:00:10. > :00:17.The Headlines - Britain's prime minister, David Cameron,
:00:18. > :00:19.goes to the House of Commons for the first time since
:00:20. > :00:22.the referendum result and since his resignation.
:00:23. > :00:26.Mr Cameron stressed the process of leaving the EU was down
:00:27. > :00:30.to Britain alone - but that the country should not
:00:31. > :00:35.I think everyone is agreed that we will want the strongest
:00:36. > :00:37.possible economic links with our European neighbours
:00:38. > :00:39.as well as with our close friends in the US, our Commonwealth
:00:40. > :00:44.and important partners like India and China.
:00:45. > :00:47.The leader of the Labour opposition - Jeremy Corbyn - who faces
:00:48. > :00:49.considerable pressure from inside his own parliamentary
:00:50. > :00:56.party, criticised the campaign as "too often divisive and negative."
:00:57. > :01:11.To moral and EU summit will be again and today the leaders of Germany and
:01:12. > :01:16.France met and told the UK the process of exiting will only begin
:01:17. > :01:24.when they are formally instructed of the desire to do so. And here in
:01:25. > :01:28.London I will have a reaction from the US Secretary of State, John
:01:29. > :01:33.Kerry. He expresses regret at what will be Britain's absence in
:01:34. > :01:39.negotiations between America and Europe.
:01:40. > :01:42.Hello and welcome to BBC World news, live from Westminster -
:01:43. > :01:46.The backdrop here at Westminster may look the same -
:01:47. > :01:48.but just about everything else has changed, since that
:01:49. > :01:56.The British Prime Minister has been speaking to parliament for the first
:01:57. > :02:00.time since the UK voted to leave the EU. He says it is up to Britain
:02:01. > :02:04.alone to choose when to begin the formal process of leaving, and he
:02:05. > :02:10.will leave the decision to his successor. Following a meeting in
:02:11. > :02:14.Berlin, the leaders of Germany, France and Italy say there can be no
:02:15. > :02:20.talks about the departure until the legal process is actually triggered.
:02:21. > :02:26.The German Chancellor described the British decision as painful and
:02:27. > :02:30.regrettable. The US Secretary of State John Kerry has encouraged EU
:02:31. > :02:31.members not to lose their heads so Britain has not diminished out of
:02:32. > :02:44.the EU, just changed. The Prime Minister set out to
:02:45. > :02:48.explain the decision that forced him from office, triggered unprecedented
:02:49. > :02:51.political turmoil and caused instability in the financial
:02:52. > :02:57.markets. Statement, the Prime Minister. He said it was not least
:02:58. > :03:01.result he wanted but the strength of the economy meant the country was
:03:02. > :03:05.well placed to face the challenges. I do not take back what they said
:03:06. > :03:09.about the risks. It will be difficult and we have seen there
:03:10. > :03:12.will be adjustments in our economy, complex constitutional issues and
:03:13. > :03:19.challenging new negotiation to undertake. I agree with what the
:03:20. > :03:21.Cabinet said this morning that the decision must be accepted and the
:03:22. > :03:28.process of implementing the decision must now begin. He said it was for
:03:29. > :03:33.his successor to determine when to begin the formal process of
:03:34. > :03:37.Britain's departure under article 50 but the new unit was beginning
:03:38. > :03:42.preliminary work. There were words of the assurance but no hiding the
:03:43. > :03:46.emotion. I believe we should hold fast to revision of Britain that
:03:47. > :03:51.wants to be respected abroad, tolerant at home, engaged with the
:03:52. > :03:55.world and working with international partners to preserve safety and
:03:56. > :04:01.security for generations to come. I have fought for of my political life
:04:02. > :04:05.and will continue to do so. Early as the Chancellor had sought to calm
:04:06. > :04:09.financial worries in an early statement. The is increasing
:04:10. > :04:13.pressure on those who lead the Brexit campaign to clarify plans and
:04:14. > :04:18.it was notable that Boris Johnson was absent from the house for the
:04:19. > :04:23.statement. It is clear there will not be an emergency budget and the
:04:24. > :04:29.pound is stable in the markets are stable. The Labour leader Jeremy
:04:30. > :04:35.Corbyn said the referendum campaign had been divisive and negative but
:04:36. > :04:40.also turned on his own side with the crisis engulfing his leadership. Our
:04:41. > :04:46.country is divided down the country will thank neither the benches in
:04:47. > :04:47.front of me nor those behind for indulging in internal factional
:04:48. > :05:06.manoeuvring at this time. Mr Speaker,, we have... Serious
:05:07. > :05:12.matters to discuss in this house and in the country. The SNP's leader at
:05:13. > :05:17.Westminster said Scotland had faltered to remain in the EU and
:05:18. > :05:21.would not be part of a diminished Little Britain. We have no intention
:05:22. > :05:31.whatsoever of seeing Scotland taken out of Europe. That would be totally
:05:32. > :05:35.democratically unacceptable. We are European country and we will stay a
:05:36. > :05:39.European country. If that means we have to have an independence
:05:40. > :05:47.referendum to protect Scotland's place, so be it. Many MPs expressed
:05:48. > :05:49.regret at the Prime Minister's departure but he made clear that of
:05:50. > :05:56.the decision that will not be reversed. The reason for my decision
:05:57. > :06:01.was the country has made a clear decision to move any particular
:06:02. > :06:05.direction and I believe it needs a new leadership and a fresh pair of
:06:06. > :06:13.eyes committed to that path and I think that requires change and that
:06:14. > :06:23.is why I made that decision. An extraordinary session over the road
:06:24. > :06:28.in a packed chamber. Worth just going through some of the key lines
:06:29. > :06:31.you heard because David Cameron started by seeing the decision must
:06:32. > :06:37.be accepted and went on to talk about bringing the country together.
:06:38. > :06:41.He said we will not stand for hate crimes, the backlash we have seen
:06:42. > :06:47.over the last couple of days aimed at EU citizens. He said there was no
:06:48. > :06:51.immediate change in the circumstances for anyone in the EU
:06:52. > :06:55.living in this country. The same is true about the way we trade and on
:06:56. > :07:02.the key decisions he said they will all have to wait until the new Prime
:07:03. > :07:06.Minister is in place. He said he spoke to Angela Merkel and he will
:07:07. > :07:12.not trigger article 50 but that'll be the job of the next Prime
:07:13. > :07:15.Minister. Jeremy Corbyn, you saw how he was heckled when he talked about
:07:16. > :07:22.how the country wouldn't put up with factional manoeuvring. A lot of
:07:23. > :07:28.voices from his own backbenchers heckling Hemant shouts of rezoning.
:07:29. > :07:34.23 of his front bench have already resigned out of 31, but he spoke
:07:35. > :07:38.about the ten order of the debate, the half-truths which he described
:07:39. > :07:43.as shameful and said now was the time to calm our language. Those
:07:44. > :07:50.were some of the key planks from those exchanges through the course
:07:51. > :07:52.of the supplement. Let's turn to economic matters because so much is
:07:53. > :08:00.moving in terms of that. First thing this morning,
:08:01. > :08:02.George Osborne broke his three day silence to try to reassure
:08:03. > :08:05.the markets - saying the UK economy was strong enough to face
:08:06. > :08:07.the challenges ahead. But that didn't stop
:08:08. > :08:09.a day of volatility. The pound plummeted to a 31 year low
:08:10. > :08:12.against the dollar. Banking, airline and property
:08:13. > :08:14.shares were all hit. But the former Bank
:08:15. > :08:15.of England Governor, Mervyn King urged calm,
:08:16. > :08:18.telling the BBC that people shouldn't be "particularly worried"
:08:19. > :08:20.by markets moving up and down. Here's our Economics
:08:21. > :08:26.Editor Kamal Ahmed. The Chancellor emerged after three
:08:27. > :08:32.days of silence to insist it wasn't Good morning, everyone,
:08:33. > :08:37.welcome to the Treasury. George Osborne said the UK's economy
:08:38. > :08:43.was strong and with the pound falling and share prices
:08:44. > :08:45.tumbling, the Government was ready to do whatever it takes
:08:46. > :08:48.to stabilise the markets. It will not be plain sailing
:08:49. > :08:52.in the days ahead. You should not
:08:53. > :08:55.underestimate our resolve. We were prepared for the unexpected
:08:56. > :08:58.and we But surely this was the man
:08:59. > :09:04.who was predicting economic chaos. Who said two weeks ago Britain
:09:05. > :09:06.would need an Did you consider resigning,
:09:07. > :09:16.and if not, why First of all I have an important
:09:17. > :09:21.job to do, which is, as Chancellor, to speak to
:09:22. > :09:23.international investors, to speak to my counterparts, to do
:09:24. > :09:25.what I can to stabilise That is what people
:09:26. > :09:32.would expect of their Chancellor and that is what I am
:09:33. > :09:35.100% focused on and will continue to It has been another day
:09:36. > :09:41.of turmoil, as fears of Brexit That is good for exports, bad
:09:42. > :09:53.for holiday-makers and inflation, as The FTSE 250 index
:09:54. > :10:00.of major companies in Britain fell by 7% as investors
:10:01. > :10:06.worried about uncertainty. RBS, which we still
:10:07. > :10:11.own a chunk of, down These share prices are
:10:12. > :10:17.seen as a bellwether When you have a move
:10:18. > :10:25.like last Friday post Brexit, this thing
:10:26. > :10:26.is I think with all the uncertainty
:10:27. > :10:35.around, this could be volatile. More to the downside,
:10:36. > :10:38.it feels at the moment, but we are probably going to see
:10:39. > :10:40.hopefully some positive A view shared in part by this man,
:10:41. > :10:45.Lord Mervyn King, the former governor of
:10:46. > :10:47.the Bank of England. He accused the government
:10:48. > :10:51.of peddling fear, treating people like idiots, saying warnings
:10:52. > :10:54.of gloom had been overdone. We don't know yet where
:10:55. > :10:57.they will find their The whole aspect of volatility,
:10:58. > :11:01.there is a trial and error process going on before
:11:02. > :11:05.markets discover what the right level, stock markets
:11:06. > :11:07.and exchange rates actually are. There is no reason
:11:08. > :11:12.for any of us to panic. Investors are watching
:11:13. > :11:13.the Chancellor closely, looking for signs that someone
:11:14. > :11:18.somewhere has a plan. Tonight, one of the major
:11:19. > :11:20.credit rating agencies Tomorrow, business leaders
:11:21. > :11:25.are set to express Tensions in the market are not
:11:26. > :11:42.going anywhere soon. More on that in just a moment but
:11:43. > :11:50.let's speak to the Economist here with me. We were listening to that
:11:51. > :11:54.piece with the former governor of the Bank of England saying markets
:11:55. > :12:00.go up and down. How long would you expect the turbulence to last?
:12:01. > :12:05.Mervyn King is right, there's a lot of volatility, but we're getting to
:12:06. > :12:07.the stage where markets are looking for further direction from political
:12:08. > :12:15.leaders before deciding whether the errors for the pressure to calm,
:12:16. > :12:18.Stirling and global equities, but certainly the lack of political
:12:19. > :12:25.leadership thus far has been behind what we have seen in terms of
:12:26. > :12:30.violent moves lower, down to 1.32, a 31 year low against the US dollar.
:12:31. > :12:34.That will start to stabilise as we get more political leadership. What
:12:35. > :12:40.do you think this means that interest rates, not just here but in
:12:41. > :12:45.America and Europe? Domestically in the UK markets are starting to price
:12:46. > :12:48.the idea that the Governor may cut interest rates as he starts to
:12:49. > :12:54.consider whether there will be a sustained impact of this vote on
:12:55. > :12:59.demand, maybe needs to be more stimulative, and he also mentions
:13:00. > :13:02.additional quantitative easing. Or internationally, there is very
:13:03. > :13:06.little the eurozone can do, it has done a lot of monetary policy in
:13:07. > :13:13.recent times, but in the US where they started to talk before interest
:13:14. > :13:17.rate rises, we are now in a position where we do not expect any more. And
:13:18. > :13:22.foreign investment, articulated again today, about whether
:13:23. > :13:25.everything that is happening here politically and the uncertainty
:13:26. > :13:32.feeds into foreign investment. Is there any early signs that that is
:13:33. > :13:37.in any drying up? There were signs during the campaign that some of the
:13:38. > :13:40.transactions were having Brexit clauses returned to them in the
:13:41. > :13:47.event the UK border to leave the European Union. Now that has come to
:13:48. > :13:51.pass those transactions are being considered. 48-72 hours on, we're
:13:52. > :13:56.not seeing much evidence of deals being held up but certainly the
:13:57. > :14:04.people I am speaking to in the city say we don't know the environment
:14:05. > :14:06.that they will be operating and in several years' time, so why are we
:14:07. > :14:14.making decisions against that backdrop? Early there was a tweet
:14:15. > :14:19.from the editor of Newsnight saying we knew we will have a couple of
:14:20. > :14:22.months before there's a new Prime Minister, and he thinks the
:14:23. > :14:28.possibility of a general election, so all of that potentially puts back
:14:29. > :14:32.with Article 50 is triggered. If you are talking a timescale almost until
:14:33. > :14:38.the end of the year, economically does that uncertainty change things,
:14:39. > :14:44.do you think, as opposed to just a couple of months of uncertainty? I
:14:45. > :14:48.think it does, and it is a deliberate calculation under half of
:14:49. > :14:54.the Chancellor and Prime Minister to get a long lead-in time for all most
:14:55. > :14:58.buyers remorse for those people who voted for this looking at the
:14:59. > :15:02.economic conditions that may happen and look whether there will be
:15:03. > :15:06.another test of public opinion. I happen to agree that there may well
:15:07. > :15:12.be another general election that acts as a full second referendum,
:15:13. > :15:17.because let's be honest, the referendum in this first form wasn't
:15:18. > :15:21.a particular type of exit. There were many views as to what an
:15:22. > :15:26.excellent looks like and that needs to be defined and public opinion
:15:27. > :15:36.tested. Markets against that backdrop remain turbulent.
:15:37. > :15:49.mentioned that downgrade selects cross back from more on that story.
:15:50. > :15:52.In the last few minutes the rating agency Standard Poor's has stepped
:15:53. > :15:59.Britain of the top rate credit rating. Taylor's first of all what a
:16:00. > :16:05.credit rating is and what it means for the country? It is basically
:16:06. > :16:09.saying how much creditworthiness a country has, you can have it for
:16:10. > :16:13.people and countries and companies. It is telling investors what the
:16:14. > :16:24.likelihood is of them getting their money back and the likelihood of
:16:25. > :16:27.getting back dividends. In the case of the United Kingdom, it is one of
:16:28. > :16:39.the safest places to invest your money. It has had up till now the
:16:40. > :16:42.second highest rating, it assesses the safety of investment in these
:16:43. > :16:46.areas and countries and companies, and Standard Poor's is one of the
:16:47. > :16:54.biggest, and it has lowered just a touch from Triple-A to double-A and
:16:55. > :17:00.it is a little bit riskier. Not hugely! But when you are right at
:17:01. > :17:06.the top and you get this tweak down, it is a slap in the face. On the
:17:07. > :17:12.other hand the face that was expected many months ago by people,
:17:13. > :17:19.economists who said if we? This would happen. Wilbur Smith be
:17:20. > :17:24.worried by this? It makes it harder for us to borrow money on the
:17:25. > :17:28.international market. It is not the short term like Bank of England
:17:29. > :17:30.day-to-day borrowing, this is long-term borrowing on the
:17:31. > :17:35.international markets and it will become more difficult and more
:17:36. > :17:39.expensive. That will affect the ability of banks to finance
:17:40. > :17:41.mortgages, so things like mortgages and long-term lending will become
:17:42. > :17:48.possibly just a little more expensive. Thank you.
:17:49. > :17:50.The British Foreign Secretary Philip Hammond has been
:17:51. > :17:54.meeting the US Secretary of State John Kerry in London.
:17:55. > :17:59.He reassured Britain that the special relationship between the two
:18:00. > :18:05.countries would not change because of the decision to leave the EU.
:18:06. > :18:12.The special relationship we often refer to this perhaps even more
:18:13. > :18:18.important in these days of questioning but I want to make it
:18:19. > :18:25.clear that we believe it remains as strong and as crucial as ever. We
:18:26. > :18:33.are bound together by a lot of different things. By a lot of
:18:34. > :18:36.history. By many shared traditions, shared values. A shared language,
:18:37. > :18:38.mostly. Our Diplomatic Correspondent,
:18:39. > :18:52.James Robbins, is in Westminster. John Kerry saying it was important
:18:53. > :18:58.for nobody to lose their heads over this. Who is he directing that
:18:59. > :19:02.comment towards? I think he is directing at both to people in
:19:03. > :19:07.Britain and to Britain's existing European partners as the process
:19:08. > :19:11.gets underway to negotiate the British exit. John Kerry changed his
:19:12. > :19:16.travel plans specifically to come here to London and extend the
:19:17. > :19:21.European tour because he is aware of this is a huge moment in Britain's
:19:22. > :19:24.political history and a pretty big moment in the history of the
:19:25. > :19:32.European Union to. He wanted to issue the sort of soothing words,
:19:33. > :19:36.reassuring language we just heard. He kept on that theme that the
:19:37. > :19:40.special relationship that exists between London and Washington would
:19:41. > :19:47.not be changed and he conceded Britain's role in the world with not
:19:48. > :19:50.be changed and not diminished. He said he would have preferred to
:19:51. > :19:55.Britain to stay at the European Union table and we know President
:19:56. > :20:01.Obama famously intervened and the debate and want a Britain that if it
:20:02. > :20:05.left the EU that would go to the back of the nightly future trade
:20:06. > :20:11.with United States. I asked John Kerry if that perhaps had been a
:20:12. > :20:17.mistake to intervene and he told me it wasn't, it was right for the
:20:18. > :20:20.president to make clear his views, but he also made clear the United
:20:21. > :20:25.States could not yet judge how Britain's decision to leave would
:20:26. > :20:32.impact on its future trading relations around the world and
:20:33. > :20:36.therefore its economic prospects. There was a little bit of the
:20:37. > :20:45.downbeat as well as the upbeat. James, thank you. As well as the
:20:46. > :21:03.political reaction, EU leaders are trying to find a way forward. We can
:21:04. > :21:09.join my colleague in Brussels. Tomorrow evening in Brussels there
:21:10. > :21:12.will be a European Council dinner. The council represents the leaders
:21:13. > :21:16.of the countries of the European Union and the dinner will be focused
:21:17. > :21:22.on exactly how the UK's exit from the European Union is going to work
:21:23. > :21:25.but inevitably the leaders of Germany, France and Italy felt we
:21:26. > :21:29.had some talking to do in advance of the dinner because they had been in
:21:30. > :21:34.Berlin today focusing on how the EU should check its response to that
:21:35. > :21:39.ought, an extraordinary vote last Thursday by the people of the UK.
:21:40. > :21:45.They gave a press conference sometime ago and this is some of it
:21:46. > :21:49.we agreed Article 50 of the European Treaty is a very clear statement.
:21:50. > :21:57.The member state wanting to leave the European Union has two apply to
:21:58. > :22:02.the European Council and before this application no further steps can be
:22:03. > :22:12.taken. Only then the European Council can issue guidelines and
:22:13. > :22:16.along those guidelines negotiations can be conducted, which means there
:22:17. > :22:25.are no informal talks about the exit of Great Britain before such an
:22:26. > :22:34.application for exiting the European Union has been submitted to the
:22:35. > :22:40.European Council. We have to show no sadness, because it is sad, but also
:22:41. > :22:48.showed responsibility, because the responsibility is ours and we are
:22:49. > :22:52.responsible not to lose any time, neither are dealing with the
:22:53. > :22:59.question of the except of the UK, and we must also deal with the new
:23:00. > :23:04.impulse we will have to give to the new European Union with 27 members,
:23:05. > :23:10.and why should we not lose any time because nothing is worse than
:23:11. > :23:14.uncertainty. Uncertainty gets in the way of political decisions. It also
:23:15. > :23:22.gets in the way of financial decisions. If it is true that on the
:23:23. > :23:27.one hand as they said we are sad, and I agree that we are sad, but it
:23:28. > :23:30.is also true that this is the right time to write a new page in the
:23:31. > :23:34.European history and we want to do it together, starting from what
:23:35. > :23:41.unites us which is much more than what has divided, and we are so many
:23:42. > :23:47.people are so negative. We should not waste even a minute and Italy
:23:48. > :23:52.will play its role. There we have the leaders of Italy, Germany and
:23:53. > :23:57.France and we heard Angela Merkel talk about how uncertainty does not
:23:58. > :24:05.serve the European Union well. The problem for hard and the other 27
:24:06. > :24:08.leaders is that although we know the UK has chosen to lead, the process
:24:09. > :24:14.can only begin when something called article 50 in the Lisbon Treaty is
:24:15. > :24:19.triggered and the only entities that can trigger article 50 R member
:24:20. > :24:23.states. Even though Angela Merkel and others can apply political
:24:24. > :24:27.pressure, it is only the UK that can begin this process. Factor in the
:24:28. > :24:33.fact that David Cameron has said he will not be triggering the article
:24:34. > :24:38.until he has a replacement, in early September, and as we discussed
:24:39. > :24:41.earlier, there is a possibility that there could be a general election
:24:42. > :24:45.called together that you read the full legitimacy he or she needs to
:24:46. > :24:51.see through this exit process the European Union, even though they
:24:52. > :24:57.don't like this uncertainty mainly to wait a little while. One other
:24:58. > :25:00.thing, there may not be a huge amount of formal negotiations
:25:01. > :25:05.because article 50 has not been triggered but things are already
:25:06. > :25:07.shifting and the president of the European Council will convene on
:25:08. > :25:12.Thursday what is being called an informal summit of the 27 members of
:25:13. > :25:16.the UK is not invited and that is a feeling they will have to get used
:25:17. > :25:24.to, so that is the first chance for those 27 to come together and do
:25:25. > :25:27.what Matteo Renzi was talking about, what they want the next stage of the
:25:28. > :25:35.European Union to be. It'll be interesting to see what they decide.
:25:36. > :25:40.Absolutely, thank you. Before we go I want to take you to a rally in
:25:41. > :25:47.central London by supporters of Jeremy Corbyn, holding a rally in
:25:48. > :25:51.support of him. He is due to address his supporters very shortly and we
:25:52. > :25:56.will bring that to you if we can. For now from all of us on BBC world
:25:57. > :25:58.you, thank you for joining us, plenty more on our website and for