27/06/2016 World News Today


The latest national and international news, exploring the day's events from a global perspective.

Similar Content

Browse content similar to 27/06/2016. Check below for episodes and series from the same categories and more!



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


goes to the House of Commons for the first time since


the referendum result and since his resignation.


Mr Cameron stressed the process of leaving the EU was down


to Britain alone - but that the country should not


I think everyone is agreed that we will want the strongest


possible economic links with our European neighbours


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


and important partners like India and China.


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


considerable pressure from inside his own parliamentary


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


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


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


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


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


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


negotiations between America and Europe.


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


The backdrop here at Westminster may look the same -


but just about everything else has changed, since that


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


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


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


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


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


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


The German Chancellor described the British decision as painful and


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


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


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


explain the decision that forced him from office, triggered unprecedented


political turmoil and caused instability in the financial


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


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


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


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


will be adjustments in our economy, complex constitutional issues and


challenging new negotiation to undertake. I agree with what the


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


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


his successor to determine when to begin the formal process of


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


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


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


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


world and working with international partners to preserve safety and


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


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


financial worries in an early statement. The is increasing


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


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


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


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


Corbyn said the referendum campaign had been divisive and negative but


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


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


front of me nor those behind for indulging in internal factional


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


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


Westminster said Scotland had faltered to remain in the EU and


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


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


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


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


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


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


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


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


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


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


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


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


you heard because David Cameron started by seeing the decision must


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


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


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


immediate change in the circumstances for anyone in the EU


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


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


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


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


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


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


voices from his own backbenchers heckling Hemant shouts of rezoning.


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


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


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


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


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


moving in terms of that. First thing this morning,


George Osborne broke his three day silence to try to reassure


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


the challenges ahead. But that didn't stop


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


against the dollar. Banking, airline and property


shares were all hit. But the former Bank


of England Governor, Mervyn King urged calm,


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


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


Editor Kamal Ahmed. The Chancellor emerged after three


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


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


was strong and with the pound falling and share prices


tumbling, the Government was ready to do whatever it takes


to stabilise the markets. It will not be plain sailing


in the days ahead. You should not


underestimate our resolve. We were prepared for the unexpected


and we But surely this was the man


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


would need an Did you consider resigning,


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


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


international investors, to speak to my counterparts, to do


what I can to stabilise That is what people


would expect of their Chancellor and that is what I am


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


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


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


of major companies in Britain fell by 7% as investors


worried about uncertainty. RBS, which we still


own a chunk of, down These share prices are


seen as a bellwether When you have a move


like last Friday post Brexit, this thing


is I think with all the uncertainty


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


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


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


Lord Mervyn King, the former governor of


the Bank of England. He accused the government


of peddling fear, treating people like idiots, saying warnings


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


they will find their The whole aspect of volatility,


there is a trial and error process going on before


markets discover what the right level, stock markets


and exchange rates actually are. There is no reason


for any of us to panic. Investors are watching


the Chancellor closely, looking for signs that someone


somewhere has a plan. Tonight, one of the major


credit rating agencies Tomorrow, business leaders


are set to express Tensions in the market are not


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


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


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


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


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


the stage where markets are looking for further direction from political


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


Stirling and global equities, but certainly the lack of political


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


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


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


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


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


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


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


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


additional quantitative easing. Or internationally, there is very


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


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


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


foreign investment, articulated again today, about whether


everything that is happening here politically and the uncertainty


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


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


transactions were having Brexit clauses returned to them in the


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


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


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


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


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


making decisions against that backdrop? Early there was a tweet


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


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


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


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


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


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


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


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


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


economic conditions that may happen and look whether there will be


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


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


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


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


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


tested. Markets against that backdrop remain turbulent.


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


international markets and it will become more difficult and more


expensive. That will affect the ability of banks to finance


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


possibly just a little more expensive. Thank you.


The British Foreign Secretary Philip Hammond has been


meeting the US Secretary of State John Kerry in London.


He reassured Britain that the special relationship between the two


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


The special relationship we often refer to this perhaps even more


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


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


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


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


mostly. Our Diplomatic Correspondent,


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


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


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


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


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


travel plans specifically to come here to London and extend the


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


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


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


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


special relationship that exists between London and Washington would


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


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


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


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


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


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


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


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


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


impact on its future trading relations around the world and


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


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


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


join my colleague in Brussels. Tomorrow evening in Brussels there


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


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


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


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


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


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


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


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


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


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


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


taken. Only then the European Council can issue guidelines and


along those guidelines negotiations can be conducted, which means there


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


application for exiting the European Union has been submitted to the


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


showed responsibility, because the responsibility is ours and we are


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


states. Even though Angela Merkel and others can apply political


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


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


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


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


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


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


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


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


because article 50 has not been triggered but things are already


shifting and the president of the European Council will convene on


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


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


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


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


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


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


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


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


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


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


Download Subtitles