK: I don't think she's the first stubborn Scottish person.

CUTHBERTSON (PH): Oh, no. No, no. I think you're quite right there.

BLACK (voice-over): At this huge celebration of Scottish founding traditions, it's hard to find people who like the idea of another independence vote.

BLACK: Can I ask about your tartan there?

Is that a family (ph) tartan?

DAVID MCLAREN, SCOTTISH FARMER: Yes, that's a family tartan, McLaren tartan.

BLACK: Independence, yes or no?

MCLAREN: I would say no.

BLACK: Why?

MCLAREN: I think we're better off together.

BLACK (voice-over): But there are passionate believers in Scottish independence who say the time is now.

TONY MCCANDLIN (PH), FARMER: If we do this and -- so what I'd say to the E.U., that will be a disaster. And therefore, our hand has been forced, yes.

BLACK (voice-over): It's no surprise the Scottish government is ready to break up the United Kingdom to fight for continued E.U. membership. But it's not clear if the famously determined and proud Scottish people are willing to endure yet another bruising referendum campaign -- Phil Black, CNN, Edinburgh.

(END VIDEOTAPE)

WARD: For more analysis of the Brexit and its ramifications, we are joined now by Nicholas Economides, a professor at New York University's Stern School of Business. He joins us now from San Francisco, California.

Thank you very much for being with us. We heard Donald Trump on Friday say that Prime Minister David Cameron essentially misread the mood of the people. And my question to you is do you think this referendum should ever

have been called in the first place?

NICHOLAS ECONOMIDES, NYU: Oh, it's completely clear that it should have never been called. And Mr. Cameron, the prime minister, is hugely responsible for this. It was pushed by opposition parties. But he didn't have to do it and he shouldn't have done it.

FOSTER: He was trying to sort out a major problem, though, wasn't he, within his Conservative Party, against anti-Europeans, pro-Europeans. He was trying to sort that split out once and for all. He's probably exacerbated it in hindsight, of course. His gamble didn't pay off.

But what else could he have done to have brought his party together?

ECONOMIDES: You know, he's supposed to be a national leader. You don't kill the country to just keep your party together. That's crazy. He should have really put the national interest first and found some other way to deal with his party or even resign if his party wasn't unified according to his wishes.

This is completely crazy that somebody would put the priorities of his party above national interest. Not only now his political career --

[01:10:00]

ECONOMIDES: -- is over but pieces of Britain are made Leave, like Scotland and Northern Ireland, the negotiation with the European Union creates a mess for years. And even he himself doesn't resign right away but he wants four months of uncertainty.

I mean how will the financial markets work in the next four months?

What if I was supposed to make an investment in Britain?

Should I do it or should I not do it?

I have no idea. He has created this huge uncertainty for his country. And he has divided his country. The almost 50-50 division in the country is not good at all.

WARD: Do you think there's a sense, though, that this is a wakeup call for the E.U., that there is an understanding now that things must change, that there need to be certain reforms?

I mean, 17 million people came out here and voted to leave the E.U. This has to be something of an awakening for them.

ECONOMIDES: Yes, I think there is, in general, widespread frustration with the E.U. Because, to start with, people don't know how the E.U. works. I mean, the E.U. doesn't have a broadcasting station, broadcasting in Britain, so it can tell them their message.

The way that people perceive the E.U. is a bunch of bureaucrats deciding on their faiths. And that's one of the worst thing you can think of. It's worse than Americans see Washington. I mean, it's worse because at least Washington is in the same country

while Brussels is in a different country for most of the Europeans. They don't really understand what the E.U. stands for, what are the prospects, how it's going to evolve.

There are a lot of eurosceptics around. But when a referendum is called, a lot of people even ask questions like, am I OK now versus 30 or 40 years ago, if you are old enough?

And Britain has been a country that has had its ups and downs. Remember 100 years ago, it had an empire. They were Great Britain, if you remember that, not Britain. So there are people who think that, in the past, things were better and maybe they associate the past to a time in which Britain was outside the European Union and, therefore, vote that way.

And if I remember correctly, a lot of voters who voted to exit the European Union were relatively old. The young voted to stay in the European Union. So there are all these divisions that have to be taken into account.

And that's an excellent reason why Mr. Cameron should not have put forward this referendum that, in the end, divided his country.

FOSTER: OK.

ECONOMIDES: And coming back from a general -- yes, can I come -- one more thing about the general question.

FOSTER: Yes.

ECONOMIDES: There are parties from the extreme left and the extreme right in many European countries that are against the European Union. But, so far, none of them has managed to have a majority. But that remains to be seen, if they become strengthened by this decision of the British people.

FOSTER: Yes, we've got the test of Spain upcoming and then there's France as well.

Professor Economides, thank you very much indeed.

We're following them very closely. The immediate concern, though, has to be said, for the financial markets, is those Asian markets that are opening in the coming hours. The U.K.'s Brexit vote is sending a massive shock wave through the world economy.

WARD: And we'll be looking at what could be next for those markets.

That's just ahead.

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FOSTER (voice-over): West Virginia has just gone through the deadliest flash flooding in the U.S. in six years. It's been called a 1,000-year flood and now the extent of the devastation is just becoming visible.

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WARD: The bond rating agency, Moody's, is downgrading the U.K.'s credit outlook from stable to negative in the wake of the Brexit vote. It expects that spending and investment will decline in the country, slowing down economic growth.

FOSTER: Moody's also says the U.K. could face hurdles in its negotiations with the E.U. Some analysts say those talks will last well over two years now. The Brexit vote is putting the U.K.'s economic future in a tenuous position. But one analyst says that whilst the markets went down, that was more of a smart business than a panic.

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ALI VELSHI, CNN GLOBAL AFFAIRS AND ECONOMIC ANALYST: The issue is that, on Thursday, while it looked like the Remain camp was in the lead, everybody knew the rules of the road.

All of a sudden, we don't know. I mean, there really aren't many people who can tell you with great specificity exactly how things will change for companies and workers and corporations and property values and interest rates. So what a lot of people did, it wasn't knee-jerk, it was a fairly well advised. I'm taking my money out of this market until somebody can explain to me what this all means.

You'll notice amongst the most hardly (sic) hit stocks, for anybody who has an investment portfolio, were financial stocks because they are tightly integrated between America and the U.K. and the E.U. and the rest of the world.

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WARD: The country's future leadership is uncertain right now, too, and that is only compounding issues. Our Nina dos Santos has the details.

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NINA DOS SANTOS, CNNMONEY EUROPE EDITOR: It's not sure whether the markets will rise or fall, what is sure they will be listening out to every single twist and turn.

At a time when the prime minister says he is going to be stepping down over the next three months there's questions hanging over the leadership of this country and also this week on Wednesday markets will be very finely listening out to what's said in Brussels.

Because they've got a big E.U. heads of state meeting that will be happening there. As one CEO of a bank put it to me Friday was really tough but that was just buying and selling the news. The news being the decision in favor of a Brexit was much harder he said than to buy and sell the rumor --

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DOS SANTOS: -- that will come over the next few weeks to come -- Nina dos Santos, CNNMoney.

(END VIDEOTAPE)

FOSTER: Well, with David Cameron stepping down as prime minister and leader of the U.K. Conservative Party, here's a look at how his successor is likely to be chosen.

WARD: Conservative members of Parliament who wish to lead that party must be nominated by two fellow members. If more than two candidates are nominated, the 331 Conservative MPs will hold a series of votes until they select their top two choices.

FOSTER: Then the entire party, around 150,000 members, votes in a postal ballot to make the final decision on who will leave. Since the Conservatives hold the majority in the U.K. Parliament, that person also becomes the country's next prime minister.

WARD: And the former mayor of London could possibly replace Prime Minister Cameron. Boris Johnson is celebrating the Leave vote and is now aiming for 10 Downing Street.

FOSTER: Or we think he has, that's what the sources are telling us in Westminster. Let's take a look at his bigger-than-life personality and his never-a-dull-moment political career.

(BEGIN VIDEOTAPE)

FOSTER (voice-over): British, blond-mopped...

BORIS JOHNSON, FORMER MAYOR OF LONDON: .. a fine audience, I may say, a stunning audience.

FOSTER (voice-over): -- and bike-riding.

Prone to bumbling...

JOHNSON: I can't tell where they were really but they're there -- it was that kind of --

FOSTER (voice-over): -- and bravado.

JOHNSON: Success of the Olympic and Paralympic Games of 2012.

FOSTER (voice-over): It can only be one man: Boris. He does have a last name, Johnson, but no one in the U.K. really uses it. He enjoys something close to celebrity status.

Always willing to perform for the cameras, the former London mayor has his own special flair, which he has been grooming since his Etonian and Oxford University days.

His critics call him elitist but he's not averse to getting down and dirty.

There's little doubt he's a divisive character.

UNIDENTIFIED MALE: He sort of gets people sort of riled up.

UNIDENTIFIED MALE: Oafish.

UNIDENTIFIED MALE: Great chap.

FOSTER (voice-over): Johnson spent eight years as mayor of London before stepping down in May. He began his career as a journalist, first writing for "The Times" newspaper, then as the Brussels correspondent for "The Telegraph" and finally as editor of "The Spectator."

In recent months he has been gracing their front pages, having reaffirmed the eurosceptic views for which he has long courted controversy.

JOHNSON: I will be advocating vote Leave or whatever the team is called.

FOSTER (voice-over): To go against the start of British prime minister David Cameron on the E.U. referendum has been a big gamble, particularly given his political ambitions. He became the star player of the Leave campaign.

JOHNSON: We are a great country. We could have some soulful leap (ph). Britain has got a great future outside the European Union.

FOSTER (voice-over): Born in New York, the former London mayor has joked that he could be President of the United States but it's the leadership much closer to home that he's said to be really looking to score.

(END VIDEOTAPE)

WARD: We'll return to our special coverage of the Brexit decision later this hour. But right now let's go to Natalie Allen at the CNN Center in Atlanta for the latest on the other top stories around the world -- Natalie.

NATALIE ALLEN, CNN ANCHOR: Thanks, Clarissa and Max.

Yes, U.S. President Barack Obama is declaring West Virginia a disaster area. At least 23 people have been killed in the deadliest flash flooding to hit the U.S. in six years. Nick Valencia reports the high waters swept several people to their deaths, including a little boy.

(BEGIN VIDEOTAPE)

NICK VALENCIA, CNN CORRESPONDENT (voice-over): For the last two days, West Virginia has been pounded by heavy thunderstorms and massive flooding.

UNIDENTIFIED FEMALE: Chad, watch out.

VALENCIA (voice-over): This house exploded into flames and floated down the river.

This family picked through the smoldering remains of what was once their home.

UNIDENTIFIED FEMALE: I can't get the memories out of my head.

VALENCIA (voice-over): Eye-popping currents ravaged the Mountain State. Four-year old Edward McMillian (ph) was playing behind his home when he was washed away by rapid floodwaters. His body was recovered from a nearby creek.

UNIDENTIFIED FEMALE: This has been horrific, a nightmare. I mean, I -- there's no words can explain.

VALENCIA (voice-over): It's being called a 1,000-year flood. The high terrain along the rivers in the southeastern part of the state is only making problems worse.

UNIDENTIFIED MALE: When you add nine inches of rain over just a short period of time, within the mountains, it causes the waters to come up very rapidly.

VALENCIA (voice-over): The rising waters took out bridges and broke barges loose.

UNIDENTIFIED MALE: Older people that's worked all their life for what they've got and then just, one day, it's all gone.

VALENCIA (voice-over): Hundreds of first responders, including 200 National Guardsmen, have been deployed help families like this.

UNIDENTIFIED FEMALE: And they said the last thing they knew of, there was somebody threw her a rope and then we never heard anymore.

(END VIDEOTAPE)

ALLEN: Again, 23 confirmed dead.

There are still people missing as well.

But the pro golfers were expected to play in that region.

[01:00:00]

ALLEN: The PGA, though, is cancelling a major tournament in the area because of what has happened. Some people still aren't home because they have no homes to go to as the cleanup begins. But Derek Van Dam is here just to help us with the magnitude of this historical event.

DEREK VAN DAM, AMS METEOROLOGIST: The National Weather Service is actually describing this as a one in 1,000-year event, meaning that the chance of this happening in any particular given year is one in 1,000.

So a very small likelihood. It was, Natalie, unfortunately, the deadliest flood event in 2016 here in the United States. And it's killed more than all the tornado events so far in the United States this year, which, by the way, there have been 12 fatalities from tornadoes.

Now the big cleanup ensues. You can see what people are dealing with on your TV screens there, with the video just a moment ago, unbelievable stuff. A very large amount of rain in a very short period of time.

How much rain fell?

Almost 10 inches in several locations across Central and Eastern West Virginia. For our international viewers, that's nearly 250 millimeters. And the majority of that fell within a six-hour period. That caused flash flooding.

Now remember, there is a difference between a flood warning and a flash flood warning. Flash flood warning means that the water is rising rapidly. Flood warning means that floods just come up as water starts to rise relatively equally.

But this is the issue that shows you, this is the Elk River. And the flood stage that it toppled over by Friday morning, it broke a 125- year record across that area, you can see how quickly that spiked. That's from the significant amount of rainfall that fell across that region.

I wish I could bring some of that rain and help douse some of the fires into Southern California. They are dealing with a major problem in the Bakersfield region, over 35,000 acres burned with the Kern County fire, this is the Erskine fire. Unfortunately we've got all the fuels and ingredients for this fire to continue to spread.

Take a look at some of the damage across this particular region from this fast-moving fire. By the way, Natalie, Governor Jerry Brown of California declared a state of emergency just recently in Kern County; 150 homes destroyed, 75 damaged and, unfortunately, two fatalities from this. So we've got floods on one side of the country and fires on the other.

ALLEN: All right, Derek, thank you very much.

And we will take you back live to London for more on the E.U. referendum. Breaking away from the E.U. there in the U.K. Stay with us.

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WARD: Welcome back to CNN's continuing coverage of the U.K.'s vote to leave the European Union. From London, I'm Clarissa Ward.

FOSTER: I'm Max Foster. And following the United Kingdom's exit on Thursday, the foreign ministers of the six founding E.U. countries met in Berlin.

In a statement, they called for negotiations as soon as possible. The European Commission president has also said he wants a swift exit. But German chancellor Angela Merkel has said there's no hurry.

WARD: Back in Britain, Labour leader Jeremy Corbyn is under pressure from members of his own party. The British Press Association says he has sacked his shadow foreign minister after reports he was planning a coup.

Corbyn backed the Remain campaign but was criticized by some in his party for what they saw as his half-hearted support of it.

Meanwhile, more than 2.7 million people have signed a petition on the U.K. Parliament's website; they're demanding a second referendum on whether to leave the E.U.

FOSTER: More of the reactions to the Brexit vote; our Diana Magnay joins us from outside 10 Downing Street.

David Cameron obviously left. No one else has left. But presumably there are discussions taking place down that road.

MAGNAY: Yes, Max, the chancellor, George Osborne, is unlikely to last much longer and, of course, there are questions now about who will take over the Tory leadership.

And at the moment it is probably between Boris Johnson, who very much moved the Leave campaign into a prominent position when he decided to join it, and Theresa May, the home secretary, who would serve really as a form of unifier, I suppose, in a very divided Tory Party.

And as you were saying just a second ago, it is a very divided Labour Party right now.

Yesterday, though, if we want to talk about reaction here in London amongst Europeans, I spent the day talking to many Europeans, who have made their lives here and asked them how they feel that this referendum decision will change things.

(BEGIN VIDEOTAPE)

MAGNAY (voice-over): Saturday in South Kensington, the farmers' market just behind the French school is a well-heeled affair, the continental well-to-do nibbling croissants, casting a discerning eye over the finest organic veg, mulling over Brexit.

UNIDENTIFIED FEMALE: (INAUDIBLE). It's very unfair towards the younger generation. It really is, who are now all going to be deprived of the Erasmus scholarships, the grants in aid for research for academic, scientific, never mind the easy movement within the E.U. MAGNAY (voice-over): Vasileios Valasakis (ph) from Greece is unfazed by Brexit; he works in financial services and doesn't think that much will change.

VASILEIOS VALASAKIS (PH), FINANCIER: Maybe I will need a visa but I need a visa to go to the U.S. Maybe I'll have to stand in a line at Heathrow. But when I go to Kennedy, I stand in the line for 45 minutes; I still go, no problem.

MAGNAY (voice-over): Transition to stock wealth, Little Portugal it's called, a little grittier than South Kent, but with a home from home in the form of Serrano's (ph), purveyor of Portuguese delicacies and coffee stock for the community.

Anabela Romano (ph) moved to the U.K. 26 years ago in search of a better life. She voted Remain. But she says she's worries about European workers undercutting British wages.

ANABELA ROMANO (PH), PORTUGUESE DUAL CITIZEN: With so many countries becoming safe (ph) and taken the place like the people, like my son --

[01:35:00]

ROMANO (PH): -- England, he born in London, he is 16.5 years and difficult to find a job because people working more cheaper and take the place for him.

MAGNAY (voice-over): In London's cafes, it's Europeans you'll find behind the counters. The Brits want higher wages, the owner tells me.

UNIDENTIFIED FEMALE: You have so many nationalities --

(CROSSTALK)

UNIDENTIFIED MALE: Belgium as well, there is the Polish, there is Romanian and Bulgarian as well.

UNIDENTIFIED FEMALE: Wow.

UNIDENTIFIED MALE: This is the diversity.

UNIDENTIFIED FEMALE: But it's London, right?

UNIDENTIFIED MALE: London, exactly, yes.

(END VIDEOTAPE)

MAGNAY: And that diversity, this melting pot of people, the multiplicity of languages that you'll hear on every corner, that's arguably what makes London great. But it was that very cosmopolitanism that has rankled (sic) with many people in the country who don't feel that this globalized capital city represents their interests at all.

And that sentiment certainly played a role in the decision of many rural voters, many older voters to vote Leave on Thursday -- Max and Clarissa.

FOSTER: Yes.

Still a shock, isn't there?

We're just all trying digest really what happened and what it means for us. It's extraordinary.

Thank you very much, Diana.

Next we go to France, though, into the passion of football and politics.

WARD: You'll hear what Euro 2016 fans think about the U.K.'s vote to leave the E.U. -- coming up.

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FOSTER: Well, there is something else going on in Europe right now and that is football. And fans across Europe cheering for their teams across over in France.

WARD: Euro 2016 tournament is a great place to find out what people think about the U.K. vote to leave the E.U. Our Will Ripley talked to the fans in Paris.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN CORRESPONDENT (voice-over): Politics and football: few things have such power to unite and divide. Flags and jerseys, colors of national pride, competitors fighting to win or lose.

UNIDENTIFIED MALE: Happy days. If we leave, we leave.

RIPLEY (voice-over): Even before kickoff of the Wales-Northern Ireland game, these Welsh fans felt like winners.

UNIDENTIFIED MALE: We got our country back. Same as that. We got our ball, it is back. And our government by Brussels.

RIPLEY (voice-over): Fans from Northern Ireland...

UNIDENTIFIED MALE: We voted that we stay in.

RIPLEY (voice-over): -- worry what the United Kingdom's departure from the European Union will mean for their mobility, their jobs, their future.

UNIDENTIFIED MALE: The whole day, we might let on that we do, but we do. I'm still having the time of my life here. I'll worry when I go back home.

RIPLEY (voice-over): Outside the Parc des Princes, we find fans from three of four countries of the U.K. represented.

RIPLEY: The fans here seem to be divided based on where they live. The Welsh fans backed the Brexit whereas Northern Ireland voted largely to remain. And those from England, they are split right down the middle.

RIPLEY (voice-over): These fans from West Yorkshire and Birmingham backed the Leave campaign.

UNIDENTIFIED MALE: And I think that moving out of England is the best thing that could happen to Britain.

UNIDENTIFIED MALE: A lot of people voted because of immigration.

UNIDENTIFIED MALE: Terrorism, that's the fear. Terrorism, that's the fear.

RIPLEY (voice-over): They admit much of that fear fueled by a lack of knowledge about what leaving the E.U. really means.

UNIDENTIFIED MALE: You've already said to yourself so it -- we won't be educated much about it.

RIPLEY (voice-over): This student from Northwest England voted to remain.

RIPLEY: Do you think people were aware of the consequences when they voted to leave?

UNIDENTIFIED MALE: No, I really don't. And I have seen many videos of people on Facebook, saying if they'd realize what would happen to the pound (INAUDIBLE) overnight that they wouldn't have voted leave.

RIPLEY (voice-over): No matter who they root for or how they voted, all these fans share the challenge that lies ahead: pulling off a win for the U.K. no matter what Brexit leaves behind -- Will Ripley, CNN, Paris.

(END VIDEOTAPE)

WARD: There is also a focus this weekend on another major vote in Europe. People in Spain are going to the polls in the coming hours to elect a new Parliament.

FOSTER: It's going to be very interesting because the country's center right party is expected to be the big winner and that might have something to do with the Brexit vote.

But Spain's anti-austerity alliance is also expected to gain support and that would leave Spain's Socialist party in third place. The last election in December was considered inconclusive. We'll have much more on the fallout from the British referendum but we're also going to check on the day's other news. WARD: And we will be right back after a quick break. Stay with us.

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NATALIE ALLEN, CNN ANCHOR: And hello again; I'm Natalie Allen, live in Atlanta, with our other stories we're following for you.

New developments in Iraq and the battle for Fallujah: Iraqi forces say they have pushed ISIS out of the eastern part of the city. Now their focus is to clear remaining militants from the northern and western districts.

And it looks like confidence is growing. A Shiite militia leader says he expects to see the entire city of Fallujah liberated within the next couple of days.

For the tens of thousands of families who fled the city, however, their ordeal is far from over. Many are now sleeping in the open desert with their families in overcrowded camps that are running low on supplies. As our Ben Wedeman reports, they, too, are frustrated with their government.

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BEN WEDEMAN, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): This is what passes for shelter if you've fled Fallujah. They came to these camps outside the city to escape ISIS. There's no escape, however, from the elements.

"All I want is a tent," says Samir (ph). He's been here with his family for a week.

"I ask God, I ask the government, give me a tent to protect my family."

More than 200 people are huddled in front of a mosque, taking turns sleeping inside. These are the people whose hearts and minds the Iraqi government says it's trying to win. But hearts and minds are wilting in the scorching desert heat.

"Are we criminals?" asked Muhammad (ph), addressing the government

"No, we're people. You couldn't protect us from ISIS and now you're crushing us."

Says Iman (ph), "We escaped from the tyranny of ISIS, now we need the Iraqi government to stand with us."

The lucky ones, if you can call them that, do have tents but often several families are packed inside.

WEDEMAN: This is the only toilet in this camp. This camp has more than 3,600 people. It's only being used by the women. The men just go out into the desert.

This camp was set up less than a week ago. And, really, the facilities are basic.

WEDEMAN (voice-over): The open cesspit is in the middle of the camp, a recipe for disaster, say relief workers. Aid groups like the Norwegian Refugee Council are doing what they can, handing out food and water. Demand far exceeds supply, says Karl Schembri.

KARL SCHEMBRI, NORWEGIAN RELIEF COUNCIL: We can only reach up to 5 liters per person per day which is dangerously low in this heat as you can feel. We must be quite close to 50 degrees today. And it will get much worse next month.

WEDEMAN (voice-over): That's just over a gallon of water a day in temperatures topping 120 degrees Fahrenheit. The slightest relief from the heat and the dust, no small accomplishment -- Ben Wedeman, CNN, outside Fallujah.

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NATALIE ALLEN: Pope Francis heads back to the Vatican Sunday after a three-day trip to Armenia. His visit has been marked by significant moments, such as his interfaith prayer for peace.

The pope also prompted controversy by calling the mass killing of Armenians during World War I "genocide." He visited the Armenian memorial site Saturday and laid a wreath there.

A number of countries describe the deaths as genocide but Turkey rejects that term, saying it was a time of war and there were casualties on both sides. Let's talk with CNN's senior Vatican analyst, John Allen, who has been following the pope's trip. He joins me now with more. He is also the editor of cruxnow.com, a website that covers the Vatican and the Catholic Church.

Hello to you, John, and I want to talk about The pope's use of the word genocide. There is a story why he mentioned genocide during this trip. He wasn't expected to, is that right?

JOHN ALLEN, CNN SR. VATICAN ANALYST: Yes, that's right. The pope has used that term before for the massacres of Armenians in 1915 under the Ottoman Turks. He did it last year in a special ceremony in Rome, together with a number of Armenian officials.

So he has already been on record. But the Vatican had been sort of dampening expectations that he would use the term again this time, saying he doesn't have to say it all of the time and everyone knows what he means.

And in fact, in his prepared texts for his talks, including a major address he gave to political and diplomatic leaders on Friday evening, the word wasn't there. But clearly, Francis, in the moment, felt that it had to be said. And so he said it. He referred to that genocide. And although that

has played enormously well in Armenian public opinion -- as you can imagine, he got a standing ovation at the end of that talk -- there has, Natalie, been a degree of blowback from the Turkish side.

NATALIE ALLEN: Right, how have they reacted?

JOHN ALLEN: Well, in essence some of the pro-government newspapers have been labeling Francis "the Armenian pope." And clearly from that point of view that is not meant to be positive.

And the deputy prime minister of the country yesterday in comments to reporters called the pope's language "baseless" and suggested that it reflected a Crusader mentality, meaning a Christian attack on Muslims.

No indication yet whether Turkey intends to do this time what it did last year when the pope used the word genocide, which is withdraw its ambassador.

Remember, Natalie, the Vatican is a sovereign state; it does have diplomatic relations with Ankara and there was a 10-month freeze in those relations. So we don't know yet if that's what they're going to do this time around. But clearly the pope's language has not been playing well among the Turks.

NATALIE ALLEN: All right. And, also, John, with the world watching, what has just happened in the U.K. with the Brexit, has the pope had anything to say about that?

JOHN ALLEN: On the plane on the way in on Friday, we had an opportunity to ask him for a brief comment on Brexit. And, uncharacteristically for Francis, he kind of ducked the question, to be honest with you.

He simply said this reflects the will of the people and it calls us all to responsibility to work for the good of the United Kingdom and also the coexistence of peoples in Europe.

We are hoping later today, when he does a fuller press conference on the way back from Europe onto Rome, to have an opportunity to get him to expand on that because you know, Natalie, both the Vatican generally and this pope in particular are on record in supporting European unity.

It would be very interesting to get the pope to expand on how he sees the Brexit vote in light of that broad commitment.

NATALIE ALLEN: We'll wait and see what else he has to say as we press on from this unbelievable story, thank you, John Allen, for us, senior Vatican analyst, on the phone with us.

After nearly a decade of work, the expanded Panama Canal opens Sunday. The canal's largest expansion project since it was more than 100 years ago is more than two years behind schedule and at least $1 billion over budget. There are also questions about whether the newly expanded canal can

overcome a global slump in international shipping. But Rafael Romo reports for us, optimistic officials say they have a waiting list of ships.

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RAFAEL ROMO, CNN SR. LATIN AFFAIRS EDITOR: It's the kind of moment in history that prompts people to mark the occasion. The Varcici (ph) family traveled across the continent from Argentina to watch one of the first ships cross through the all-new and expanded Panama Canal.

"My husband has been working on this project since 2007, when it was only a plan on paper," this woman says.

"Being here at this moment, it's a dream come true."

The Panama Canal has been in operation for more than a century but it was never built for the kind of modern supersized cargo ships that are vital for today's global commerce.

UNIDENTIFIED FEMALE: (Speaking foreign language)

ROMO (voice-over): Ilia Spino di Marota (ph), an executive with the Panama Canal expansion project, says that they already have more than 120 supersized ships on a waiting list --

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ROMO (voice-over): -- to use the expanded Panama Canal.

ROMO: The canal expansion took nine years and it cost more than $5 billion.

Without the expansion, Panamanian authorities say the 50-mile shortcut between the Atlantic and Pacific Oceans would have lost a lot of business from global shipping companies.

ROMO (voice-over): Crews have been conducting performance tests for months.

"We have been testing how ships behave in all circumstances, including how we rope them, how we tow them and how we push them through the canal's captain said.

The Panama Canal, originally built by the United States in the early 1900s and turned over to Panama in 1979, has long been a source of pride for Panamanians like Alberto Rodriguez.

"This is history in the making," he said.

"Long live Panama."

According to the Panama Canal Authority, the expansion project doubles the canal's capacity and will have a direct impact on economies of scale and international maritime trade -- Rafael Romo, CNN. (END VIDEOTAPE)

NATALIE ALLEN: That's our news from Atlanta. I'm Natalie Allen. We'll have more of our special coverage on the U.K. vote to leave the European Union, live from London, right after this.

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