:00:00. > :00:07.Explosions and gunfire attack at the international
:00:08. > :00:14.At least ten people are dead after two suspects blew themselves up.
:00:15. > :00:16.The attack occurred at about 8 o'clock our time.
:00:17. > :00:28.Also tonight, turmoil in the Labour Party.
:00:29. > :00:32.We'll hear from two Labour MPs, one on each side of the Corbyn divide.
:00:33. > :00:34.And Lord Heseltine on the Conservative's leadership
:00:35. > :00:37.contest and our relationship with the EU.
:00:38. > :00:41.And Emily gets the reaction to Brexit, of Marine Le Pen -
:00:42. > :01:06.Well, it was earlier this evening that news started coming
:01:07. > :01:11.through of explosions at the Ataturk International Airport in Istanbul.
:01:12. > :01:15.It's the main airport in the city, the third busiest in Europe.
:01:16. > :01:18.Explosions and gunfire were heard, the location of the attack
:01:19. > :01:23.was outside the security checkpoint to the international terminal; this
:01:24. > :01:25.is one of those airports with security at the entrance,
:01:26. > :01:30.as well as at departures to the airside terminals.
:01:31. > :01:37.The latest we have heard is the airport is being evacuated, although
:01:38. > :01:42.there are still people inside the terminal. You can see here video put
:01:43. > :01:46.onto social media, about an hour ago, travellers hiding inside the
:01:47. > :01:51.airport shortly after the explosion. The Governor of Istanbul has, I
:01:52. > :01:57.believe, confirmed in the last few moments have been 28 fatalities and
:01:58. > :02:02.many, many more injured. Reports on the ground say a suicide bomber was
:02:03. > :02:07.rugby tackled to the ground by a police officer, and there were three
:02:08. > :02:08.separate explosions. No group has yet claimed responsibility for the
:02:09. > :02:17.attack. Planes in the air are being allowed
:02:18. > :02:22.to Lambert flight are not taking off from the airport. Earlier we heard
:02:23. > :02:27.from Turkey correspondent, who was grounded on a plane at the airport,
:02:28. > :02:31.unable to disembark. I landed this evening about an Aaron half ago on
:02:32. > :02:36.Flight from nice. We are not allowed to disembark because of what is
:02:37. > :02:42.happening inside the airport. -- about half an hour ago. Around the
:02:43. > :02:47.international terminal area, one possibly in the car park as well. We
:02:48. > :02:51.understand one of the attackers opened fire with a Kalashnikov
:02:52. > :02:57.before blowing himself up with a suicide belt. We understand there
:02:58. > :03:02.are reports one of them was wrestled to the ground by police officers. We
:03:03. > :03:06.are not being told when we can leave the aircraft. For the time being
:03:07. > :03:10.there has been no claim of responsibility, but as James said,
:03:11. > :03:17.Turkey has been caught in a terrible grip of a spiral of violence. Some
:03:18. > :03:22.on Kurdish militants, including a mortar attack in Istanbul's second
:03:23. > :03:28.airport back in December that was claimed by Kurdish militants. I have
:03:29. > :03:32.to say, I have lived here for two years and I have often thought
:03:33. > :03:35.coming into this airport it is a potentially vulnerable place, and an
:03:36. > :03:40.attack could take place here, because cars are not searched very
:03:41. > :03:45.often coming into the airport area. That said, as you come into the
:03:46. > :03:48.terminal building, there are extreme sheens and scammers, so anyone
:03:49. > :03:53.coming in even before the check in desk. The attackers tonight seem to
:03:54. > :03:56.have breached the perimeter of the Apple, have got in towards the
:03:57. > :04:00.terminal building and there they have set off their attacks with
:04:01. > :04:05.tragic consequences stop by Mark Lowen there.
:04:06. > :04:07.Istanbul is two hours ahead of us, it's late there now.
:04:08. > :04:10.There will of course be updates on the News Channel
:04:11. > :04:14.Now - it's Brexit Day 5, and in both Westminster and Brussels,
:04:15. > :04:42.The British people voted in favour of exit, why are you here?
:04:43. > :04:45.We now offer a beacon of hope to Democrats across the rest
:04:46. > :05:09.Lots to talk about, but we start with Labour.
:05:10. > :05:12.What happens in a political party when the leader loses the confidence
:05:13. > :05:16.of three-quarters of the party's MPs, but refuses to step aside?
:05:17. > :05:19.Until the 1980s, it was the MPs who chose the leader
:05:20. > :05:21.in the main parties, so the MPs got their way.
:05:22. > :05:28.But now, grass roots party members have the ultimate say,
:05:29. > :05:31.and they can disagree with the MPs, and in Labour, Jeremy Corbyn
:05:32. > :05:33.is pinning his hopes on that activist power.
:05:34. > :05:35.It really is two sides fighting over a political party,
:05:36. > :05:38.Neither side seems willing to backdown.
:05:39. > :05:49.Our political editor Nick Watt reports.
:05:50. > :05:55.Tonight a historic Labour stand-off shows no sign of abating, the battle
:05:56. > :06:00.for soul and survival of the Labour Party is in full flow.
:06:01. > :06:06.Earlier today Jeremy Corbyn invited television cameras in, to show off
:06:07. > :06:15.his new Shadow Cabinet to the world. It was eight had awkward. -- a bit
:06:16. > :06:19.awkward. Within hours Labour MPs were taking part in the confidence
:06:20. > :06:24.vote, more than three quarters withdrew their support. A mere 40
:06:25. > :06:28.supported their leader, prompting one to say that Jeremy Corbyn had at
:06:29. > :06:30.least improved on the 36 and nominated him last year. He was
:06:31. > :06:55.defiant. Jeremy Corbyn supporters rushed out
:06:56. > :07:00.of Parliament to put their mark on the result. They said that unless he
:07:01. > :07:04.stands down, the politics of Corbyn and his supporters could threaten
:07:05. > :07:10.the very existence of the Labour Party. This is what we saw with the
:07:11. > :07:15.air strikes. Jeremy's responses to turn to the mob and an MPs and they
:07:16. > :07:20.are is all their fault. I think he needs to understand MPs are elected
:07:21. > :07:24.by their constituents, they got between 20-30,000 roads in their
:07:25. > :07:28.constituency. That is a huge mandate. We have to represent those
:07:29. > :07:34.people. -- votes in their constituency. They are the people we
:07:35. > :07:38.go to, they are the people we listen to, but what I would also say is
:07:39. > :07:44.Jeremy does have a huge mandate, but if you think 170 MPs who have all
:07:45. > :07:50.been voted for by 30, 40,000 people, that is a big mandate as well. We
:07:51. > :07:53.have a duty, I have a duty to my constituents first, my party second
:07:54. > :07:57.and then to my leader. I would love for that to be in synergy but at the
:07:58. > :08:02.moment it's not. The atmosphere is so gloomy there is
:08:03. > :08:09.even talk of a split in the Labour Party, reviving memories of the
:08:10. > :08:14.breakaway gang of Watt 1981. I asked one party veteran if history could
:08:15. > :08:20.repeat itself. It's good, it could. The reality is, if he stays and he
:08:21. > :08:24.wins... I mean, there has to be a real effort made to stop that.
:08:25. > :08:29.Friends of Jeremy Corbyn say they sense weakness in their opponents
:08:30. > :08:34.because they have not followed official Labour Party Rawls, which
:08:35. > :08:37.stipulate a leader can only be challenged if 51 MPs support a rival
:08:38. > :08:45.candidate. The message from the Corbyn camp tonight is, bring on the
:08:46. > :08:48.fight. Jeremy Corbyn supporters feel so strongly because they believe the
:08:49. > :08:53.battle goes to the heart of where power should lie in the Labour
:08:54. > :08:59.Party. They say ultimate authority must rest with thousands of Labour
:09:00. > :09:02.members and not a few hundred MPs. It is actually Labour Party members
:09:03. > :09:06.who spend their time knocking on doors, speaking to people in their
:09:07. > :09:10.communities, trying to build the Labour vote, the labour movement and
:09:11. > :09:15.trying to build an organisation. It is them who are closest to the
:09:16. > :09:19.voters, not the MPs. The MPs are incredibly out of touch, I think.
:09:20. > :09:23.That is why we have seen the shocks politics, nobody knows what has is
:09:24. > :09:28.going on. That is why we have seen the rise of the SNP, Brexit.
:09:29. > :09:34.Research published today shows Jeremy Corbyn enjoys strong support
:09:35. > :09:40.among party members. When asked if Corbyn should automatically be on a
:09:41. > :09:45.future leadership ballot, 77 cents of Labour Party members agreed. A
:09:46. > :09:50.figure which goes up to 89% among those who joined after the general
:09:51. > :09:54.election last year. 59% of Labour Party members said they would vote
:09:55. > :10:00.for Corbyn if he was challenged by another MP, compared with 80% among
:10:01. > :10:03.late joiners. Labour grappled with its future on a
:10:04. > :10:09.typical English mid-summer 's day, but there was a very un-British feel
:10:10. > :10:12.of revolution in the air, as Westminster comes to terms with the
:10:13. > :10:18.after-shocks of last week's referendum earthquake.
:10:19. > :10:22.It was all smiles when the then Shadow Cabinet but on a show of
:10:23. > :10:27.unity during the referendum campaign, but tonight they are
:10:28. > :10:31.trying to agree on a unity candidate to challenge Jeremy Corbyn. The
:10:32. > :10:42.names in the frame are Tom Watson, Angela Eagle and Owen Smith.
:10:43. > :10:56.Joining me now is Barry Gardner. This isn't sustainable, is it? I
:10:57. > :11:02.think people will find it incredible that at a time when the pound has
:11:03. > :11:06.dropped to 35 year low, when there is a 12% cut in the value of
:11:07. > :11:11.annuities for pensioners and when the Prime Minister has been forced
:11:12. > :11:17.to resign because he called a referendum and then didn't win it.
:11:18. > :11:22.We know how bad it is, what is the answer? It is incredible, the public
:11:23. > :11:27.will think how could it be, at that moment, when the government most
:11:28. > :11:30.needed to be held to account, that the Labour Party, instead of
:11:31. > :11:35.thinking about the country, thought more about its own internal
:11:36. > :11:39.leadership 's bat and turned in on itself. Maybe they felt Jeremy
:11:40. > :11:42.Corbyn wasn't the man to point out all the things you've just been
:11:43. > :11:46.pointing out, that almost anybody else could be doing it more
:11:47. > :11:51.effectively. Isn't that a fair critique? If he isn't the man, he
:11:52. > :11:56.isn't the man? I don't think it is a fair critique. I think this was
:11:57. > :11:59.always the plot waiting for its opportunity. There may be an
:12:00. > :12:05.election soon and that put a bit of urgency into it. That is exactly why
:12:06. > :12:12.those who want to get rid of Jeremy should go by the party rule and put
:12:13. > :12:15.up a candidate... They will. That is the democratic way. The way they
:12:16. > :12:21.tried to do it was to get people to resign. Now, all those mass
:12:22. > :12:27.resignations, the effect of that would have been nobody at the
:12:28. > :12:31.dispatch box against the government ministers. People will have looked
:12:32. > :12:37.at the House of Commons unthought, where has the Labour Party gone? Why
:12:38. > :12:42.have they aggregated their responsibility to hold this
:12:43. > :12:46.government to account? I think about 100 MPs on the payroll, the Shadow
:12:47. > :12:51.ministerial team, it is a lot, we saw the picture. If the leader of
:12:52. > :12:56.the party cannot assemble a shadow ministerial team because there are
:12:57. > :13:01.not MPs to work with him, would that for you be a cause for him to say,
:13:02. > :13:06.OK, the game is up? There is only one way to change the leader and
:13:07. > :13:11.it's the way our party has set out, and that is that the candidate to
:13:12. > :13:15.come forward, supported by 50 MPs and then go to the party. We do not
:13:16. > :13:21.own this party is members of Parliament. Just on the resignation
:13:22. > :13:25.issue, you resigned on Sunday. Did you coordinate the timing of your
:13:26. > :13:30.resignation with anybody else, so that there was this trip grip on the
:13:31. > :13:36.hour, every hour, and ministerial resignation? I did not coordinate
:13:37. > :13:40.the timing. I resigned after I had a chance to talk to John McDonnell and
:13:41. > :13:45.explain my reasons for stepping down. Is it coincidence there has
:13:46. > :13:50.been this stream of regular resignations that do appear to be
:13:51. > :13:54.designed to maximise the news value of the resignations and elongate the
:13:55. > :13:59.process? I wish this hadn't happened. Is it coincidence that
:14:00. > :14:03.happened? There was a turning point, and the turning point was the
:14:04. > :14:07.sacking of Hilary Benn. To do that in the middle of the night, and in
:14:08. > :14:14.that way, I believed was not right. The truth is Jeremy was likely to
:14:15. > :14:17.face a vote of no-confidence it became clearer he would lose that
:14:18. > :14:21.vote of no-confidence. I don't believe that was right for him to go
:14:22. > :14:24.through and I don't believe it was right for the party. For all his
:14:25. > :14:29.qualities, Jeremy is not the leader we need to take us forward.
:14:30. > :14:37.Tomorrow we expect Angela Eagle or Tom Watson to put themselves forward
:14:38. > :14:44.as a challenger and it will be difficult for them to get 50 behind
:14:45. > :14:48.them. I do not know who it will be. You must have been involved in
:14:49. > :14:55.discussions. It comes down to this fundamental. That we have an
:14:56. > :15:00.unelectable leader. If we lose the elections then the price of our
:15:01. > :15:02.failure is paid by the working people of this country and their
:15:03. > :15:07.families who do not have a government to stand up for them. I
:15:08. > :15:11.believe we need a Labour leader who can lead us to be a credible
:15:12. > :15:16.opposition look like a government in waiting and reach out to the voters
:15:17. > :15:20.we have lost. The problem for you, as we see from the opinion poll
:15:21. > :15:25.potentially the members will put Jeremy Corbyn back as leader. What
:15:26. > :15:30.are your choices at that stage come and take me through the menu of
:15:31. > :15:35.options. I understand that and also understand the dilemma Jeremy faces
:15:36. > :15:39.because he does believe he has a responsibility to those members who
:15:40. > :15:43.elected him but we have a bigger responsibility to our country. I
:15:44. > :15:47.hope he will still do the right thing, there is still time for him
:15:48. > :15:53.to resign with dignity. If he does not do that, there is an option,
:15:54. > :15:57.called the nuclear option, effectively you say is the
:15:58. > :16:02.Parliamentary party, you are collecting Angela Eagle as your
:16:03. > :16:08.leader in the House of Commons. We are taking this one day at a time,
:16:09. > :16:13.this is unprecedented in the history of our party. I do not think we want
:16:14. > :16:17.to see this getting any worse. It is affecting mood and morale and it is
:16:18. > :16:25.deeply distressing in the party and for staff. We want this to end. At
:16:26. > :16:29.some point there must be a separation and the Parliamentary
:16:30. > :16:34.party would save for our purposes, so and so is in. We have not got to
:16:35. > :16:39.that point, we have a responsibility to be an effect of opposition. We
:16:40. > :16:45.need a fresh start and a change of leader. The two of you are not here
:16:46. > :16:50.to argue against it either, but could you teach reflect how on earth
:16:51. > :16:54.Labour will get out of this because you are essentially playing a game
:16:55. > :16:57.of chicken and you're going to destroy your party, one of you have
:16:58. > :17:02.got to give in, Jeremy Corbyn has got to go with the Parliamentary
:17:03. > :17:06.party gives him or you destroy the party in the next election. No one
:17:07. > :17:11.thinks you could win with a leader who does not have the confidence of
:17:12. > :17:15.the MPs. The biggest issue is the confidence of people in the Labour
:17:16. > :17:19.Party. I had a message today from a floating voter who said if Jeremy
:17:20. > :17:22.Corbyn does not stand aside with that result, it will undermine
:17:23. > :17:30.everything the Labour Party says or doors. Your solution then is Jeremy
:17:31. > :17:42.Corbyn yields to you. His solution would be that you yield to him. I do
:17:43. > :17:52.not see this as my giving in, we have been colleagues for many years.
:17:53. > :17:56.The issue is do you follow the process that the party collectively
:17:57. > :18:03.agreed or do you try to do a back door manoeuvre to undermine the
:18:04. > :18:08.elected leader. As I say the party does not belong to us. What is your
:18:09. > :18:13.solution when the bulk of the elected representatives, those who
:18:14. > :18:18.have been elected by people outside the party, said we do not like the
:18:19. > :18:21.guy who is leading the party. Do you go into an election with them saying
:18:22. > :18:27.they do not like the leader, that will not work? You have got to trust
:18:28. > :18:29.the electorate but we have, which is the entire membership of the party
:18:30. > :18:36.including Members of Parliament, who have the power to nominate
:18:37. > :18:41.candidates. To trust the party to arrive at the right decision. And
:18:42. > :18:45.the last word? I still say this is about as being an effective
:18:46. > :18:51.opposition and looking like the government in waiting. The rules of
:18:52. > :18:58.the rules. In a sense the rules have been followed. If he is fit, ...
:18:59. > :19:05.This is about the spirit as well as the rules. And if you have a leader
:19:06. > :19:09.that has lost the confidence of the party then that sends out a message
:19:10. > :19:14.to the country. I think Jeromy can play a leading role in the party in
:19:15. > :19:19.a different way. I think we now desperately need a fresh start. But
:19:20. > :19:24.he will not effectively rally behind the leader even if he is elected by
:19:25. > :19:28.the Constitution? I do not know why Jeromy would want to go through
:19:29. > :19:32.this. It will not be the same as the readership election before, it will
:19:33. > :19:35.be bruising and distressing. Jeromy never had the confidence of the
:19:36. > :19:43.majority of the Parliamentary Labour Party. When he was nominated he
:19:44. > :19:46.scraped 36 nominations. They tried to make it work and is now think it
:19:47. > :19:53.does not work. Many of our colleagues work hard. My point is he
:19:54. > :19:56.has never had the confidence of the vast majority of Labour MPs. I did
:19:57. > :20:04.not vote for him, I did not nominate him. But the party shows in its
:20:05. > :20:08.wisdom, it chose him as his leader and we must work with that and then
:20:09. > :20:12.use the rules of the party has set to change the leader if we do not
:20:13. > :20:14.like it. We have got to leave it there.
:20:15. > :20:16.Meanwhile the real drama is still surely the European one -
:20:17. > :20:20.What kind of deal we'll strike with the EU.
:20:21. > :20:23.The action moved to Brussels today, with the European Council meeting
:20:24. > :20:26.for the first time since Thursday and the Parliament debating Brexit.
:20:27. > :20:29.It is hard to know from the chorus of diverse voices out
:20:30. > :20:32.there which ones really matter, which ones are noises off,
:20:33. > :20:52.Our diplomatic editor Mark Urban is in Brussels.
:20:53. > :21:01.The long simmering antagonism from train Brussels and British
:21:02. > :21:06.Euroscepticism erupted like a summer storm today, finally. The man whose
:21:07. > :21:11.political life had led to this moment, savouring his hour of
:21:12. > :21:16.triumph. I said I wanted to lead a campaign to get the UK to leave the
:21:17. > :21:23.European Union. You all laughed at me. Well I have to say you are not
:21:24. > :21:29.laughing now. The manner of victory too much for some. Argent
:21:30. > :21:34.federalists denounced the man and his campaign. It is the way it
:21:35. > :21:42.succeeded, the absolute negative campaign. The posters of Nigel
:21:43. > :21:50.Farage showing refugees like Nancy for the gander. Jean-Claude Juncker
:21:51. > :21:56.joined in. I'm really surprised you're here. You were fighting for
:21:57. > :22:05.the exit, the British people voted in favour of exit, why are you here?
:22:06. > :22:11.Extraordinary as the scenes where, the European Parliament is not
:22:12. > :22:16.controlling the pace of the UK exit. That is a matter for Europe's
:22:17. > :22:18.leaders and it was the arrival of David Cameron presumably for the
:22:19. > :22:24.last time that heralded the main event of the day. Even at this
:22:25. > :22:29.moment of high dramatic drama, there are people trying to slow down the
:22:30. > :22:33.pace. Most obviously and importantly the Germans, who seem increasingly
:22:34. > :22:37.open about their motive. The worst thing that can happen is Brexit and
:22:38. > :22:43.it remains the worst thing. Now after the referendum which is not
:22:44. > :22:50.legally binding, I think there is no sense, really no sense in urging the
:22:51. > :22:54.British to accomplish what is considered by all of us to be the
:22:55. > :23:02.worst outcome we can think of. Needing both trying to close off any
:23:03. > :23:06.way negotiation or other British verification, President Francois
:23:07. > :23:11.Hollande. I regret this choice but want to respect it. I cannot imagine
:23:12. > :23:18.a British Government not respecting the choice of their own people. It
:23:19. > :23:23.is a difficult situation. Luxembourg reminded the UK that EU membership
:23:24. > :23:29.was a binary choice. The government decided now with the referendum to
:23:30. > :23:36.get divorced. When not on Facebook is not obligated, it is not one step
:23:37. > :23:42.in and one step back. And the Belgians added to the chorus. We
:23:43. > :23:44.cannot accept that it should be a double game, that despite the
:23:45. > :23:51.referendum there should be anyway opened to block the European project
:23:52. > :23:57.for months and months. Listen to those in no hurry. Ireland. The
:23:58. > :24:02.party will let the new Prime Minister and he will then decide
:24:03. > :24:07.what the viewers. They may need some short time you cannot have a drift
:24:08. > :24:11.into uncertainty. And then the Estonians suggesting that talking
:24:12. > :24:17.was not over yet. The possible future talks with the UK should not
:24:18. > :24:23.be carried on in the spirit of revenge. That has to be clear. The
:24:24. > :24:33.UK remains an important player for us economically and politically and
:24:34. > :24:42.security wise. And what would Lithuania say if the UK never
:24:43. > :24:48.invoked Article 50? Welcome back. You can delay Article 50 but does it
:24:49. > :24:52.really get you anywhere? The assumption seems to be it could
:24:53. > :24:55.create an opportunity for the UK to think again. Superficially at least
:24:56. > :25:00.the government here or accept the result of the referendum and with it
:25:01. > :25:04.that the UK is on its way out of the EU. And yet despite the fact that
:25:05. > :25:10.just today they have said they do not want any kind of informal
:25:11. > :25:19.negotiations before UK formally says it is going, some kind of talks on
:25:20. > :25:23.the margins must be a possibility. Tonight intriguingly we heard David
:25:24. > :25:26.Cameron had told fellow leaders he would have to do something about
:25:27. > :25:32.freedom of movement. Negotiating, no. Maybe laying down a marker for
:25:33. > :25:39.his successor. And their message to him, well here is one German
:25:40. > :25:46.version. We think how this story goes on, you think there is a
:25:47. > :25:51.chance, a potential, for making it better than it seems now in what
:25:52. > :26:00.Europeans can do to rescue the relationship. Britain ends this day
:26:01. > :26:02.still heading for the exit but the debate is ongoing about whether
:26:03. > :26:08.anything can or should be done to stop that.
:26:09. > :26:15.I have come from the Minister 's news conference and little comfort
:26:16. > :26:18.for those who think that perhaps the UK might change its mind. He said
:26:19. > :26:25.the result of the referendum will be carried through. And he referred to
:26:26. > :26:28.himself repeatedly as a Democrat. He also gave a fascinating insight into
:26:29. > :26:33.what lies ahead. He talked about the kind of advice he would give his
:26:34. > :26:37.successor. It is clear in his mind these credible choices between
:26:38. > :26:42.different models have got to be made before the UK invokes Article 50.
:26:43. > :26:46.That suggests many more months of thought will need to be given to
:26:47. > :26:52.this during which time of course all kinds of economic and political
:26:53. > :26:54.events might intervene. Thank you very much.
:26:55. > :26:55.Well, suddenly the Tory party's leadership election -
:26:56. > :26:58.the one that picks our Prime Minister - looks like the most
:26:59. > :27:00.sedate of the various dramas surrounding us.
:27:01. > :27:03.Candidates must declare by Thursday at noon,
:27:04. > :27:06.the winner will be selected by the 9th September, a week later
:27:07. > :27:12.And there's a lot of talk of a possible election soon after.
:27:13. > :27:15.Keep the Thursdays on or after October 13th free,
:27:16. > :27:17.cos we haven't had enough chance to vote lately.
:27:18. > :27:29.What news from the leadership campaigns? We have the first
:27:30. > :27:33.contender out of the blocks tomorrow, Stephen Crabb, recently
:27:34. > :27:37.appointed Work and Pensions Secretary who will form a dream
:27:38. > :27:41.ticket with Business Secretary Sajid Javad and they will say they are of
:27:42. > :27:47.a new generation and from a different background. Stephen Crabb.
:27:48. > :27:51.By a single parent and once had to protect his mother from his violent
:27:52. > :27:55.father. Then on Thursday the big beasts, Boris Johnson and Theresa
:27:56. > :28:01.May. MPs have until the end of the summer recess to whittle down to
:28:02. > :28:06.two. Boris Johnson are confident, they reported tonight he has around
:28:07. > :28:09.100 Conservative MPs supporting him. The Sun newspaper also reports the
:28:10. > :28:13.stand-off between Ross Johnson and Theresa May but generally it is
:28:14. > :28:19.quite a good-natured contest. During the referendum campaign you remember
:28:20. > :28:22.Amber Rudd, the climate and Energy Secretary, said to Boris Johnson I
:28:23. > :28:27.would not trust you to drive me home at night and was Johnson said to
:28:28. > :28:32.her, can I drive you home! It looks like on paper Boris Johnson is the
:28:33. > :28:36.front runner and Theresa May is in second place. But the lesson I have
:28:37. > :28:41.learned from covering Tory leadership campaigns is never make
:28:42. > :28:46.predictions. And Lord Heseltine will be able to say that the front runner
:28:47. > :28:51.rarely wins. One grandee to date set that not since 1955 and Sir Anthony
:28:52. > :29:00.Eden has the front runner in the winner. Thank you, Lord Heseltine.
:29:01. > :29:04.He has had a few battles himself. Are you going to tell us who you are
:29:05. > :29:09.supporting? I'm not because to me that is not the fundamental issue we
:29:10. > :29:15.are dealing with. We have a constitutional crisis of the scale
:29:16. > :29:21.that has never existed in my life. The real trauma is that every day
:29:22. > :29:25.that goes past in the boardrooms of the world and of course this
:29:26. > :29:32.country, decisions are being delayed. And they will go on being
:29:33. > :29:37.delayed until there is a clarity about the economic future of
:29:38. > :29:42.Britain. I'm appalled that the idea that we will take months to get to a
:29:43. > :29:47.position where we can decide how to proceed and then years for we come
:29:48. > :29:52.to a conclusion. And the damage that that will do in terms of lost
:29:53. > :29:57.investment and avoided decisions is incalculable.
:29:58. > :30:04.You would say speed this process up so we get Prime Minister soon? It
:30:05. > :30:11.took five days when you were competing with John Major post
:30:12. > :30:16.Margaret Thatcher. We are now in a position of 12 weeks or something,
:30:17. > :30:20.ten weeks or something? 12 weeks before we have a Prime Minister but
:30:21. > :30:26.there is no need for the negotiations to wait, because the
:30:27. > :30:36.negotiations will be the same. Will they? Of course. The store has been
:30:37. > :30:45.set out by the Europeans. There will be no negotiations until you have
:30:46. > :30:51.triggered clause 50. What is happening, the British people have
:30:52. > :30:54.been sold a deceitful pup. We were told by the Brexit campaign that it
:30:55. > :30:59.would be OK, because the Europeans are desperate to keep us in, so we
:31:00. > :31:04.will have a conversation and get a sensible arrangement. The truth is,
:31:05. > :31:07.the Europeans have said, on your bike. You took the trouble to make
:31:08. > :31:14.this decision, we're not negotiating. And every day that
:31:15. > :31:19.passes, the uncertainty profiles. This is why you want us to see
:31:20. > :31:24.exactly what out looks like and then have a second referendum, which
:31:25. > :31:27.chooses between in or out again? I want something just a little
:31:28. > :31:31.different but fundamentally so. I want to put Boris Johnson and his
:31:32. > :31:35.colleagues in charge of the negotiations. He doesn't need to be
:31:36. > :31:40.the Prime Minister or the leader of the Conservative Party to do that.
:31:41. > :31:44.But he got us into this mess, on a range of platitudes about how
:31:45. > :31:50.glorious the alternative future would be. Let him show us what that
:31:51. > :31:54.future is. My own view, it has to be shown, is it will be totally
:31:55. > :32:00.unattractive to the majority of members of Parliament. And so how do
:32:01. > :32:04.you carry out the will of the people in this referendum, which I believe
:32:05. > :32:08.you should? The only way is to negotiate so the members of the
:32:09. > :32:12.House of Commons, where sovereignty lies, can come to a judgment about
:32:13. > :32:16.whether they would vote for it. My view is they won't, but they must be
:32:17. > :32:21.given the chance. And when it comes to it, there are only two ways to do
:32:22. > :32:27.that. One is to have a general election, the second is to have
:32:28. > :32:31.another referendum. And overturn the first one? Thank you very much, Lord
:32:32. > :32:51.Heseltine. The next French presidential could
:32:52. > :32:55.see Marine le Pen as one of the last two on the ballot. She has been
:32:56. > :32:58.given her party something of a makeover, softening the tone whilst
:32:59. > :33:06.keeping the line of the hardline message, framed by her father, the
:33:07. > :40:06.party founder. Emily went to meet her yesterday.
:40:07. > :40:09.Emily talking to Marine le Pen who of the state doesn't like Hillary
:40:10. > :40:10.Clinton. Financial markets had
:40:11. > :40:12.a referendum jolt last week, The pound and the FTSE both had
:40:13. > :40:17.a good day today, recovering some But while shares and currencies do
:40:18. > :40:20.provide an instant guide to the latest jumps in sentiment,
:40:21. > :40:23.there is a real economy underneath Let's ponder on some
:40:24. > :40:41.of the economic effects - I am joined by Anthony Jenkins and
:40:42. > :40:47.Julia Tet. Bank shares pummelled more than most, down by about 30%,
:40:48. > :40:52.what is going on? Banks hate uncertainty. They are basically a
:40:53. > :40:54.leverage play on the state of the economy, people think the economy
:40:55. > :40:59.will be weaker and with the prospect of lower interest rates for longer
:41:00. > :41:03.that affect banks. Banks have been under pressure for many months and
:41:04. > :41:08.years. If you look at the decline in bank stocks, because of global
:41:09. > :41:13.economy. This is another problem that. A big problem. What about
:41:14. > :41:17.passport in? People say you might lose your passport operate through
:41:18. > :41:20.the single market. Obviously they can operate still, it's just a bit
:41:21. > :41:26.more of a burden. How much per problem will that be, if they lose
:41:27. > :41:30.the passport? It is key to our participation in financial services
:41:31. > :41:34.across Europe. Remember, the European banks also passport into
:41:35. > :41:36.the UK, so there is a reciprocity here. But like with many things in
:41:37. > :41:50.this debate, it's going to be in the
:41:51. > :41:53.detail of the negotiations. What you think about the banks? Banks have
:41:54. > :41:55.been very badly damaged, clearly. It is partly because of the extreme
:41:56. > :41:57.uncertainty and also the people have been ignoring the degree to which
:41:58. > :42:00.expectations have collapsed in the last few days, not just in the UK
:42:01. > :42:02.but globally and that is hurting insurance companies as well. There
:42:03. > :42:05.is another important point here. If you look at US banks and see how
:42:06. > :42:10.they are performing relative to European ones, there is a huge
:42:11. > :42:13.transatlantic split opening up. I am based in New York normally fuzzed up
:42:14. > :42:18.when I spoke to New York financiers are couple of days ago, as far as
:42:19. > :42:23.they are concerned, this has sealed the victory of the American banking
:42:24. > :42:28.sector on the global stage may think European banks are in the dust. Is
:42:29. > :42:33.that that assessment? I think there are lots of reasons why people might
:42:34. > :42:36.think that, typically the size of the US economy, six times the size
:42:37. > :42:40.of the UK. When you're trying to support a banking system which is
:42:41. > :42:44.big, it is more difficult in a small economy. I think there are a lot of
:42:45. > :42:48.pressures on the bank and we will probably see a fragmentation in
:42:49. > :42:53.Europe, and more regional and local focus. Far as the Americans are
:42:54. > :42:58.concerned, what has happened with Brexit is a complete self-inflicted
:42:59. > :43:06.wound on an extraordinary scale. Most Americans I know are absolutely
:43:07. > :43:11.shocked. Absolutely. Weather is banks, the economy or anything else,
:43:12. > :43:17.this is regarded as very big. Let's be clear about potential for
:43:18. > :43:22.short-term financial can take contagious. You worried about the
:43:23. > :43:25.next six months and getting for it, Anthony? What matters for banks in
:43:26. > :43:28.the system is do you have enough liquidity? The Bank of England has
:43:29. > :43:31.been clear they will provide liquidity. Do you know you're
:43:32. > :43:35.trading positions, do you have them under control and are you hedging
:43:36. > :43:38.them appropriately? Are we keeping your clients and on people onside
:43:39. > :43:43.estimate this is massively disruptive when you go through these
:43:44. > :43:47.changes. That is the short-term agenda is the bank CEOs. I think
:43:48. > :43:50.they are doing a pretty good job in partnership with the authorities.
:43:51. > :43:55.We'll earned a lot from 2008 and learned some lessons. Are you
:43:56. > :43:59.worried? I am going to be optimistic and they won good lesson of the last
:44:00. > :44:04.few days as the financial system as a whole has weathered it pretty
:44:05. > :44:07.well. Frankly, regulators and bankers have been to boot camp and
:44:08. > :44:11.back in terms of risk management, because of all the things as
:44:12. > :44:16.happened since 2008. They can do this. The big issue is the medium to
:44:17. > :44:19.long term, the economic impact. Low interest rates, which are terrible
:44:20. > :44:23.for pensioners, savers and insurance companies, that can be very
:44:24. > :44:29.damaging. What really frightens people right now is the prospect of
:44:30. > :44:33.years of soggy growth. Can I suggest something... This is an optimistic
:44:34. > :44:37.scenario. For years the success of the city, Anthony, has kept Sterling
:44:38. > :44:43.very high and has made lots of other industries in part of the country
:44:44. > :44:45.very uncompetitive, very difficult for Middlesbroughs to compete
:44:46. > :44:49.internationally, when it is stuck with a city pushing up the exchange
:44:50. > :44:53.rate. What this appears to have done is knocked the exchange rate down.
:44:54. > :45:01.Maybe if that is a permanent effect we will have a rebalancing? One of
:45:02. > :45:04.the things Thursday showed us was this massive fracture in our
:45:05. > :45:08.society, which is not good. If this can be a catalyst for a rebalancing
:45:09. > :45:12.of the economy... My own view, and I have been quite open on this, the
:45:13. > :45:16.financial sector itself is going to contract over the coming years all
:45:17. > :45:20.sorts of reasons, technology among them, so it will inevitably become
:45:21. > :45:24.smaller. We will have to seize this, difficult though it is, the
:45:25. > :45:28.uncertainty has to be removed. We have to seize this opportunity now
:45:29. > :45:33.to build the future of Britain. Can I jump in and say if you look at the
:45:34. > :45:38.Financial Times, tomorrow's paper or what is on the website, you will see
:45:39. > :45:41.stories like the fact Vodafone is thinking of moving its headquarters
:45:42. > :45:46.out of the UK. Virgin has cancelled deals. You see so many indications,
:45:47. > :45:50.it's not just the financial sector that has had a heart attack and is
:45:51. > :45:55.now basically freezing investment or preparing to move, it's other
:45:56. > :45:58.companies as well. I would love to see the UK economy rebalanced,
:45:59. > :46:01.desperately love to see it, but what I fear is we are going to see a
:46:02. > :46:06.re-balance all down to a lower level and that is a tragedy. Thank you
:46:07. > :46:09.both very much. That is all we have time for, such a busy week. I will