Markets Unsettled by Britain’s E.U. Exit Uncertainty; Once Pro- Leave U.K. Town; New York Government Urges Business to Cut Ties with
<Show: CNN NEWSROOM>
<Date: December 11, 2018>
<Head: Markets Unsettled by Britain’s E.U. Exit Uncertainty; Once Pro-
Leave U.K. Town; New York Government Urges Business to Cut Ties with
NRA; Students Plan Black Tuesday Rallies And Marches; Bail Hearing For
CFO To Resume In Coming Hours; U.S. Efforts To Promote Fossil Fuels
Mocked At COP24; Climate Refugees Flee Drought And Starvation.. Aired
1-2a ET - Part 2>
<Sect: News; International>
SUTTER: Evelio says, he fled to the U.S. three times with the help of a smuggler. Each time he was deported back to Honduras.
OCHOA: We didn’t have much to harvest this year because of the drought. We had very little corn to harvest. We had even fewer beans. Very little, because of the drought.
SUTTER: His wife, Nora, says their family would have starved if a relative hadn’t sent them help from the states. She wants Evelio to try the dangerous journey again, but they don’t have the money.
Climate migrants who joined the caravan have little chance of safe and lawful passage to the U.S. International law does not recognize the rights of so-called climate refugees.
And President Trump has claimed that all refugee candidates have to wait in Mexico while their claims are reviewed. Slashing carbon pollution could decrease the number of climate migrants by millions, the World Bank says. And irrigation projects could help ease the pain of future droughts.
But this Exodus already is taking a toll. Delmi’s husband died on the road while trying to join the caravan across the border in Guatemala.
HERNANDEZ: He said he was going to look for a better life, so that his children wouldn’t suffer. So that we wouldn’t suffer anymore. However, it wasn’t possible, no. What he wanted didn’t come true.
SUTTER: The circumstances of his death are unclear. The family buried him in the land he used to till.
HERNANDEZ: He left us alone. He left us alone forever.
SUTTER: John Sutter, CNN, Copan, Honduras.
VAUSE: Time for a quick break. And then, with the Brexit vote delayed in Britain, Wall Street is paying the price. More than financial implications on the uncertainty facing Britain and Europe.
[01:29:58] VAUSE: Time for a quick break.
And then with the Brexit vote delayed in Britain Wall Street is paying the price. More of the financial implications of the uncertainty facing Britain and Europe.
VAUSE: Welcome back, everybody. You’re watching CNN NEWSROOM. I’m John Vause with the headlines this hour.
Britain’s Theresa May is heading back to Europe hoping to renegotiate some concessions on the draft Brexit agreement to win over opponents back home in parliament. The British Prime Minister will travel to Berlin and The Hague on Tuesday after canceling a parliamentary vote on her withdrawal deal which was set to be overwhelmingly voted down.
French President Emmanuel Macron has promised to increase the minimum wage and scrap new taxes on pensions to try and quell weeks of violent anti-government protests. But the move may not be enough to ease the growing anger over France’s rising cost of living. Student plan to protest later Tuesday and trade unions are also expected to strike on Friday.
A bail hearing for Huawei executive Meng Wanzhou will resume in the coming hours. The CFO of the Chinese telecom giant is accused of helping the company dodge U.S. sanctions on Iran. She’s being held in Canada and is facing extradition to the U.S.
Well, the markets hate uncertainty and right now there is truckloads of it surrounding Brexit. (INAUDIBLE) session on Wall Street and it’s slightly up because of a surge in tech stocks but Brexit anxiety sent bank stocks sharply lower. The pound spiraled about 1.5 percent falling just shy of a 20-month low.
For more, lets head off to Los Angeles and Ryan Patel, global business executive. Ok.
So, Ryan -- along with, you know, this big hit to the currency there’s been a gradual slowdown of U.K. economic growth if you look at the second half of the year. But just what happens next seems to be the big mystery.
It’s bigger than sort of what happens in the Bermuda Triangle? You know, what happens with this parliamentary vote. For better or for worse, you know, this was actually meant to be a cathartic moment for the country. And finally there is some direction. But now the Prime Minister has put all this uncertain back in the mix and just keeps dragging for another 108 days.
RYAN PATEL, GLOBAL BUSINESS EXECUTIVE: Well yes. But I think there is some certainty. If there is a deal you are still not as well off and if there is no deal you are even further off. And I think that’s what -- this is what’s going on with what you are seeing with the politics right now is that there is this uproar of it.
There is this negotiated deal they agree upon. The GDP will be down a few percentage before without losing the E.U. And I think that’s what is causing this tension. And what is -- what is the real worry which I believe that Wall Street has not baked in is if there is no deal.
If there is no deal between the E.U. and the U.K. that will cause these markets to further spiral down because I don’t think that of it -- any really -- that is kind of put in there right now. [01:35:05] VAUSE: Yes. Listen to the reaction from business to this delay in the vote. The head of the Confederation of Industry said it was another blow for companies desperate for clarity adding the country risks sliding toward a national crisis unless there is an agreement soon.
The head of the Chamber of Commerce talked about utter dismay business community and the delay will have real world consequences -- you’re seeing that right now.
British lawmakers, they know this. The British Prime Minister she knows this but it seems it’s not even sort of being worked into the political calculations here.
PATEL: Yes, that just tells you the chaoticness that’s happening. You know that they know that this rhetoric is going on and I think for me there’s now all of a sudden this pressure that’s being on this meeting that Theresa May is going to have with the E.U. in a few days.
I mean, I don’t know what they are going to come across and if she doesn’t come across with anything that’s positive that it’s going to get passed in the U.K. I think it will cause the spiral to be even more vocal. Businesses are going to even worry even more and it could cause this even uncertainty to be -- you’ll see more of these tweets.
VAUSE: You know, you mentioned how bad a no-deal Brexit could actually be. It will be bad for Europe. It could be a catastrophe for the U.K. So bad Cadbury is hoarding ingredients for their chocolate expecting shortages.
Here are some other warnings of significance. British automobile and airplane manufacturing could be stalled, grocery store shelves will be empty, massive traffic jams with trucks idling for miles as they wait to reach, you know, tunnel and ports, have to go through customs and inspections.
The governor of the Bank of England has warned no deal would cause a financial chaos similar to the 2008 subprime mortgage crisis.
You know, is it possible that the Prime Minister is sort of the gambling that the consequences of leaving the European Union without any deal at all are so grave, so damaging that ultimately the reluctant members of parliament will come around to her deal which will minimize the pain? Do you share her confidence I guess, in a sensible, logical decision making British MP?
PATEL: Well, if you say it that way, no.
VAUSE: I mean.
PATEL: I think what -- she’s going through the motions. Like I think that they have gone through this paces where it’s almost a check box you have to go, come back to parliament and say, well, this is what the best deal is. And at that point I don’t think she knows either what’s going to happen. And that’s what is worrying. Usually as a leader you kind of have an idea where you can lead the group to a certain answer. And like I said, I think this is just the tipping point here. You’re going to talk about tariffs, talk about trade. You’re talking about immigration -- that all affects the economic perspective of the U.K.
Think about when the pound continued to go lower investors from outside will think that this is a market to be bought and that will create even more chaoticness besides from the internal GDP growth.
VAUSE: OK. Let’s finish up with some sound from the finance minister Philip Hammond. Listen to this.
(BEGIN VIDEO CLIP)
PHILIP HAMMOND, BRITISH FINANCE MINISTER: The idea that there is an option of renegotiating at the 11th hour is simply a delusion. We need to be honest with ourselves, the alternatives to this deal are no deal or no Brexit.
(END VIDEO CLIP)
VAUSE: That last part, we have gone from deal or no deal to now deal or no deal or no Brexit. The no Brexit option seems to be getting a significant push after a ruling by the E.U.’s highest court that Britain can call all of this off, walk back from the edge and everything would just return to how it was, you know, like the season nine cliffhanger of “Dallas”. It was all just a bad dream.
PATEL: Well it is a bad dream and it’s been going on for the last two years.
VAUSE: A nightmare --
PATEL: I mean I don’t see that confidence. I mean at least from the business community I don’t even think that’s an option. I think that would be the easy answer to this and somehow they get to that. But I don’t think anyone is taking that perspective as an option, and maybe one of your games, John, that they put that option in there it will be a, b, c, but not that one.
VAUSE: I just thought, you know, maybe just a second referendum, go back have another vote. You know, anything -- right now anything is possible. Nothing is off the table.
PATEL: That’s true. That’s true. You are hoping for the best.
VAUSE: All right. Ryan -- good to see you. No musical video clips or movie clips this time. We’re out of time. Thanks for being with us.
PATEL: Thank you.
VAUSE: Be well.
British businesses are not the only ones desperate for some Brexit clarity. The people who call Southend-on-Sea home are asking if voting to leave the E.U. was in fact the right chose.
They spoke to CNN’s Hadas Gold.
HADAS GOLD, CNN CORRESPONDENT (voice over): Best known for its long pier and summer holidays Southend-on-Sea is just one hour long train away from the hustle of London and drama of Brexit. It’s quiet right now in the off season but at the local fish and chip shop 25-year old Eddie Farooq says when it comes to Brexit, his diners are not quiet. They are frustrated.
EDDIE FAROOQ, ROYAL FISH & CHIPS EMPLOYEE: I think most people are just fed up of politics altogether. That’s why they just want to get this over and done with, a good deal for everyone. Everyone’s happy
GOLD (on camera): In the 2016 referendum, Southend-on-Sea voted 58 percent in favor of Brexit. But two years on many of those who voted to leave have become disillusioned with the process and some are even changing their minds.
[01:40:04] UNIDENTIFIED FEMALE: Everyone has had enough now. They just want a done deal really.
UNIDENTIFIED MALE: Whatever it is, we’re going to have to get on with it. You know, it’s with the politicians and we’re going to have to ride the storm. It’s going to be a storm whatever way.
UNIDENTIFIED FEMALE: Now we’d vote stay.
GOLD: You vote to stay.
UNIDENTIFIED FEMALE: Yes, now.
GOLD: Why would that be?
UNIDENTIFIED FEMALE: I think just because the way everything has been handled. The way it’s all been so confusing. And no one seems to listen to what people had to say.
GOLD (voice over): The row over Theresa May’s Brexit deal continues back up the Thames, out of sight not out the mind for people here waiting who are waiting for the country to move on.
Hadas Gold, CNN -- Southend-on-Sea, England.
VAUSE: Next up here on CNN NEWSROOM, we’ll talk to an activist who has taken on the powerful gun lobby in the U.S. after an unspeakable tragedy.
VAUSE: For most members of the U.S. Congress there’s two very good reasons to fear the National Rifle Association -- millions of dedicated followers who are committed to single-issue voting, and deep pockets to target politicians who oppose their pro-gun agenda.
But on the financial side, well, maybe it’s not exactly struggling, the NRA has taken a big hit with tax records from last year reporting income at just over $310 million. that’s down by $55 million on the previous year. For 2017, they were $26 million in the red. And according to OpenSecrets.org one of the biggest drivers for the falling revenue is declining membership dues.
At the same time as revenue is down gun control groups in the New York state house have been lobbying business both big and small to cut ties with the NRA which has sparked a lawsuit from the National Rifle Association alleging the actions of the state legislature as well as the governor have left the group in severe financial strait.
The court filings say that because the defendants, that’s New York state and the Governor Andrew Cuomo, made it clear to banks and insurers that it is bad business in New York to do business with the NRA.
The financial strain appears to be having a very real world impact in the lead up to the mid-term congressional elections last month. Political spending by the NRA was down by as much as 90 percent compared to the 2014 midterm vote which meant the most powerful and influential pro-gun lobby in the United States was actually outspent by gun control groups last month by almost $2.5 million.
[01:45:00] And the results from the elections didn’t exactly go the way the NRA wanted. Candidates with an F from the NRA were elected to Congress, state houses as well as governor’s mansions. And gun control measures passed in Florida and Washington state.
The idea of forcing companies and corporations to pick a side to directly confront the NRA lobby group thought so big and powerful it was impossible to challenge head-on -- well that came out of the tragedy of the Parkland High School shooting in February of this year.
Since then more than 40 companies, many big international corporations ranging from banks to airlines to rental car agencies, have ended whatever relationship they ever had with the NRA.
Fred Guttenberg was the midwife (ph) for that plan. His 14-year-old daughter Jaime, well she was shot and killed at Stoneman Douglas High School in Parkland, Florida. And Fred, you know, so sorry about your loss. But it’s good to be speaking with you now.
FRED GUTTENBERG, DAUGHTER WAS KILLED IN PARKLAND, FLORIDA: Thank you -- John.
GUTTENBERG: Thank you.
VAUSE: I want to -- if you can explain to me, the direct line here, can you draw this direct line between the NRA funding shortfall and your campaign to get businesses to end their relationship with the NRA? GUTTENBERG: Absolutely. In the week or two following my daughter’s murder, the truth is, I walked around my house, saying I want to break that f-ing lobby. And I set out on a mission to go after their money.
It started actually surprisingly quickly with the business side of things. And businesses saying they’ll no longer do business with the gun lobby. So the businesses have taken this seriously.
And every day there is new businesses that are saying we won’t do business with you.
VAUSE: You know, there’s this very pro-gun president right now in the White House.
VAUSE: And with Donald Trump, the NRA seems to be expanding, you know, its core mission, you know, getting to cultural issues, touting lawmakers who voted against the present Supreme Court nominee, for example. But especially with, you know, this recently launched NRA TV. Here’s a clip. Listen to this.
(BEGIN VIDEO CLIP)
DANA LOESCH, NRA SPOKESWOMAN: How did America end up raising generation paranoia?
Well, probably I would think that many in mainstream media have something to go do with that. Despite the rarity of for instance school shootings, which the author of this article readily admits, kids and parents are waking up anxious every morning wondering if their school is going to be the next target.
(END VIDEO CLIP)
VAUSE: Just very quickly, what do you say to that?
GUTTENBERG: I’m going to guess that was Dana -- correct?
GUTTENBERG: Listen, Dana is a tool for the gun lobby. And she is on a daily basis saying things that are insane and incorrect. And that’s just another example.
In fact, this year alone shootings in schools were the highest level ever in this country.
VAUSE: With regard to the NRA, the lawsuit which has been filed in New York. It’s centered on the fact that the NRA say they can’t buy media liability insurance for their channel. They say if they can’t buy that insurance, they say the whole think will actually end up folding.
This seems to be a very effective way to simply close down the NRA as opposed to taking away, you know, 10 percent rental discounts on higher (INAUDIBLE) for members.
GUTTENBERG: The NRA TV troubles are a financial issue. It’s not about the insurance. The financial issue is that they don’t have the income coming in because they can’t sell the insurance. So they are cutting costs and the NRA TV is one place. In fact, they just laid off a bunch of staff last week.
The NRA is for me, the leadership -- is they are evil. Not the members, I don’t have an issue with NRA members. But their leadership no longer represents the membership. Their leadership now represents the gun manufacturers. And unfortunately they’ve gotten involved in some other things politically as well.
But I have an issue with the NRA leadership, they need to be defeated. They need to be financially removed from the grip that they have had on our legislation and our legislators. And we’re on our way to getting that done.
VAUSE: Earlier this year there was a CNN town hall. One of the student leaders from Parkland, Cameron Kasky, he asked Senator Marco Rubio about taking NRA campaign money. Here it is.
(BEGIN VIDEO CLIP)
CAMERON KASKY, STUDENT: In the name of 17 people you cannot ask the NRA to keep their money out of your campaign?
SENATOR MARCO RUBIO (R), FLORIDA: I think in the name of 17 people -- I can pledge to you that I will support any law that will prevent a killer like this --
KASKY: No, but I’m talking NRA money. No.
(END VIDEO CLIP)
[01:49:57] VAUSE: You know, Kasky nailed him. Rubio was ducking and weaving. He tried to be all things to all people. And that’s because for a very, very long time politicians had to keep the NRA -- you know have to keep them happy especially in a place like Florida.
But it does seem like the midterm elections just past have shown that paradigm has now significantly shifted.
GUTTENBERG: It has. You know, this country showed they will put their money and their vote behind those who support gun safety. This election was a turning point. This process is only just beginning.
If you just look ahead in two years, we are going to do it next on the Senate. Marco Rubio, Senator Rubio will pay a price for his lack of leadership and his lack of action following Parkland.
I can tell you, that about -- on the day that the Florida House was passing the gun safety legislation, I was with Senator Rubio in his office. I could get not get him to go out and say he supports the legislation being passed in Florida that day. And was because he was worried about his NRA money.
GUTTENBERG: So he now knows he’s on the losing side of that argument. And I look forward to his opponent making him pay a price for it.
VAUSE: Ok. Fred -- we are out of time. We shall leave it there but thank you so much for being with us. And we’re coming up to the anniversary in February and I know that obviously that’s going to be a tough time for you --
GUTTENBERG: It’s unbelievable a.
VAUSE: -- and you know, our thoughts and prayers with you. And you know, I hope every day gets a little easier, I don’t know if it does but I hope it does. Thank.
GUTTENBERG: Thank you very much.
VAUSE: Well, a disturbing video is sparking outrage on social media. And now there’s an investigation. It shows New York police restraining (ph) a mother and trying to pry her one-year-old son from her arms. Details next.
VAUSE: A disturbing video is sparking outrage over what many have describe as excessive use of police force by police trying to take a one-year-old son from his mother.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: You’re hurting my son. You’re hurting my son. You’re hurting my son. You’re hurting my son. You’re hurting my son.
UNIDENTIFIED FEMALE: Oh, my God.
(END VIDEO CLIP)
VAUSE: This happened on Friday at a government welfare office in New York. And the mother was crying, “you’re hurting my son” as officers tried to yank him from her. A security guard had called police after the woman refuse to get up off the floor in that crowded office.
(BEGIN VIDEO CLIP)
LISA SCHREIBERSDORF, EXECUTIVE DIRECT BROOKLYN DEFENDER SERVICES: She had to take a day off to do that. And she got here at 9:00 in the morning, and was -- there was not enough seats. Now, as you just heard, there has been quite a bit of overcrowding in many of these facilities, in part due to I think some closures. But there was not enough seating I think a lot of people had no place to sit and she was sitting on floor.
She was asked to move multiple times. There was no place to go and the security I guess decided to call 911. Now, I agree, of course, that that was the worst option that they could have used.
(END VIDEO CLIP)
VAUSE: The New York Police Department says an investigation into the altercation is underway. The 23-year-old woman was detained for resisting arrest and is expected in court on Thursday. Her son has been placed with relatives.
[01:54:59] In Vermont, one resident was so frustrated and angry by town officials repeatedly denying his request for a building permit. He gave them all the finger big enough for the whole town to see.
Here is Jeanne Moos.
JEANNE MOOS, CNN CORRESPONDENT: Ted Pelkey (ph) has taken finger- pointing to a whole new level with this seven food tall wood carving of a middle finger salute mounted on a 16 foot pole.
Are you the kind of sort of give the finger sort of guy like when you drive?
UNIDENTIFIED MALE: Well, I can say it’s probably happened before.
MOOS: But this isn’t road rage, this is rage against Westford, Vermont town officials. For a decade the town has refused to Pelkey a building permit to relocate his recycling business onto his own commercially-zoned property.
Let’s face it, if I stood out by the road and screamed something, nobody would have listened, right.
PELKEY: The statue’s up there not saying a word, boy it’s working good.
MOOS: Lights are trained on it 24/7. Motorists on Route 128 can’t miss it.
UNIDENTIFIED FEMALE: Way to go.
UNIDENTIFIED MALE: It’s beautiful. I wish I had one.
MOOS: You’d think a seven-foot tall chainsaw carving of a finger would cost an arm and a leg -- $4,000 actually. Pelkey hit on the idea while at a bar having drinks with his wife.
PELKEY: Yes, about two Long Islands into it.
MOOS: Sadly TV stations have felt oblige to blur the image.
PELKEY: No, CNN don’t have to blur it.
MOOS: Oh, yes, we do -- Ted. Local reporters have gotten creative. UNIDENTIFIED MALE: Pelkey’s hand gesture that’s hidden behind my hands up here is a response to this. They are meeting from the development review board last year.
MOOS: The chair of the Westford Select Board wouldn’t say much since they are anticipating a court hearing. The process would be the same with or without the Pelkey’s recent sculpture. It turns out the law can’t lay a finger on Ted because his finger is considered public art.
PELKEY: Really made me feel warm and fuzzy.
MOOS: But when I made a warm and fuzzy gesture, here’s the finger I’ll give you.
At least you can’t say he never lifts a finger.
Jeannie Moos, CNN -- New York.
VAUSE: He’s just saying we’re number one.
You’re watching CNN NEWSROOM. I’m John Vause. The news continues here on CNN right after a break.
[02:00:01] ROSEMARY CHURCH, CNN ANCHOR: Brexit takes a time-out.
(Byline: John Vause, Anna Stewart, Dominic Thomas, Ben Wedeman, Ivan Watson, Pedram Javaheri; John Sutter, Hadas Gold, Jeanne Moos, Rosemary Church)
(Guest: Ryan Patel, Fred Guttenberg)
(High: Britain’s Theresa May postpones a critical parliamentary vote on a Brexit plan to leave the E.U. Students in France are planning to have Black Tuesday in which they are going to protest on education reform. China summoned the U.S. ambassador on Sunday to demand the release of a senior executive of telecoms giant Huawei, Meng Wanzhou, who was arrested in Canada. Mocking laughter echoed through the conference room as a woman yelled, and dozens of people erupted into chants of protest to President Donald Trump’s top White House adviser Preston Wells Griffith. After a years-long drought in Honduras, crops are failing, starvation lurks, and farmers have become climate refugees, which rights don’t recognize by international law; The markets hate uncertainty and right now there is truckloads of it surrounding Brexit; Wall Street is slightly up because of a surge in tech stocks but Brexit anxiety sent bank stocks sharply lower. Britain’s Theresa May is heading back to Europe hoping to renegotiate some concessions on the draft Brexit agreement to win over opponents back home in parliament. The idea of forcing companies and corporations to pick a side to directly confront the NRA lobby group thought so big and powerful it was impossible to challenge head-on -- well that came out of the tragedy of the Parkland High School shooting in February of this year. A disturbing video is sparking outrage over what many have describe as excessive use of police force by police trying to take a one-year-old son from his mother.)
(Spec: Theresa May; Brexit; France; Gilet Jaune; Huawei; Meng Wanzhou; Canada; China; Sky-Comm; Iran; COP24; Preston Wells Griffith; Hurricane Harvey; heat waves; Delmi Hernandez; Hermond Hernandez; Honduras; President Donald Trump; World Banks; Copan; Evelio Ochoa; Nora Ochoa; Guatemala)