captioning sponsored by wnet >> stewart: on this edition for saturday, june 25: the decision by british voters to leave the european union-- we'll assess the impact on the u.k. and the u.s. >> reporter: i'm hari sreenivasan in london, where the vote to leave the e.u. is still sinking in and the long-term effect on the u.k.'s economy being considered. >> stewart: and the panama canal gets a makeover to accommodate the world's biggest container ships. will global trade get a boost? next on pbs newshour weekend. >> pbs newshour weekend is made possible by: lewis b. and louise hirschfeld cullman. bernard and irene schwartz. judy and josh weston. the cheryl and philip milstein family. the citi foundation. supporting innovation and enabling urban progress.

the john and helen glessner family trust. supporting trustworthy journalism that informs and inspires. sue and edgar wachenheim, iii. corporate funding is provided by mutual of america-- designing customized individual and group retirement products. that's why we are your retirement company. additional support has been provided by: and by the corporation for public broadcasting, and by contributions to your pbs station from viewers like you. thank you. from the tisch wnet studios at lincoln center in new york, alison stewart. >> stewart: good evening, and thanks for joining us. great britain is now grappling with the consequences of its vote to exit the european union. trade, immigration and security agreements are all up in the air, and today e.u. officials began meeting on how to handle the departure and figure out how imminent it wille. today was also a day of

reckoning with a new reality for a nation of 65 million people, including the three million e.u. citizens who live in the u.k. reporting from london is our own hari sreenivasan with today's developments. hari? >> sreenivasan: good evening. alison, even though the vote is officially over, for some here in the u.k. that doesn't mean campaigning stoms. that doesn't mean they try to change the outcome. a crowd still in disbelief gathered outside london's parliament square to protest the referendum. >> there is something not right with this country, and we really need to make some big changes. >> reporter: more than two million british citizens have signed a petition on parliament's web site calling for another referendum, saying the 52% to 48% vote to exit the e.u. was not decisive enough. >> it's almost like a grieving process because i feel that people don't know what they voted for. i feel like they voted based on lies. >> grief-stricken, that's the best way of putting it. it's just dreadful, just dreadful.

we've made ourselves a laughing stock in the world. >> reporter: today, the top british representative to the e.u. in brussels announced he'll resign his post next month. >> i felt very clearly that we should stay in, but that wasn't what the majority of the people in the country thought. and now i think, when that happens, there's no point crying over spilt milk. >> reporter: meeting in berlin, six founding members of the e.u. said their priority is maintaining the stability of financial markets, and they called for negotiations over the u.k.'s departure to begin. >> ( translated ): i hope that we won't get into a cat and mouse game here. that absolutely wouldn't suit great britain, and above all it wouldn't suit the european union. it must be clear that the people have spoken, and this decision must be implemented. >> reporter: german chancellor angela merkel said today she's "sad" britain decided to quit the e.u., but the remaining member states should not rush the transition. >> ( translated ): great britain

must for themselves define-- and surely there will also a discussion process-- what relationship it wants to have with the european union. we will sit together as 27 and see if it's tenable, from our point of view and according to our interests. >> reporter: in paris, crafting his response, french president francois hollande met at the elysee palace with leaders of france's major political parties. far right leader marine le pen called for a referendum on france's e.u. membership, but hollande rejected the call. one of the big questions now is how brexit will affect the british economy, the fifth largest in the world. earlier today, i sat down with london school of economics professor swati dhingra, who's been studying the possibility and potential impact of the move since the referendum was announced last year. it's not theoretical anymore. >> oh, absolutely not. it was never theoretical, but now i think it's earlier it was' possibility, now it is a reality. just to give you sort of

ballpark numbers of what we think the impact will be, the next five years after the brexit, we should expect g.d.p. to decline 1% to 3%. 1% decline means 720 pounds lower income per household per year. and this is a permanent effect you will see. these are not trivial effects. these are going to affect the lives of people, the economic prosperity, and especially those of young people who will be entering the job market now. >> sreenivasan: you said that there's going to be costs to people that are entering the job market now. what are those? >> so what we know from sort of work which has mainly been done for the u.s., during the economic downturns, the cohorts entering the job force at the time, they tend to earn lower wages this year, of course, because there is lower demand upon that is a 6% to 8% trop in wages if you enter during an economic downturn-- by economic downturn i mean 1% higher than

usual. and that effect doesn't go away. the large, persistent negative effects of wages on young college graduates if they enter during a downturn, even 15 years afterwards they have 2.5% lower swk income. they are the ones who will be growing up with that. within the u.k. i think what is important is the life of university will be under threat. at the moment, what the u.k. has with the rest of the european union are these programs to have exchanges and they're very, very active programs. those are going to come into question. >> sreenivasan: does it th make it harder for employers to recruit? >> we're already seeing that happen. as the uncertainty develops, i think people are going to be on a hiring dispreez it is going to have an impact on the pool of skilled workers available in the country. if at the moment, you are a legal firm, you can hire any lawyer from anywhere in the e.u. that pool will get much smaller and that will impose costs on businesses in terms of who they are able to hire.

and small businesses are concerned about this issues as well. if you want to recruit teachers, are you okay with suddenly hiring an e.u. immigrant teacher. and how about the english teachers who go to spain? i think all of those things have happened. >> sreenivasan: she also told me something interesting. she said university system around the u.k. are going to have to figure out what happens if a large source of students can coming from the e.u. starts to slow down. tomorrow we will take a look at how immigrants who come here to work are concerned about their future because of this referendum. >> stewart: hari sreenivasan, reporting from london. we look forward to your report. thank you. >> sreenivasan: thanks, alison. >> stewart: the united kingdom is made up of england, wales, northern ireland and scotland. less than two years ago, scotland held a referendum to leave the u.k., and it failed. but after the u.k. decision to exit the e.u., scottish leader nicola sturgeon has been calling for another independence vote, in part to protect scotland's e.u. membership.

martin geissler from i.t.n. news has more. >> reporter: the scottish cabinet called an emergency meeting this morning. they have a lot to discuss. voters here made one thing clear on thursday-- whatever britain thinks, they want to stay in the e.u. nicola sturgeon has vowed to protect their interests, whatever that takes. >> westminster is engulfed in political turmoil, and as a vacuum of leadership develops, i want to make clear that scotland is led pie a stable and effective government. we are focused on making sure that scotland's interests are protected. >> reporter: she'll talk to european institutions and governments, she said, and a legal framework is being drawn up for another independence referendum. it may yet come to that. nicola sturgeon has devoted her adult life to the push for scottish independence, but she didn't want it like it this. under normal circumstances this would be a dreadful time to hold

another referendum, but since thursday, everything has changed. official duties took the first minister to gas gow this afternoon for armed forced at a. she may be preparing for battle but she's leads a nation that is as divided as ever. >> i just don't think we can go on our own. i don't think it's a good thing to leave the e.u., either. i think the last thing is to go independent. >> the answer is a second independence referendum. hopefully a better scotland and a better future and more control. >> i think we've been through enough recently. i think it's really going to make people ill, actually. i really don't want another one. >> reporter: the united kingdom may have made its decision, but in place still has a lot of thinking to do. martin geissler, glasgow. >> stewart: britain is the united states' closest

diplomatic and military ally in europe, and top economic partner. a fifth of u.s. exports to europe go to the u.k., and so does more than $500 million of direct u.s. investment every year. to address how brexit could affect the u.s. government relations and american business operations in the u.k. and europe, i am joined by cameron abadi, a senior editor of "foreign policy" magazine. what are the implications for u.s. companies that use the u.k. as a base, and an entry point to business in europe? >> well, you know, a lot of companies use britain precisely that way. so you cited how important an economic partner that is. but it's hard to disentangle how much of that partnership is about britain and how much of that is about europe. and i think it's safe to say a lot of that is about using britain to get access to the much bigger market in europe. now that britain has decided it's not part of that market-- or at least temporarily won't be part of that market-- a lot of

companies are going to have to calculate whether it makes sense to stay in britain. and a lot of companies have said that in the run-up to the vote and we'll see in the weeks ahead whether they start to move their operations away from britain and move it elsewhere on the european continent. >> stewart: let's talk about trade, what the impact will be on trades, especially with president obama's transatlantic trade partnership deal. who is the future holdinar and for u.s. trade with u.k.? >> yeah, you know, that transatlantic partnership deal was the top priority of the obama administration with regards to europe, probably since the beginning of obama's first term. i mean, that was what he said from the outset was the most important thing on his agenda. now that the european union is in a crisis, now that the most pro-free-trade country in europe has taken a step back, it's not clear if that trade partnership-- which was very close to happening, which by all accounts was sort of third base-- it's not clear what is going to happen to that and probably not going to be able to

be passed before obama leaves office. >> stewart: let's talk about the u.k.'s and u.s.' political allies as supports one another. how will brexit affect that relationship, especially since they're dealing with diplomatic issues that other countries don't necessarily agree with the u.s. on. >> britain has been a partnership with the u.s. for a long time and sees a lot of issues in the world the same way as the u.s. does. to that extent, britain has been united states' voice in the room in the european union. when it comes to a foreign policy question like russia, you have countries in europe, like germany and france, who have had different relations, that have sort of tried to be more warmer rapprochement relationship with russia. britain has been our sort of voice in the room of having a tougher line against a place like russia. now that britain is no longer going to be part of diplomatic deliberations in europe, i think the united states is going to have a tougher time winning

europe over for those big foreign policy questions, like russia. >> stewart: there has to be a who or a what, a country, and a government that might take advantage of brexit and take advantage of this turmoil. who might that be? what are some possibilities? >> well, i just mentioned russia. russia seems to be-- has long wanted to be the most powerful country on the european continent. that's been their strategy going back centuries. and it's been true in the last couple of years. we've seen then act aggressively on the border with europe. now that they smell a little weakness in europe, i think it's safe to say we may soon see them trying to probe that border, trying to find other areas of weakness to test. now that britain is no longer a part-- strong military, is no longer part of the european union they may try to take advantage of that. >> stewart: the the analogy everybody has been siewgz this is a qors. will this be a knock-down, crag-them-out divorce, go to

meade expaigz play nice divorce or a quickie divorce? >> that is exact let's question people are wondering, and i think it comes down to a law, a provision called article 50. that was written spot european treaties when they wrote it. it's not clear they thought anyone would actually use that. but now that they are we'll see whether it's going to be a smooth process or it's going to be something where europe tries to punish britain for exiting. and the reasoning for that would be, well, we want to-- european countries might want to deter other countries from taking this kind of step. so the best way to do that may be to punish britain on the way out. britain seems to think, or the leave campaign argued that they would get a sweetheart deal because they're a big enough economy. but i think-- i think the incentives to punish britain may-- may win out. >> stewart: cameron abadi from "foreign policy" magazine, thanks so much. >> thank you. >> sreenivasan: read eight things you didn't know about the

european union. visit www.pbs.org/newshour. >> stewart: west virginia's governor is asking for a federal major disaster declaration to assist the most severely flooded part of his state. at least 23 people have died in floods triggered by ten inches of rain in the past 48 hours. more than 60 roads were closed today, and more than 100 homes have been destroyed. emergency responders rescued dozens of people from rooftops and from their cars. 500 people spent last night in a shopping center, stranded there when a bridge washed out. 32,000 homes and businesses in west virginia were without power today. a wildfire in central california has killed two people and destroyed at least 100 homes. the fire broke out thursday about 40 miles from bakersfield and has spread to more than 55 square miles. 800 firefighters have battled the fire; another 1,500 homes remain threatened. venezuela is one step closer to holding a vote to recall its

president, nicholas maduro. election officials are reviewing the petition after hundreds of thousands of venezuelans stood in line for hours yesterday to validate their signatures with fingerprints. opposition leaders say the number of signatures exceeds the number required, but they'll need to gather four million new signatures on a second petition to make the recall happen. the opposition blames maduro's socialist policies for high inflation and shortages of food and basic goods. the al qaeda-linked group al shabab has claimed responsibility for today's attack on a hotel in somalia's capital of mogadishu. police say at least 14 people were killed when four militants began shooting hotel guests after detonating a car bomb at the hotel's gate. police later killed two of the attackers. >> stewart: the century-old panama canal is a vital lifeline

for global trade, a shortcut connecting the pacific and atlantic oceans and carrying a third of asia-to-the americas trade. tomorrow, the 50-mile canal officially opens a new era after a nine-year, $5.5 billion effort to widen the waterway for the world's biggest cargo ships. david brancaccio, the host of the "marketplace morning report" from american public media, recently went to panama to see the new and improved canal. he joins me now to talk about what he saw. let's do basics first, david. why was there a need for a $5.5 billion project like this? >> well, the other one was 100 years old. but, you know, vintage. that's not bad. it's too thin. and something magical happened after they started to plan the new canal that is really going to help, i think, panama. which is the energy boon in the united states. fracing produce aid lot of natural gas air, lot of liquified natural gas. asian customers love that stuff.

the tankers that carry our liquified natural gas from the gulf don't fit, don't fit, they're just too big suspect no the new canal will accommodate them. and ships have gotten big exer bigger in the 100 years since old canal, 102 years since the old canal opened up. and the suez canal was taking away a lot of panama's business. and the biggest possible cargo ships in the world, still won't fit the new panama canal, but way bigger ones will. in fact, they're so big that we have to upgrade our ports here in the united states. even as we speak, in the port of new york, newark, they have to raise a huge bridge to let the new post-pannamax vessels, they're called, get in. and those infrastructure updpraidz won't be ready for a little while. >> stewart: i don't want to bury the lead here. you went to panama. you got to see it up close. please explawn the gee-whiz part of it and the highs of and lows of getting this done.

>> i got to hang out with the tug boat captain and there was the new one ready to open. the old ones have these diswhrawz open up for the locks. the new ones have kind of a sliding patio door. but they're just much, much larger. they thought a lot about conservation, particular he water conservation, and they've tried to reforest where they deforested, and it created about 40,000 jobs. interestingly, giant infrastructure projects tend to go wildly overbudget. the panamanians kept a lid on this. it's a very interesting case study of an emerging market country that has a giant infrastructure project that is run, international experts told me, really quite well. >> stewart: the "new york times" described this as "a risky bet." what's risky about it? >> there are a lot of risks. first of all, the thing sprung a leak during its construction, i am told by authorities, they fixed that. one hopes they did.

there are some other risks. apparently earthquake risk was raised as an issue in the "new york times" article. and others. the biggest risk-- somehow the "new york times" missed, but we tried to focus on our coverage-- world trade, planet earth, the whole world. trade has actually tapered off in the the years since the 2008-2009 financial collapse. it's not anything down, but trade growth is much slower than it was. could be a cycle. wait a little while, it will come back. there are people who argue that is the case. and china, it's restructuring its economy. the mess in europe. but this, too, shall pass. trade will come back. others tell us, maybe all this global swrawgz that we've talked about, alson, for 30 years now, maybe it's kind of run its course. trade will still grow a little bit. it will be significant. but it won't be the big story it used to be. so that dynamic has to play out. that's one of the big risks.

>> stewart: what do you think could be an unintended consequence of this? we know why they did it, what they wanted to accomplish. from your reporting, is there pected?wth of this that no onebe >> when i was in panama i didn't just stare at the canal. i looked at the country. and it's a kind of singapore in a way. there are all these financial services. the canal is certainly not the only game in town. growth of panama has been double the rate of the surrounding countries. but the gap between rich and poor remains very wide in panama. there have been some improvements in panama in receipt years. they've narrowed the gap a bit, but some critics say not nearly enough, and many pan mainians say that. i was talking to a very experienced journalist who started a big newspaper in panama city and said i got a crazy idea, sort of a quixotic quest he has. you could narrow the the gap between rich and poor-- which is so striking when you travel

through panama city-- you could narrow it by taking all of the profits of the canal each year and dedicating it to improving panama's schools. it would double the panamanian school budget. so one unintended consequence is perhaps if a-- an interesting idea that this guy has were to get traction, that perhaps it could have a more wider effect than other economic development has in improving the lives of average panamanians. >> stewart: we all learned about the panama canal growing up in high school and junior high school. it was a big part of every history curriculum. in your opinion will this change, will this modification be equally as important? >> i think moving goods on containers, it will still be here, and panama canal will still be relevant. had they not done the improvement, had they not done this widening, opening now, they would have been in danger of being obsolete. >> stewart: david brancaccio,

thank you so much. >> a pleasure. >> this is pbs newshour weekend, saturday. >> stewart: this tuesday on pbs, "frontline" explores policing and race with a journey inside newark, new jersey's police force, operating under mandated civil rights reforms. in this excerpt from "policing the police," newark mayor ras baraka discusses the challenges at hand. >> a met up with ras one day, while he was touring some precincts. we went out with the gang unit. you're going around and giving illegal guns. how does that happen without being the same sorts of policing that people are protesting about? >> intelligence. who is actually somebody you should probably stop and somebody who is just miss martha's kid going to the store with his hat in the back. that intelligence gets you

information not just like random stops. that's not how you police. i mean, that right there is racism. >> black and brown cops. >> so what. >> the police force. >> it's not the who did it that makes it racism. to me it's the fact that overwhelmingly it happens to one specific group of people is what makes it racism. >> is there a point where you look around and go, this is going to be even harder than i thought it would be? >> oh, yeah. it didn't get this way in five years or 10 years, and it's not going to take five or 10 years to get out of it. i mean, you've got generational poverty, generational unemployment. these buildings that have been vacant for 30, 40 years, so they didn't just get vacant when i became the mayor. at the end of the day, there's no tax base like the way you need it. and you're trying to run the state's largest city, in those

kinds of conditions, this is what we're dealing with, man. >> stewart: finally tonight, pope francis is calling on armmeania and turkey to take a path toward reconciliation. in armennia, the pope visited a memorial of the 1915 massacres the 1.5 christian armenians at the hands of ottoman turks. he referred to it as a great evil and genocide, a term turkey rejects, calling the pope's statement very unfortunate. that's all for this edition of pbs newshour weekend. i'm alison stewart. good night. captioning sponsored by wnet captioned by media access group at wgbh access.wgbh.org >> pbs newshour weekend is made possible by: lewis b. and louise hirschfeld cullman. bernard and irene schwartz.

judy and josh weston. the cheryl and philip milstein family. the citi foundation. supporting innovation and the john and helen glessner family trust. supporting trustworthy journalism that informs and inspires. sue and edgar wachenheim, iii. corporate funding is provided by mutual of america-- designing customized individual and group retirement products. that's why we are your retirement company. additional support has been provided by: and by the corporation for public broadcasting, and by contributions to your pbs station from viewers like you. thank you.

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