28/06/2016 Newsnight


In-depth investigation and analysis of the stories behind the day's headlines. Evan Davis has the latest on the attacks at Ataturk Airport, and Brexit aftershocks for Labour.

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Explosions and gunfire attack at the international


At least ten people are dead after two suspects blew themselves up.


The attack occurred at about 8 o'clock our time.


Also tonight, turmoil in the Labour Party.


We'll hear from two Labour MPs, one on each side of the Corbyn divide.


And Lord Heseltine on the Conservative's leadership


contest and our relationship with the EU.


And Emily gets the reaction to Brexit, of Marine Le Pen -


Well, it was earlier this evening that news started coming


through of explosions at the Ataturk International Airport in Istanbul.


It's the main airport in the city, the third busiest in Europe.


Explosions and gunfire were heard, the location of the attack


was outside the security checkpoint to the international terminal; this


is one of those airports with security at the entrance,


as well as at departures to the airside terminals.


The latest we have heard is the airport is being evacuated, although


there are still people inside the terminal. You can see here video put


onto social media, about an hour ago, travellers hiding inside the


airport shortly after the explosion. The Governor of Istanbul has, I


believe, confirmed in the last few moments have been 28 fatalities and


many, many more injured. Reports on the ground say a suicide bomber was


rugby tackled to the ground by a police officer, and there were three


separate explosions. No group has yet claimed responsibility for the


attack. Planes in the air are being allowed


to Lambert flight are not taking off from the airport. Earlier we heard


from Turkey correspondent, who was grounded on a plane at the airport,


unable to disembark. I landed this evening about an Aaron half ago on


Flight from nice. We are not allowed to disembark because of what is


happening inside the airport. -- about half an hour ago. Around the


international terminal area, one possibly in the car park as well. We


understand one of the attackers opened fire with a Kalashnikov


before blowing himself up with a suicide belt. We understand there


are reports one of them was wrestled to the ground by police officers. We


are not being told when we can leave the aircraft. For the time being


there has been no claim of responsibility, but as James said,


Turkey has been caught in a terrible grip of a spiral of violence. Some


on Kurdish militants, including a mortar attack in Istanbul's second


airport back in December that was claimed by Kurdish militants. I have


to say, I have lived here for two years and I have often thought


coming into this airport it is a potentially vulnerable place, and an


attack could take place here, because cars are not searched very


often coming into the airport area. That said, as you come into the


terminal building, there are extreme sheens and scammers, so anyone


coming in even before the check in desk. The attackers tonight seem to


have breached the perimeter of the Apple, have got in towards the


terminal building and there they have set off their attacks with


tragic consequences stop by Mark Lowen there.


Istanbul is two hours ahead of us, it's late there now.


There will of course be updates on the News Channel


Now - it's Brexit Day 5, and in both Westminster and Brussels,


The British people voted in favour of exit, why are you here?


We now offer a beacon of hope to Democrats across the rest


Lots to talk about, but we start with Labour.


What happens in a political party when the leader loses the confidence


of three-quarters of the party's MPs, but refuses to step aside?


Until the 1980s, it was the MPs who chose the leader


in the main parties, so the MPs got their way.


But now, grass roots party members have the ultimate say,


and they can disagree with the MPs, and in Labour, Jeremy Corbyn


is pinning his hopes on that activist power.


It really is two sides fighting over a political party,


Neither side seems willing to backdown.


Our political editor Nick Watt reports.


Tonight a historic Labour stand-off shows no sign of abating, the battle


for soul and survival of the Labour Party is in full flow.


Earlier today Jeremy Corbyn invited television cameras in, to show off


his new Shadow Cabinet to the world. It was eight had awkward. -- a bit


awkward. Within hours Labour MPs were taking part in the confidence


vote, more than three quarters withdrew their support. A mere 40


supported their leader, prompting one to say that Jeremy Corbyn had at


least improved on the 36 and nominated him last year. He was


defiant. Jeremy Corbyn supporters rushed out


of Parliament to put their mark on the result. They said that unless he


stands down, the politics of Corbyn and his supporters could threaten


the very existence of the Labour Party. This is what we saw with the


air strikes. Jeremy's responses to turn to the mob and an MPs and they


are is all their fault. I think he needs to understand MPs are elected


by their constituents, they got between 20-30,000 roads in their


constituency. That is a huge mandate. We have to represent those


people. -- votes in their constituency. They are the people we


go to, they are the people we listen to, but what I would also say is


Jeremy does have a huge mandate, but if you think 170 MPs who have all


been voted for by 30, 40,000 people, that is a big mandate as well. We


have a duty, I have a duty to my constituents first, my party second


and then to my leader. I would love for that to be in synergy but at the


moment it's not. The atmosphere is so gloomy there is


even talk of a split in the Labour Party, reviving memories of the


breakaway gang of Watt 1981. I asked one party veteran if history could


repeat itself. It's good, it could. The reality is, if he stays and he


wins... I mean, there has to be a real effort made to stop that.


Friends of Jeremy Corbyn say they sense weakness in their opponents


because they have not followed official Labour Party Rawls, which


stipulate a leader can only be challenged if 51 MPs support a rival


candidate. The message from the Corbyn camp tonight is, bring on the


fight. Jeremy Corbyn supporters feel so strongly because they believe the


battle goes to the heart of where power should lie in the Labour


Party. They say ultimate authority must rest with thousands of Labour


members and not a few hundred MPs. It is actually Labour Party members


who spend their time knocking on doors, speaking to people in their


communities, trying to build the Labour vote, the labour movement and


trying to build an organisation. It is them who are closest to the


voters, not the MPs. The MPs are incredibly out of touch, I think.


That is why we have seen the shocks politics, nobody knows what has is


going on. That is why we have seen the rise of the SNP, Brexit.


Research published today shows Jeremy Corbyn enjoys strong support


among party members. When asked if Corbyn should automatically be on a


future leadership ballot, 77 cents of Labour Party members agreed. A


figure which goes up to 89% among those who joined after the general


election last year. 59% of Labour Party members said they would vote


for Corbyn if he was challenged by another MP, compared with 80% among


late joiners. Labour grappled with its future on a


typical English mid-summer 's day, but there was a very un-British feel


of revolution in the air, as Westminster comes to terms with the


after-shocks of last week's referendum earthquake.


It was all smiles when the then Shadow Cabinet but on a show of


unity during the referendum campaign, but tonight they are


trying to agree on a unity candidate to challenge Jeremy Corbyn. The


names in the frame are Tom Watson, Angela Eagle and Owen Smith.


Joining me now is Barry Gardner. This isn't sustainable, is it? I


think people will find it incredible that at a time when the pound has


dropped to 35 year low, when there is a 12% cut in the value of


annuities for pensioners and when the Prime Minister has been forced


to resign because he called a referendum and then didn't win it.


We know how bad it is, what is the answer? It is incredible, the public


will think how could it be, at that moment, when the government most


needed to be held to account, that the Labour Party, instead of


thinking about the country, thought more about its own internal


leadership 's bat and turned in on itself. Maybe they felt Jeremy


Corbyn wasn't the man to point out all the things you've just been


pointing out, that almost anybody else could be doing it more


effectively. Isn't that a fair critique? If he isn't the man, he


isn't the man? I don't think it is a fair critique. I think this was


always the plot waiting for its opportunity. There may be an


election soon and that put a bit of urgency into it. That is exactly why


those who want to get rid of Jeremy should go by the party rule and put


up a candidate... They will. That is the democratic way. The way they


tried to do it was to get people to resign. Now, all those mass


resignations, the effect of that would have been nobody at the


dispatch box against the government ministers. People will have looked


at the House of Commons unthought, where has the Labour Party gone? Why


have they aggregated their responsibility to hold this


government to account? I think about 100 MPs on the payroll, the Shadow


ministerial team, it is a lot, we saw the picture. If the leader of


the party cannot assemble a shadow ministerial team because there are


not MPs to work with him, would that for you be a cause for him to say,


OK, the game is up? There is only one way to change the leader and


it's the way our party has set out, and that is that the candidate to


come forward, supported by 50 MPs and then go to the party. We do not


own this party is members of Parliament. Just on the resignation


issue, you resigned on Sunday. Did you coordinate the timing of your


resignation with anybody else, so that there was this trip grip on the


hour, every hour, and ministerial resignation? I did not coordinate


the timing. I resigned after I had a chance to talk to John McDonnell and


explain my reasons for stepping down. Is it coincidence there has


been this stream of regular resignations that do appear to be


designed to maximise the news value of the resignations and elongate the


process? I wish this hadn't happened. Is it coincidence that


happened? There was a turning point, and the turning point was the


sacking of Hilary Benn. To do that in the middle of the night, and in


that way, I believed was not right. The truth is Jeremy was likely to


face a vote of no-confidence it became clearer he would lose that


vote of no-confidence. I don't believe that was right for him to go


through and I don't believe it was right for the party. For all his


qualities, Jeremy is not the leader we need to take us forward.


Tomorrow we expect Angela Eagle or Tom Watson to put themselves forward


as a challenger and it will be difficult for them to get 50 behind


them. I do not know who it will be. You must have been involved in


discussions. It comes down to this fundamental. That we have an


unelectable leader. If we lose the elections then the price of our


failure is paid by the working people of this country and their


families who do not have a government to stand up for them. I


believe we need a Labour leader who can lead us to be a credible


opposition look like a government in waiting and reach out to the voters


we have lost. The problem for you, as we see from the opinion poll


potentially the members will put Jeremy Corbyn back as leader. What


are your choices at that stage come and take me through the menu of


options. I understand that and also understand the dilemma Jeremy faces


because he does believe he has a responsibility to those members who


elected him but we have a bigger responsibility to our country. I


hope he will still do the right thing, there is still time for him


to resign with dignity. If he does not do that, there is an option,


called the nuclear option, effectively you say is the


Parliamentary party, you are collecting Angela Eagle as your


leader in the House of Commons. We are taking this one day at a time,


this is unprecedented in the history of our party. I do not think we want


to see this getting any worse. It is affecting mood and morale and it is


deeply distressing in the party and for staff. We want this to end. At


some point there must be a separation and the Parliamentary


party would save for our purposes, so and so is in. We have not got to


that point, we have a responsibility to be an effect of opposition. We


need a fresh start and a change of leader. The two of you are not here


to argue against it either, but could you teach reflect how on earth


Labour will get out of this because you are essentially playing a game


of chicken and you're going to destroy your party, one of you have


got to give in, Jeremy Corbyn has got to go with the Parliamentary


party gives him or you destroy the party in the next election. No one


thinks you could win with a leader who does not have the confidence of


the MPs. The biggest issue is the confidence of people in the Labour


Party. I had a message today from a floating voter who said if Jeremy


Corbyn does not stand aside with that result, it will undermine


everything the Labour Party says or doors. Your solution then is Jeremy


Corbyn yields to you. His solution would be that you yield to him. I do


not see this as my giving in, we have been colleagues for many years.


The issue is do you follow the process that the party collectively


agreed or do you try to do a back door manoeuvre to undermine the


elected leader. As I say the party does not belong to us. What is your


solution when the bulk of the elected representatives, those who


have been elected by people outside the party, said we do not like the


guy who is leading the party. Do you go into an election with them saying


they do not like the leader, that will not work? You have got to trust


the electorate but we have, which is the entire membership of the party


including Members of Parliament, who have the power to nominate


candidates. To trust the party to arrive at the right decision. And


the last word? I still say this is about as being an effective


opposition and looking like the government in waiting. The rules of


the rules. In a sense the rules have been followed. If he is fit, ...


This is about the spirit as well as the rules. And if you have a leader


that has lost the confidence of the party then that sends out a message


to the country. I think Jeromy can play a leading role in the party in


a different way. I think we now desperately need a fresh start. But


he will not effectively rally behind the leader even if he is elected by


the Constitution? I do not know why Jeromy would want to go through


this. It will not be the same as the readership election before, it will


be bruising and distressing. Jeromy never had the confidence of the


majority of the Parliamentary Labour Party. When he was nominated he


scraped 36 nominations. They tried to make it work and is now think it


does not work. Many of our colleagues work hard. My point is he


has never had the confidence of the vast majority of Labour MPs. I did


not vote for him, I did not nominate him. But the party shows in its


wisdom, it chose him as his leader and we must work with that and then


use the rules of the party has set to change the leader if we do not


like it. We have got to leave it there.


Meanwhile the real drama is still surely the European one -


What kind of deal we'll strike with the EU.


The action moved to Brussels today, with the European Council meeting


for the first time since Thursday and the Parliament debating Brexit.


It is hard to know from the chorus of diverse voices out


there which ones really matter, which ones are noises off,


Our diplomatic editor Mark Urban is in Brussels.


The long simmering antagonism from train Brussels and British


Euroscepticism erupted like a summer storm today, finally. The man whose


political life had led to this moment, savouring his hour of


triumph. I said I wanted to lead a campaign to get the UK to leave the


European Union. You all laughed at me. Well I have to say you are not


laughing now. The manner of victory too much for some. Argent


federalists denounced the man and his campaign. It is the way it


succeeded, the absolute negative campaign. The posters of Nigel


Farage showing refugees like Nancy for the gander. Jean-Claude Juncker


joined in. I'm really surprised you're here. You were fighting for


the exit, the British people voted in favour of exit, why are you here?


Extraordinary as the scenes where, the European Parliament is not


controlling the pace of the UK exit. That is a matter for Europe's


leaders and it was the arrival of David Cameron presumably for the


last time that heralded the main event of the day. Even at this


moment of high dramatic drama, there are people trying to slow down the


pace. Most obviously and importantly the Germans, who seem increasingly


open about their motive. The worst thing that can happen is Brexit and


it remains the worst thing. Now after the referendum which is not


legally binding, I think there is no sense, really no sense in urging the


British to accomplish what is considered by all of us to be the


worst outcome we can think of. Needing both trying to close off any


way negotiation or other British verification, President Francois


Hollande. I regret this choice but want to respect it. I cannot imagine


a British Government not respecting the choice of their own people. It


is a difficult situation. Luxembourg reminded the UK that EU membership


was a binary choice. The government decided now with the referendum to


get divorced. When not on Facebook is not obligated, it is not one step


in and one step back. And the Belgians added to the chorus. We


cannot accept that it should be a double game, that despite the


referendum there should be anyway opened to block the European project


for months and months. Listen to those in no hurry. Ireland. The


party will let the new Prime Minister and he will then decide


what the viewers. They may need some short time you cannot have a drift


into uncertainty. And then the Estonians suggesting that talking


was not over yet. The possible future talks with the UK should not


be carried on in the spirit of revenge. That has to be clear. The


UK remains an important player for us economically and politically and


security wise. And what would Lithuania say if the UK never


invoked Article 50? Welcome back. You can delay Article 50 but does it


really get you anywhere? The assumption seems to be it could


create an opportunity for the UK to think again. Superficially at least


the government here or accept the result of the referendum and with it


that the UK is on its way out of the EU. And yet despite the fact that


just today they have said they do not want any kind of informal


negotiations before UK formally says it is going, some kind of talks on


the margins must be a possibility. Tonight intriguingly we heard David


Cameron had told fellow leaders he would have to do something about


freedom of movement. Negotiating, no. Maybe laying down a marker for


his successor. And their message to him, well here is one German


version. We think how this story goes on, you think there is a


chance, a potential, for making it better than it seems now in what


Europeans can do to rescue the relationship. Britain ends this day


still heading for the exit but the debate is ongoing about whether


anything can or should be done to stop that.


I have come from the Minister 's news conference and little comfort


for those who think that perhaps the UK might change its mind. He said


the result of the referendum will be carried through. And he referred to


himself repeatedly as a Democrat. He also gave a fascinating insight into


what lies ahead. He talked about the kind of advice he would give his


successor. It is clear in his mind these credible choices between


different models have got to be made before the UK invokes Article 50.


That suggests many more months of thought will need to be given to


this during which time of course all kinds of economic and political


events might intervene. Thank you very much.


Well, suddenly the Tory party's leadership election -


the one that picks our Prime Minister - looks like the most


sedate of the various dramas surrounding us.


Candidates must declare by Thursday at noon,


the winner will be selected by the 9th September, a week later


And there's a lot of talk of a possible election soon after.


Keep the Thursdays on or after October 13th free,


cos we haven't had enough chance to vote lately.


What news from the leadership campaigns? We have the first


contender out of the blocks tomorrow, Stephen Crabb, recently


appointed Work and Pensions Secretary who will form a dream


ticket with Business Secretary Sajid Javad and they will say they are of


a new generation and from a different background. Stephen Crabb.


By a single parent and once had to protect his mother from his violent


father. Then on Thursday the big beasts, Boris Johnson and Theresa


May. MPs have until the end of the summer recess to whittle down to


two. Boris Johnson are confident, they reported tonight he has around


100 Conservative MPs supporting him. The Sun newspaper also reports the


stand-off between Ross Johnson and Theresa May but generally it is


quite a good-natured contest. During the referendum campaign you remember


Amber Rudd, the climate and Energy Secretary, said to Boris Johnson I


would not trust you to drive me home at night and was Johnson said to


her, can I drive you home! It looks like on paper Boris Johnson is the


front runner and Theresa May is in second place. But the lesson I have


learned from covering Tory leadership campaigns is never make


predictions. And Lord Heseltine will be able to say that the front runner


rarely wins. One grandee to date set that not since 1955 and Sir Anthony


Eden has the front runner in the winner. Thank you, Lord Heseltine.


He has had a few battles himself. Are you going to tell us who you are


supporting? I'm not because to me that is not the fundamental issue we


are dealing with. We have a constitutional crisis of the scale


that has never existed in my life. The real trauma is that every day


that goes past in the boardrooms of the world and of course this


country, decisions are being delayed. And they will go on being


delayed until there is a clarity about the economic future of


Britain. I'm appalled that the idea that we will take months to get to a


position where we can decide how to proceed and then years for we come


to a conclusion. And the damage that that will do in terms of lost


investment and avoided decisions is incalculable.


You would say speed this process up so we get Prime Minister soon? It


took five days when you were competing with John Major post


Margaret Thatcher. We are now in a position of 12 weeks or something,


ten weeks or something? 12 weeks before we have a Prime Minister but


there is no need for the negotiations to wait, because the


negotiations will be the same. Will they? Of course. The store has been


set out by the Europeans. There will be no negotiations until you have


triggered clause 50. What is happening, the British people have


been sold a deceitful pup. We were told by the Brexit campaign that it


would be OK, because the Europeans are desperate to keep us in, so we


will have a conversation and get a sensible arrangement. The truth is,


the Europeans have said, on your bike. You took the trouble to make


this decision, we're not negotiating. And every day that


passes, the uncertainty profiles. This is why you want us to see


exactly what out looks like and then have a second referendum, which


chooses between in or out again? I want something just a little


different but fundamentally so. I want to put Boris Johnson and his


colleagues in charge of the negotiations. He doesn't need to be


the Prime Minister or the leader of the Conservative Party to do that.


But he got us into this mess, on a range of platitudes about how


glorious the alternative future would be. Let him show us what that


future is. My own view, it has to be shown, is it will be totally


unattractive to the majority of members of Parliament. And so how do


you carry out the will of the people in this referendum, which I believe


you should? The only way is to negotiate so the members of the


House of Commons, where sovereignty lies, can come to a judgment about


whether they would vote for it. My view is they won't, but they must be


given the chance. And when it comes to it, there are only two ways to do


that. One is to have a general election, the second is to have


another referendum. And overturn the first one? Thank you very much, Lord


Heseltine. The next French presidential could


see Marine le Pen as one of the last two on the ballot. She has been


given her party something of a makeover, softening the tone whilst


keeping the line of the hardline message, framed by her father, the


party founder. Emily went to meet her yesterday.


Emily talking to Marine le Pen who of the state doesn't like Hillary


Clinton. Financial markets had


a referendum jolt last week, The pound and the FTSE both had


a good day today, recovering some But while shares and currencies do


provide an instant guide to the latest jumps in sentiment,


there is a real economy underneath Let's ponder on some


of the economic effects - I am joined by Anthony Jenkins and


Julia Tet. Bank shares pummelled more than most, down by about 30%,


what is going on? Banks hate uncertainty. They are basically a


leverage play on the state of the economy, people think the economy


will be weaker and with the prospect of lower interest rates for longer


that affect banks. Banks have been under pressure for many months and


years. If you look at the decline in bank stocks, because of global


economy. This is another problem that. A big problem. What about


passport in? People say you might lose your passport operate through


the single market. Obviously they can operate still, it's just a bit


more of a burden. How much per problem will that be, if they lose


the passport? It is key to our participation in financial services


across Europe. Remember, the European banks also passport into


the UK, so there is a reciprocity here. But like with many things in


this debate, it's going to be in the


detail of the negotiations. What you think about the banks? Banks have


been very badly damaged, clearly. It is partly because of the extreme


uncertainty and also the people have been ignoring the degree to which


expectations have collapsed in the last few days, not just in the UK


but globally and that is hurting insurance companies as well. There


is another important point here. If you look at US banks and see how


they are performing relative to European ones, there is a huge


transatlantic split opening up. I am based in New York normally fuzzed up


when I spoke to New York financiers are couple of days ago, as far as


they are concerned, this has sealed the victory of the American banking


sector on the global stage may think European banks are in the dust. Is


that that assessment? I think there are lots of reasons why people might


think that, typically the size of the US economy, six times the size


of the UK. When you're trying to support a banking system which is


big, it is more difficult in a small economy. I think there are a lot of


pressures on the bank and we will probably see a fragmentation in


Europe, and more regional and local focus. Far as the Americans are


concerned, what has happened with Brexit is a complete self-inflicted


wound on an extraordinary scale. Most Americans I know are absolutely


shocked. Absolutely. Weather is banks, the economy or anything else,


this is regarded as very big. Let's be clear about potential for


short-term financial can take contagious. You worried about the


next six months and getting for it, Anthony? What matters for banks in


the system is do you have enough liquidity? The Bank of England has


been clear they will provide liquidity. Do you know you're


trading positions, do you have them under control and are you hedging


them appropriately? Are we keeping your clients and on people onside


estimate this is massively disruptive when you go through these


changes. That is the short-term agenda is the bank CEOs. I think


they are doing a pretty good job in partnership with the authorities.


We'll earned a lot from 2008 and learned some lessons. Are you


worried? I am going to be optimistic and they won good lesson of the last


few days as the financial system as a whole has weathered it pretty


well. Frankly, regulators and bankers have been to boot camp and


back in terms of risk management, because of all the things as


happened since 2008. They can do this. The big issue is the medium to


long term, the economic impact. Low interest rates, which are terrible


for pensioners, savers and insurance companies, that can be very


damaging. What really frightens people right now is the prospect of


years of soggy growth. Can I suggest something... This is an optimistic


scenario. For years the success of the city, Anthony, has kept Sterling


very high and has made lots of other industries in part of the country


very uncompetitive, very difficult for Middlesbroughs to compete


internationally, when it is stuck with a city pushing up the exchange


rate. What this appears to have done is knocked the exchange rate down.


Maybe if that is a permanent effect we will have a rebalancing? One of


the things Thursday showed us was this massive fracture in our


society, which is not good. If this can be a catalyst for a rebalancing


of the economy... My own view, and I have been quite open on this, the


financial sector itself is going to contract over the coming years all


sorts of reasons, technology among them, so it will inevitably become


smaller. We will have to seize this, difficult though it is, the


uncertainty has to be removed. We have to seize this opportunity now


to build the future of Britain. Can I jump in and say if you look at the


Financial Times, tomorrow's paper or what is on the website, you will see


stories like the fact Vodafone is thinking of moving its headquarters


out of the UK. Virgin has cancelled deals. You see so many indications,


it's not just the financial sector that has had a heart attack and is


now basically freezing investment or preparing to move, it's other


companies as well. I would love to see the UK economy rebalanced,


desperately love to see it, but what I fear is we are going to see a


re-balance all down to a lower level and that is a tragedy. Thank you


both very much. That is all we have time for, such a busy week. I will


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