Return to Transcripts main page

ERIN BURNETT OUTFRONT

Chaos After Britain's Shocking Vote; Trump Predicts 'Brexit" Coming to the US; Massive Flooding in West Virginia Leaves at Least 20 Dead; Trump: Brexit Vote is Good for Business; At Least 20 Dead in West Virginia Flooding. Aired 7-8p ET

Aired June 24, 2016 - 19:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


ERIN BURNETT, CNN ANCHOR: OUTFRONT next, the breaking news, chaos after Britain's shocking vote. Stocks plummeting worldwide. What does it all mean?

Plus, Donald Trump warns, "Brexit" is coming to the US. Could it mean a Trump victory in November?

And, at this moment, at least 20 dead in West Virginia tonight. Massive flooding suddenly this afternoon. Nearly 200 people are trapped in a mall, at this moment.

Let's go, OUTFRONT.

And good evening, I'm Erin Burnett. Welcome to our viewers in the United States and around the world. OUTFRONT tonight, the breaking news, shock waves. Britain's stunning decision to break away from Europe, creating chaos and panic around the world. Stocks hammered with the biggest drop in nearly five years. The British pound at its lowest level since 1985. On Wall Street, the market closing just a short time ago. The DOW down 610 points.

And, on top of that, there are major political implications. The British Prime Minister, David Cameron announcing, he's going to resign. And Donald Trump, predicting that, the anger that fueled the so-called "Brexit" is coming right here, to the United States.

(BEGIN VIDEO CLIP)

DONALD TRUMP, GOP PRESIDENTIAL CANDIDATE: They want to take a lot of things back. They want to be able to have a country again. So, I think you're going to have this happen more and more. I really believe that. And I think that it's happening in the United States.

(END VIDEO CLIP)

BURNETT: And tonight, a very revealing development. Some of the most Googled questions in the UK since the polls closed last night, "What does it mean to leave the EU?" and "What is the EU?"

That is stunning in and of itself.

We are covering this crucial breaking story from every angle. We begin with Richard Quest in London. And Richard, the carnage to markets today, worldwide.

RICHARD QUEST, CNN CORRESPONDANT: Absolutely. It started in Asia, as the results came in, Erin. Tokyo is down some eight percent, Hong Kong down three or four percent. Into Europe, and at one point, the London FTSE was off nine percent. By the time the day was over, they had pared back their losses. But the uncertainty. This is about uncertainty.

And when you think about, look at those numbers, how the worry, the nerves, the tensions transmitted themselves, Erin, across the Atlantic. So you end up with the DOW down 3.4, the NASDAQ off 4.1 percent. And here's the real problem, this is a process. This "Brexit" process is going to last several years.

Now, obviously, there will be an element of clarity about how things move forward. But the truth is, big US companies that have large operations in the United Kingdom, General Motors, GE, Ford, Caterpillar, they are all going to have to decide, what do they do? How do they expand? What is the effect on their business?

BURNETT: So, all right. Thank you very much Richard Quest. You're not going anywhere, you're going to be back with me in just a couple of moments.

The big question, of course, as Richard lays out, the market carnage we are seeing around the world is, how did this happen?

Clarissa Ward on that for us, from London.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: The total number of votes cast in favor of leave was 17,410,742. This means that the UK has voted to leave the European Union.

CLARISSA WARD, CNN CORRESPONDANT: Britain's historic vote, a seismic event that shook the world. Prime Minister David Cameron, who led the drive to remain in the EU, appeared outside 10 Downing Street, and said he would resign by October.

DAVID CAMERON, PRIME MINISTER OF THE UNITED KINGDOM: I will do everything I can as Prime Minister to steady the ship over the coming weeks and months. But I do not think it would be right for me to try to be the captain that steers our country to its next destination.

WARD: Meantime, the winning side celebrated. One of its leaders, Nigel Farage, quick to declare victory.

NIGEL FARAGE, MEMBER OF THE EUROPEAN PARLIAMENT: Done it. It's independence day. The ordinary decent people of this country have overturned the establishment, the big banks, and the big businesses. We have done it.

WARD: The lead vote, driven by an emotional message. It's slogan, "Take Back Control," appealing to those who feel the country is under siege, from an influx of immigrants coming to Britain through the EU's open borders.

And Donald Trump, in Scotland to tend to golf course business, agreed.

TRUMP: I think it'll be a good thing. You're taking your country back. You're going to let people that you want into your country. And people that you don't want or people that you don't think are going to be appropriate for your country, or good for your country, you're not going to have to take.

UNIDENTIFIED MALE: A stunning decision and a market that has been shocked.

ALAN GREENSPAN, ECONOMIST: This is the worst period I recall since I've been in public service.

WARD: The results stunned the market. Britain's currency, the pound, falling to its lowest level in more than 30 years. Well below the worst of the 2008 financial crisis. Germany's Angela Merkel expressing her deep regret. French President Francois Hollande saying, "Europe faces immense danger." President Obama tried to sound a positive note but couldn't hide his deep disappointment.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I believe we are better off in a world in which we are trading, and networking, and communicating, and sharing ideas. But that also means that cultures are colliding. And sometimes it's disruptive.

(END VIDEOTAPE)

WARD: The real question now, Erin, is what happens next? And the answer is, nobody knows exactly. Prime Minister, David Cameron, said he would not pull the trigger yet on implementing the article that would start the process of the UK extricating itself from the EU. That won't happen until a new government is formed in three months. From there, it could take another two years to hash out some kind of a deal.

But in the meantime, of course, all these European countries are panicked. The Pandora's box has been opened. A new precedent has been set, and that other European countries will now to try to reach out and have their own referenda, Erin.

BURNETT: All right. Clarissa Ward, thank you very much. And joining me now, the billionaire, Guster Bill Gross of Janus Capital. For decades, ruling the bond markets, and Bill, the true shock about this is that nobody seemed to expect it.

BILL GROSS, PORTFOLIO MANAGER, JANUS CAPITAL GROUP: Well, we didn't. We're all slaves, I supposed, to the polls. And then the polls basically showed that leave would lose. It's interesting though, that there were strong hints before. I mean, there have been hints from the Trump phenomenon in the United States, Erin. Because, you know, Trump reflects to a certain extent any of the same phenomena that we're seeing now with "Brexit" and leaving.

We're talking about a populist movement. We're talking about anti- trade. We're talking about, yes, immigration to a certain extent. But these are things and concerns that the British voters and British citizens were concerned about. And 53 to 47 shows that, you know, things are changing like President Obama said. A clash of cultures.

BURNETT: And, you know, Alan Greenspan says this is the worst time he's ever seen since he was in public service. I mean, it's a pretty incredible statement to make. Obviously, we saw carnage around the world. Now, it's going to take, obviously, a long time for this to sort itself out. But during that time, incredible uncertainty and possibly the breakup of Europe. How long will this pain last, Bill?

GROSS: Well, I think it will go on. I don't think it's the worst thing that's happened in years like Alan Greenspan has said. Obviously there were significant moves in the market today. But, you know, it will take two years for the UK to leave and to work out new trade arrangements with their European partners. So that will be part of the process. But in the midst of all that, will be other countries. Perhaps France and perhaps Italy and perhaps, you know, other citizens of countries that feel disadvantaged and have a populist type of attitude. There will be elections, there's one in Spain this weekend. And so we're going to see some change rather quickly. But not dramatic to the extent of Lehman Brothers or a capital market crisis.

BURNETT: And you know, what's incredible when you say that, though, for decades, right, it was building towards a unified Europe. And we have all been told that that is a good thing for the world. It has kept the world safer. A unified Europe is not a Europe that causes world wars. It's just one example. You're saying, obviously, you could see the breakup of Europe. Other countries leave. But a lot of people are asking, Bill. And I think it's a fair question, does it really matter? Does it really matter if the UK leaves, if other countries leave, or is this just one of those things that the establishment says, worry about it, and they're wrong?

GROSS: Well, it doesn't matter, and it matters only at the margin, although the UK is a large economy. What I think is most important is that it's a threat to globalization. President Obama made a speech specifically today about globalization and to this point, for the most part, the established interests have said that globalization is very much a precedent. The free trade, the immigration, et cetera, et cetera. Now, all of a sudden, you know, the electorate is questioning whether or not globalization is the wave of the future like it has been for the past 20 or 30 years. And if its not, the important point, if its not, that leads to slower economic growth and some negatives for capital markets.

BURNETT: And, you know, a quick follow here though, to get to your point here, Bill. Some experts say, obviously, if Trump wins in the US, and there are a lot of similarities between him and the leave movement in Britain, that today's drop would look like nothing. Mark Cuban told me, stocks could drop 20 percent or more if Trump is elected. What do you think?

GROSS: Well, you know, I think Trump makes some important points. I'm not a Republican advocate for Trump but I think his attitude towards trade and tariffs and trade agreements could be something that any administration should follow through on going forward. You know, personally, if Trump could only stop behaving like an adolescent and more like an adult, then perhaps some of his good ideas could be analyzed and accepted better in the press.

BURNETT: All right. Thank you very much. I appreciate your time as always, Bill.

GROSS: Thank you Erin.

BURNETT: Richard Quest is back with me now. And Richard, you know, I want to ask you, it's interesting, listening to Bill Gross. You know, after the significance of this, right? The second most popular search term on Google in Britain, was "What is the EU?" And it was only behind the first one, which is, "What happens if we leave the EU?" These are the search terms after people voted to leave the EU. Do they even understand what they're voting for?

QUEST: Most people had a really good idea of what it was all about. Some of them obviously didn't. But Erin, the real story on this is, tonight, how the youngsters are blaming the oldies for voting them out. The word going around is, "You have ruined my future. You've had your life and now you've screwed up mine." Because what happened is, all the oldies, people of my generation and older, went out and voted, and most of them, not more, but lots, tended to vote to leave. The younger generation tended to vote to remain. And there's a lot of, a huge amount of animosity.

The second thing that's happening, this is tonight's London newspaper, "The Standard." We're Out. The second thing that's happening is buyer's remorse. There are many stories of people are now saying, "Oh my goodness. What did I just do? I wanted to give them a bloody nose. I wanted to give a warning. But what have I done by voting leave?" And that the sort of tensions we're seeing in Britain tonight.

BURNETT: All right, Richard Quest, thank you.

And next, our breaking coverage continues. Does the "Brexit" vote mean Donald Trump is going to win? And why Trump thinks "Brexit" is good for his golf course in Scotland.

TRUMP: You know, when the pound goes down, more people are coming to Turnberry, frankly.

BURNETT: And the breaking news at this hour. These pictures from West Virginia. At least 20 people dead, massive flooding in that state tonight. The death toll is rising. We have the very latest. We're going to go on the ground.

(COMMERCIAL BREAK)

BURNETT: Tonight, Donald Trump says the United States is next. That's his message after the stunning decision by British voters to ditch the EU. Does Britain's vote mean a Trump victory in November?

Sara Murray is OUTFRONT.

(BEGIN VIDEOTAPE)

SARA MURRAY, CNN CORRESPONDANT: With Scotland's lush hills at his back, Donald Trump is applauding the UK's decision to turn it's back on the European Union.

TRUMP: People want to take their country back. And they want to have independence.

MURRAY: Trump, sensing parallels today, between the voter angst driving the British exit and the anxieties fueling his campaign in the US.

TRUMP: You're going to have more than just, in my opinion, more than just what happened last night. You're going to have, I think, many other cases where they want to take their borders back. I think it's happening in the United States.

MURRAY: Trump even claiming President Obama bears some responsibility for the "Brexit" after he pushed for the opposite outcome.

TRUMP: I actually think that his recommendation perhaps caused it to fail.

MURRAY: As he argued both Obama and Hilary Clinton are out of touch with American voters.

TRUMP: She's always misread everything. The only reason she did it is because Obama wanted it, you know. If Obama wanted the other way, if he said leave, she would have said leave.

MURRAY: Clinton's campaign fired back.

JAKE SULLIVAN, CLINTON FOREIGN POLICY ADVISOR: He's not concerned with foreign policy, he's not concerned with the American people or their retirement accounts or their security. He is concerned with himself and that's it.

MURRAY: Trump, who just days ago admitted he didn't spend much time brushing up on the "Brexit", felt little need to do so with his foreign policy advisors today.

TRUMP: I've been in touch with them, but there's nothing to talk about.

MURRAY: And as Trump warned of the threat of immigration.

TRUMP: People want to see borders. They don't necessarily want people pouring into their country that they don't know who they are and where they come from.

MURRAY: Vice President, Joe Biden, cautioned against politicians playing to people's fears.

JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: All this provides fertile terrain for reactionary politicians and demagogues peddling xenophobia, nationalism, and isolationism. It has been un-American what we have been seeing.

MURRAY: And from the knife hole of his Trump Turnberry Golf Course.

TRUMP: A lot of people think this will be greatest Par 3 anywhere in the world.

MURRAY: Trump defended his unconventional foreign trip. Which comes at a momentous time. Still, he doesn't have a single diplomatic meeting on the books. Instead, he's dismissing questions about his rocky relations with leaders like David Cameron. The British Prime Minister who just today announced his resignation.

TRUMP: Where is David Cameron right now?

(END VIDEOTAPE)

MURRAY: Now, Erin, today I asked Donald Trump about the potential negative economic impacts of the "Brexit" on the United States economy. He brushed aside that question, essentially saying, "Economic experts in the US don't have any idea what is going to happen." But he did point out that the economic turmoil could be beneficial to his properties abroad, like this one, Trump Turnberry.

Back to you.

BURNETT: All right, thank you Sara.

Joining me now, Donald Trump supporter, Kayleigh McEnany, John Avalon, Editor and Chief of "The Daily Beast," Steve Lonegan, spokesman for the Courageous Conservative Super Pac, who want a delegate revolt at the republic convention, and Maria Cardona, Hilary Clinton supporter. Thanks to all of you.

John, it happened there. Can it happen here?

JOHN AVALON, EDITOR AND CHIEF, THE DAILY BEAST: Can a similar move that could overwhelm conventional wisdom. Look, there is connective tissue between the "Brexit" vote and what Donald Trump has been selling here. America first, Britain first. A sense that they're out of touch elites, who are alienating the middle class and squeezing them, particularly the issue of Muslim immigration. And sometimes we're too polite to add Muslim in there, but let's be honest, that's what's motivated much of the ethno-nationalism in Europe and some of it here.

So there are common strains. There is not a similar situation, obviously, to a "Brexit" vote, but clearly, Donald Trump hopes and believes that this is a wind at his back and that he may be able to ride the wave in the White House.

BURNETT: Absolutely, he does. And when you hear, Maria, things that Donald Trump says and things that the leader of the "Brexit" movement says, actually, this is one of the most amazing things. And, so, I want everyone to be able to hear for themselves. Here we go. FARAGE: We will win this war. We will get our country back.

TRUMP: We can bring our country back, bigger and better and stronger than ever before.

FARAGE: We can vote to get our borders back.

TRUMP: We're going to have the wall.

FARAGE: I want us to live under British passports and under the British flag.

TRUMP: We're going to put America first. And we're going to make America great again.

BURNETT: That message worked, right? In a sense, what the British vote was about, was saying, no to the establishment. Britain first. Are you scared when you hear that?

MARIA CARDONA, DEMOCRATIC STRATEGIST: I am scared. I think all American's should - That should scare the bejesus out of all Americans. To think that that kind of language, that that kind of xenophobic thinking could just put aside all of our American values. Donald Trump is trying to do it. He did win in the Republican Primary; he won the nomination because of that. Because he was playing to the fears that John was just talking about, existed in Britain.

But here's the big difference. A general electorate is very different than the electorate that he faced during the Republican nomination. The general, a general electorate is very different than, frankly, the electorate that faced the vote from last night.

BURNETT: But Maria, there's a lot of people who say, "Put America First." That people want to put America first, who aren't xenophobes and aren't all these other negative words. There's nothing wrong with that.

CARDONA: Sure, absolutely. But guess what? It is also an undertone for the Muslims that he wants to ban, the 13 - the 12 million undocumented immigrants that he wants to deport. The wall that he wants to build. The Mexican and the Latinos that he has absolutely, you know, gone forward with divisive rhetoric and has inflamed. Those are the voters that look at this man and are like, "This is not the America that we want to stand up for."

KAYLEIGH MCENANY, DONALD TRUMP SUPPORTER: It is obscene to call "Brexit" xenophobic. It is obscene to marginalize -

CARDONA: Not with the kind of language that people were focused on -

MCENANY: The language that we just heard in that sound bite was "Make America Great Again." Make the United Kingdom great again. People are proud of the nation states they live in and there is nothing wrong with that. There is nothing wrong with wanting to ensure that 400 ISIS fighters do not get into Europe. Which the AP has reported, have gotten into Europe through immigration. There is nothing wrong with the Department of Justice data, which Ted Cruz presented this week that said, of 580 convicted terrorists in this country, 380 were foreign-born, 40 were refugees. There's nothing wrong with vetting people who come into this country and protecting Americans -

CARDONA: That is not what Donald Trump is talking about -

MCENANY: Do not die in a nightclub. That is exactly what he's talking about. It's not xenophobic.

CARDONA: Making America great again is a dog whistle to making America less or more white and less diverse.

BURNETT: But hasn't Donald Trump tapped into something very significant? The sentiment, frankly, Steve, that a lot of people may have underestimated. They sure did in the UK.

STEVE LONEGAN, SPOKESMAN, CORAGEOUS CONSERVATIVE SUPER PAC: And I find myself agreeing with Kayleigh on this issue with Donald Trump. But here's where the big disconnect is. The piece of the puzzle that's missing. There's another major driving force that passed "Brexit" yesterday in England. That was the drive-by conservatives for more free trade. This opens up England's ability to engage in more free trade agreements and trade with the rest of the world. That's really what they want to grow their economy, that's what will grow the economy and they will benefit in time.

But Donald Trump constantly opposed free trade. So, in there, there's a major disconnection.

AVALON: The fact is that -

LONEGAN: Not really -

BURNETT: What Bill Gross thinks doesn't really matter.

AVALON: In terms of what motivated him. Clearly, behind conservative populism, there is a lot of anger. The Nigel Farage and other people tapped into it about the banks, about trade. And the larger field we're dealing with is frustration with globalization, which are causes folks to really get in defensive crouch if they feel that their identify is being crushed. And that can be in the form of cultural resentment or economic resentment.