steele is a -- alix steel is on assignment. ♪ [closing bell] scarlet: stocks closing at their session lows. closing at its highest levels since february. joe: but the question is, "what'd you miss?" scarlet: microsoft buys linkedin for $25 million. joe: global equity shows increasing anxiety over the brexit vote next week. we speak to one strategist about a defensives strategy is not the answer. >> and the energy complex, is it looking better? scarlet: dave wilson was just telling us that this is the first three data climb for the s&p 500 in a month and we saw indexes close after session lows . the inverse is the increase in the fix. 21 from 17 on friday.

if you look at the past 12 months, historically it has averaged 19.86. elevated when you consider where we came from on friday. joe: two days in a row, a real selloff, not massive. all 10 s&p sectors in the red today. biggest loser, the material stocks down over 1%. selloffs in asia and europe as well. >> there was not a lack of news out there for people to trade on . of course the moment we woke up today the big thing out there was this microsoft linkedin deal. it should come as no supplies to either of you that the stock with the highest volume today was microsoft. you felt as much as 5% today. since its biggest losses 2011. linkedin surging as much

percent. a stones throw away from that bad share of number that microsoft is paying for linkedin. joe: absolutely. fresh low yields in the bond market as we always do at this time of day. to 10 year yield dropping 1.6 one. not a huge move, but still a little bit lower on the day. the fresh record low in the u.k. 10 year. a chart we're looking at, a one-year chart of the u.k. 10 year, over a year ago over 2%. no impediment to lower yields. the pound is trading all over the place today. cable swung between losses of 1%. the two week implied volatility of the town is at a record high. the other thing we want to focus on here is the yen, dollar yen dipping and raising questions

that the need for the bank of japan to perhaps intervene. the currency, 16 out of 16 major .urrencies one advisor said that the bank of japan should expand as early as this week. thursday with bond purchases rather than cutting rates. quickly, a look at commodity markets. oil not doing too much on the day. down 1% in the end. .railing off in the end they see the market coming closer into balance, but not enough to help oil overcomes the risk all sentiments. gold, not surprisingly getting a bit of the lift today. .79 percent today. giving a little bit of a boost. scarlet: we will talk more about commodities with ed morse later

on the hour. let's take a deep dive into the bloomberg. you can find the following charts using the function at the bottom of the screen. today i am looking at microsoft and linkedin. i want to put this in the perspective of just how big a deal this is. this is the ma function that gives us a good view of the size of the steel. all the way over to the right here, the blue are shows that $26 billion deal for linkedin, as you can see it's by far the largest in the history of the company. the next closest is 2011, 8 .5 billion for skype. another thing i want to do, this function is really cool. you can add the premium. if you look at the orange line, this is actually not the highest premium they have paid for a company. you see that spike into thousand seven? that's for a company called quantitive. if youmarketing company, don't remember.

it will be interesting to see if of this company, a forgotten company that they paid a high premium for. scarlet: the timing is interesting as well. massive expensive purchase in 2007, we know what happened in the following months. >> hopefully this is not an ominous sign. at europeanking stocks, the selloff in equities today was not limited to the united states. europe, banks were leading the retreat. italian banks led the losses, hurting the ew ietf. the italian etf. this is a composition of the etf. thanks making up almost 21% of that. --t week bank of popularity funded itsre merger at a 29% discount. look for a lot more dealmaking to take place among italian

banks. year to date this is down about 15%, severely lagging behind the other european markets. joe: that is brutal, isn't it. scarlet: it is. joe: i want to talk about how important the upcoming brexit is compared to the british pound and the swiss franc. the pound versus the swiss franc, i like to remove the dollar affect and it is such a safe haven. -- scarlet: it's uncanny. joe: you can see how closely they track each other. s&p being a good barometer of risk. pound frank being a good barometer of this anxiety about brexit. this is really what is sort the show right now for world markets. it's like investors

woke up and decided that greg's it would be the one thing that they reacted to. joe: this is the story. scarlet: gets more interesting everyday. you can see all of these charts and more on twitter. joining us now is the head of macro strategy, peter tchir, from breen capital. are you paying attention to currencies? >> we have seen everything moving in conjunction. credit started to be weaker on wednesday of last week ahead of the s&p were you couldn't rally. one issue is that this bond market ise saturated. so many people were talking about the ability for microsoft to issue a lot of debt. it is ok, but i think you will see it pressure on credit spreads. this brexith does

it vote that we have coming, how much is this weighing on it? peter: if you look at european banks as you pointed out, it's the worst run to date. european markets as a whole are much worse and it is something that is hitting the radar screen a bit. had this newse cycle dissipate where we had all these other things to worry about and suddenly the brexit is front and center in the votes are getting worse. people are more concerned about what they should do for their portfolio. the thing i think we are really seeing is people playing the market through options. we already have this trend of moving from single stocks to etf two indices. over the past few weeks we have seen a lot of options activity. dani: part of that, i know you have talked before about these funds that you can buy to play low volatility. what's the danger in these people piling into these specific funds? have had to buy as many

as 25,000 contracts, the second futures contracts. what they are going to wind up doing half of the way down, every day they were selling more to be balance and they are buying more to exasperate that. that's one reason you're seeing this outsize move. if you didn't see anything else you would think it was down 2% or more and it wasn't even down 1%. it's hard to figure out if different markets are trading these for their own reasons. i think you will get more dislocations like that. if we go into the terminal i have a chart of the last three days. the, ae line is the spl popular low volatility etf that people have been piling into, the low volatility one is doing its job. nearly as much. what's wrong with this? if you are nervous, why not keep piling? the last two days it is probably moving exactly in

line. this is one area that people have been investing in. this whole idea of low volatility or safe stocks, that's a real concern for me. some of the things that made these stocks safe, or safer, quite a quote, was the high dividend yields and low pe. now that you have billions in those funds tracking the stocks, a lot of that has gone away. down, theyields business risk is increasing. i'm concerned that people have bought into this find something safe it will do well and if they are disappointed, i think that my -- that might seed selling. i have this one volatility etf here. look at how much green there has been over the past few months. that's record right there. what does it take for this to reverse? what is the breaking point where investors pull away? peter: one of two things.

people are comfortable and we get through the brexit or the fomc, then you see the qqq q attracting money with huge outflow. but i think if you start seeing this, down 3%, 4%, 5%, that's for you see people like -- maybe we just want out of equity altogether in the next move is into cash. if these get sold, there are no buyers left. they are tracking a certain type of mentality. we still want to be in stocks, something safer we won't get losses. 5% might be were traders says -- i have had enough of this. i think that if we get a move to the downside we are calling for far asential to go as 1700 because we think there are a lot of we cans getting pushed out of the market and into cash. those yields that joe always shows us go down even more. how would you recommend trading around the big event this week? the doj on thursday, fomc, and

the decision on the timetable. have been recommending people by keep the high beta .ortfolio, but raise cash raise some cash so that they can be ready for any kind of downturn. i still think that there is a decent chance we get to new highs, but i want to be prepared for that and raise some cash. right now you are supposed to be much more worried about the downside. weirdly enough we talked about playing through the options of it more. if you look at the good scenario, you can see 2300 where you get dovish and the brexit gets taken off the table because the crowd starts to come out more. all of a sudden it puts the upside on the table. on the other hand, brexit comes into play with weak data on the downside. i think that is one reason you're seeing jump, a lot of people are playing it that way. it's uncertain and binary. joe: all right, thank you very

much, peter tchir. we will beming up, talking about volatility with ed morse, the global head of volatility at citigroup. ♪

mark: i'm mark crumpton. let's get to first word news. the father of the man who opened fire at a gay florida nightclub killing 49 people says that the attack it goes against everything that he talked his son. he said that the attack was against his principles and against what he taught his son. have -- if i had caught him, i would have arrested him myself.

the only thing i say is that those people who lost their loved ones, they are my family. for what my son did. mark: he said the family was shocked by what happened and that if he had known what his son was planning, he would have arrested him himself. the eiffel tower will shine in the colors of a rainbow beginning at this hour to honor victims of the mass shooting in orlando. paris city hall began paying respects with a display of american and rainbow flags while the french president condemned the killing as an attack on freedom and promised to toughen the fight against terrorism at the side of the american people. creditors are reviewing a proposal from mains electricity provider said to help them avoid a bond default on july 1 according to three people with direct knowledge of the plan. the puerto rico electric power authority is in talks with

investors, owning about 35% of the securities and bond insurance companies, freeing up cash needed to make the principal and interest payments. the terms of the deal are still being worked out. global news, 24 hours per day, powered by 2400 journalists in 150 news bureaus around the world. back to you. scarlet: "what'd you miss?" opec predicting that the global oil market would be climbing this year, 80% from the 12 year low in february, trimmed by the unexpected disruption and sliding u.s. output. edward morse is joining us from his office in new york. ed, great to see you again. give us your call. what does more balance in the -- mean to you? what will be the added deficit?

we think we will be at equilibrium pretty soon. probably not as much of a draw, but still a draw in the fourth quarter. we expect four of the next six quarters are likely to see inventory. the market is coming to a balance as you just said, more quickly as a result of the rash of supply disruptions. some expected places, some we haveed places. joe: had this impressive rally in oil. what does that mean for u.s. production? how much more production will be seeing? what will that due to the people on the price of oil? ed: there are two issues. how will the market perceive the increase in utilization? we saw a big jump last week. we expect an even bigger jump this week. we think the market will take that as a negative and assume the recount going up means that

reduction will rebound overnight . in all likelihood that's not the case. we think that $50 per barrel is going to be an increase in the completion of drilled but uncompleted wells. that will slow down the decline in u.s. production but not reverse it. for the reversal in the decline, we would need an actual growth in rigs being utilized to look for and develop more oil on the shell side. we think we have got a long way to go before we are going to see a very significant increase in utilization. we would probably need to see 60 before rig utilization rates go up. we don't know what the lag is, but we expect the lag between 60 and a jump of 50 will the six to nine months. we are thinking of this as being late this year or early next year as a phenomenon.

then at best late in 2017 we will see production growing again. that's not the only balancer in the market. supply is going out and in from other places. we think that the u.s. alone will not do it to get the market back into a resemblance or oversupply mode. we will need to see more drilling not only in the middle , but in the deepwater as well. we're looking to see when the revival takes place. if it's this year, maybe prices will be capped at 75. if the rebound is not until next year or the year after, prices could go up higher. dani: what happens now that opec doesn't seem to have the same sway that it used to? there is more volatility

ahead for a lot of reasons. not only are they abandoning the role of turning off and on the spigots, which could two to a balance faster than what we are seeing now, basically the u.s. being tested as a swing supplier . it has taken a long while to get u.s. production on a downward path. we are finally there, $800,000 per day per barrel lower than we were a year ago. all other things being equal, we are expecting a split in u.s. production. i just spoke about the lag between prices and production going up. so, when you have the market effective as the balancer, it will take a while longer to balance. meanwhile there will be a lot of noise in the market, like how the financial community might act -- react to the increase in drilling. one minute left, how much conviction is there in this? mark shank said this is the most hated bull market in history.

i don't know where paul is coming from on that. i think that there are bull markets that were screaming more than this one is. the fact is that we are in unknown territory and i am a little bit conservative in making my guess as to where the price response will be. undoubtedly the relationship between gdp growth in the world and petroleum product demand growth is such that this underlying week economic system we are in, we expect it will persist for the next couple of years is not the kind of environment that will give rise to a lot of oil demand growth or bowls in the market who i think are exaggerating the amount of oil demand growth we have seen. we think that over time they will be more relaxed about it. it will be a longer slog to balance the market. all right, thank you for joining us. scarlet: microsoft buying linkedin in one of the biggest

deals on record. we have the chart you can't miss on this transaction, next. ♪

scarlet: i'm scarlet fu. "what'd you miss?" one of the biggest microsoft deals on record. isis this something that going to be expanding market opportunity? it is riding the technology wave of the future. it is at the core of microsoft, something that we can differentiate. looking at those dimensions, it checks all the boxes. scarlet: making the strategic case for why he's buying the company. of course, a lot of questions about whether the company is overpaying for it. they are paying about 91 times

what they did last year. prior to that you had them paying an average of 34 times in its biggest deal. a lot of question marks. joe: and one thing that really stuck out when i read the announcement was that unlike the tech deals of your during the.com bubble, this was not a stock for stock deal. money is -- money is so cheap in the debt market that money -- microsoft is going to borrow to fund this acquisition so that they can pay cash. rudy's came out. microsoft has a pristine debt rating, they cannot saying that they are now going to take another look at microsoft's rating to see if it needs to be downgraded or not. one thing we have on the terminal is the risk function that uses a model developed by robert merton to come up with odds of default for the company, taking into account the share price for the debt involved and

i will say there is not much of a chance at microsoft is going to default. .02% in the next year. taking a look at the longer term, this is the implied the next several years. much less than 1% five years out. this is a company with a lot of cash and cash flow, but this is a cool way of looking at the risk profile. what i'm looking at plays nicely to that. i wanted to look at what they were paying here in terms of revenue. look at the steep decline in the revenue. i charted that with the stock price above it. as you were closer to 2015, revenues were going down and the stock price takes a sink. it's interesting because microsoft is a almost $250 a pop for each of its drivers, about $60 linkedin for 133 million members. coming up, an interview

with george osborne on his staunch anti-brexit stats. -- that -- stamps. ♪ -- stamce. stance. ♪

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mark: i'm mark crumpton. let's get to first word news. president obama says there's no clear evidence that the shooter at an orlando florida nightclub was conducted to launches attack as part of a larger plot. president obama: the one thing that we can say is that this is being treated as a terrorist investigation. it appears that the shooter was extremists various -- mary's extremist information disseminated over the internet. mark: the president made his

comments after being briefed. the man blamed in the orlando shooting was employed by a british security firm whose clients included the u.s. government. a u.s. citizen who declared allegiance to the islamic state in a 911 call before the killings at a gay nightclub. 49 people were killed, 53 others wounded. he was killed in a shootout with police. s had been an employee of g4 for nine years. the fbi had interviewed him over potential ties to terrorism but closed both investigations because of a lack of evidence. prosecutors are calling for more witnesses in their murder case against freddie gray. cesar goodson was driving the van and gave gray a so-called rough ride and when he was left handcuffed and shackled but unrestrained by his seatbelt.

they say that goodson was negligent when he failed to call for medical aid. his attorney said that the officer drove carefully and followed orders area the government of singapore is warning the u.s. not to tinker with the giant pacific trade deal. the singapore trade and industry minister says any move by the congress to amend the agreement would risk a deal collapsing. the transpacific partnership still has not been ratified by the u.s.. day,l news, 24 hours per powered by 2400 journalists and 115 years -- news bureaus around the world. risk off across the board with u.s. stocks closing at their worst levels of the session, the dow losing 133 points, the s&p completing its first losing streak in a month. the fix, looking at that on an intraday basis closing at its highest level of the session is almost at 21 now.

this is a huge jump from where it ended friday, 117. dani: this is the biggest two-day jump since right before that august bottom. i think it's interesting because the last time that happened we had a 7% decline in the s&p. this time around it's less than 1%. maybe it is about positioning for things to come. joe: and so extreme. all 10 s&p index groups were down. a real solid fill up. scarlet: you have the clock ticking down on the brexit with the fed in the doj later this week as well. "what'd you miss?" the 10 days to go, the u.k. chancellor of the exchequer has stepped up his anti-brexit stance despite some in the business community who are

pro-brexit, saying that their competitive business has been undermined by membership in the eu. osborne dismisses the idea, saying that brexit will cause years of potential losses. he made his case to simon kennedy earlier today. >> i am confident that britain will vote to remain in the eu. we are here at the international festival of business in liverpool. i think i have a lot to offer going forward. it's one of the messages that we are communicating to the british people. it's important that people understand that britain is stronger being part of a big international single market like this. despite the declines in polls we have seen in recent days, uncertainty.o be is there still a sense of complacency in the city? whatever the

markets say, it will be the decision of the british people. i will say that people who are concerned, businesses who are concerned, investors who are concerned, they should speak up. it is telecom did so today. many other businesses have done so in recent days. this is not a moment for businesses to sit it out. people should speak out about what they see as the risks of quitting and the huge opportunities for britain to remain. >> that the pound would fall to its lowest in years, 30 years, without be good for the economy? treasury analysis shows that there would definitely be a depreciation and sterling, which would of course impact inflation. i think that the important point here is that yes, of course there would be concerns in financial markets. yes, there would be uncertainty for a number of years as britain

sought to work out its new trading relationship with the european union and other countries around the world. but the real challenge for the country would be this, written would be permanently poorer. trading less, less productive. that would be reflected in the value of assets. i'm confident that the british people are aware of that economic risk, can the economic opportunity of britain remaining . we talk a lot about the downside. let's remember the upside. if you go to remain in we will have removed an enormous uncertainty and it will undoubtedly be the case that a u.k. is the most competitive and productive place to do business of any of the advanced economies in the world. of course programs like this will focus on the risks. there are massive opportunities at stake. >> with some of the businesses

welcome the reducing the pound? i don't talk about the exact value of sterling, but it's never a good thing to have an economy that's weaker, attracting less investment. there's never a good thing for any business, where you are. if you are in exporting business, the last thing you want is uncertainty about the with theelationship key export markets. today the president of the european council was saying it would take two years to exit the eu, potentially at least five years to negotiate new relationships with these key european markets. -- if there's any business out there thinking that this would be a good thing for them. >> morgan stanley, jpmorgan, all talking about moving stocks overseas in the case of a brexit. mr. osborne: i'm concentrating on the hitch of the country stays on the 23rd. one of the things at risk is the

single market financial services . meaning that the u.k. is the headquarters for lots of companies that want to trade into the eurozone. i don't want that to be put at risk. you have had these big investors , like jpmorgan, making precise in this point, it's one of the great benefit opportunities of the eu. look at the upside, we've got a british commissioner develop the capital markets union. britain's businesses and london as a financial center and others in the u.k. are benefiting from that single market as it deepens . that's the big upside for financial services in the u.k. if we vote to remain. >> final question, the prime minister has said he plans to stay on. you want to remain as chancellor regardless of the result? mr. osborne: i serve at the request of the prime minister, but this is a job where i have got a huge amount more to do and to give and i want to make sure

that i'm using that time and that energy to be building up the british economy, not dealing with the fallout of a brexit. that's why am focusing so hard now on making sure the country remains. in the end of this isn't about my job, this is about the country's long-term economic future. that was u.k. chancellor george osborne with london bureau chief simon kennedy. 53 days before the summer olympics begin in brazil, the rio de janeiro struggling to get ready for the games. we go there live, next. ♪

scarlet: i'm scarlet fu. time for the bloomberg business

flash and a look at the biggest stories in the news right now. draft kings said to be in talks about a merger according to people familiar with the matter. investors have long held for a push for a tie up after they offered identical products and spent a lot of money competing with each other. morgan stanley won the role as the microsoft advisor, falling to the bank ahead of goldman sachs and technology dealmaking this year. the advise and -- advisor said they may be making 10 million dollars to $20 million on that transaction. they were working with another bitter. according to those familiar, due to was conflicted its relationship with the other potential suitor. airlines are doing a better job of sticking to their schedules. consumer complaints are falling. the federal government says nearly 85% of flights arrived on time in april. better than the previous month, offrom about 82% in april

2015. hawaiian airlines and delta airlines for the best that staying on schedule. -- bloomberg business flash. what did you miss? britain --ned of blitz of projects to showcase just how far they had risen. when tourists started showing up to attend the games, it might be isust and not the best that on display. david joins us live from rio. david: -- >> david, thank you very much for joining us. we talk about the rising unemployment, rising retail problems, what is the situation on that states finances? has been most affected by the falling oil prices. they are one of the oil producers dealing with the big pension deficit, that accounts

for about 3/5 of the projected deficit this year. really, the state is struggling to pay public officials. struggling to pay teachers. everyone is having to, you know, bear the brunt of this. i'm wondering, how does that compare to 2009, when they showingn the bid, themselves off as a flourishing economy could handle this? david: you had thousands of people on the beach, celebrating when it was awarded. they made these grand proclamations. that it was brazil's time. a booming economy in 2010 in ,009, it was a small recession whereas the rest of the world was mired in the global financial crisis. it really has been quite a turnaround.

this all might be the case, but to what extent will tourists or athletes even notice the problems? big question for the event right now will be the metro. if they can finish the metro on time, that will make lots with her. they have a very narrow window in there have been a lot of delays. right now they are planning to open it for days before the -- before the days begin on a partial schedule. they are still waiting on alone to finish the work. they say they are confident that it will finish. four days is four days. so, that's the big one. otherwise people might not notice so much. there are a lot of these things that really affect residents. you will see the day that should have been cleaned up on the way in. they will smell it, too. other than that they probably won't get a real feel for it.

joe: when was the metro supposed to have been finished in the real plan? david: there were supposed to have been 60 months of tests, but instead it will have to. -- two. joe: is there any hope that the influx of people coming to see the games will provide an economic boost? or is that sort of off the table? help outguess it will the hotels. that argument has been picked apart quite a bit. that provides this economic boom. a lot of questions about that. haveially if they do issues with traffic. say the metro doesn't open, one thing they did during the world cup was declare public holidays.

it might help sectors exposed to tourists, but if the population of the city isn't working, what does that do for the balance? i think the question of how much it helps at this moment is still there. scarlet: terms of physical infrastructure there is a lot to be desired, but what about security? they will obviously have the infrastructure eventually. it is more about whether the metro will be working for the games. once it is done, it will be a great improvement on a roadway that's terribly clogged right now. on the security front, this year they have cut the budget for security by one third because of all the financial problems. that's obviously having a big impact. high-ranking officials are spoke to said that they still have these obsolete years.

the pioneering police program to occupy flagella's is starting to backslide. you are seeing gunfights in the hills in a way that you didn't see a couple of years ago. crime is rising. federal government is sending in the national guard. that is part of the plan, not a result of the budget cuts. but once they leave the state is still in the same financial quagmire. it is a question of what happens afterwards. all right, david. thank you very much. scarlet: up next, china is in focus as they decide whether or not to include mainland stocks and by how much. ♪

scarlet: "what'd you miss?" including a civ game changer for china who can from around money the world with volatile stock markets. global investors anxiously awaiting the decision. for more on this, betty liu joins us now. betty: this was supposed to be 2013 as well, they were waiting for this decision. the index had reached the heat, given this. but there were a lot of lessons about liquidity, regulation. quotas on foreign investors. you can see things kind of just fell off a cliff. if you take it back further, you can see a really did fall off a however now things seem to

have changed a little bit. year, comethis evening time tomorrow we will see whether or not all of these billions of dollars of money will be released. on what thatmates will be worth to the market? betty: i believe it's $30 billion of inflow coming in, giving access to chinese domestic companies. you can imagine that as that goes forward, it would be even more so. dani: what are the current thoughts? they have been currently that they have been disappointed before. eddie: i know, right? seems to be work -- waiting a lot of big decisions.

the believe right now is that it is likely to happen. it's interesting, they were maybe going to be included at a time when markets were at a peak, when the volatility was quite high. things have changed quite a bit. this might be the perfect time to let china into this because the froth has come out of the china growth story. this could be gradual. bety: exactly, and it could measured as well. we will see tomorrow. you put your money and, you get 10 times as much with the big gambling. she.basically like a slot that idea has faded. there is this interesting report

, joe, i know you went through this in the last hour, talking idea of theis whole frosting is coming out of the economy anticorruption campaign by the president. ,ut if you look at the analysis it might only just coincidence that this has happened. provinces where there was autographed, you actually didn't see that much more growth. joe: it was pretty cool, going in -- is a, there has been this idea that the anticorruption campaign was somehow i could should beating the economic slowdown. they looked at the number of investigations. invinces versus the slowdown gdp growth during that time. on the chart you can see that there is basically no correlation at all. finally the smith that everyone has out there and i tried to quantify it.

when you break it down, instances of corruption are bad for growth. betty: there's this wisdom out there that corruption helps gdp to pick up, but when you break it down by the numbers that's not the case at all. why was the timing so bad? was it purely coincidence that 10 to now 6.9?at with theso nicely corruption crackdown. betty: it might be good luck for them, it allows them to continue with this anticorruption campaign and not be blamed. it as bad timing, but in fact this could have been very good timing for the president and his anticorruption officials. joe: thank you for joining us, betty liu. scarlet: next, what do you need

to know for tomorrow's trading day? ♪

>> we got data coming out of japan. fort now the numbers are april but we know that in march it will be three and a half percent. there have been modest gains for the month so far. be looking at eurozone unemployment out tomorrow at 5:00 in the morning eastern time. we will see that number remain quite elevated by global standard. >> i'm looking at u.s. retail sales tomorrow. that is at 8:30 a.m. tomorrow

morning eastern time. that's all for what did you miss see back here tomorrow have a grea

more is there a little than 36 hours since the deadliest mass shooting in this country's history. we will explore some of the questions this hour. president obama made a brief public statements where he again promised action and also pleaded for stricter gun laws. president obama: it is an example of the kind of homegrown extremism that all of us have been so concerned about four a very long time