this is bloomberg markets on bloomberg television. vonnie: we are going to take you to new york and london and the next half hour. 10 days to go until the referendum vote. how much damage will that anxiety bring to global markets? mark: government officials are trying to put the pieces together after the deadly mass shooting. and presidential candidate donald trump and hillary clinton will likely make their first campaign trail comments later today. market sees the oil bouncing towards the end of the year, but with output essentially the same. we are about 30 minutes into the trading day.

julie hyman has been keeping an eye on the markets. some interesting lows here in the united states. this really risk off five to the market. stocks are not down even as much as they were in the opening bell. two thousand 94 now on the s&p 500. take a look at what is exactly at work here. consumer staples and industrials also down. that has been counterbalanced by an increase in financials. is not the case here in europe. we were watching that big deal that was announced.

we are at 196 dollars per share, nearly a 50% premium. isrosoft on the flipside falling. also we are watching and other going on this morning. the cyber security company is close to buying google -- buying blue coat systems. they found semantic had been in talks at one point deciding not to proceed with that deal. and then also we wanted to check on oil, which continues to decline. their peers to be some concern about the supply.

technologies remain lower. keep an eye on those today. >> getting more headlines on the microsoft linkedin deal. this 26.2 billion dollar acquisition. microsoft is confident the linkedin deal will be approved this year, that is the big deal crossing the bloomberg terminal. more on that deal in the next hour. can't wait for that one. chase, tell you what is happening today. not as low as they were earlier.

law -- four-day drop is the longest losing stretch. we saw the biggest one-day drop since february 11. the worst week in a month last week. the swiss national bank and the bank of japan. let's not forget the u.k. referendum, causing all sorts of volatility across asset classes. what is interesting is what is happened in the last three days. risen by 42%.

the high for the year was reached on february 11. we also saw a high last august. hedge funds and other large speculators are the most bearish on the pound in three years. the most since june 2013. that is according to data. putting 10 percentage points at the end of the day. it is down for a fourth day. since april.vel

going to fixed income assets once again. that is pulling it down a fifth consecutive day for them as a german 10 year yield is back up. >> is in the newsroom. emma: clinton is the presumptive nominee and tomorrow is the last primary in d.c.. meanwhile house speaker paul ryan says he doesn't agree with donald trump's call to deport millions of undocumented immigrants, but he is still standing by his endorsement. british prime minister david cameron is hoping rivals in the labour party can stop the u.k.

from leaving the european union. gordon brown will make the case to stay in the eu today. labor support is crucial. >> yes of course there would be concerns in the financial market. yes there would be uncertainty for a number of years. the real challenge for the country would be this, that britain would be. >> the referendum is 10 days from now. german -- german chancellor on: merkel is trying to limit conflict over trade. the meeting is overshadowed by germany's unhappiness over the takeover bid for a german robot

maker. global news 24 hours per day powered by our 2400 journalists and more than 150 news bureaus around the world. vonnie: we begin with the latest on the worst mass shooting in u.s. history that left 49 people and the gun man dead in orlando. in washington dc, the latest details. going to have to deal with comments from the presumptive candidates for president. they both have already been talking. >> i think the fbi can managed to keep this investigation pretty clear. the biggest problem is answering the question of what happened when they questioned the suspect. really found no grounds to hold him.

he believed they had some connections to a suicide buffer -- suicide bomber in syria. we are expecting to hear from the fbi later today, possibly as early as noontime, to explain to is how he slipped through their grasp. like thissomething move forward? will can of legislation can be put in place to deter -- what kind of legislation can be put in place to deter this short of gun control? >> stopping these lone wolf terrorists is one of the hardest jobs for the agency to do. these are folks that are solitary individuals. they can communicate overseas.

they go ahead and do these things like this horrible thing that happened in orlando. it is the proverbial needle in the haystack. in this case the fbi is saying this is a person they needed to pay attention to. it is one of those tricky parts of the job. >> what tone and what message will both candidates want to get across when they speak later? >> we already had a preview of their comments today from their comments yesterday. donald trump actually called for obama to resign because he used islam" in theical statement he gave from the white house.

he suggested clinton should resign because she haven't used that word either -- she hasn't used that word either. we need to figure out how to -- int instances for instances like this happening in the future. hillary clinton is going to look like a steady leader, a person who can keep things under control. trump is using this to point out he thinks obama and clinton have steered the country wrong. it is going to be quite a day in the political world. we will beu, checking in later in the day. the u.s. supreme court has struck down a puerto rico law that would let them restructure their debt. this over the objection of creditors to help for the ricoh

resolve its fiscal crisis. once again, voiding the debt restructuring law.

mark: live from london and new york i am mark barton. vonnie: and ig -- am vonnie quinn. martha and growing anxiety over the proxy back to of the u.k. exiting the european union. delivering a speech at the international festival business in liverpool. he urged businesses to speak out against the move.

also this u.s. fed meeting, let's bring in codirector of investment grade fixed income. investment grade fixed income has had a good run. is the value gone or are there more places to shop around? guest: there are not a lot of places to find real value. part of it is driven by the uncertainty that is pulling treasury yields lower. funny bank yielding to the first time ever, how low can this go? what you do as an investment manager? >> that is a very good question. you have to have as much flexibility to look at where the

value exists. you have to look at the companies that are going to do well through a period of economic growth. vent that have a cyclical do look attractive. you do have to be careful. is there in the european corporate bond market? the lastd the ecb in few days of buying spent 348 million euros. we know the average yield on fallen.e europe has where the value in european corporate bonds? kathleen: there is very little value there. the only comfort is you know there is a buyer in the market today. the risk is when markets reverse

their course, the downside is much greater than any near-term upside. that is an area i'm definitely of voting. mark: and how are you feeling about u.k. assets? the yield ono see the 10 year falling to a record consecutive days, head of the referendum. would you be buying at these levels? at least the yield is a positive one. ishleen: that is true, it positive. but it is so low that i think it creates a real risk. at some point, i think the market is telegraphing this to some extent. low rates monetary policy qe is not working. it is making the markets very anxious. at some point, and i think it begins here in the u.s., you are seeing inflation beginning to rise. keep an eye if you

on wages. i think that is where you will see positive inflation. , janet yellen is charged with a difficult task of threading the needle between the grace -- between the risks of global uncertainty and getting the market to shift on inflation expectations. don't bet against them because you are going to see rates rise. vonnie: i'm going to show everyone where they stand right now. that is one thing we will get this week. obviously at this point we aren't pricing at any height. come down, and if not, why not to? not?y comeeen: i think it will down, the reason being the fed wants to get behind the curve. brexit,s, because of because of concerns about , even witht burden

how the election will turn out in november, all of that is weighing on the market, creating a strong headwinds that i think it's keeping the fed on hold for quite some time. vonnie: with the 10 year yield is difficult to imagine that the dots don't come down. will the fed increase interest rates this year? they will behink very quiet about the direction of rates. they have a little bit of wiggle room in the front end. has a flat stable curve until we get through our collection here in the fall. them to let allow inflation build and have a bigger impact when the data starts to turn. mark: thank you for joining us,

kathleen gaffey there of eaton vance. much more ahead on bloomberg markets, including some of the biggest market movers. let's take a look at crude oil prices. crude falling to a one-week low. companies may be able to revive output at current prices.

mark: a beautiful picture of new york. i am live in london. i am mark barton. vonnie: and i am vonnie quinn in new york. a bloombergor business flash, a look at the biggest business stories in the news. microsoft will pay 119 six

share in an196 per all cash transaction. -- will remain ceo of that portion of the business. emily chang will be interviewing the ceo on bloomberg markets at 11 eastern. brazil economists expect the central bank to cut the benchmark rate less aggressively. this after a series of negative inflation rises. they will end the year at 13%. 13th 25%.at -- at 14.25%. to openpple wants retail stores in india, it must promise to bring factories to the country. the indian government may loosen existing policies that would

require local sourcing to companies that want local stores, but apple would have to provide a time frame for manufacturing. that is our latest bloomberg business flash. julie hyman has been keeping an eye. andrew of citroen, who has now become a well-known short seller, has spoken to bloomberg and said he is sporting shares of facebook. he says the company is losing relevancy. they are gaining is not as valuable as the users it has lost. take a look at the bloomberg here. you see the price in short interest ratio. here's the short interest on absolute value.

left in the minority is we are atng sure -- we are looking apple, not is because of the indian news. but also a report in the nikkei saying that the iphone annual shipments have been following by 8.6%. citing some of the various component makers for the iphone. microsoft about the linkedin deal. the other potential targets for microsoft, now that is probably not happening.

9% in the wake of the deal. a little less than 1%. bring peoplet to out today with the latest scotus decision. that $2 billion bill payment for , that is $70 billion worth of debt the island has. mark: up ahead it is crude phillips at a one-week low. . .

live from bloomberg world headquarters in new york and london, i'm vonnie quinn. rk: and i mark barton in

london. let's get you first word news. >> thank you, mark. the u.s. a bring court has deal that would allow puerto rico to restructure its debt. the court ruled 5-2 the measure was barred under federal bankruptcy law. bloomberg's monthly tracker 6.9% gain in saw a gdp in china. private investment q spelling, but that has been offset by government spending. -- a quarter of pilots have walked out because they have to work longer without pay. there have been other disputes

including new laborer forms. the former olympic runner oscar pistorius faces 15 years in prison for killing his model girlfriend. the judge who originally sentenced him to manslaughter, has been ordered to sentence him for murder instead. after a review, green was suspended for a flagrant foul during series four. the warriors play lebron james and the cleveland cavaliers tonight eric global news 24 hours a day, powered by our 2400 150nalists in more than news bureaus around the world. i'm emma chandra. vonnie. dan juergen spoke to bloomberg go this morning and

gave his outlook. take a listen. been looking at recovery, we have been looking to have oil orbit around $50, but it has been accelerated by the disruptions, most notably the disruption in nigeria. be sure the short-term issues is just that. production can come back. canada can come back. what if nigeria is not as bad as we think. how long-term are those disruptions? dan: i was just in canada. canadian oilsands have been increasing since 2014 and will probably,o increase, adding another 500,000 barrels by the end of this decade. i think nigeria is a political question. when the president came in, he cut off payments to militants, i guess we would call them.

they responded by blowing up pipelines. motive forind of doing that? that allows nigeria to get back because so much of its budget comes from will. at myif you take a look terminal, i have u.s. production. last week, u.s. production went up by 10,000 barrels a day. it is not the craziest thing in the world, but david, my point is, reducers are responding. that is the real issue. an: if i can jump in there, there is no one more responsive than the independent producers like carol hamm and others. we describe u.s. shale oil as short cycle oil. it can respond so quickly.

david: at what point does investment really start to ramp up? $50-ish, it starts to ramp up. once you have the line of sight of 60, that is when you see the increases again. i think everybody is struggling with the question -- you have such a big hit, what happens to the service people? how quickly can you ramp up? in that $50 range, that is when going up.s. supply again. we are down basically a million barrels a day from where we were in april 2015. alix: they said right away we want to help that balance sheet. and then you get to add rigs and ramp up production. it's definitely a different timetable. david: it is not flipping a switch. i want to talk about another

country -- iran -- iran producing more than expected. is that because their oil fields are in better shape or they are in danger of damaging those fields? muchis a question of how of this oil they had an inventory, how much that is called iraqi war was a rainy in the oil coming back to the market. they have come back and they have come back aggressively and they make no question they want to reclaim their position in the oil market. that gets you to one of the fundamental tensions because saudi arabia and other arab gulf producers do not want to give up market share to iran. there's a geopolitical context to this weaker oil price we are seeing. i would say the big question for the rainy and says, are they going to get all of that investment want to bring into their field? is companies hear will be very cautious about making new commitments to iran. becauses that caution

of going afoul of u.s. restrictions? dan: absolutely. there was a large number of laws and executive actions that limited -- people are very cautious about u.s. sanctions. in fact in the nuclear agreement, there is a snapback where the sanctions can be applied again if iran violates it. no one wants to run afoul of u.s. sanction law. vonnie: that was daniel yergin, pfister of ihs on bloomberg or earlier. mark? mark will look at what is happening at u.s. markets. they are rising now. the s&p and the dow, roughly 4/10 of 1% lower. their lowsocks off of the day, but still trading lower to the tune of 1.5%.

this is bloomberg markets. i mark barton in london. quinn innd i'm vonnie new york. it looks absolutely beautiful. foggy, may mark, but -- , it: it was raining earlier was raining earlier, and it is st to rain tomorrow, wednesday, thursday, and friday. don't even try to cheer me up. vonnie: maybe we'll get sunshine on the weekend. private investment slowed and china. -- the data lending lending support to the picture economicle l-shaped

slowdown in china. the data was largely in line with forecasts, with industrial output increasing 6% from the previous year. as eclectic, retail sales were up 10%, helped by a pickup in auto sales. fixed asset investment rose 9.6%, which was well below 10.5%. estimates, state owned firms were left it to pick up the slack. how sales picked up 30%, well below the more than 60% increase we saw in april. it suggests policies to tighten sales in tier one cities like shanghai are having an impact. overall bloomberg's gdp tracker points to a 6.9% increase in may, comfortably within the

government's target range. tom mackenzie. are 50 minutes away from the end of the monday's session -- stocks are low, not as low as earlier in the day. the euro stocks -- the euro stoxx 600 fell. the ftse by three quarters, the dax by 1.2%, the cac by 1.2%. their minds on decisions by the drg, the swiss national bank, and the referendum -- of course, the u.k. referendum on eu membership in 10 days time. very much a flight to quality. every single industry group falling. the euro stoxx 600 today. have a look at the worst performing industry group out of the 19 that are declining -- financial services 2%, basic lower, andarlier --

autos. interesting moves in currency and the bond market. what we saw earlier today does earlier we saw sterling fall against the dollar for the second consecutive day. it is rising for the first day in 4. a big rise after that poll point a 10 percentage gain for the brexit camp. the weekend polls were much closer. in the bond market, the flight to quality pushing the yields lower. yield, itrman 10-year cannot break below zero. 9%.nt 0, 09% -- .00 .003% now. interestingly we see yields and peripheral countries like greece and spain, rising today. that's ahead of the brexit vote

in 10 days time. let's chat about the bloomberg business flash, a look at some of the biggest's nest stories in the news right now. opec is predicting the global -- the excess supply in the market is likely to ease. up 80% from its 12-year low back in february. a former hsbc trader with private client data in his e-mail has lost a lawsuit against the bank. justnch court awarded him $63,000, most of which is to cover his unpaid overtime work. spreadsheet page covered all of hsbc's transactions in 2010. and mcdonald's is moving its headquarters to downtown chicago. it is part of the chief

executive's land to attract new and younger employees. the relocation to the city's west loop neighborhood will happen by the spring of 2018. mcdonald's last had its headquarters in chicago from 1965 until 1971. right, that is the latest bloomberg business flash. vonnie? right, mark, moving to the u.s. now. abigail doolittle has the latest live from the nasdaq. hi, abigail. the nasdaq well off the lows of the open. one sector helping -- health care. shares up one point 8% after an upgrade from underperform to neutral. 70%stock is down more than on the year, so this could signal some sort of shift in tone from an analyst who does

not see an outright sale for the beleaguered company, but she does the segment sales and he levering ahead. -- delevering ah ead, perhaps to help the company do better. o may be up, but the nasdaq is down? what is the drag on shares today? abigail: there is the news that microsoft is buying linkedin in an all cash deal. this represents a roughly 50% onmium to linkedin's close friday. we see that would linkedin soaring and the ceo jeff weiner will remain in place, as will the brand and culture. microsoft is trying to move more to the cloud. this is not the most obvious -- there's a lot of uncertainty around the story, vonnie. you see a battle between the buyers and the sellers. today on the weakness, the stock 200-dayed below the

moving average. the question going forward, vonnie, whether those buyers will support the shares of microsoft or whether we see downside ahead. vonnie? thanks.all right, let's bring in cory johnson live from san francisco outside apple's worldwide developer conference. the valuation -- 91 times earnings? a $26 billion company. does linkedin merit that price? cory: you know, i'm not a big numbers -- on a trailing basis, yeah, super expensive. the company is very much on an inflection point toward actual profitability. i think it is actually valuable to look at forward projections and see if you look at next , if it isjections

under 30 time statute is not an insane valuation for this company. what areion is not they paying, but where they getting for that big cost? you have to look at what linkedin as a company is and how that would fold into what microsoft is already doing? vonnie: right, i was chatting with woody benson earlier and he said it has more tentacles than an octopus. to linkedin, it's not just people linking up their resumes. cory: yeah, i think when you think about it in terms of microsoft -- microsoft, next to amazon, has the biggest operation of cloud infrastructure in the world. they have tons of data centers operating at very high efficiency at very low cost. is,ou look at what linkedin linkedin is the front end of a cloud application.

do with a people cloud software product. yes, they put their resumes up. important,just as salespeople use linton to find the people they want to sell stuff to all over the world -- linkedin to find the people they want to sell stuff to all over the world. linkedin has spent years building that network all over the world. microsoft is giving a front end to the backend in terms of using business focused software. it's very interesting in terms of what they could do off the bat and what they could develop over time. steel flash saw the the bloomberg. i was remembered all of the nokia transaction. does this define section that ella? nadella? cory: steve ballmer did a lot of

deals. there were lots of acquisitions under the ballmer yours the worked out terribly. this is a new guy with a very different company. there have been dramatic changes . what are they going to do with this? it's not just a bulk acquisition. it's a different business that linkedin has right now. one of the reasons the stock was cheaper than it would have been if they could, take what linkedin was trying to do with customer management software and build that with the capability that is enterprise focused, cloud-based, customer management software, which is what linkedin has already taken steps in that direction, could they create a competitor to the likes of oracle, salesforce, s.a.p.? using all of the tons of data that linkedin has gathered for the last 15 years. and they could build something

even more special. they also have a billion dollars in profit. could they take that billion dollars of profit and build yet another platform on top of it. surely that is the hope of such dellaella -- satya na -- .'cory: it is rare mark: it is rather apple is this place by other news. maybe you are relieved because you have something else to talk about. but you are there. siri could bethat big? cory: you have seen them running ads about what they're doing ith apple tv using siri, but am thinking today so much about platform and how companies use applications on the front end,

like linkedin, to back end like ohe azarenka out -- azura cl cloud ofud of -- microsoft. what apple has done is inspire millions of companies to build apps for their ecosystem. you see how microsoft is thinking the same way -- the apps on the front and help grow the backend business. the apple johnson at worldwide developers conference talking about apple and the big, big acquisition today -- $26.2oft, lincoln, billion. still ahead on bloomberg markets, you need something to lift your spirits on a monday? we talked to the director of the last drop. a company that makes the world's rarest whiskeys. ♪

mark: now speaking of the whiskey is not an easy job. she is here to read up vintage whiskey market. aboutins us now to talk our pursuits. i read about your story -- lovely story. you are like the indiana jones of the whiskey world, aren't you? that dad andhink tom have been a really creative duo, and the last drop is no exception. they launched the company after two years each in the industry. they wanted to do something different. they had been working for big corporations their lives. somethingd to use with limited batches of whiskey that really cannot be reproduced anywhere. mark: how do you find the whiskeys? talk about the process from a to

z? beanie: there's an off a lot of tasting, which is not always by me, i'm sorry to say. really, it is a question of sifting out samples in determining what makes something really special. and i think we are looking for things that are, of course, old and rare. we take the flavor profile and how beautiful they are to drink above all else. theireally stake reputations on making sure everything is really, really top grade. it's a very rigid and stringent -- mark: and the latest offering? blend: a 50 --year-old that is 3000 pounds. mark: who buys it? or is it investment? beanie: these are for a fashion not us to understand whiskey from another time.

of course there are collectors, people who want to get their hands on something that can never be replaced. every single one of our releases is very limited in number because we are seeking out the last remnant of these precious whiskeys and we bottle everything that we have, which may be 800 bottles, as it is with this release. mark: how do i get into whiskey? : practice. whiskey is so varied, they will often discover very strong flavors. pursuits every day -- the european closes next. stay with us. ♪

vonnie: it is 11 p.m. in new york, 4 p.m. in london, and 11 p.m. in hong kong. i'm vonnie quinn. mark: i mark barton. 30 days left in trading in

europe and you are watching the european close on bloomberg markets. ♪ mark: we are going to take you from new york to london to washington in the next hour. here is what we're watching. investor anxiety on the referendum vote draws closer and the leave camp gains in the polls. we are looking at the potential impact of brexit on bonds, stocks, and currencies. vonnie: and microsoft will acquire linkedin. we hear from both ceo. theave fresh insights into central bank's latest qe plan. mark: we