Brexit Timing Remains Uncertain; EU Leaders Meet to Discuss Brexit
CHURCH: Three terrorists armed with bombs and guns have killed at least 36 people and wounded nearly 150. The Istanbul airport has now reopened and there are flights coming in and out. But we want you to take a look at what happened overnight. Surveillance video shows disturbing moments before one of the three bombers blew himself up. And you can see what looks like a security person approaching a wounded attacker who's lying on the floor there. Soon after, the officer seems to realize something is wrong and quickly runs away. Moments later a bomb explodes filling the area with smoke. And Turkish officials believe ISIS is behind the attack, though no one at this point has blamed responsibility. So stay with CNN as we continue to bring you the latest on that terror attack in Turkey. Right now I want to cross to John in London to bring us up to day on the fallout from Britain's decision to leave the European Union -- John.</s>VAUSE: Thank you, Rosemary. And good morning from London where financial markets have settled into something like stability after last week's shocked Brexit vote. Some traders had described a sense of calm returning to the markets. Don't forget the share prices nosedived in the two days after that surprising result. Right, though, bank stocks are moving up helping to lift European shares. Earlier stock markets in Asia closed higher. The body of shares worldwide is estimated to have fallen by a staggering $3 trillion in the heavy selling of Monday as well as last Friday. In Brussels, EU leaders are meeting for a second day without the British prime minister. They're discussing the UK's exit from the European Union. We don't know yet how that will happen. David Cameron says he won't be the one who takes the next step, but his successor, whoever that might be, will. There is more uncertainty, though, about what shape Britain will be in when all of this shakes out. Scottish First Minister Nicola Sturgeon is in Brussels this Wednesday to discuss how Scotland can remain part of the EU. The referendum result continues to stir very strong feelings here in London. Thousands of anti-Brexit demonstrators marched on parliament Tuesday after a rally into Trafalgar Square. Erin McLaughlin standing by this hour, live in Brussels with the very latest developments there. And Nina Dos Santos is keeping an eye on the markets here in London. First, though, to Nina. So if we look at exactly what's happening on the stock markets right now, surprising I guess, in some ways is that the banks are recovering.</s>NINA DOS SANTOS, CNN MONEY EUROPE EDITOR: Yes, they're recovering a little bit. Remember, these are institutions that lost around about a quarter of their market value in some cases on Friday session alone and then fell another 15 percent on Monday session so they've got some way to go but --</s>VAUSE: Sort of nickel and dime today really.</s>DOS SANTOS: But the real concern here is that banking stocks may well suffer from here on because what we've seen is the UK credit rating being downgraded a couple of times and so -- by the likes of Moody's, Fitch, S&P. That will have an automatic ramifications of the kind of stock of UK bonds that they hold on their books that are now rated less than it did. We saw evidence of that with Moody's overnight coming out marking about two -- 10 UK financial institutions for a downgrade. So that could put further pressure on banking stocks but if we're figuring out how the economy is likely to be affected here in the UK, a lot of people preparing themselves, John, for a technical recession in the fourth quarter of the year. What they're going to be looking for is evidence of consumer spending falling off the cliff on the high street. Evidence of people not competing on home purchases and things like that. So it'll be the high street and then the home street that's going to be affected first. That's where economists are going to be looking aside from turbulence aside from the market.</s>VAUSE: Yes. But also, if you do look at the markets, what is interesting, though, is they continue to trade on whatever the news of the day is about Brexit. You know, it looks like they're going to sort of minimize the fallout from this referendum. You know, the markets are ready to go up with the bad news. And they tank again.</s>DOS SANTOS: And it's a fairly typical pattern. But we should also remember it's easier, as one CEO of one financial institution was telling me, to buy or sell the news which is Friday's results. It's going to be a lot harder. I know it sounds like a cliche, and I've said it before, but it's going to be a lot harder to trade all of the rumors -- the rumor mill that's taking place in Brussels at the moment and all the kind of trials and tribulations and twists and turns of the political landscape as the UK does extricate itself from a 42-year long relationship with the European Union. But also we've got two leadership battles coming up here in the UK, on both sides of the House of Commons behind us. So those are the kind of things that are going to continue to move. Stock markets in the UK also continue to move the pound. With all of its turbulence as a backdrop, we should remember that companies are also starting to think potentially about relocating from London. That could have a knock on effect from the economy. Vodafone is the latest company today which by the way has an Italian CEO to say we may start thinking about moving our headquarter away from the UK if this continues to be so turbulent.</s>VAUSE: And you know, this is all just at the very early stages. It's all just beginning. You'll have a lot more on this next hour?</s>DOS SANTOS: I do.</s>VAUSE: Excellent . OK. Thank you, Nina. Let's go over to Erin McLaughlin who's in Brussels. We have this big meeting today. 27 leaders. No sign of the UK. I guess David Cameron no longer welcome there among the EU leaders.</s>ERIN MCLAUGHLIN, CNN CORRESPONDENT: Well, John, the arrivals are over, that historic meeting you're just talking about without the UK now under way. Last night was British Prime Minister David Cameron's last supper. His chance to explain to the other EU leaders what he felt went wrong. He pointed to immigration saying that people in the UK were very concerned about the freedom of movement. And it's something that EU leaders need to think about.</s>MCLAUGHLIN (voice-over): Historic and dramatic, Europe's heads of state and government gather in Brussels to reflect on the referendum certain to alter the course of the European project.</s>DAVID CAMERON, BRITISH PRIME MINISTER: We mustn't turn our backs on Europe.</s>MCLAUGHLIN (on camera): The most anticipated leader of this summit has just arrived. British Prime Minister David Cameron ready to assume his place in history. He has a lot of explaining to do. (</s>Voice-over): The day began with political theater. Leave campaigning Nigel Farage took one last shot at the institution he vows to break from.</s>NIGEL FARAGE, LEADER, UK INDEPENDENT PARTY: You know, when I came here 17 years ago, and I said, I wanted to lead a campaign to get Britain to leave the European Union, you all laughed at me. Well, I have to say, you're not laughing now, are you?</s>MCLAUGHLIN: Chris Jones, a British citizen who works at the European parliament, had this to say in response.</s>CHRIS JONES, THE GREENS, EUROPEAN PARLIAMENT: All I see is my country being made a laughingstock on the European stage because of the poor quality of its politics and its politicians. And he embodies that entirely.</s>MCLAUGHLIN: Jones says he plans to become a Belgium citizen so that he can retain the right to live and travel in Europe. One of many lives altered by the decision of 17 million. A clear</s>UNIDENTIFIED FEMALE: I'm Belgian and my husband is English, and -- so we feel like separated. We're going to move to France. So we don't know what will be our status in France.</s>UNIDENTIFIED FEMALE: Here I feel really welcomes because I'm an expat. In the UK, I'm an immigrant. The ones getting jobs.</s>MCLAUGHLIN: At a pub across from the EU Commission, Nigel Farage enjoys the end of his day. We're blocked from filming, told it's a private meeting. There will be no more media today.</s>MCLAUGHLIN: Well, today's summit is all about unity and emphasizing introduction of certainty into this situation. Also looking at what it means to bring ordinary people closer to the institutions here in Brussels. Also worth mentioning that later today, the Scottish First Minister Nicola Sturgeon will be meeting with the presidents of the European Commissions. A spokesperson telling CNN not to expect anything dramatic out of that meeting, although Scotland has made no secret of its intention to remain inside the EU despite this referendum -- John.</s>VAUSE: OK, Erin, thank you. Erin McLaughlin, live in Brussels. Much more from you, too, in the hours ahead. And we'll have a lot more analysis on the UK's decision to leave the EU just ahead. Plus, Rosemary is here with the other breaking news this hour.</s>CHURCH: That's right, John. I'll bring you the very latest on the terror attack that killed dozens and wounded many more at Istanbul's main airport. We'll examine why Turkey has become such a regular target for extremis in recent times. In the U.S. the presidential nominees have been adding their condemnation of the attack in Istanbul. According to Donald Trump, it's time for the U.S. to fight fire with fire. That story, next.