>> from bloomberg's world headquarters in new york, 12 hours until the polls open for the brexit referendum in the united kingdom. relief rally if the u.k. votes to remain? >> what will happen to the pound sterling. has advice on how investors can protect themselves. calls donald trump hillary clinton a world-class liar. clinton will liver a speech later this hour. close in about two hours. >> markets are in mixed territory. brexit all the time. this is a snapshot of where we

stand. the dow is down. about a 10th of a percent. what has been weighing on all of our minds is over in the u.k., the latest brexit poll coming in 44% stay. 9% undecided. we are off of the session lows. let's happen to bloomberg. imap, looks like six of the 10 sectors are trading in positive territory. health care has been the biggest leader for the day, up when 7%. telecommunications about .4%. energy is lower. the energy sector is down about half a percent. care, it turns out medicare spending did not go past certain targets and so the new advisory board was not

triggered. analysts thought that would be triggered. that is why we are seeing a leg up. ofterms of over the course the day, with the s&p intraday chart, we can see we had started up on general positive trajectory until the brexit poll came in. p.m. marker.1 up about .1%. let's take a look at some other stocks. not related to brexit, these are the gun brands. i want to point out, smith & wesson up 3%. been 30 houston cuts have staging a sit in in terms of a protest. they are trying to vote on gun control measures after the orlando gun massacre where 49

people were gunned down. yesterday nine senators unveiled a plan and mitch mcconnell said they are going to try to have a vote on that. fedex andompany news, hewlett-packard, fedex is down on the order of 4%. the biggest fall in about five months. the reason is because investors are disappointed the company is lacking transparency in terms of acquisitions with a dutch shipping company. basically analysts expressing frustration because they don't know whether there will be negative. hewlett-packard is also down 4.5%, the lowest price in a month. it is lowering its free cash flow by $300 million. reinvest into its printing business. david: and some health insurance

deals. what did we learn? >> the doj is in focus right now. senate democrats are lobbing them to stop two deals we were talking about in july of last year. one of the deals deals with aetna and humana. both of them are down right now. this is a $29 billion deal proposed last year. in a letter, many democrats said we are concerned about the impact on these mergers on premium prices, jobs, and health care costs. that is one. and out them as well as cigna, anthem is down 2%. cigna, we will say that is flat. that is a $60 billion deal on the heels of the aetna-humana announcement. the doj has expressed concern that if these came to pass, four

of the five biggest companies would turn into three. david: very interesting. mark crumpton has more from the newsroom. the investigation into the egypt flight is delayed by a damaged computer. officials say a team of experts has to clean out salt from more than 200 electronic circuits to determine which one is preventing attempts to read the memory unit. benjamin netanyahu and john kerry are scheduled to meet in rome on sunday. resuming peacess talks with the palestinians. those negotiations collapsed two years ago. 30 houston kratz, led by john lewis, staged a sit down protest today seeking a vote on gun control measures following the nightclub shooting. ryan keep thepaul to debate andsion

vote on gun legislation. >> we are calling on the leadership to bring common sense and control legislation to the house floor. give us a vote! let us vote! we came here to work. mark: the house was not in session when the democrats held the demonstration. leaders ordered c-span cameras turned off. dennis hastert has reported to a federal prison facility in southeastern minnesota where he will begin a 15 month sentence after he admitted guilt in a hush money case to conceal past child molestation. he is one of the highest-ranking u.s. politicians to ever serve prison time. global news 24 hours a day powered by more than 2600 than 120ts in more

countries. i am mark crumpton. this is bloomberg. david: more coming up in just a minute. and we will pivot to the u.s. economy and politics. weighing in on gun control and on the presidential election. ♪

you are watching "bloomberg markets." debate in the u.k., to stay or to go. heat.exit is in a dead

an online survey shows 45% for leave, 44% for remain. so much more can be found on bloomberg app. you can see all the stories related to the latest polls, the probabilities, and then if you you to get really charty, can see it on one big screen. this islook at all of one advisor. us-based equity investors have been pulling money from the u.k. left and right. not so much u.k. investors. >> we have been a little bit risk off the last several weeks and months actually. not specifically due to brexit, but we prefer fixed income and credit. vonnie: in the u.k. or -- >> it looks like a reasonable

value, but clearly there are some risks and currency volatility is causing that to be a question mark. david: highlighting the poll numbers, making predictions, how difficult has this been to forecast? >> we have not attempted to forecast it. you don't want to be on one side or the other. veryncy markets are skewed. risk reversals are telling you it could be more downside than upside depending on the results. the second round effects might be more. david: have you gamed it out? thee thought through short-term and long-term. there is a currency impact. ae long-term, when you've got dead heat, it may not be decisive in terms of relationships with europe. vonnie: interest rate differentials fueling most loans

these days. where are you liking in terms of risk reward? bill gross thinks -- fore will see rates longer some period of time. the insurance and pension areas have not crept into u.s. dollar bonds. that would be logical given the terms and the dollar appreciation. they have really changed spreads. many investors are being strangled. in the u.s., there are more choices for people and they can take a little bit of a spread risk and we think credit will be rewarded. david: it might if we saw last summer with all of this grexit f vote, did that help prepare folks in the market for what we see this week? >> i think this is different. in the longerons

.erm are much more significant certainly if the u.k. leaves. if it remains, it remains to be seen how that impacts the relationship the u.k. has with europe because the remain vote can't be ignored completely. where is the money you have taken out of equities being put? is it in cash? diversified. we have credit exposure, commodities, we've tried to be as diversified as possible. and from a global perspective. there is a limit. if you really have a risk off rapidlyorrelations rights. you need to look for other things, hedge funds, to really look for the long-term transactions. they are not easy. vonnie: even some of those seem crowded. are you talking about smart data

and fundamental indexing? >> i would not say it is crowded. it depends how you define that. it has become popular. away fromng money people who had those exposures anyway. there are many more things other than squeezing money into seener that we have investors do, chasing less liquid assets. david: what is the next chapter once we get past this? this has been attracting concern, will we see more volatility and a look at fundamental problems with economies in the u.k. in europe? >> if you are asking about u.k., productivity growth and economic growth being low, the u.k. has a lot going for it. to the u.s. applies as well as we have a low growth outlook and a little bit of a challenge how that is going to get better. to chinan will focus

and whether china represents a much more significant risk. why we are underweight in emerging markets. it could be a value trap. we should wait for clearer signals. you very much. chief investment officer at state street global advisors. ♪ you're watching bloomberg. vonnie: this is your global business report. volkswagen held a meeting. will the ceo's apologies turnaround investor sentiment? david: we will dig into h&m's results. withe: how have relations hong kong and china involved? a bloomberg quick take. first, janet yellen appeared .efore congress this week

she said there has been a pickup in domestic growth. >> we are seeing a pickup in growth. there has been an increase in consumer spending. if that turns out to be the case, and i see the fundamentals as remaining strong, i'm very hopeful that we will see a pickup in job growth. david: volkswagen is trying to appease unhappy shareholders. the ceo apologized to investors since the scandal last year. shares are down 20% since then. he has short up internal controls to avoid a repeat. a merger could set a record is the biggest m&a deal ever in the middle east. that is if it goes through. the national bank and first gulf bank are in talks to have a combined value of $30 billion. h&m felt the pain of a cold, rainy spring in europe.

profits fail thanks to the week's sales growth in three years. the mark to down merchandise that was not selling due to the weather. ourie: it is time now for quick take where we provide context and background on issues of interest. hong kong's citizens have never chosen their top leader, not in nine years. prior 156 years because it was under british rule. the prospect of the first direct election of a chief executive has increased tensions between hong kong's yearning for a time automony. for tens of thousands flooded the streets for pro-democracy protest. it became known as the umbrella movement, after they sought shelter in clashes with riot police. authorities were resolute and so the protest

fizzled without achieving its goals, free popular elections and the resignation of a chief executive. candidates must be screened by a committee which would give anyone a veto over viewed as unfriendly to the central government. here is the background. the 1984 british transfer agreement specified china would give hong kong a so-called high degree of automony under a principle called one country, systems. the top official was to be chosen by a nominating process which gives you citizens a voice and puts beijing and control. in 2000 seven, china promised open elections starting in 2017. here is the argument, though the public tired of the 2014 occupation, the students claim they embolden citizens to demand democracy. groups say they

never offered to suffrage and the occupation damaged hong kong's rule of law. the probe democrats argue increasing china's meddling violates their pledge to respect its principle of one country, two systems. that is your global business report. for more stories, visit bloomberg.com. david: still ahead, we will speak with brad sherman and get his reaction to donald trump's attacks on hillary clinton. he called her "a world-class liar." ♪

david: this is "bloomberg markets." after answering question on the economy, janet yellen has wrapped up her testimony before congress. joining us is a member of the house, rather sherman, democrat of california. i wanted to ask about the fed

mandate and what side of it you are concerned with. i'm concerned about jobs and a healthy economy. inflation is not the problem. every time i go home, you meet people unable to get a job that pays much more than minimum wage. there is a labor shortage and it drives wages up. the idea that people, we have a low unemployment rate, that is low labor participation rates. vonnie: how would you characterize the performance of the economy? are you satisfied with it? mr. sherman: we are crawling out, finally, of a deep canyon on our bellies at the speed at which somebody crawls. we need to be robust and we need , i wasthe fed

disappointed to see them increase their interest rates and hopefully they will announce they are unlikely to have additional increases. businesses need to know the economy is going to go forward and the fed has put on the accelerator. the most recent meeting, they have been shuffling around a little bit. now they are not likely to be increased the rest of the year. i can pull it up on the terminal in tell you, not even december. not even in february. janet yellen yesterday said she was disappointed central bankers were having to shoulder the weight of growth and that fiscal policy makers should do more. what could you do? to seerman: i would like us build infrastructure. you hate to see us increase the debt. if you bequeath your children good rail transportation,

highways, the fact you are giving them more debt seems to make sense. we could be putting americans to work if we would build what we need to build. david: both of the presumptive nominees have been talking about the economy. donald trump talked about trade. let's hear what the of to say. adopt themp: she will transpacific partnership and we will lose millions of jobs and our economic independence for good. , just as shehis has the trade the american worker at every single stage, it will be even worse than the clinton's nafta deal. david: is this something you agree with donald trump? tasteerman: this is a where i agree with hillary clinton, who agrees with donald trump. we should not ratify and adopt the transpacific partnership. we need deals that will reduce

our trade deficit and that are not especially not ones where we have a free-trade agreement with a communist country like vietnam, correction, where the rates can be $.50 an hour. there is no way for american workers to compete. then you say we have access to their free market. they don't have freedom and they don't have markets. you don't get access to anything except cheap labor. that does not help american workers. i think hillary understands and has come out not only against it, she has come out against considering it during the lame-duck session, which is the only device that could be used to get congress to pass it. if we vote on it, we will vote it down. david: a question about guns, your colleague leading a protest.

is that a movement you intend to join? mr. sherman: i did join it before i was on the air with you. no bill, no break. congress should not be going home without acting on the need for common sense gun control. thank you for your time today. brad sherman, member of the house, joining us on "bloomberg markets." still ahead, the commodity" and up and the impact of brexit. will be our guest. that is coming up on bloomberg television. ♪ . . okay, ready?

whoa! [ explosion ] nothing should get in the way of the things you love. ♪

get america's fastest internet. only from xfinity. by switching to xfinity x1. rio olympic games show me gymnastics. x1 lets you search by sport, watch nbc's highlights and catch every live event on your tv with nbc sports live extra. i'm getting ready. are you? x1 will change the way you experience nbcuniversal's coverage of the rio olympic games. call or go online today to switch to x1. david: from bloomberg world headquarters in new york, i'm david gura. vonnie: i'm vonnie quinn.

you are looking at a live shot of hillary clinton. she speaking on the economy. if you want to watch the speech, go to live go on the bloomberg. david: let's head to the markets desk where ramy inocencio is standing by. ramy: i'm looking at gas and oil prices off the latest data for weekly inventories. let's take a look at what is happening with wti crude. we hit our session lows in just the past half hour or 20 minutes, but up slightly off of that, 1.5%. the reason for these slide that we saw was new u.s. supply data 900 out seeing a drop of 17,000 barrels. the forecast was for 1.5 million barrels. the reason for this was a jump in exports, which rose to its highest level since december 2012.

i want to show you what is happening with the change in crude oil inventories through october 2015 all the way through to today. for the past five weeks in a row, this has been a weekly fall, but the most recent weekly fall is the most -- is the smallest in the past five weeks. natural gas also falling, seeing its session lows right now. this is its first down day in the past four days but from the eia, the agencies saying soft palate rose. the weather is also a factor. we were talking about record temperatures in the west and southwest. much,atures dropping, not but that's a factor. let's look at what is happening with gold, especially -- especially with the new exit

poll out. gold futures are higher but still down on the day, about .3%. and still down for the fourth day in a row. toward thee head brexit referendum, it might be good to take a look at the swiss franc shock. swiss they said they were not sure the euro was sustainable and took markets by surprise. joins us now. give us some context here. what are we facing intentionally tomorrow? how do those two shocks compare? glenn: there are some parallels and some distinctive differences. these are the events that get the juices flowing, but this one has been talked about and telegraphed. it's almost like a miniature y2k.

the snb did not telegraph -- even 48 hours before the event, they said they would do it takes to hold the line. on this one, the biggest change has been a dismissive tone that said this would never happen. the polls in the last few weeks brought a new severity to it and they said there's a reasonable chance brexit occurred, but there has been lots of deliberation and lots of separation, so platforms and customers have had a chance to get on different sides of their analysis. i have the deutsche bank volatility index and it's elevated not quite to the levels it has been but this was the they placed a ceiling on the strength of the frank. tell us whether it's better to

stay away from this trade completely or whether speculators should be in this game of trying to decide whether the pound is going to strengthen or weaken. from a longer perspective, when you look at this as a binary event when it comes down to a nonfarm payroll scenario where you say it could be a surprise to the top side or the downside, because the poll has narrowed, it becomes a bit of a binary event and you end up with the potential for an overshoot, so the markets react on likely lower liquidity. how much liquidity would pull back and do what you mention? if too many people sit this one with a biggerp outcome over the short-term. isger-term, you can say here what this means and let me put my trade back on.

i would argue in similar fashion that it is the safer bet because otherwise, anything can happen. doing: have people been that or have they been putting on money? : our customers have been following the sentiment. brexit won't occur, everybody lined up that way and it was a buying opportunity for u.k. and u.k. related products and even euro strength. but as the sentiment shifted, we have seen people pull it off. to someseen activities degree pull and take that advice saying if i am involved, i'm involved that lesser levels that i normally am. david: where are you looking for ripple effects on this note tomorrow? glenn: great point. it means a lot for sterling and sterling indices, so think about

that, the dax in the ftse and related, but it also has implications on things like gold and oil. what will be levels of activity be, what well levels of investment the? that is the secondary trade. happens, the domino euro means what? that is the one you have to look three or four dominoes down. $50 a: oil back above barrel. what does that mean? we should mention retail fx trading can be dangerous. it can be a lot of products to decide between and yes, a customer has to come in prepared. terms of oil being back above $50 a barrel, do you think the pairs are more attractive now? glenn: there have been linkages

historically and oil is often looked at as a dollar trade or inflation trade. gold is looked at as a dollar trade or inflation trade. many of them have been breaking down as of late. strategistsown our and economists into a bit of a tizzy. my answer would be trading these products alone as opposed to trading secondary reverberations of another trade. look at the news about what is going on with short-term supplies. that seems to be driving -- the short-term effects seem to be driving the things lately. david: we have had reports about the fx desk shrinking. how is that affecting your business? glenn: many of the bigger banks are looking at this market with potential dodd-frank rules and regulations and you are right, a lot of the liquidity providers

have revamped and the trickle-down means that they have picked up some of the slack. has increased and are number of customers have increased. it has been a little bit of an opposite effect. vonnie: let's check in on the bloomberg first word news with mark crumpton in the newsroom. likely democratic presidential nominee, hillary clinton, speaking at this hour in raleigh, north carolina. this is clinton outlining what she calls the five-step plan to drive u.s. economic growth. among those ideas, investment in infrastructure and education. speaking the same day the likely republican presidential nominee, donald clinton to what he called a rigged economy, the rise of islamic state, and government corruption. mr. trump making his comments at a speech in manhattan. republicans want donald trump to

select a running mate with a political or military background according to a new poll. 47% say they want someone with experience in the military. 43% say they want someone with experience in politics. --for democrats, 54% says said mrs. clinton should pick someone besides massachusetts senator elizabeth warren. warning from the obama administration about the medicare trust fund. officials say the funds will be depleted by 2028, 2 years earlier than previous estimates. be social security fund will empty by 20 34, the same as previous estimates, but officials warm both programs face solvency issues in the next two decades. unionsnch government and reached a compromise that would allow a new labor march in paris. police had banned tomorrow's planned march because of concerns it would result in violence similar to last week.

bid this be between unions and the government has led to strikes in public transport and garbage collection. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton. back to you. up next, donald trump back at hillary clinton, saying she gets rich making you poor. but first, let's look at this bloomberg poll showing investors think trump would be better for their portfolios by a margin of 17%. you can find this whole on your bloomberg. ♪

david: this is bloomberg

markets. i'm david gura. vonnie: and i'm vonnie quinn. now to politics where the rhetoric is heating up with donald trump lashing out at hillary clinton today, questioning her integrity. mr. trump: hillary, and as you she is at people know, world-class liar. look at her pathetic e-mail server statements or her phony landing. [applause] her phony landing in bosnia where she said she was under attack and the attack turned out to be young girls handing her flowers. vonnie: clinton is speaking in raleigh, north carolina. joining us on the set is michael , weer and in washington have our correspondent. to we expect the rhetoric

change or are the devices we have been hearing from trump and even from clinton going to stay the same through the rest of the campaign? michael: i think that clip that you should've trump is what we can expect for a while. trump has been the presumptive nominee for a month and a half. this is the time when he supposed to have been getting stronger and he has been getting weaker, whether it is one in -- one self-inflicted wound after a neck. he's trying to take the spotlight off of himself and put it on clinton. david: we were talking to senator richard shelby and we asked about what parts of trump's economic plan he likes the most. it seems like we have not got a vision of what that plan is going to be. does the campaign have a plan to release that in the near term? not going to be a policy detailed campaign. we will see the difference between the two speeches today.

trump is much more at home and narrative, painting in broad strokes, using a lot of adjectives against his rivals is the policyon wonk and has put out wall street plans with fort team pages and plenty of footnotes. i think we will see those differences crystallized today. clinton says she has a five-step plan which is a lot simpler than the plans we have seen in different campaigns up till now. what are the five steps? did she release them? talking about is that right now. i think what we will here is pretty much what we have heard about this campaign. she will talk about an economy that works for ordinary americans and will propose steps like increasing demon among wage and things like that. i don't think we will hear a lot new from her.

she has been holding on the proposals she has been putting up for a long time. she's essentially going to call trump rangers and highlight the things he's said about the national debt and his own , some of thesees are traditional republican ideas, but she's going to portray him as a dangerous figure for the economy, someone who would spiral the united states into a recession. that has been a key feature of her recent speeches. david: you have these two candidates the getting to talk about each other more directly. he addressed his main critique of hillary clinton. let's hear what he had to say. : the other candidate in this race has spent her entire life making money for special interest. and i will tell you she has made plenty of money for them and has been taking plenty of money out

for herself. hillary clinton has perfected the policies of personal profit and even theft. she ran the state department like her own personal hedge fund, doing favors for oppressive regimes and many others and many many others in exchange for cash. pure and simple, folks. david: that phrase, the politics of personal profit is one i think we will hear again and again. how does the clinton campaign plan to rebut what trump is saying here? something hillary clinton is vulnerable on. she has been in the public eye for a long time and has then at the top level in politics were to an have decades and voters don't see her as trustworthy and they see her as part of the system many people regard is broken. where donaldlace trump will and matt her on a regular basis and it is something the clinton campaign has to work hard to fight against.

she's trying to portray herself as an agent of change because of the history making she would do if she wins the election as the first woman president. but she also disagrees with president obama on certain things like the transpacific partnership. she wants to go further on health care and financial regulation than he has done. she says she wants to build on his legacy and make some changes as well. i want to play this soundbite of donald trump talking about bernie sanders. mr. trump: the insiders wrote the rules of the game to keep themselves in power and in the money. that is why we are asking bernie sanders voters to join our movement so together, we can fix the system for all americans, so important. fairness, there are a lot of never clinton voters, but would they ever be inclined to :ote for donald trump? michael

our polls show that there are a lot of bernie sanders supporters who say they will support trump this time around. it is hard to imagine trump winning this by appealing to the liberal side of the democratic party. i think what we will see is to try to drive her negatives even higher than his. much like she went on the attack with him yesterday and he did today, this is going to be the campaign for the next four months. david: thank you both very much for joining us -- for joining us. i'm looking at metal vent miners and the etf there. are off of our session lows we hit in the 12:00 hour, but we are down on the order of nearly 1%. tracks 24just

equities including freeport mac ran and u.s. steel, but -- -- gold,matt moran silver, platinum, all negative. that is waiting on the miners as well as materials stocks there. one metal group taking a bigger hit is steel. let's see what happening in terms of ak steel, down as much as 3%. these are the worst steel stocks getting it today and comes after a deutsche bank note that says of supply that has been idled in the past could come back online and key measures are only back to 2014 levels. they are down the most in a week. specialty steel taking a hit. haynes is down by 5.5%. carpenter technology is down and iron ore and coal companies taking a hit.

iron ore and operators of coal reserves are down the lowest in a week. thank you very much. coming up, elon musk holds two conference calls in 14 hours to acquire hisffer to cousins company. is it simply a bailout for that company? ♪

david: this is bloomberg markets. tesla shares tumbling today on news the company has made an offer for solar city for $2.8 billion. investors are skeptical even know elon musk calls the deal a no-brainer. my guess is the senior research analyst with roth capital partners. about the you long-run -- elon musk saying this is a no-brainer. guest: it is hard to disagree

with the consensus that this is a confusing deal, so i would disagree with elon on this one. vonnie: he has been putting a lot of money into battery technology. is it contradictory to also be backing solar? guest: it is separate and distinct. we need to look beyond the fray what is thed ask board at tesla doing? what are they trying to fix? to do a not looking favor for solar city. we think they are going out and trying to find a way to fix power wall consistent with their investment in batteries, but this has been a highly problematic product and they are looking for a solution. they had a recall on the seven kilowatt unit and prices doubled from the original announcement. if you look at customer complaints about things like fan noise, it tells us that it is a very immature product.

they really need to fix the power wall and to be successful, they need to fill the giga factory. importantwall is an part of that. and if they think they are going to do it by buying solar city, that's not going to work. david: i wonder what kind of task elon musk has here selling this to shareholders? a solar city wants to seek higher offer, what does that mean for the process going forward? think selling it to shareholders is secondary. they have to sell it to customers. residential customers will flat-out refuse to install the product. here in munich, we've met with dozens of people over the last two days and two of the last five installers today in the residential market told us they just will not use the product going forward. like theirly

acquisition a few years ago where they rot -- they bought the premier system in the market and all sales went to zero. ideajust another very bad and does not solve the problem for power wall and i'm not talking about solar city, but it doesn't seem to make a lot of sense for tesla. vonnie: thank you, making the case eloquently there. coming up in the next hour, the senior strategist at ridge worth investments is our guest. will we see a flight from safety if the u.k. votes to remain in the european union? ♪

?c+sv in new york 3 p.m. and 3:00 a.m. and hong kong. vonnie: welcome to bloomberg markets.

from bloomberg world headquarters in new york, good afternoon. david: here is what we are watching this hour. when our left in the trading day and u.s. stocks are unchanged. runs itwhat would a mean for travel? david: and wall street questioning whether elon musk's plan to combine tesla and solar city to go through even though musk is trying to convince investors that it is brimming with benefits. hour from the one close of trading. with go to the markets desk. ramy: stocks pretty much unchanged, starting off ending where we started the day with the brexit overhanging and the polls evenly divided and traders don't really know what to do