12/06/2017 Outside Source


12/06/2017

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Hello and welcome to Outside Source. Theresa May has been saying sorry

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after the disastrous election result, telling Conservative MPs,

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I've got us into this mess, I will get us out of it. And with Brexit

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negotiations bearing down, the Queen's speech, the occasion when

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government set out it is agenda, is expected to be delayed. We are in

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talks with the DUP to see if the deal we can put together an

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optimistic that will happen but until we have that we can't agree

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the final details of the Queen 's speech. We will hit about Russian

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police detaining hundreds of people after anti-corruption demonstrations

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including the leading opposition figure, Alexei Navalny. The press

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secretary for Donald Trump says a lawsuit over claims the president

:00:59.:01:01.

accepted payments from foreign governments by his biggest empire is

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politically motivated. And Emmanuel Macron keeps marching on, having

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taken the presidency, his party is now on course for a landslide in

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parliamentary elections. Prime Minister Theresa May said of

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the weekend there was work to do and on that we can all agree. The UK

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continues to career towards the exit negotiations with seven days to go

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and this is where we have got to. It remained unclear what type of Brexit

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the government will seek, no details on the deal the Tories intend to do

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with the DUP in order to pass laws and the Queen speech, where the

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government lays out its legislative agenda, may be delayed. This is why

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that has happened. Obviously we are in talks with the Democratic

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Unionist Party to see that the deal we can put together and are

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optimistic that will happen but until we have that we can't agree

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the final details of the Queen's speech. As soon as we have we will

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be able to say when the Queen speech will be. The Prime Minister is only

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in the job because the Tory party neither wants another election nor a

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leadership contest. That time may come, whether the party likes it or

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not. For now, this was a Downing Street earlier as the ministers were

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arriving for the first cabinet meeting since the election and they

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wanted this to look like business as usual. The Foreign Secretary, Boris

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Johnson, wrote in the Sun today, trying to fend off speculation that

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he was angling for the top job. And this was David Davis being similarly

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supportive. Have the same I view this talk about the leadership at

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the height of self-indulgence -- I have too safe. The British people

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have given as a result we would not have chosen but an instruction and

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it is our job to get on with the work of government and organise

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arrangements to get business pretty the House of Commons and run the

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country. She is very good at that. She is an extremely good Prime

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Minister. At the moment it suits these big players in the Tory party

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to keep Theresa May as Prime Minister but let's be clear, they

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hold the cards. The primers to also met a group of influential

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backbenchers called the 1922 committee.

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That may be easier said than done. This was from Laura Kuenssberg, our

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political editor. Earlier I spoke to them right for his latest analysis

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on the predicament of the Prime Minister. She is clearly a prisoner

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of her party and the Cabinet and dependent on their support for her

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continuation in office but she is looking less precarious than she did

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on Saturday. If there was going to be any move against her it would

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have happened in the hours after the election humiliation. It hasn't

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because, as you said, the Tory party does not want a leadership contest

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days before Brexit begins, they don't want another general election

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which would surely follow if they were to be a leadership contest. It

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is coming down and Theresa May, humbled, talked to Tory backbench

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MPs and was contrite, apologetic about the election result and said

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she accepted the fact that she was the one who called it and she took

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responsibility for it. I think she gave reassurances that she would

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change the way she governed with a more open, collaborative Cabinet and

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that has done a lot to calm the mood down. Some of the anger will have

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dissipated a bid among Tory MPs. This is the new reality and they

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await the confirmation that a deal has been done between the

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Conservatives and the DUP to allow the formation of a minority

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government and we expect that to come in the next day or so. Remember

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how Theresa May said this election was essential to providing strong

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and stable leadership going into Brexit negotiations? And how on

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Friday in Downing Street she addressed the country by saying she

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was creating any government to provide the UK with certainty.

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Stability and certainty are in short supply at the moment. In a week's

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time Brexit negotiations begin and it is still not clear exactly what

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the UK wants from them. This was a senior Conservative MP, Anna Soubry.

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A hard Brexit means leaving the EU single market and its free movement

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of labour. A different account from Sir Michael Farnham... -- sur

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Michael Fallon. And then this perspective from Nicola Sturgeon, he

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Scottish First Minister, who very much back to the Remain campaign.

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She wants a spores in the Brexit process.

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-- a pause. I think the approach the government was taking is dead in the

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water and I am calling for a process opened up to include more voices

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that all parties and all four nations of the UK and an approach

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that has continued membership of the single market at its heart. The

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Prime Minister has to recognise she asked for a strengthened mandate for

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a hard Brexit and voters across the country refused to give that and she

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cannot simply carry on as if nothing has changed. Jackie Davis is Anne

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Aly list based in Brussels and an expert in the EU -- and analyst. I

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wanted to know if leaders in Brussels were clear on what the UK

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wants. I don't think they are. They say they are clear about their

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negotiating position and are ready to go as soon as the UK is that

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there is a certain amount of astonishment in Brussels at the mess

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that the UK seems to have got itself into. And a lot of bemusement

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because when you see these big elation swirling around Westminster

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that this increases the chances of a softer Brexit, perhaps a move toward

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staying in the single market, some of the things those who did not want

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to leave were hoping for, and others saying that now Theresa May is so

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weak she will have no room for manoeuvre, that increases the

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chances of a message Brexit with no deal. People are watching in

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astonishment but the line from Boston is clear, we are ready, the

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ball it in your court, we waiting to hear from you and we will start when

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you want to but remember that the clock is ticking and you still only

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have until March 2019 to do a deal. Take your time if you need to but

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don't forget you're up against a deadline. I guess there is a risk

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that we see this as a contest with a winner and a loser but for the

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European Union it need a healthy UK and a partner in the UK that can

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contribute economically and politically? Absolutely. Most people

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in Brussels are very sorry the UK is going, they did not want to see it,

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they think it is bad for the EU as well as for the UK and they would

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say worse for the UK than the EU but nevertheless bad for everyone and

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they would like a good deal. But they are clear that this is not

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about doing a deal that makes life easier for Theresa May or whoever is

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Prime Minister by the time these negotiations end. It is about

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preserving the club, the other 27 countries, who are determined to

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stay together and don't want to send the wrong signal to any of the

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country who might be tempted to go down the same road as the UK. In

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that sense the election has not changed anything. The EU has always

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said that we are open to talk but we have certain fundamental principles,

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four example you can't not be a member of the club and have the

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benefits, they will stick by those principles and you can't cherry pick

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them, at the bits you like. And there I is on public opinion in the

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27 countries who are staying in and not public opinion in the UK. They

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watched this with amusement but they want clarity soon because the

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chances of getting a good deal that works for everyone to get slimmer

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the longer this delay goes -- watching with amusement. --

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bemusement. These senior people in Brussels think it is not going to

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happen behind closed doors? I think they thought that for a long time

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and over the last few months everybody believed it would. They

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could not see a scenario under which there might be a second referendum,

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where Britain might change its mind. But based on these big elation

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coming out of certain people in Westminster and London, they do

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think there is a possibility -- on the speculation. I think for most of

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them here they feel strongly now that the EU faces a lot of other

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challenges and they need to get on with those. They feel a bit revived,

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the Franco German axis is used to be working with President Macron doing

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well in France and there is a sense of optimism over all that they might

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be on a better path and that Brexit is dragging them down. The primary

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feeling is, let's get this done one way or another. In a few minutes on

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Outside Source we will turn to the business side of the Brexit debate.

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We have a report from Simon Jack on how businesses are viewing these

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last-minute manoeuvres ahead of the beginning of the negotiations.

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More on Theresa May's apology to her MPs over the election result. As we

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heard earlier, she met with the 1922 committee and said she would serve

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them as long as they wanted her to. Early at the considerate MP Charles

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Walker said she was well received for taking responsibility for her

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role in the result of the party still needs to establish exactly

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what went wrong. There were a lot of searching questions asked at that

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meeting and we are going to have to find the answers to those questions.

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There was no sense of euphoria. Of course we would have liked to have

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done better in the campaign, there is not a single Conservative MP who

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would not have liked to have done better but the fact is we didn't. We

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are where we are, we have some difficult questions to ask ourselves

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but we also have to get on with the business of governing.

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This is Outside Source live from the BBC newsroom and the lead story is

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from Westminster where, after losing a parliamentary majority in the

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election last week, Prime Minister Theresa May has told MPs she got

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them into this mess and she will get them out of it. Some main stories

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from the World Service, firstly an investigation is underway after huge

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hole in China Eastern airlines plane forced it to make an emergency

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landing in Sydney. It had just taken off en route to Shanghai and

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passengers noted a burning smell and a loud noise. BBC Arabic reports

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that Saudi Arabia had introduced what is known as a sin tax on

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cigarettes and the drinks, part of a wide-ranging plan not just there but

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across states in the gulf to find ways to make up for a sharp drop in

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oil revenues. And a lot of people are reading about this, Melania

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Trump has posted this image shortly after moving into the White House.

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Donald Trump has been living there for nearly five months but Melania

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and their son Barron have just moved in after they stayed in New York

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until Barron completed his school year. Next to Russia because that of

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people are taking part in anti-corruption protests all over

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the country will stop the biggest rallies were in Moscow and St

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Petersburg. The whole thing was organised by the opposition leader,

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Alexei Navalny. This was on Twitter, this was him being taken into a

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police car in Moscow earlier. We also have these pictures from one of

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the demonstrations in Moscow, this was in the city centre am not at the

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venue that the authorities had sanctioned. That upset the head of

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the Russian security service who said the move was a provocation. We

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believe hundreds of people were arrested. Sarah Rainsford was there.

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There have been dozens of people detained here and police are moving

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into the crowd and it seems that are pulling people out pretty much at

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random. We have seen quite a lot of young people being detained but it

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seems fairly random. They are trying to clear this main street here where

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thousands of people came out to protest against corruption. They

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were heeding a call from the opposition leader, Alexei Navalny,

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who called on them to take part in this protest. It did not have

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permission, it is an illegal rally and that is why so many people have

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been pulled out and taken away by police. The police have been

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announcing and making loudspeaker announcements saying this is an

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illegal rally and they will be taking measures and there is a huge

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police presence as you can see. The right place, interior ministry

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troops as well. This is Russia Day, a national holiday, and this street

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was closed off for people to celebrate and there were families

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and children here and then the protesters turned out in huge

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numbers. They said they were hit to make their voices heard against

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corruption and were shouting against the authorities but it was a

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peaceful protest and this is how it is ending with dozens and dozens of

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people being dragged away by riot police. Next on this story is our

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course pondered from Russia on why these protests happened. It is a

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state holiday in Russia and Mr Navalny decided to use this

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opportunity to call people to demonstrate. He called for massive

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protests in March and they proved to be successful for him. He decided to

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keep this going which is why he asked people to come and it was

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convenient because it was a day off. He asked people to dump the trick is

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he was allowed to go to another street. That was sanctioned but he

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decided to switch and use one of the central street and asked people to

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come there and this part of the rally is illegal and that is the

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reason there were so many arrests and people detained. How does the

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scale of these protests compare with the ones in the last few years? The

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ones in March were the biggest in the last five years. It is hard to

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really understand how many people came to the streets of Moscow and St

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Petersburg today because this was combined, some people were just

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protesting but others were just taking a walk. It is hard to

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differentiate but we are still talking about thousands of people in

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Moscow and hundreds in several other Russian cities all across the

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country from Vladivostok in the far east to the very Western cities like

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Kaliningrad. And what is the primary target of these protests? Vladimir

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Putin or something broader? One of the reasons that La Republique En

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Marche is successful is because he manages to accumulate the protest

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potential -- one of the reasons that Navalny is successful. In Moscow it

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is mostly concentrated around corruption and the need for reform

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in the economy and social sphere but the main topic is corruption. 17

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minutes in and it is rare we get that far without mentioning Donald

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Trump who has one more thing to think about because the attorney

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generals for Maryland and the District of Columbia have filed a

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lawsuit against him, saying payments made to his businesses violate

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anti-corruption clauses in the US Constitution. First of all he is the

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Attorney General in DC. The suit alleges that President Trump is

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flagrantly violating the constitution, which exquisitely bars

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presidents from receiving guests or inducements from foreign or domestic

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government entities. Never in the history of this country have we had

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a president with these kind of extensive business entanglements and

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or a president who refused to adequately distance themselves from

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their holdings. President Trump's businesses and his dealings violate

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the Constitution is anti-corruption revisions known as the emoluments

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clause is. That is one perspective, here is another, Sean Spicer is the

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White House press secretary. It is not hard to conclude that partisan

:18:31.:18:34.

politics may be one of the motivations behind the scene, the

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suit was filed by two Democratic attorney generals and the lawyers

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driving the group have partisan ties and it started with a press

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conference at the post to filing it which is interesting and be sued

:18:46.:18:47.

challenges the sort of business transaction that everyone from some

:18:48.:18:54.

of the last administration and others have engaged in. We will

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continue to move to dismiss this case in the normal course of

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business. More details on this, and from Washington, -- Anthony. How

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will this progress? The attorney generals are filing the suit,

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similar to others that have already been filed that will be considered

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by a federal court, a District Court which is the lowest level in the

:19:20.:19:23.

chain of federal courts. It could get up to the US Supreme Court. This

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is an unknown area of the law, there has not been a president like Donald

:19:31.:19:34.

Trump so there has not been a lawsuit like this. The emoluments

:19:35.:19:38.

clause does specifically say that a president or anyone in office cannot

:19:39.:19:44.

take a title from the Queen or a gift from a foreign leader, but it

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is more vague on is someone who has business interests, if they can take

:19:50.:19:54.

money from foreign leaders not as an exchange of services. It is

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reasonable for Sean Spicer to say that these attorney generals are

:20:00.:20:03.

political operators? They are political operators and it is

:20:04.:20:09.

reasonable to say that they are probably bringing this suit in part

:20:10.:20:12.

because they have political differences with Donald Trump and to

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highlight the fact that he has promised to separate himself from

:20:17.:20:20.

his businesses but, in their view, has not done a good enough job of

:20:21.:20:23.

doing that. Before they can even get a hearing on the merits, they will

:20:24.:20:28.

have to prove they have standing to bring the case and that might be a

:20:29.:20:33.

big pitfall that everybody bringing these suits might have to deal with.

:20:34.:20:38.

The court has determined that they have grounds to show they were

:20:39.:20:41.

harmed by the President and say that their state as business that have

:20:42.:20:45.

been hurt caused foreign companies are going to Donald Trump's hotels

:20:46.:20:49.

and not ours. That will be a challenging case for them to make.

:20:50.:20:54.

And some copy sure you have seen filed from the newsroom in

:20:55.:20:56.

Washington... I have an impression, correct me if

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I'm wrong, that this is going to the Supreme Court and everything before

:21:11.:21:15.

that is to some degree in relevant? -- irrelevant. There is a general

:21:16.:21:22.

consensus that the Supreme Court will decide this, we have already

:21:23.:21:26.

have one appellant court issue its decision upholding a state of the

:21:27.:21:29.

travel ban and stopping it from taking it bent and now another has

:21:30.:21:34.

said this. I was talking to some law expert last week who are not so

:21:35.:21:38.

certain that the Supreme Court will step in. If there is a consensus

:21:39.:21:44.

among the lower courts that the travel ban is unconstitutional, or

:21:45.:21:47.

should be tried on its merits and are not allowed to go into effect

:21:48.:21:50.

before that, the court might decide to hold off and let this play itself

:21:51.:21:55.

out in the lower courts and that would be the least controversial

:21:56.:21:59.

weight of a court handling it but there is so much attention on it I

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personally think the court has to come in and say one way or the other

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and put this to bed. Thank you, we will talk tomorrow. Back to our lead

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story, the fallout from the UK election and we will look at it from

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a business point of view with our business editor, Simon Jack, who has

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written an excellent article online which you can find now. It refers to

:22:23.:22:29.

the fact that some businesses are hoping this new government led by

:22:30.:22:32.

Theresa May might be more sympathetic to their demands ahead

:22:33.:22:38.

of Brexit. This article also points to a survey showing that businesses

:22:39.:22:43.

that are hard Brexit, ie leaving the single market, will be damaging

:22:44.:22:47.

whether new trade are successfully negotiated or not. Here is

:22:48.:22:52.

Anne-Marie Martin, chief executive of the British Chambers of commerce

:22:53.:22:56.

in Europe. The government has been consulting with business over the

:22:57.:23:00.

last few months, quite rigorously, and there is a huge amount of data

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and evidence -based data about what the impact on business is and not

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just UK businesses but European businesses as well. The hard stance

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as a starting point for negotiations took place and it is quite

:23:14.:23:16.

understandable but actually where we would have reached may have been a

:23:17.:23:19.

softer place anyway but it would be good for business for our

:23:20.:23:24.

expectations to be managed in this case. Worth adding that the Minister

:23:25.:23:29.

for Brexit David Davis has repeatedly argued that leaving the

:23:30.:23:33.

single market would benefit UK businesses, they can operate through

:23:34.:23:36.

trade deals with the European Union but also through new trade deals

:23:37.:23:39.

with a lot of other countries around the world. Now to tech companies in

:23:40.:23:47.

US markets, quite a story, Apple is down 3%, Amazon and Facebook have

:23:48.:23:51.

been struggling at on Friday the top five tech companies in the US lost

:23:52.:23:57.

nearly $100 billion in market value. Samir Hussein is in New York. A few

:23:58.:24:04.

people might have missed this with the election results coming through

:24:05.:24:09.

but what is going on? Not really the best time in the world to be holding

:24:10.:24:14.

a whole lot of tech stock but if you don't have any, it might be a good

:24:15.:24:19.

time to leap in there! What is the reasoning? Firstly we are already

:24:20.:24:26.

seeing that tech stocks in general were really hot so they needed to

:24:27.:24:32.

come down a bit. Some believe this is just the market correcting

:24:33.:24:37.

itself. But the impetus for that, there is still some debate, no clear

:24:38.:24:45.

reasoning right now why this has happened. As ever, markets are

:24:46.:24:50.

fickle but one wise person suggested that it is perhaps there are more

:24:51.:24:54.

buyers than sellers. I'm sure that it but is it a case that these

:24:55.:24:58.

companies have just got very valuable, after all some of the

:24:59.:25:03.

biggest companies in the world? That is exactly right and there is no

:25:04.:25:07.

question among market watchers that the is a need for a correction, even

:25:08.:25:12.

looking at the market as a whole that we have been breaking record

:25:13.:25:17.

after record after record. It is clear the US markets need some sort

:25:18.:25:21.

of correction so these kinds of gyration, while significant to some

:25:22.:25:25.

people and their Port Vila -- and their portfolios, in the grand

:25:26.:25:28.

scheme of things probably make sense in terms of the market temperature.

:25:29.:25:35.

Thank you. We will be continuing our coverage of the fallout from the UK

:25:36.:25:40.

election and bringing you right up to what we know about those

:25:41.:25:45.

negotiations between the Conservatives and the DUP, and also

:25:46.:25:48.

what we know about the new government's ambitions for the kind

:25:49.:25:51.

of laws it will be able to get through the House of Commons. A lot

:25:52.:25:55.

more to come from if you have any questions, send them in.

:25:56.:26:06.

Hello it is that time when we take a journey across the world to see what

:26:07.:26:13.

stories have developed in

:26:14.:26:14.

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