-- mark: i am mark barton. this is bloomberg markets on bloomberg television. mark: new polls show the chance of a grexit is declining. since 2008, we will hear from the veteran investor. then, janet yellen goes before congress and could yield questions -- mark: the impending grexit vote, we will hear from the president whose facilities are

designed to fill the link for the commercial aircraft. why his company strongly supports britain remaining in the eu let's head straight to the markets desk where julie hyman has been watching things. julie: in the united states, over this momentary grexit concerns based on the latest polling. major averages up 1%. biggest rally in about three weeks time. the s&p 500 going back to june 8. it is the last time we were close to the record. were on the s&p record watch for a while and a big slump in the market. we are not coming back to the record level. quite a change over the past

several weeks. theing back today, some of contributors, we have got apple, microsoft, jpmorgan, a diverse group of stocks. definitely helping to lead some of the gains here. at least partly in the commodity ofcks echoes we have a rally 7.5%. it tends to be a volatile stock rising overall. and continuing somewhat of a comeback at her a slump last month and concerns over the business. the tenure today having his biggest gains in yield about a month's time, 1.67%. still a very low level but six or seven basis points move is a big one. folks are coming out of, money flowing out of risk-averse at that's. safe havens. gold is down .75%.

off by 13% today, what you might expect for stocks. mark: the campaign looks to be gaining today. that is the reason for the rally we are's being across risk assets and read ross the globe. 3.4% higher today. that is the biggest since august of 2016. all of the industry groups have posted gains of over 4% today. there is less fear today. is followingx here for a second day. we are down by 12%, biggest decline in's march 11. that is significant. closing to its highest

level since august. 39.89. it touched its highest level on a closing basis since november of 2011. coming out of the market on this monday session, it is all down to two polls that took lace over the weekend at her the tragic of joe cox. the top line is significant. it is the average probability of a grexit. has come down, it friday from 44 to below 40 today. the pound rising as much as 2.2% against the dollar. that is the most since december of 2008. the height of the global financial crisis. just to put sterling's move into perspective since thursday, the lows on thursday, sterling fell.

at $1.45.are i want to tell you about vw showing signs making progress. a cheating scandal, $10 billion settlement in the u.s. german public prosecutors are looking at how informed scandal, about the potentially adding to mounting legal woes to weigh on the biggest carmaker in europe according to people familiar with the situation. up by four point 7%. what a day and what a start and what a big week we are to have. vonnie: let's check in on the bloomberg first alert news this morning. here is am a. >> the supreme court has decided to stay out of the growing debate over assault weapons bans. the highest court refused to

question assault rifle bans in connecticut. court rulingss that said the bans comply with a constitutional right to bear arms. new york and connecticut are among seven states that outlaw weapons similar to the ones used by omar mateen in asker that killed 49 people. a major shakeup in donald trump's presidential campaign. staffers tell bloomberg politics there had been friction and political -- a political veteran who had been brought in as campaign chairman. trump has been brought in to ascuss whether to shift strategy. david cameron is trying to regain the initiative as the grexit campaign and -- enters its last few days. he accused his opponents of lying about immigration.

meanwhile, the former mayor of london says cameron has not new to offer voters. the vote on the eu is this thursday. a disturbing new report from the u.n.. more than 65 people -- more than 65 many people were this lace last year. in places like syria and afghanistan field a nearly 10% of increase in displaced people in 20 16. global displacement has roughly doubled in 2011 loan when the syrian war began. investigators hope to move a step closer to solving the mystery of the egyptair plane crashed into the mediterranean. they are preparing member units of the flight data and voice recorders. the black boxes were recovered from the ocean last week. global news 24 hours a day powered by 2400 journalists in

with a 150 news euros around the world. vonnie: thanks. the referendum heating up and the polls show the remaining camp is gaining strength. has slightly ahead of 45% to 42%, a turnaround from early last week when the campaign was ahead. for more, i want to bring in the does ubs economist, maury, volatility come down from friday on word as we get a vote? >> definitely. it is pretty straightforward. no one is quite sure how this will turn out. so definitely, volatility comes back down again, if the remaining vote wins. case?: what is your base >> that the grexit does not pass

and the base case is for the , that the fed will not have to worry about the grexit anymore and the fed probably raises rates again in september. mark: that is interesting. what is the tone when janet yellen testifies for congress on tuesday and wednesday? >> i doubt she could say or will say much more about macro policy in the fund rate the then she said at her conference last week. veryontinues to be cautious. it seems like the data dependent fed puts a lot of weight on most recent data. they were sounding like they were hawkins like -- hawkish like they were getting ready to tighten and all the sudden, the tone changed. strong forr data are

june, i think the tone will change again. mark: i suppose a lot of this depends on the u.k. referendum results. >> i do not think july is live. i think the fed would like to have a little morei think the fo have a little more evidence than just the june employment numbers. by the september meeting, they had a lot more evidence. vonnie: is this something janet yellen could say tomorrow that would surprise markets? i want to show viewers the function in bloomberg and remind them that if he did not know already, they have come down and on friday, he has said he expects it to three basis points for a couple of years.

vonnie: it's the first day of summer in new york city. looking into midtown manhattan

live from world headquarters in new york. mark: let's check in with first word news. republicans on capitol hill are expected today to vote to block to democratic proposals to expand background checks and ban gun sales to suspected terrorists. they say the amendments threaten the rights of gun owners and all offering -- and they are offering their own alternatives which democrats are expected to block. this comes after the nearly 16 hour filibuster. the city of paris want to make sure it no longer take your breath away. the cars and motorcycles will be banned from certain streets during weekdays. it's estimated that will remove vehicles that contribute about 5% of the city's air pollution. paris is considered one of the laggards in perl -- pollution control print the death toll

from landslides in java is now at 47. rescue workers found more bodies today as dozens of houses were buried in the landslides and thousands of homes were inundated by floods from 16 districts and towns over the weekend. island ofanese okinawa, tens of thousands of people protested the u.s. military presence there. if hosts the bulk of the american forces stationed in japan. demonstrators were angry about the recent killing of a local woman. in italy, a setback for the prime minister in local elections. was elected mayor of rome. their firstve female mayor. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus

around the world. mark: thank you very much. in global stocks, they are surging today and sterling has spread the most since 2008. the argument for the u.k. remaining in the eu is gaining today. do you think today's rally might be a little bit premature? we are three days away from the referendum. no, i think the markets generally, particularly emerging markets, are underweight in portfolios globally so people are beginning to think that with these very low interest rates may be going lower into negative territory of many countries, perhaps a stock portfolio that pays a dividend yield at 3% and 4% is the way to go.

mark: how bad will the fallout be for emerging markets if a brexit vote materializes thursday. ? >> i think initially it will be quite negative not only for emerging markets but globally. people will feel there was a great uncertain environment for trade and investment. many people will say that some of the trade links will be cut in exports and imports will decline. initially, it will be a negative impact which may have already impacted the market. longer-term, i believe the kinks will be worked out. some of the problems in trade will be worked out and life will go on at the end of the day. does notope brexit happen because it will be upsetting for much of the countries around the world. vonnie: how are you positioning yourself ahead of the vote? are your positions related to brexit?

>> we have been focusing on domestic consumption and the various countries in which we have invested. there is an incredible number of good bargains, companies that focus on the domestic market. there are a few that are export oriented it may need be impacted. the portfolio is generally oriented toward domestic markets whether it be asia or africa or eastern europe or latin america. i know you are not really invested in europe, does look by you? get a >> definitely, we have a big operation in the u.k.. we have many funds that we sell closed endny of the funds are listed here in london. we are focusing very much on the situation here.

we help liquidity in the london market does not dry up as a result of these problems. mark: do you think a central banks will not allow liquidity to dry up? do you feel policymakers will be on top of a potential brexit if it occurs? yes, that is definitely there and they are prepared for that. i was referring to the liquidity of individual stocks and individual funds in the u.k. market. fromople start shying away investing or trading in the u.k., this could be a problem going forward. mark: other opportunities that will present themselves in the wake of a brexit? will you look at some beaten-down stocks? we will see declines but would you be looking at various

markets and thinking that this is a great opportunity to buy? yes, i think the beneficiaries will be in eastern europe. poland, hungary, czech republic, countries like that, romania, i think they will benefit from a because a lot of the manufacturing being done in the u.k. will move to europe and the logical place for it to move would be eastern europe where the costs are lower. that is one area we would focus on and we are looking at it closely now. vonnie: regardless of the outcome of the vote, many of these countries want to join the eu. should they still have that goal? i think brexit would result in a closer knit europe. brussels will have gotten the

message that they have gotten too bureaucratic, they've gotten too big and they got to start cutting some of the bureaucracy as soon as possible. i think that will satisfy those people in the eu. more importantly, a lot of the east european countries want to be part of the eu. they see a lot of benefits and are getting inflows of investments and there would be a lot of benefits going forward. will't think a brexit necessarily result in a breakup of the eu. vonnie: what is the single most important thing that any of the european governments would need to secure from the eu -- toiously, they would have remain in the eu but what is the single most important thing that is wrong with the union? i think the single biggest problem is a number of

regulations that are trying to be applied across the board throughout the countries in europe that do not fit each of the individual countries. sose will have to be cut that the individual countries can make decisions on their own regarding a number of areas whether it be various standards for food or standards for manufacturing, labor relations, that sort of. addingi think they have to -- that sort of thing. they have to step back and say they we been going to faster let's develop this on a long-term basis. to ask you about some other stories. the big news in the last 24 hours is that the central bank governor is stepping down. the rupee fell to eight one-month low. maybe there was some intervention. how much of a loss is it that he

is stepping down? it is a big loss because everyone respected him. he was doing a terrific job. he was probably the best central bank are in the world. it is unfortunate he will be leaving. a lot depends on who will replace him. believe me, there are many capable indians who can easily step into his shoes. the question is, which decision the leading party will make. that's something we will have to watch but it does create a great deal of uncertainty. vonnie: i know you are positive on southeast asian currencies but not invested in china yet. at what point will you invest in china? is it a big deal that it did not get included in the msci? a-a lack of inclusion of the

shares is not a big problem for us. we are already invested in asia through specialized funds. most of the exposure we can get through the a-shares in hong kong. if and when the chinese loosen up on the foreign exchange regulations, then i believe asia will come into the four. ore. many are concerned about the banks and there is off sheet financing that has to be accounted for. their risk schedule looks a little tight now and we got to watch that carefully. companies, the other the industrial companies, many of them will continue to do well and the internet related companies are doing exceptionally well. theirre spreading winnings globally so the technological advances they have made in china will be applied

globally. mark: let me squeeze in one more question on nigeria. i'm sure you are keeping a close eye on either an's there -- on either ends there -- on advance their. -- events there. of we going to see a lot foreigners returning to nigeria because of this move? >> yes, most definitely and it's about time they released the naira from its straitjacket. many investors like ourselves would be looking more closely at what we can buy with a cheaper nira. it was the right decision but more has to be done with regards to oil production and regards to reform in the electric sector. many good investments could be

made in electricity generation and distribution. more reforms are in order for sure. vonnie: mark mobius, thank you. we have much more reaction around the thursday brexit vote with the pound leading the most in almost a decade. ♪

mark: this is bloomberg markets. let's get you caught up on the market action around the world. the nikkei had a gain of 2.3% overnight.

is onlyghai composite up slightly. fell for it eight straight month under efforts to revive their economy. the yen surge this year continues to hurt japanese exports the latest numbers show shipments fell 11.3% from one year earlier. exports to china, the u.s., and europe slumped and exports were due to lower oil and gas prices. export prices dropped the most since after the global financial crisis in 2009. the yen has appreciated about 15% this year and there could be more pain ahead for exporters. toldormer finance minister us he's cc the yen strengthening t by the end of the year. mark: in new york, about 45

minutes left of the action in europe. the biggest rise for the stoxx 600 since august, 2015. the campaign to stay in the egypt -- in the eu looks to be getting momentum ahead of the u.k. referendum thursday. every single industry group today on the stoxx 600 is rallying led by financials, banks, travel, leisure and insurance. also big moves in nigeria. the nira tumbling as the central bank and a currency fix that caused investors to flee and sent the economy to the brink of recession. the currency of africa's biggest economy fell 24% today to a record 260.5 versus the dollar. looking at the dollar against

the pound and the euro against rally.nd, a this is a multiyear phenomenon that has not have since 2008. pound, 2.3% up against the dollar. the euro is slumping against the pound today and money is moving out of fixed income assets. they had quite a run last week. no such records today, the money is in risk assets today. abigail doolittle has the latest from the nasdaq in midtown manhattan. in fullve the nasdaq rally mode this morning, trading higher by one point 6% and outperforming the dow and the s&p 500s. a lot of the big tech names are

trading hiring putting apple and amazon and alphabet. jd.com are surging after they say orders for its anniversary sale rose 60% year-over-year and 85% of the orders were placed for more bull -- for mobile devices. goldman sachs is positive on the demand for high-quality. up for jd. sees 40% com, a stock that is down more than 45% this year. we can see the breakdown over here with a stock well below support even though the stock is rallying today. it is positioned bearish lyons com.xcept jd.

has a price target of $31. mark: thank you. vonnie: it's time for our bloomberg business flash. german prosecutors of open an investigation of the former volkswagen ceo. he faces allegations of market mean up elation in connection with their scandal over cars rigged to cheat on diesel emissions tests. u.s.n submit a $10 billion settlement in the u.s.. selling itself to francisco partners management. expected to close between june and i over. -- and october.

last year, this could fetch a valuation of 12 ilion dollars. -- 12 billion dollars. that is your latest bloomberg business flash. the, telecom is beefing up its of that its executive team. we will talk with the ceo about competition and plans for the future. ♪

vonnie: you are watching bloomberg markets. the cycling equipment maker sells a stationary bikes to home user and connects those users to spinning classes that can be streamed live or on-demand. you don't need to leave your house.

we have the new cfo. indoor cycling is a fitness category that has seen meteoric growth. it's expanding outside the major cities. you can go and get a great workout at full cycle. operatenesses fundamentally different. they both happen to be centered around spinning and cycling fitness. at full cycle you think get a great workout and you have to go to their studio and take their classes on their time schedule. ton is based upon the premise that most people find great value in health and wellness and we want to offer them the ability to do that in the privacy and comfort of their own home. [indiscernible] >> we create our own content.

we create 12 hours of content every day. the bike is around $2000. the monthly subscription fee is $39. for that come you get unlimited content for a limited members of your family and home so it's a great value. vonnie: you can bicycle all day. mark: i am doing that right now. no one can see me. in your previous guys, you supported luxury power retailer and supported markets and lifting their shares in going public. goesong before peloton public? >> it's anybody's guess. right now we are focused on growing the business and expanding the business model. we will continue to look at strategic alternatives for my capital structure perspective. as far as timing, many of the things related to timing is out

of our control. we are trying to well positioned the business to take advantage of any opportunities that present themselves. mark: what about opportunities internationally? have riders ine 22 different countries even though we don't technically sell internationally. our brand resonates strongly across the world. we are working internally to figure out all of the complexities of going international but it's something that clearly on our radar. we are evaluating a commercial distribution platform. for youour thanks joining us. they are opening up seven more retail stores. you can read more about all sorts of bloomberg story on the bloomberg. mark: coming up, we are going to

look out a rally we are seeing today in light of the latest brexit poll and the focus is on sterling. we'll talk to an online betting site that employs 78% probability of a remain vote. this is a look at european stocks. we are 35 minutes away from the close. the biggest rally for the stoxx europe 600 since august last year. sterling against the dollar, the and therally since 2000 risk assets are rallying today. the european closes minutes away, stick around. ♪

vonnie: it is 11:00 a.m. here in new york and 11:00 p.m. in hong kong. from bloomberg world headquarters in new york, i am vonnie quinn. mark: i am mark barton and we

are 30 minutes away from the end of the monday trading day in your. you are watching the european close on "bloomberg markets." ♪ mark: we are going to take you from new york to london in the next hour. here is what we are watching today. we are seeing i a rally in the u.s. and europe today. brexit driving with the remain camp leading. vonnie: just three days away and campaigning for brexit has resumed. david cameron says the leave camp is trying to deceive voters. a big win for the heroes of flash boys. after month of delays, the group secns approval from the to become the 13th official stock exchange. mark: