Britain Votes to Leave European Union; Repercussions of Brexit Vote - Part 1




Economy; Elections; Politics; Donald Trump>

ERIC BOLLING, FOX NEWS CO-HOST: Hi, I'm Eric Bolling in for Bill O'Reilly. Thanks for watching us tonight. Let's get straight to our top story. The stunning political and economic fallout from Britain's vote to leave the European Union. Bill O'Reilly sounded off with his thoughts on the big vote just last week.


BILL O'REILLY, THE O'REILLY FACTOR HOST: David of Craddock, Birmingham, England. "Bill, what is your view: Should the U.K. stay or leave the European Union?" Having lived in London I believe you guys should leave EU, British tradition is under assault.


BOLLING: And the political fallout being matched by crushing day in the financial markets. We'll have more on that a little bit later in the program but joining us now on the phone, Bill O'Reilly. So, Bill, what's this really all about? What's going on?

O'REILLY: It's about the immigration, open borders. When I made my analysis last week just answering a letter, I based it on the fact that I lived in London for almost a year. I spent my third year in college in the University Of London System. And I have been back quite a number of times since then.

And British tradition is very strong. And what has happened over the past 30 years is that the British System has allowed so many people in and those folks generally speaking, have not assimilated.

So that if you go to parts of London, you are not really in England, you're in Pakistan or you're in the Middle East or you're in the West Indies. And everybody knows this. And I think that with the open border EU policy where anybody can go anywhere at any time that the English people said, you know what? Enough. We're not feeling comfortable with being overwhelmed and we are feeling under siege. And that's what they voted on.

I don't think it was Economic. I think it was all about immigration.

BOLLING: Bill, this has been around for more than 50 years. And this is - - this possibility of one or more countries pulling out of the European Union has come up time and time again. Why did it work this time? Why did it happen that they got the vote they needed this time? Some are pointing at President Obama's comments from a couple of months ago.

O'REILLY: No. That didn't have anything to do with it. It's terrorism. There is a huge Muslim component in England. They have a Muslim mayor of London, you know, who recently banned subway ads that he didn't like. Women in bathing suits.

I think that then is the British people have had it. And they fear terrorism just as the American people fear terrorism. Now, do they brush all Muslims with the terrorist label? No. No. But there is enough, if you go and travel England as I did in 1970. It was very, very traditional and now it isn't. And a lot of people over the age of 40 don't like the change. So they say, you know, we don't want to be part of an open border society. So we're going to now have our own country and try to get it back. You are going to see some of that happen in the USA as well.

BOLLING: So, OK. So you're saying it started over there, came over here. What about those that think they, you know, the old saying when America sneezes the rest of the world catches a cold. Do you think some of the Trump stuff going on here is spreading over there?

O'REILLY: No, I think just the opposite. I think Trump tapped into the nationalism that has been apparent in on the European continent for about 10 years. You look at every country. The fastest growing political parties are of the Central-Right parties which is saying, you know, we don't want to be overrun by people in North Africa and in the Middle East and in the South Asian area. We just don't.

It's not a matter of racism. This is what the left will always say. You're just by doing this commentary, Bolling. I'm going to get called a racist on the Far Left Crank websites. But it's not about that. It's about being able to assimilate, the immigrants who want to come to any certain country. And in Great Britain, they haven't been able to do that.

There are certain cities that are dominated by non-English speaking people. I mean, you can't even hear English spoken. And in parts of America we're starting to see that as well. And so what Trump did was basically see that Americans are getting fed up with the same things that English people are getting fed up with. Too much, too fast, and they're not assimilating. Things are changing and people don't like it ands that what's going on.

BOLLING: What about the financial aspects of this, Bill? I mean the U.K. the net contribution to the U.K. is they're paying more into the European Union than they're getting out of it. By to the tune of _7 billion. The only one with more net contribution is Germany with _14 billion.

Meanwhile, there are about 15 countries who are net takers from the system. At some point you get tired of picking up the tab all the time, don't you?

O'REILLY: There is that. But I don't really think that that wrote the vote. I really think it was an emotional vote against open borders. I really think that. And I know -- and I'm not wrong, Bolling. Sometimes I say maybe I can be wrong, I'm not wrong.

And I think that the British people feel that they can have a strong economy without open borders. And that they want their country to be regulated to some extent. And I think they're right. You know, I think this big 600 point stock market drop today is a buying opportunity. I'm very conservative investor. But I bought a little stock today.

BOLLING: Oh, boy.

O'REILLY: Yeah, I did. I mean I think -- I don't think that this is going to hurt the U.S. economy. It might hurt the British economy but it's a two-year deal. They have two years to get out of it. So I think this was, you know, panic sell and you know how would that goes. But I could be wrong on that. That I could be wrong on. The reason they voted to get out of the EU I'm not wrong on.

BOLLING: No. But can I maybe -- can we compromise here a little bit? I agree with you it's immigration but immigration can encompass many things. It can be the economy, jobs, because if there is a million people coming in to your economy, they're working. They're taking jobs of nationals.

O'REILLY: There is something to that but, you know, England doesn't have, you know, a crisis economy or a crisis .


O'REILLY: . unemployment situation. And we don't have a crisis unemployment situation in America. It's more cultural. It's more we don't like all of this change. We don't want open borders. On Monday, I'm going to do the talking points on the fact that we all know what the left will never say. Many people on the left want open borders in the United States.


O'REILLY: They don't want anybody stopping anyone from coming here.

BOLLING: I have to stop it Bill. Thank you very much for calling, we appreciate that.

Next on the rundown, is the U.K. ditching the European Union a bad omen for Hillary Clinton and President Obama? We'll take a hard look at that in a moment.


BOLLING: In the "Impact Segment" tonight. Should Hillary Clinton and President Obama be worried about the British vote to leave the European Union? When President Obama visited Britain back in April, he wanted the potential consequences of an exit.


BARACK OBAMA, U.S. PRESIDENT: I think it's fair to say that maybe some point down the line there might be a U.K.-U.S. trade agreement. But it's not going to happen any time soon because our focus is in negotiating with a big block of the European Union to get a trade agreement done. And U.K. is going to be in the back of a queue.


BOLLING: However, today, President Obama and Hillary Clinton both released statements saying they respected the decision of the British people not everyone, however, being quite so respectful.


CHRISTOPHER DICKEY, WORLD NEWS EDITOR: What they claim it says right off the bat is that they were tired of all the bureaucracy of the European Union. They didn't want all the constraints. They want their sovereignty. But what this was really about was fear, xenophobia in some, certainly racism.


BOLLING: Joining us now to analyze from Chicago, Professor Austan Goolsbee, Former chairman of the Council of Economic Advisors under President Obama. Great to have you today, perfect timing for you, Professor.

So tell us a little bit about this. Is this racism? Is this economics? Is this immigration? What's this all about and how does Hillary Clinton handle this?

AUSTAN GOOLSBEE, UNIVERSITY OF CHICAGO ECONOMICS PROFESSOR: Well, thanks for having me back, first of all. You got a lot of questions in there. I was just over in London not very long ago.

I think most of what this campaign had turned into in the U.K. was about immigration. That was the single biggest issue. What had started with discussions about regulation and things about economics had really become about immigration.

So, I think there is at least some warning in that to Hillary Clinton for sure because the polls were saying that the Remain was going to win and they didn't. You know, so the polls were wrong. And so if in Brooklyn the Clinton campaign is taking great comfort that they're ahead in the polls, I think this is at least got to put a warning flag on there that some of these issues may be worse than what the polls say.

BOLLING: Because if you apply the same logic, you bring it over here, bring it back across the pond here and you see Donald Trump who has the -- he has basically the exit strategy of the U.K. Saying hey, let's close our borders until we find out what's going on. It was the Open Border Policy in the European Union that drove the people to leave, to vote to leave.

GOOLSBEE: Yeah. In a way I think you -- have an insight. And certainly Donald Trump himself was too. He's trying to promote that view. I wonder though if Trump should have been as excited as he seemed to be because if this things leads to a recession in the U.K. in the short run, you certainly saw all the stock markets including ours go down quite a lot. If they start having serious economic problems in the short run because of a policy that was perceived as Trumpism I don't think that would necessarily help Trump. So I think he should be a little .

BOLLING: So, can we take that one? Let's talk about that a little bit.


BOLLING: What really has changed? I mean we saw massive volatility in markets today. But at the end of the day, what -- there's not a lot that's changed. You have taken Great Britain out of the European Union.

GOOLSBEE: Yet. There's not a lot has changed yet.

BOLLING: They're still producing what they produced before.

GOOLSBEE: Yes and no. You're right. Nothing has changed yet because they haven't negotiated the terms of the exit. And you saw the Brexit crowd saying well, there is no rush. We'll take a long time to negotiate it. But the Europeans, they don't want that at all. They don't want this to spread like a brush fire across the other countries. And .

BOLLING: What -- but right now. I mean nothing has really changed. So if Germany is producing no change. There is the most .

GOOLSBEE: No, something has changed. Three major things have changed.

BOLLING: Go ahead. What economically what's changed? Economically.

GOOLSBEE: OK. Economically, number one, you've got literally millions of British citizens working in the EU and several million from the EU working in Britain. And as soon as they're out, the normal labor laws are not going to apply. They're going to have to figure out, are they going to need work visas? Anybody who is making stuff in the U.K. that they're going to shipped to an EU country. They're going to have to negotiate well, what will be the tariffs and how will U.K. products be treated compared to EU products.

And so all of that is at the very least business investment is going to say let's do nothing for a few months until we see how it gets sorted out. That's going to be a major economic downer in the community .

BOLLING: It's all bureaucratic downer. You're telling that should .

GOOLSBEE: That's not a bureaucratic downer, that's a private sector downer.

BOLLING: . so that will pay here or say that if I'm, if I'm going to -- it's they check working in the U.K. I just need to get a work visa in the U.K. You're not really going to change the -- you're not shutting down plants and manufacturing in the U.K. .


GOOLSBEE: I don't know what you are talking about. Why we shut down the plants? Why?

If you were -- look, let me give you a perfect example. Japanese automakers built auto plants in the U.K. to send the cars into the EU. They did that several years ago. Those plants are going to slow down whoa, whoa, don't make some cars.


GOOLSBEE: They have to negotiate a free trade agreement.

BOLLING: Where? They may come -- these Japanese automakers may come to the U.S. if we have a great deal with Great Britain if with the U.K., example. My point is this.

GOOLSBEE: That's why I say .

BOLLING: So it's a global economy, right? There's the deal.

GOOLSBEE: Five years from now.

BOLLING: All you're going to do is try and change .

GOOLSBEE: Five years from now you're right.

BOLLING: . change business from one section of the globe to another but you're really not slowing the EU down by breaking the U.K. out of it.

GOOLSBEE: But, and see, I don't know why you keep saying that.

BOLLING: But what's close to -- it's all. It's just the paper work that you're .


GOOLSBEE: I just gave you an example in which it's going to slow down on both sides.

Look, you have been telling me about the impact of political uncertainty and why you thought that was slowing down the U.S. economy. What could be a bigger political uncertainty on the European economy than whether they're going to disintegrate Europe? It's a slowdown.

BOLLING: It's not disintegrating.

GOOLSBEE: Well, there's not -- no question about it.

BOLLING: It's just breaking up. It would be like if the United States has decided to not .

GOOLSBEE: What do you mean it's not disintegrating?

BOLLING: . regions of the United State?

GOOLSBEE: It's literally breaking into a lot of small pieces:

BOLLING: I think we would still be producing .

GOOLSBEE: Really, because it's just kind of breaking up like that.

BOLLING: We would still be producing at the level we'd be producing and the demand. I honestly, it comes down to the demands of the price.

GOOLSBEE: They wouldn't. That's what I just told you. Of course, they wouldn't. You're going to at least slow down. Five years from now I agree with you. They'll have sorted it out.

BOLLING: No, they're not.

GOOLSBEE: There are countries not in the EU that do fine. Switzerland, Canada, Norway. That's why .

BOLLING: Maybe it's like the opportunity to get some of that manufacturing and bring it from the European ex Union back to the United States. Maybe there's an opportunity here.

Austan, always good to talk to you. Thank you very much.

GOOLSBEE: Thank you.

BOLLING: Up next, is the U.K.'s exit from the EU a political gift for the Trump campaign? Two of Trump's most trusted advisors will be right here to respond. Stay tuned.


BOLLING: In the "Factor Follow-Up" segment tonight, will Britain's vote to leave the EU help Donald Trump here in the U.S.? Trump has been a vocal supporter of Britain's exit from the European Union and Trump reacted to the vote results while in Scotland, today.


DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: People want to take their country back. They want to have independence in a sense. And you see it with Europe, all over Europe. 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. They want to take their monetary back. 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 it's happening in the United States. It's happening by the fact that I have done so well in the polls. You look at the recent polling and you look at the swing states and you see how I'm doing and I haven't even started my campaign yet, essentially.


BOLLING: Joining us now with reaction, former presidential candidate Dr. Ben Carson who is also a Trump supporter. Dr. Carson, I mean, I woke up this morning and saw Donald Trump in Scotland. I understand it was planned. But was it planned because he knew the vote was coming down this day and was hoping for some sort of vindication on something he predicted?

BEN CARSON, (R) FORMER PRESIDENTIAL CANDIDATE: I think it was just a coincidence. But, you know, what's really interesting is, you know, the pundits and the polls all predicted a very different result. And I don't think they understood the level of frustration of the British populist. The hourly workers who are seeing their jobs lost to people coming in who don't necessarily share their same values and culture.

And I think it does have implications for the United States. I think many particularly the punditry think that they actually know what's going on and they think they actually know the mind of the American people. And I don't think they do.

BOLLING: And what do you think this is? Do you think what is going on in Europe is it's some sort of Trump populism or nationalism spreading to Europe?

CARSON: Well, I don't know that Donald Trump is responsible for it. But he certainly represents, you know, the people, once again, exerting themselves. You know, it's the very same thing that Thomas Jefferson said was going to happen. He said we would begin to lose our country because people were being non-vigilant. The government would grow, expand, infiltrate and dominate. Before we turn into something else, the people would awaken, recognize what was going on, rise up and regain control. I believe that's what Trumpism is.

BOLLING: And the donor class and some of the pundits said he shouldn't be going to Scotland today on this trip but he pushed back, why?

CARSON: Well, he should push back because anything the pundits say is pretty much wrong. I wish somebody would do a special looking at what the pundits have said over the last couple of years. And then you'd see this probably not very good use for them.

BOLLING: All right. Dr. Carson we say thank you very much. Thanks for joining us.

Now, let's bring in Katrina Pierson, the national spokesperson for the Trump campaign and she joins us from Dallas.

All right, so we did a little bigger picture with Dr. Carson macro. Let's go a little micro inside now. How does Donald Trump use this vote to his ad vantage in the election 2016?

KATRINA PIERSON, TRUMP CAMPAIGN NATIONAL SPOKERSPERSON: Well, you know, Eric. I mean it's pretty interesting what has happened today simply because, you know, only the people that are shocked are those who've created mass wealth on globalism with complete disregard for the workers. And you can only ask the working class to foot the bill to their own detriment for so long.

They have rejected it in Britain. Here we have our own situation going on with median household incomes that have been flat. We have immigration out of control. You have Hillary Clinton and Barack Obama wanting to bring in more refugees, people who cannot take care of themselves. We have an elitism in this country who now wants to give Americans benefits to the illegals who are in this country.

And so this is Donald Trump's message. It is Americans and our families first.

BOLLING: Very carefully, Katrina, he has to be careful did not take too big of a victory lap because we saw a big massive volatility in the stock market. We saw the British pound get really, really hammered today. We saw it like a 30 year low. It hasn't been this low in 30 years. So, you know, celebrating I was right on the heels of a lot of people losing money in their 401(Ks) is a tricky dance there.

PIERSON: Well, and he didn't take a victory lap. He just noted that he sided with the people of the U.K. And, you know, that there was a lot of criticism because he didn't give some massive speech based upon the Brexit. And that is because his main concern for being in Scotland was to be there to support his family.

And he's going to come home and continue to campaign because it is very important that we do get back to the basics in this country. We don't want to be a country whose entire economy revolves around what some other country or what other Unions are doing across the globe. And Mr. Trump is definitely going to continue to move forward that same message because at the end of the day, the United States is still a sovereign nation. Even though you have the Elites that have been trying to give away that sovereignty for so long which is exactly what Hillary Clinton wants to do with her support of the Trans-Pacific partnership which will be the end of economic sovereignty in the United States. That's exactly why we have to get .

BOLLING: Go little further with Ms. Katrina. Go little further is, what is it about Hillary Clinton that mirrors what's going on in the European Union?

PIERSON: Well, I mean and she even supported staying as a part of the European Union where they have dissolved borders. There is no communication between the countries and terrorism. We saw what happened in Brussels. This is something that Hillary Clinton is a part of. And you can look at the Clinton foundation. These people have created mass wealth for themselves on the backs of the working class. And the Trans-Pacific Partnership is going to overhaul all of the U.S. economy whether it comes from wages .

BOLLING: So, OK. Fair enough. Let me ask you this though. I know the Trans-Pacific Partnership and Donald Trump has been against that. Is he also in favor of breaking up NAFTA? I don't have a lot of time but North America. Would he be interested in seeing Mexico, Canada and the United States independent of each other completely?

PIERSON: Absolutely. Mr. Trump wants to take each trade deal and renegotiate all of them. Particularly those that have been harmful to the country but -- like NAFTA, losing 3 million jobs and moving forward. And even ObamaCare, something as simple as one piece of legislation that is just affecting our country that has killed 3 million jobs. Mr. Trump wants to get in office and renegotiate every horrible thing that the Elites have done for this country.

BOLLING: Katrina, thank you very much.

Directly ahead, the U.K. vote sparks a brutal day for financial markets around the world. How will all this turmoil affect your wallet? We'll get top insight moments away.


JACKIE IBANEZ, FOX NEWS ANCHOR: Live from the America's News Headquarters, I'm Jackie Ibanez. The state of emergency in West Virginia tonight, at least 20 people have been killed in the flash floods across the state.

As much as 8 to 10 inches fell in as little as six hours in some counties. It's already being called a one in a 1,000 year event and it's already the third worst flood on record for West Virginia.

The governor says in addition to homes and businesses many roads and bridges have been destroyed as well.

In California, two are dead from a fast moving wildfire. This is in Kern County. Fire crews say 80 homes were also destroyed in just a matter of hours because of the blaze. The blaze comes as crews work across southwest to fight a number of wildfires sparked by recent high temperatures there. Thousands have been evacuated.

I'm Jackie Ibanez. Now back to the "O'Reilley Factor." For all of your headlines, log on to

ERIC BOLLING, FOX NEWS ANCHOR: In the personal story segment tonight, what does the U.K. exit vote mean to your money and economic security? The news sent financial markets plummeting around the world today. Here in the U.S., the DOW closed down a stunning 611 points or about 3.4 percent.

Let's bring in two all-star anchors from the Fox Business Network to analyze. Charles Payne joins us from the floor of the New York Stock Exchange and with us in studio, Trish Regan.

I go to the floor first. Charles, I remember those days on the floor very nervous jittery traders. It's a Friday, what happens on Monday people get a chance to digest some of the news? What do you think? What are they saying?

CHARLES PAYNE, ANCHOR OF "MAKING MONEY" ON FBN: I think you're absolutely right, Eric. You know, there was -- no one was brave enough to step into the carnage today, but the traders were somewhat upbeat because this is seen as sort of a knee jerk emotional reaction to something that a lot of analysts think ultimately will be a good thing.

It will be a good thing for the United Kingdom, making them more competitive nation and probably that bleeds into Europe making them a more competitive nation. The way it was structured before, you had a bunch of ailing economies sort of leaning on each other and maybe holding each other back.

But, for the U.S. investors out there understand the fight into the U.S. dollar makes that strong, puts a lot of pressure on multinational companies. That's why your portfolio was hit. But, I think overall the feeling is and certainly my feeling is that we're going to be OK and this market reaction is going to be short lived.

BOLLING: OK and what about to you Trish? A lot of people -- markets get jittery with uncertainty. There's substantial mode of uncertainty, right?

TRISH REGAN, ANCHOR OF "INTELLIGENCE REPORT" ON FBN: Oh, yeah. I mean, people did not think this would happen. So that's first and foremost. Market don't, like, you won't know this markets don't like to be surprised. And they were surprised by this vote.

But now going forward, they're saying to themselves, what does it mean for the rest of the European Union? Does this mean that France? Does this means that Italy? Does this mean that Portugal or Spain is going to say, "I want out, too?" And so that's what they're questioning.

Is there going to be more uncertainty to follow? Another thing that I keep hearing from a lot of sources that they are concerned about some of the banks over there, for example, in places like Italy. Are they capitalized enough? Do they have enough money on hand to be able to withstand any hiccups right now in the overall economy?

So I agree with Charles. I think everything is going to be fine, ultimately but it could be a rough road in the interim.

BOLLING: You know, and Trish and Charles and I kind of agree with you, but earlier in the show we had Austan Goolsbee, economic professor saying, "You know, you don't earn stand. This is turmoil within the EU."