good afternoon. it's a final hour trading in u.s. stocks are having the biggest rally in a month. investors in a buying mood as the campaign for the u.k. to stay in the european union gaining a minimum before this week's referendum. vonnie: local rivals may get bolder in taking on the world's largest technology company. david: facebook holding its annual shareholders meeting. what does it mean for the future of the company? where one hour from the close of trading here in the u.s. left, i have to say that markets are almost looking sideways right now. the numbers you see on the screen have pretty much stayed the same throughout most of the day.

coming off the session highs the buy a little bit but s&p and nasdaq up, a lot of it -- i want towith show you what's happening across the board with the s&p, energy now the number one leader of by 1.4%. industrials and consumer discretionary of 1.3 percent or so. generally it's a broad rally, utilities negative on the other side of the flatlined. canrials of by 1%, and you see that generally were seeing a rally of materials as well. industrial metals rising across the board aside from gold. at its highest in about a week. let's look at what's happening with wti crude and nymex crude,

pushing the bloomberg commodities index up. up by about 2.6%, also its highest in a week. you would expect it would be a risk on environment, and it is when you look at what's happening in terms of the safe havens. gold futures coming down about .3% in the u.s. 10 year yield is up by six basis points. last week it had been as low as 1.58 or so and it's now up to 1.67%, the highest in about a month. vonnie: water of the individual movers looking like? >> one has to do with carl icahn, the one of the biggest shareholders in federal mobile holdings. it is up about 5%. it had been higher by 10 percent earlier in the trading day but the big reason for this move is because basically carl icahn is

raising his offer to eight dollars a share in order to buy the rest of the auto-parts maker. potentiallyng it's his strategy to get this as well as two other car companies including pep boys and auto plus into one major company altogether. in addition, let's look at what's happening as -- at walmart. walmart is up by .5%. jb.com is up by 5.5%. david: mark crumpton has first word news. mark: arguments on whether to dismiss a lawsuit against maker of a semiautomatic rifle used during the sandy hook attack. to get theing lawsuit tossed based on state

and federal immunity laws but those suing say the company knew its ar-15 style rifle was meant for the military and was too dangerous to sell to civilians. the judge requested a similar request in april. 20 children and six adults were killed in that 2012 attack. leads donaldon trump by seven points in a new national poll. a survey of registered voters has mrs. clinton up 47%-40%. among likely-40 1% voters but the lead shrinks when third-party candidates gary johnson and jill stein are included. bernie sanders secret service protection is reportedly costing taxpayers more than $38,000 a day. the washington post reports that providing agents to guard sanders at home and while he travels could cost taxpayers more than a million dollars a month. sanders will have secret service protection until he officially ends his campaign.

british prime minister david cameron trying to regain the brexitive as the campaign enters its last few days. cameron is trying to capitalize on a swing in momentum back to the remain camp. he accused his opponents of lying about immigration. the former mayor of london says cameron has nothing new to offer voters. the vote on the eu hits this thursday. day,l news 24 hours a powered by our 2400 journalists around the world. i mark crumpton. a big day for the markets, global stocks having their largest rally since january. you -- u.k. toe stay in the european union is gaining momentum. joining us is a portfolio $5 billion.manages let me ask about your outlook,

kind of negative when it comes to equities. next the thing that's intriguing is, i get all the reasons to be negative. we have some geopolitical events, earnings growth has not been very good this year. we have an election. the problem with all of that is the market is positioned that way. there is a lot of negativism around the market. if you go back and look at history when the positioning gets this negative, the market goes up. the path of pain is higher because of the position. the bull to bear ratio is low. lowball stocks are expensive relative to market. if you go back and look at history, the market goes up, not down, when you get to these levels. people are expecting the market not to do well. basing any ofu this on fundamentals?

some reasons to believe the u.s. economy will accelerate in the second half of this year. through may oil prices were down youyear over year, but if fast forward to december of this year, oil prices will be up year-over-year 30%. we are passing the point where oil is dropping. so energy will benefit but not the u.s. consumer. andrew: year-over-year comparisons will start to improve. the dollar appreciated through 2014 into early 2015 but then ran out of steam. tough year-over-year comparisons until now. that will start to get easier for exporters. believe theons to economy will accelerate in the second half of the year at a of theen a lot

comparisons for cyclical value stocks will start to look at her. that's why you're seeing commodities doing better and so forth. the tone of the market is starting to show you that things will get better, not worse. emotionally people are having a isd time with that but that it. about the me ask referendum and how that is weighing on your mind. andrew: i have no ability to predict the outcome and i believe that to other people. i think the positioning is very negative. if you get data like today, that is what is going on. commodities and materials that industrials and energy doing well, that tells you that the market is ripe for that kind of bounce to the upside. being the senior haveolio manager, do you

european positions? yes, we do. we have 20% of our portfolio in european stocks. i don't think the value trade will work as much in europe as it does here. the u.s. economy is accelerating, so the biggest opportunities are actually in the u.s. from a value standpoint. david: how important is japan? andrew: i understand all the arguments for fiscal and monetary policy but the real weston is, can you change a culture? what is fascinating is, the u.s. market from the fourth order of 94%.through 2014 rallied the s&p was up 94% from the through 2014.011 it has gone sideways ever since. the market is taking a breather. big digested all those

returns off the low of 2001. when i look at where the best opportunities are, they are right here in the u.s.. the economy is going to accelerate. we've gone through a digestion of return. japan has some intriguing companies but i would not make a big bet relative to the u.s. because the u.s. has not done much. i know we are bullish on financials at this point. how much would you put into financials? andrew: sure. we been underweight financials literally since 2009. that's because i felt that with recalculation of the financial industry, historically it goes through a time where you have reregulation. the key question is, the next administration, on the margin could there be some positive

change as it relates to some of the things that have way down the financials? number two is, if the economy does accelerate, it will help the financials somewhat. number three is, it's the one area of the value sector that has not rally. energy has done pretty well. catch-up. might play is naturalportunity gas. these stocks are active, passive in a lot of publicly traded. pretty good dividend yields. i think there is a lot of opportunity there. i know you launched three new finds today. why do that? people like to invest in mutual funds, so we can mimic them in the mutual fund format.

vonnie: you can find them on bloomberg. applied equity advisors. david: thank you very much. vonnie: apple's patent law in china could be the start of more legal trouble for the company. more competitors lining up to take on the iphone giant. that's next. ♪

vonnie: a quick check on the markets now. dow, upk first at the 1.1%.

the s&p 500 is just under 1% higher in the nasdaq 1.2% higher. we will see what the next 44 minutes bring. david: time for the bloomberg business flash. google may have web m.d. in its crosshairs. an announcement from google that updating its search bar to find detailed symptoms for common diseases. it helps users bypass pages of unnecessary information. barclays head of restructuring has left the ,nvestment bank to join kkr according to a person with knowledge of the matter. david: an agreement with viking air to the sale of the

amphibious aircraft program. the program was caused in december of last year. --s part of its renews renewed focus on its core business. vonnie: panasonic will begin mass-producing components for an car batteries ahead of schedule. earlier this month the ceo elon company ism the working exclusively with panasonic to build its batteries. that's your bloomberg business flash update. david: apple is under pressure on a number of fronts. now comes another challenge, apple has lost a patent fight in china and it could spell more legal trouble ahead. anding us is matt larson

betty liu who has been following the story. matt, walk us through what happened. this is specific to beijing. matt: essentially what is happening is, there is a small rival in china that has asserted apple's iphone products infringe some design patent that are directed to the way a device nots, the way it appears, any of the internal functioning of the phone. injunctionranted an that essentially would require apple to stop sales. apple is appealing the decision but the question looms whether chinese courts will have the authority in the future to ban future sales, whether additional rivals will come after apple for similar legal claims. vonnie: does apple face any immediate sales threat? betty: possibly, but not likely.

i'm curious to hear about some of the attempts apple has made here to do well with the government, tim cook went to china, they invested in this uber rival. is any of that going to mute some of this impact at all on possible sales in china? matt: i think the goodwill may little.hat a it's difficult to tell what the appeals courts will do. -- the patent is actually directed to some features that are on apple's older devices. even if the injunction moves forward it will not be a huge impact on next-generation and new generation iphones, but apple has made a huge investment in china and has been working with the chinese government. apple's global strategy has been

focused on playing well with the host nations. some of that goodwill will carry the day but ultimately these are legal proceedings that take anywhere from a couple of years to four or five years to really play out. the focus on whether these patent infringement suit will stick apple with an adverse judgment depends on each individual case. apple has thoroughly positioned themselves to be well regarded by the chinese government appeals court. vonnie: we'll think of china as a place where intellectual property laws -- is this a change in the tide? least an indicator of some of the progress that's been made over there. there was a long time when u.s. companies considered china to tread on intellectual property rights. there was a mantra of don't send

things to china because you will get rid off. china has made a big effort in changing that are starting to see that play out now. a brawl in the courts when it comes to intellectual property protection. if you are a smart phone manufacturer or someone looking to enforce your legal rights in china, this gives you a little bit of hope that maybe there is a changing of the guard and moving forward you will be able to protect innovation and inventions and unique design characteristics in china. vonnie: our bloomberg intelligence litigation analyst, thanks for joining us from washington. betty: does apple story is the perfect story that we will be covering at daybreak asia. the reason we are launching the show, is a relaunch of the morning program on bloomberg television. even though i know you're

counting down to the closing bell, investing does not stop at 4:00 p.m.. for many of our viewers, the have a global approach to investing and they're looking not just that companies and markets here but those in europe and asia which is a growing market. we're going to tie all the u.s. stories to the asian stories and give our viewers unique content. i never slept anyway. be sure to 10 in for bloomberg daybreak asia at 7:00 a.m. hong kong time. you can watch it on bloomberg where ever you are. moore bloomberg markets coming up here after the break. ♪

david: time for options inside.

jim joins me here in the studio. we're seeing a broad rally over a brexit fears, in terms of energy, financials, etc. what is your take on this? rally for riskve assets broadly. we pointed out this morning that the s&p 500 10 day realized volatility did not get above 9% in june. for those who feel like we went through some sort of shocking u.s. equities, he did not. british pound volatility is as high as it was in 2008 in the midst of the financial crisis. got to the highs from february and august. volatility, equity

what was left out was u.s. equity volatility. we make the assumption that volatility has he and markets anticipating the brexit outcome with the u.k. eu.ing in the a lot of people are talking about brexit. puerto ricoing at and what is happening there. why are you looking at puerto rico? what's interesting here is, there is an opportunity to trade legislation in the u.s.. the bill is meant to help with restructuring of puerto rico. they will set a control board in place to help with debt restructuring to help restructure the economy and we expect that could pass before july 1 when they have a big debt payment coming.

they want to take advantage of term structure. august, then go all the way out to november and buy a nine strike call. the expectation is stock is stable to higher and we had that nine strike call in case we see a spinoff of the u.k. business. david: an interesting way to trade on legislation with puerto rico. brexit is definitely not the only thing happening out there. facebook investors improve a new class of stock. ♪

scarlet: you're watching bloomberg markets. : are crumpton has more from

the newsroom. mark: the u.s. supreme court once again decided to stay out of the growing debate over a assault weapons bans. they refuse to question assault weapon ban and left rulings that the they comply with constitutional right to bear arms who did republicans on capitol hill are expected to block to democratic proposals to gunnd background checks and sales to suspected terrorists. they say the amendments threaten the rights of gun owners and offer their own -- offer their own alternate that democrats are expected to block. were learning more about the orlando nightclub shooter, over at tea. the fbi released partial transcripts of his calls to 911 and crisis negotiators.

the killer identified himself as an islamic soldier who pledged allegiance to a terrorist organization which was bent on killing americans. quick ntill the fbi says omar matee was radicalized in the united states and not by a foreign terror group. he told the crisis negotiator that the u.s. needed to stop bombing syria and iraq and after criticism, the fbi and justice department now say the complete transcript will be released. there's been a shakeup at donald trump's campaign. isager corey lewandowski out. staffers have said there was growing tension between him and the campaign chairman. senior campaign aides say he will now service campaign manager and is the manage art. lewandowski was a controversial figure who grabbed a reporter's paramedics campaign event in

florida. prosecutors investigated filing battery charges but decided not to. sayhampshire gop officials lewandowski remains chairman of the state convention delegates. dayal news 24 hours a powered by our 2400 journalists around the world. i'm mark crumpton. the u.s. stock market is getting medicine close in under 30 minutes. in the last 10 minutes we've seen a steady paring of the gains in all three major indexes. is up by 1% but still well off the highs of the session. abigail doolittle is standing by. abigail: still up 1%, a nice rally for the nasdaq. the index having its best day since may 24, being driven by strength in technology, especially the internet space.

jb.com stock is sharply higher, the top percentage performer in the nasdaq 100, having its best day in two months. there are two reasons, first the was aies anniversary sale big success. the company said sales were up 60% year over year and second on the news that walmart is buying a 5% stake in j.d..com after struggling to find the right approach in china. shares down more than 30% on a disappointing outlook. we see this weakness with the so thengling below, stock is positioned somewhat bearish leon the year. perhaps they can trade higher in

the range for continued strength. it's a wait-and-see type of situation for the shares of jd .com. expedia,what about what is the story there? abigail: expedia having its best day since the end of april. atlantic securities upgrading expedia from overweight to neutral. nearly a 20% upside potential for the shares of expedia based on expecting numbers to improve. another online travel agent, priceline trading as well. lots of strength for the internet names today at the nasdaq. scarlet: abigail doolittle reporting live from nasdaq. facebook investors will vote on a proposed new class of have mark will

zuckerberg remain in an active role. the annual shareholders meeting into just earlier this hour. what were the big headlines? >> the reelection of board including peter thiel who was involved in the controversy lawsuit, and shareholder proposals that give mark zuckerberg control of facebook for as long as he stays involved in the company, those votes were approved. zuckerberg are ready majority voting control of facebook shares so it wasn't that much of a surprise, but it was interesting to hear people speak at the meeting and raise their concerns. what were some of the other questions that you did here? investor came up and said

how concerned she was about governance, given that this would give one person control of facebook for as long as he stays involved, even if he sells off his stock. she thought that was just a bad way to arrange things. there are other interesting .uestions, name me about china sheryl sandberg answers that they are focused on learning about china right now. they are testing the waters there. she didn't give any timeline but said the company's goal is to eventually connect the world to the internet, and obviously is a huge population of internet connected people. again, notmind us only is facebook not allowed in china, instagram is not allowed either. >> the company has been blocked since 2009. they do have operations in china

selling as exporters. there is an option in beijing that caters to those needs but they've not gotten any closer to becoming unlocked so that people can use their service widely. oculus, thet about virtual reality part of the business that mark zuckerberg offer wide a bit of money but we have not heard much about it. he wants to be in control of the next major computing platform. he thinks the next major platform is virtual reality. he says it's going to be a very social technology, you will be having adventures with your headsetvia your oculus and traveled together to places that are stored, you can have

meetings, telecommute, so he was trying to explain that although it seems out of place for facebook to own a consumer gaming product, over time it will become more -- one of our more social technologies. scarlet: thank you. come we do tv from oculus? that would be very cool. coming up, as the eu referendum -- u.k. referendum nears, one thing on the voting bloc is u.k. subsidies. we will hear both sides of the .rexit remain case ♪

scarlet: this is bloomberg markets. alix: a quick check on the markets as we head to the close. gains across the board, the nasdaq up by almost 1%. the nasdaq losing a little bit of steam to the downside and the dow and s&p are holding on to their gains. pervasive from asia to europe and now to the u.s.. aboutt: utilities down .25%. time for the bloomberg business flash. venezuela is highly unlikely to have the money to make its debt payment this year, according to moody's. country's the state-owned oil company has large payments due this year and is likely to default.

could it compromise government finances? boeing may be able to extend the life of its venerable 747 after all. woulde cargo airlines convert a commitment to buy two firm orders. sales have dwindled and airlines have shifted to more fuel-efficient planes. scarlet: nigeria's local .urrency plummeted the move was forced by spiraling economic crisis triggered by the crash in crude oil prices that accounts for most of the countries exports. u.s. supreme court has upheld the process for challenging invalid patents. to uphold a ruled

legal standard used to invalidate patents by new appeals or at the u.s. patent and trademark office. that's your business flash update. focus is number one the brexit vote in the u k and there is much at stake including subsidies to eu members. eu provides funds to less affluent members and britain is the third-largest contributor to that budget. if we can pull that up again, you can see that romania and bulgaria are slated for smaller allocations. if you take the u.k. out of it, what does it do for those countries? it means more of a burden on countries like germany and the netherlands and northern europe.

this is a big sticking point for those who are pushing to exit the eurozone. it's the contention of those who want to leave that the money will go toward subsidizing others staying in. >> the needs for germany and the united kingdom are very different. the big change in factors as the currency. once you create a single currency without a political union it will function, and that's what they learned. in order to address the shortcomings of the eurozone so they can deal with youth unemployment, they can deal with the trade deficits in some way, they need to integrate more deeply. for us it's more outward looking. over the years for the united , the market is becoming less significant.

i think the future is global. if it had not been for the fact that i heard all the stories before when there was a question about whether to join the single currency. bmw invest in the united kingdom because their engineering skills allow them to have a manufacturing plant for new products which are reliable. we trade because we have better products. skills, innovations that drive it, not trade agreements. you really need to look at the link between the pound and goal, which is a safe haven. the top panel shows that dichotomy. gold has been climbing recently and the british pound versus the dollar in light blue. you can see them moving in opposition over the past couple of weeks.

the inverse correlation over the past 30 days is the strongest it's been since 2014. you have to go all the way back to hear to get that inverse correlation. fallen, gold has has gone up, even in u.s. dollar terms. that shows that brexit fears are affecting both the metal as well as sterling. it's all about how you hedge this, what's the cheapest risk. hedge the exit going for the pound is very expensive. earlier we hadng investor wilbur ross discussing implications for the pound and the larger market in the event of a brexit. let's take a listen. >> it would be the most expensive divorce proceeding in the history of the world and the most complicated as well.

we have continued a long position rather than trying to hedge. >> is it because it's too expensive or you just think it won't happen? >> we felt the british public would come to its senses and not make that for a decision to leave. it would be terrible, not just for sterling, for european markets, u.s. markets as well. how muchnow percentagewise but you can already see the volatility that has occurred in the last week as sentiment shifted from state to leave and now back to remain. >> when you think about what , do will mean more broadly you think there would be

problems as a mechanical process? be a tremendous withdrawal of capital from the u.k. in terms of open market securities and in terms of foreign direct investment. severalr in the last there have been more foreign direct investments into the u.k. from the eu that even from the united states. >> on a trading day by day basis, you talked to a lot of people and they're concerned already about the amount of liquidity to market has. there is a concern whether or not the market will be able to function, that it would operate on a credible basis. >> i don't think it is a lehman moment in that i don't think the world comes to an end. it would be a severe problem for the u.k.. the average home in the u.k. is

around 250,000 pounds. it,ou allow for leverage on if the housing prices went down 10%, that would wipe out something like half the net worth of the average u.k. older person. so it's a very serious issue for them and i don't think they really recognize it. they also don't recognize what grouphappen if the leave one, the price of petrol would go up and the price of lots of ,mportant things would go up and yet it's the people who are retired who seem to be most in favor of leaving. that is really strange, because in most countries, the older people are more conservative. here it is the young people who want to stay in the old people who want to plunge off into the dark. it's quite counterintuitive. and everyone in the u.k. is preoccupied at the

moment. we will pick that up again tomorrow. coming up, the close of trading is just moments away. take a look at the major indexes . ♪

scarlet: we're joined by our colleague joe weisenthal. alix: 10 minutes until the close of market. scarlet: let's start with u.s. stocks. we started the day higher but paring some of our advance as we head into the close, especially in the last eight minutes or so. we've seen a tapering of the

gains. nine out of 10 groups are higher , utilities the laggards here. stapless and food and of doing a little bit less well. this is certainly a risk on situation where the defensive safe haven types are underperforming. joe: if you look at the screen you see yields rising across the board, the inverse of what you expect there. seen as in a row we have release of some of these safe haven flows into treasury. move havingk on effective higher yields. alix: the story of the day was currencies across the board. its biggest rally against the dollar since 2008, up over 2%. your not supposed to see those kinds of moves in the pound.

the yen did lose a little bit of steam earlier in the session but was not able to sustain that and far its way higher against the dollar. the yen a little weaker, then a little stronger. joe: it's interesting to see so much strength in the pound that is not carrying over into other areas. you would expect to see weakness in the risk on move from the pound, but it's interesting watching the stocks not be able to hold on to their games. still some nervousness going on. let's bring in danny berger, the nasdaq while tack index has been the lacquer. lagger.een the

it had fallen for nine straight days through friday. nasdaqthat time, the lost about 8.5% and got a little reprieve today. >> this is an index that has fallen almost 24% year to date. when we have a day like today, a lot of folks are saying it could be a dead cat bounce. valuations are high among biotech companies. when you head into a risky environment with uncertainties, these will be the stocks that investors may want to get rid of. lots of volatility there. it may just be because of the overall risk on environment, perhaps not favorability toward the sector itself. you have some individual company news that led to it being cooled off.

it switches overnight. about anysay that sector. here, a back-and-forth lot of volatility even on a day like today when we see the vix falling back to about 20. scarlet: that does it for bloomberg markets. take a look at how the major indexes are faring with less than four minutes to go before the close. ♪

alix: the question is, look at this. signs the campaign for the u.k. to stay in the european union is gaining momentum. >> plus nigeria's plummet after the central bank ended a 16-month long currency fix. will this move bring foreign investors back into the market? >> earnings released tomorrow. we look at how much of a threat amazon's idea of its only delivery network poses to the shipping giant. we begin with our market minute. the band is back together once again. the dow beating more than a hundred points. this is the s&p 500 best day since may 25. if you break it down by sector you have 9-10 major groups higher. the exception is utilities. you only