27/06/2016 World News Today


27/06/2016

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

:00:10.:00:17.

goes to the House of Commons for the first time since

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the referendum result and since his resignation.

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Mr Cameron stressed the process of leaving the EU was down

:00:23.:00:26.

to Britain alone - but that the country should not

:00:27.:00:30.

I think everyone is agreed that we will want the strongest

:00:31.:00:35.

possible economic links with our European neighbours

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

:00:38.:00:39.

and important partners like India and China.

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

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considerable pressure from inside his own parliamentary

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

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

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

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

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

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

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negotiations between America and Europe.

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

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The backdrop here at Westminster may look the same -

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but just about everything else has changed, since that

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

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

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

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

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

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

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The German Chancellor described the British decision as painful and

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

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

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

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explain the decision that forced him from office, triggered unprecedented

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political turmoil and caused instability in the financial

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

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

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

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

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will be adjustments in our economy, complex constitutional issues and

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challenging new negotiation to undertake. I agree with what the

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

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

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his successor to determine when to begin the formal process of

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

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

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

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

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world and working with international partners to preserve safety and

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

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

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financial worries in an early statement. The is increasing

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

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

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

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

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Corbyn said the referendum campaign had been divisive and negative but

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

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

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front of me nor those behind for indulging in internal factional

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

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

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Westminster said Scotland had faltered to remain in the EU and

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

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

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

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

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

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

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

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

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

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

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

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

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you heard because David Cameron started by seeing the decision must

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

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

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

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immediate change in the circumstances for anyone in the EU

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

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

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

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

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

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

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voices from his own backbenchers heckling Hemant shouts of rezoning.

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

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

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

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

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

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moving in terms of that. First thing this morning,

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George Osborne broke his three day silence to try to reassure

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

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the challenges ahead. But that didn't stop

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

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against the dollar. Banking, airline and property

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shares were all hit. But the former Bank

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of England Governor, Mervyn King urged calm,

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

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

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Editor Kamal Ahmed. The Chancellor emerged after three

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

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

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was strong and with the pound falling and share prices

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tumbling, the Government was ready to do whatever it takes

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to stabilise the markets. It will not be plain sailing

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in the days ahead. You should not

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underestimate our resolve. We were prepared for the unexpected

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and we But surely this was the man

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

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would need an Did you consider resigning,

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

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

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international investors, to speak to my counterparts, to do

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what I can to stabilise That is what people

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would expect of their Chancellor and that is what I am

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

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

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

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of major companies in Britain fell by 7% as investors

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worried about uncertainty. RBS, which we still

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own a chunk of, down These share prices are

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seen as a bellwether When you have a move

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like last Friday post Brexit, this thing

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is I think with all the uncertainty

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

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

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

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Lord Mervyn King, the former governor of

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the Bank of England. He accused the government

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of peddling fear, treating people like idiots, saying warnings

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

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they will find their The whole aspect of volatility,

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there is a trial and error process going on before

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markets discover what the right level, stock markets

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and exchange rates actually are. There is no reason

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for any of us to panic. Investors are watching

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the Chancellor closely, looking for signs that someone

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somewhere has a plan. Tonight, one of the major

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credit rating agencies Tomorrow, business leaders

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are set to express Tensions in the market are not

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

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

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

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

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

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the stage where markets are looking for further direction from political

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

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Stirling and global equities, but certainly the lack of political

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

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

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

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

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

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

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

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

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additional quantitative easing. Or internationally, there is very

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

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

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

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foreign investment, articulated again today, about whether

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everything that is happening here politically and the uncertainty

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

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

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transactions were having Brexit clauses returned to them in the

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

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

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

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

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

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making decisions against that backdrop? Early there was a tweet

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

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

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

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

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

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

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

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

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

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economic conditions that may happen and look whether there will be

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

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

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

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

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

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tested. Markets against that backdrop remain turbulent.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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international markets and it will become more difficult and more

:17:31.:17:35.

expensive. That will affect the ability of banks to finance

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

:17:40.:17:41.

possibly just a little more expensive. Thank you.

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The British Foreign Secretary Philip Hammond has been

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meeting the US Secretary of State John Kerry in London.

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He reassured Britain that the special relationship between the two

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

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The special relationship we often refer to this perhaps even more

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

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

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

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

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mostly. Our Diplomatic Correspondent,

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

:18:39.:18:52.

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

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

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

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

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travel plans specifically to come here to London and extend the

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

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

:19:22.:19:24.

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

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

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special relationship that exists between London and Washington would

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

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

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

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

:19:56.:20:01.

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

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

:20:06.:20:11.

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

:20:12.:20:17.

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

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

:20:21.:20:25.

impact on its future trading relations around the world and

:20:26.:20:32.

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

:20:33.:20:36.

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

:20:37.:20:45.

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

:20:46.:21:03.

join my colleague in Brussels. Tomorrow evening in Brussels there

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

:21:10.:21:12.

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

:21:13.:21:16.

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

:21:17.:21:22.

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

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

:21:26.:21:29.

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

:21:30.:21:34.

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

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

:21:40.:21:45.

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

:21:46.:21:49.

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

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

:21:58.:22:02.

taken. Only then the European Council can issue guidelines and

:22:03.:22:12.

along those guidelines negotiations can be conducted, which means there

:22:13.:22:16.

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

:22:17.:22:25.

application for exiting the European Union has been submitted to the

:22:26.:22:34.

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

:22:35.:22:40.

showed responsibility, because the responsibility is ours and we are

:22:41.:22:48.

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

:22:49.:22:52.

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

:22:53.:22:59.

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

:23:00.:23:04.

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

:23:05.:23:10.

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

:23:11.:23:14.

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

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

:23:23.:23:27.

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

:23:28.:23:30.

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

:23:31.:23:34.

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

:23:35.:23:41.

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

:23:42.:23:47.

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

:23:48.:23:52.

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

:23:53.:23:57.

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

:23:58.:24:05.

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

:24:06.:24:08.

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

:24:09.:24:14.

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

:24:15.:24:19.

states. Even though Angela Merkel and others can apply political

:24:20.:24:23.

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

:24:24.:24:27.

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

:24:28.:24:33.

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

:24:34.:24:38.

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

:24:39.:24:41.

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

:24:42.:24:45.

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

:24:46.:24:51.

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

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

:24:58.:25:00.

because article 50 has not been triggered but things are already

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shifting and the president of the European Council will convene on

:25:06.:25:07.

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

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

:25:13.:25:16.

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

:25:17.:25:24.

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

:25:25.:25:27.

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

:25:28.:25:35.

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

:25:36.:25:40.

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

:25:41.:25:47.

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

:25:48.:25:51.

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

:25:52.:25:56.

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

:25:57.:25:58.

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