27/06/2016 World News Today

The Headlines - Britain's prime minister, David Cameron,

goes to the House of Commons for the first time since

the referendum result and since his resignation.

Mr Cameron stressed the process of leaving the EU was down

to Britain alone - but that the country should not

I think everyone is agreed that we will want the strongest

possible economic links with our European neighbours

as well as with our close friends in the US, our Commonwealth

and important partners like India and China.

The leader of the Labour opposition - Jeremy Corbyn - who faces

considerable pressure from inside his own parliamentary

party, criticised the campaign as "too often divisive and negative."

To moral and EU summit will be again and today the leaders of Germany and

France met and told the UK the process of exiting will only begin

when they are formally instructed of the desire to do so. And here in

London I will have a reaction from the US Secretary of State, John

Kerry. He expresses regret at what will be Britain's absence in

negotiations between America and Europe.

Hello and welcome to BBC World news, live from Westminster -

The backdrop here at Westminster may look the same -

but just about everything else has changed, since that

The British Prime Minister has been speaking to parliament for the first

time since the UK voted to leave the EU. He says it is up to Britain

alone to choose when to begin the formal process of leaving, and he

will leave the decision to his successor. Following a meeting in

Berlin, the leaders of Germany, France and Italy say there can be no

talks about the departure until the legal process is actually triggered.

The German Chancellor described the British decision as painful and

regrettable. The US Secretary of State John Kerry has encouraged EU

members not to lose their heads so Britain has not diminished out of

the EU, just changed. The Prime Minister set out to

explain the decision that forced him from office, triggered unprecedented

political turmoil and caused instability in the financial

markets. Statement, the Prime Minister. He said it was not least

result he wanted but the strength of the economy meant the country was

well placed to face the challenges. I do not take back what they said

about the risks. It will be difficult and we have seen there

will be adjustments in our economy, complex constitutional issues and

challenging new negotiation to undertake. I agree with what the

Cabinet said this morning that the decision must be accepted and the

process of implementing the decision must now begin. He said it was for

his successor to determine when to begin the formal process of

Britain's departure under article 50 but the new unit was beginning

preliminary work. There were words of the assurance but no hiding the

emotion. I believe we should hold fast to revision of Britain that

wants to be respected abroad, tolerant at home, engaged with the

world and working with international partners to preserve safety and

security for generations to come. I have fought for of my political life

and will continue to do so. Early as the Chancellor had sought to calm

financial worries in an early statement. The is increasing

pressure on those who lead the Brexit campaign to clarify plans and

it was notable that Boris Johnson was absent from the house for the

statement. It is clear there will not be an emergency budget and the

pound is stable in the markets are stable. The Labour leader Jeremy

Corbyn said the referendum campaign had been divisive and negative but

also turned on his own side with the crisis engulfing his leadership. Our

country is divided down the country will thank neither the benches in

front of me nor those behind for indulging in internal factional

manoeuvring at this time. Mr Speaker,, we have... Serious

matters to discuss in this house and in the country. The SNP's leader at

Westminster said Scotland had faltered to remain in the EU and

would not be part of a diminished Little Britain. We have no intention

whatsoever of seeing Scotland taken out of Europe. That would be totally

democratically unacceptable. We are European country and we will stay a

European country. If that means we have to have an independence

referendum to protect Scotland's place, so be it. Many MPs expressed

regret at the Prime Minister's departure but he made clear that of

the decision that will not be reversed. The reason for my decision

was the country has made a clear decision to move any particular

direction and I believe it needs a new leadership and a fresh pair of

eyes committed to that path and I think that requires change and that

is why I made that decision. An extraordinary session over the road

in a packed chamber. Worth just going through some of the key lines

you heard because David Cameron started by seeing the decision must

be accepted and went on to talk about bringing the country together.

He said we will not stand for hate crimes, the backlash we have seen

over the last couple of days aimed at EU citizens. He said there was no

immediate change in the circumstances for anyone in the EU

living in this country. The same is true about the way we trade and on

the key decisions he said they will all have to wait until the new Prime

Minister is in place. He said he spoke to Angela Merkel and he will

not trigger article 50 but that'll be the job of the next Prime

Minister. Jeremy Corbyn, you saw how he was heckled when he talked about

how the country wouldn't put up with factional manoeuvring. A lot of

voices from his own backbenchers heckling Hemant shouts of rezoning.

23 of his front bench have already resigned out of 31, but he spoke

about the ten order of the debate, the half-truths which he described

as shameful and said now was the time to calm our language. Those

were some of the key planks from those exchanges through the course

of the supplement. Let's turn to economic matters because so much is

moving in terms of that. First thing this morning,

George Osborne broke his three day silence to try to reassure

the markets - saying the UK economy was strong enough to face

the challenges ahead. But that didn't stop

a day of volatility. The pound plummeted to a 31 year low

against the dollar. Banking, airline and property

shares were all hit. But the former Bank

of England Governor, Mervyn King urged calm,

telling the BBC that people shouldn't be "particularly worried"

by markets moving up and down. Here's our Economics

Editor Kamal Ahmed. The Chancellor emerged after three

days of silence to insist it wasn't Good morning, everyone,

welcome to the Treasury. George Osborne said the UK's economy

was strong and with the pound falling and share prices

tumbling, the Government was ready to do whatever it takes

to stabilise the markets. It will not be plain sailing

in the days ahead. You should not

underestimate our resolve. We were prepared for the unexpected

and we But surely this was the man

who was predicting economic chaos. Who said two weeks ago Britain

would need an Did you consider resigning,

and if not, why First of all I have an important

job to do, which is, as Chancellor, to speak to

international investors, to speak to my counterparts, to do

what I can to stabilise That is what people

would expect of their Chancellor and that is what I am

100% focused on and will continue to It has been another day

of turmoil, as fears of Brexit That is good for exports, bad

for holiday-makers and inflation, as The FTSE 250 index

of major companies in Britain fell by 7% as investors

worried about uncertainty. RBS, which we still

own a chunk of, down These share prices are

seen as a bellwether When you have a move

like last Friday post Brexit, this thing

is I think with all the uncertainty

around, this could be volatile. More to the downside,

it feels at the moment, but we are probably going to see

hopefully some positive A view shared in part by this man,

Lord Mervyn King, the former governor of

the Bank of England. He accused the government

of peddling fear, treating people like idiots, saying warnings

of gloom had been overdone. We don't know yet where

they will find their The whole aspect of volatility,

there is a trial and error process going on before

markets discover what the right level, stock markets

and exchange rates actually are. There is no reason

for any of us to panic. Investors are watching

the Chancellor closely, looking for signs that someone

somewhere has a plan. Tonight, one of the major

credit rating agencies Tomorrow, business leaders

are set to express Tensions in the market are not

going anywhere soon. More on that in just a moment but

let's speak to the Economist here with me. We were listening to that

piece with the former governor of the Bank of England saying markets

go up and down. How long would you expect the turbulence to last?

Mervyn King is right, there's a lot of volatility, but we're getting to

the stage where markets are looking for further direction from political

leaders before deciding whether the errors for the pressure to calm,

Stirling and global equities, but certainly the lack of political

leadership thus far has been behind what we have seen in terms of

violent moves lower, down to 1.32, a 31 year low against the US dollar.

That will start to stabilise as we get more political leadership. What

do you think this means that interest rates, not just here but in

America and Europe? Domestically in the UK markets are starting to price

the idea that the Governor may cut interest rates as he starts to

consider whether there will be a sustained impact of this vote on

demand, maybe needs to be more stimulative, and he also mentions

additional quantitative easing. Or internationally, there is very

little the eurozone can do, it has done a lot of monetary policy in

recent times, but in the US where they started to talk before interest

rate rises, we are now in a position where we do not expect any more. And

foreign investment, articulated again today, about whether

everything that is happening here politically and the uncertainty

feeds into foreign investment. Is there any early signs that that is

in any drying up? There were signs during the campaign that some of the

transactions were having Brexit clauses returned to them in the

event the UK border to leave the European Union. Now that has come to

pass those transactions are being considered. 48-72 hours on, we're

not seeing much evidence of deals being held up but certainly the

people I am speaking to in the city say we don't know the environment

that they will be operating and in several years' time, so why are we

making decisions against that backdrop? Early there was a tweet

from the editor of Newsnight saying we knew we will have a couple of

months before there's a new Prime Minister, and he thinks the

possibility of a general election, so all of that potentially puts back

with Article 50 is triggered. If you are talking a timescale almost until

the end of the year, economically does that uncertainty change things,

do you think, as opposed to just a couple of months of uncertainty? I

think it does, and it is a deliberate calculation under half of

the Chancellor and Prime Minister to get a long lead-in time for all most

buyers remorse for those people who voted for this looking at the

economic conditions that may happen and look whether there will be

another test of public opinion. I happen to agree that there may well

be another general election that acts as a full second referendum,

because let's be honest, the referendum in this first form wasn't

a particular type of exit. There were many views as to what an

excellent looks like and that needs to be defined and public opinion

tested. Markets against that backdrop remain turbulent.

mentioned that downgrade selects cross back from more on that story.

In the last few minutes the rating agency Standard Poor's has stepped

Britain of the top rate credit rating. Taylor's first of all what a

credit rating is and what it means for the country? It is basically

saying how much creditworthiness a country has, you can have it for

people and countries and companies. It is telling investors what the

likelihood is of them getting their money back and the likelihood of

getting back dividends. In the case of the United Kingdom, it is one of

the safest places to invest your money. It has had up till now the

second highest rating, it assesses the safety of investment in these

areas and countries and companies, and Standard Poor's is one of the

biggest, and it has lowered just a touch from Triple-A to double-A and

it is a little bit riskier. Not hugely! But when you are right at

the top and you get this tweak down, it is a slap in the face. On the

other hand the face that was expected many months ago by people,

economists who said if we? This would happen. Wilbur Smith be

worried by this? It makes it harder for us to borrow money on the

international market. It is not the short term like Bank of England

day-to-day borrowing, this is long-term borrowing on the

international markets and it will become more difficult and more

expensive. That will affect the ability of banks to finance

mortgages, so things like mortgages and long-term lending will become

possibly just a little more expensive. Thank you.

The British Foreign Secretary Philip Hammond has been

meeting the US Secretary of State John Kerry in London.

He reassured Britain that the special relationship between the two

countries would not change because of the decision to leave the EU.

The special relationship we often refer to this perhaps even more

important in these days of questioning but I want to make it

clear that we believe it remains as strong and as crucial as ever. We

are bound together by a lot of different things. By a lot of

history. By many shared traditions, shared values. A shared language,

mostly. Our Diplomatic Correspondent,

James Robbins, is in Westminster. John Kerry saying it was important

for nobody to lose their heads over this. Who is he directing that

comment towards? I think he is directing at both to people in

Britain and to Britain's existing European partners as the process

gets underway to negotiate the British exit. John Kerry changed his

travel plans specifically to come here to London and extend the

European tour because he is aware of this is a huge moment in Britain's

political history and a pretty big moment in the history of the

European Union to. He wanted to issue the sort of soothing words,

reassuring language we just heard. He kept on that theme that the

special relationship that exists between London and Washington would

not be changed and he conceded Britain's role in the world with not

be changed and not diminished. He said he would have preferred to

Britain to stay at the European Union table and we know President

Obama famously intervened and the debate and want a Britain that if it

left the EU that would go to the back of the nightly future trade

with United States. I asked John Kerry if that perhaps had been a

mistake to intervene and he told me it wasn't, it was right for the

president to make clear his views, but he also made clear the United

States could not yet judge how Britain's decision to leave would

impact on its future trading relations around the world and

therefore its economic prospects. There was a little bit of the

downbeat as well as the upbeat. James, thank you. As well as the

political reaction, EU leaders are trying to find a way forward. We can

join my colleague in Brussels. Tomorrow evening in Brussels there

will be a European Council dinner. The council represents the leaders

of the countries of the European Union and the dinner will be focused

on exactly how the UK's exit from the European Union is going to work

but inevitably the leaders of Germany, France and Italy felt we

had some talking to do in advance of the dinner because they had been in

Berlin today focusing on how the EU should check its response to that

ought, an extraordinary vote last Thursday by the people of the UK.

They gave a press conference sometime ago and this is some of it

we agreed Article 50 of the European Treaty is a very clear statement.

The member state wanting to leave the European Union has two apply to

the European Council and before this application no further steps can be

taken. Only then the European Council can issue guidelines and

along those guidelines negotiations can be conducted, which means there

are no informal talks about the exit of Great Britain before such an

application for exiting the European Union has been submitted to the

European Council. We have to show no sadness, because it is sad, but also

showed responsibility, because the responsibility is ours and we are

responsible not to lose any time, neither are dealing with the

question of the except of the UK, and we must also deal with the new

impulse we will have to give to the new European Union with 27 members,

and why should we not lose any time because nothing is worse than

uncertainty. Uncertainty gets in the way of political decisions. It also

gets in the way of financial decisions. If it is true that on the

one hand as they said we are sad, and I agree that we are sad, but it

is also true that this is the right time to write a new page in the

European history and we want to do it together, starting from what

unites us which is much more than what has divided, and we are so many

people are so negative. We should not waste even a minute and Italy

will play its role. There we have the leaders of Italy, Germany and

France and we heard Angela Merkel talk about how uncertainty does not

serve the European Union well. The problem for hard and the other 27

leaders is that although we know the UK has chosen to lead, the process

can only begin when something called article 50 in the Lisbon Treaty is

triggered and the only entities that can trigger article 50 R member

states. Even though Angela Merkel and others can apply political

pressure, it is only the UK that can begin this process. Factor in the

fact that David Cameron has said he will not be triggering the article

until he has a replacement, in early September, and as we discussed

earlier, there is a possibility that there could be a general election

called together that you read the full legitimacy he or she needs to

see through this exit process the European Union, even though they

don't like this uncertainty mainly to wait a little while. One other

thing, there may not be a huge amount of formal negotiations

because article 50 has not been triggered but things are already

shifting and the president of the European Council will convene on

Thursday what is being called an informal summit of the 27 members of

the UK is not invited and that is a feeling they will have to get used

to, so that is the first chance for those 27 to come together and do

what Matteo Renzi was talking about, what they want the next stage of the

European Union to be. It'll be interesting to see what they decide.

Absolutely, thank you. Before we go I want to take you to a rally in

central London by supporters of Jeremy Corbyn, holding a rally in

support of him. He is due to address his supporters very shortly and we

will bring that to you if we can. For now from all of us on BBC world

you, thank you for joining us, plenty more on our website and for