briggs it fallout. we are live on bloomberg television and bloomberg radio. i'm matt miller. scarlet: i'm scarlet fu. alix: i'm alix steel. scarlet: here is what we are turning to the sunday. european union members are trying to organize after the surprise brexit vote, putting pressure on the u.k. to leave as ugly as possible. ther brok, chair of committee, is joining us this hour. region's face the second biggest budget deficit. we have more live from madrid. scarlet: let's get you bloomberg first word news. let's go to mark crumpton at the news desk. mark: more reaction to the you k's vote to exit the european union. appearing on abc's "this week," mitch mcconnell said u.k. citizens got tired of being told what to do. is up tocconnell: it

the british to make that decision. you can read about the frustration of having ceded to bureaucrats in brussels so much authority. you know, you see the same thing here. we have had a regulatory rampage over the last six years. a lot of people the president has put on these boards and commissions in his government are pursuing policies that we have not passed in congress. senator mcconnell also praised the relationship with the u.k., saying the only one comparable is america's relationship with israel. the brexit campaign leader boris johnson will launch his bid to replace david cameron as conservative leader. johnson is gathering the names of lawmakers who will back him. lie isve campaign out being urged to challenge johnson, though he has not said he wants the job. 15 somali people killed when

islam it extremists -- islamic extremists stormed and mogadishu hotel. security forces pursuit of the attackers to the hotel fell top assault. hours long donald trump says he would not characterize his proposed policies as including mass deportations. in scotland, the likely presidential nominee told reporters that other than a blanket ban on muslims coming to the united states, a position he took in late 2015, he would focus on countries with links to terrorists. he said he was start from scratch on the sweeping transpacific partnership trade deal. in new clinton marched york city's annual gay pride parade. it began with a moment of silence for victims of the mass shooting in orlando, florida.

if vince throughout the nation saw unprecedented levels of security. global news 24 hours a day from our more than 2600 journalists in more than 120 news bureaus around the world. i'm mark crumpton. this is bloomberg news. back to you. matt: mark, thanks very much. over the weekend, we got reaction from european leaders to last week's brexit vote, with most calling for a speedy exit process. german chancellor angela merkel is shifted the tone, saying the u.k. should be given "more time." joining us on the phone, the foreign affairs committee who isn elmar brok, calling for greater expansion of the eu, more control over member states, more of a federal union. thank you so much for joining us. brok, first ask you, mr. is anyone else going to influence how quickly the u.k. exits the european union, or is it completely up to the british government to invoke article 50?

it is the british government. but first of all, i am not leavingfor a more rapid from the european union. they have to do that. it has to be done in due time. we cannot live with two years of uncertainty or five years of uncertainty. think in two years it must be finished, and therefore we should start relatively soon with the procedure. the markets, the political developments, we have to do more than talk about breaks it. we have to solve the refugee problem. we have to solve the financial crisis which started in the united states and is not solved in all of our countries. we have the terror problems. we cannot wait for three or four years on the british. they have decided. they should call for that.

they should go out of the european union and have new negotiations about their fellow relationship with the european union. matt: obviously the markets would love a speedy resolution and i spoke to a number of european commissioners in brussels and they said if it went this way, they would wanted it's resolved quickly, but at least a two-year process as laid out in the lisbon treaty. isn't that the case? process, is a two-year that they can start it if there is a notification by the british government. therefore we will move forward and the british government they will ratify the result relatively soon so we can start with this two years procedure. just ask you -- one i'm question, mr. brok, sorry to mischaracterize your intentions for the european union. i know you don't want to and

large the european union. what i should have said, you want to deepen the union, create a more federal union. isn't that the case? fort you believe in order the european union to function correctly, you need to have central elements like a european treasury? we have ast of all, european budget. for is a calling budget commissioner, to combine that. that's a different story. but it is streamlining it. assistance in the european sense of federalism. in the english language, federalism is centralism. in the european language, it means decentralization. therefore, this is one of those misunderstandings.

i do not want to have a european state. but i would like to have a european union which can handle the terrors -- question, the climate change question. we have to do it together. we certainly would like to have the proper instruments to deal with that. if we do not have the instrument's to solve problems, then people are dissatisfied if problems are not soft. i hope that this -- the problems are not solved. i was going to ask you because part of the rhetoric out of the brexit vote was politicians grossly underestimated how unhappy their populations were. the capitalism was no longer filtering through.

do you think european leaders of open up to that fact across the board? thebrok: for sure, financial crisis, coming from the united states, has generated a lot of problems in europe. the european union, member countries, and we have unemployment. matt: how is that coming from the united states? youngok: 74% of the british have voted for staying with the european union. the youth has voted for membership. that is important information. i wonder -- it's interesting you say the financial crisis coming from the united rates, because of course, the housing bubble was clearly present here in the u.k., clearly present in spain. the greek issues are issues really of the eurozone and not the united states -- mr. brok: but that was the result of the crisis from the united states that created the

turmoil. it brought ireland's down, not because they have the wrong policies, but banks were breaking down. they had to say them, and now ireland has a 5% growth rate. spain is out. [indiscernible] now we have this result today in spain. but there is still the question of the eurozone. how will you overcome the problems that you have on the periphery, mr. brok? when you have countries like greece, spain, portugal, which are practically bankrupt, and the poorer countries are telling them they simply need more austerity, that does not fly well. you get a brain drain from those companies. the young and smart people moved to germany, england, looking for jobs. need to have a more federal

government or else it's not going to work out. isn't that the case? mr. brok: first of all, portugal is not bankrupt. [indiscernible] it is going on the growth rate -- matt: well, more than 30% today. mr. brok: the problem is greece some portionhave of the united states which is also bankrupt. greece is the problem. greece needs immediate structural reforms. it's not just austerity. it structural reforms. [indiscernible] that is the question we have to solve in spain. but we do. hello? matt: i'm sorry, yes. think aboutt you

how this should work out with the u.k. after they are, exited, have to work out some new agreements with the european union? will they be more difficult than a agreement switzerland worked out as far as financial entities are concerned, more difficult than some scandinavian countries? how do you see it? mr. brok: they can have a solution, but it means they are a member of the internal market, but they have to accept the free movement of labor. they have to accept and play their part -- and they have no say in the rules, which they have to totally apply. they are in a worse situation. they have to take all of the commitments, but have no say anymore. that is the reality.

that is what the swiss solution means in practice. this was always told to the british people. the migration -- [indiscernible] the nationalization of health services was a big lie. and now the people are dissatisfied. and especially the young people. they feel betrayed. alix: right. we spoke with the former u.k. house of lords member robert sydow ski earlier in the week and he said britain needed to stay in the eu, because at some point the eu is going to break up and it's going to break up along northern and other lines. without the u.k., there is no one to help form the two new european unions. what you think of something like that? germany: look, i think will stick with france and italy , and they should not have this hope that we will break it out. we do not want a government of europe.

[indiscernible] dream of some a people, but not reality. elmar, thank you for joining us. thank you for your time. scarlet: all right, we have begun to monitor trading in the agent markets and we will look at currencies. on my bloomberg, i have pounds-dollar, and we know the pound tumbled on friday. it has extended that decline in early asia in trading and there is the move. i will zoom in so you can see it. it looks minor -- alix: that is a dropper sure. 1.2%.t: that is a drop of in total the, you're looking in a 9% slump in the last deed of days. that is not the only currency pair trading. we are looking at euro-yen as well. the euro down 7%. there is a decline on friday and there is the decline this morning in asia and trades.

euro-yen trade is definitely be one to watch going forward according to one analyst. there is pounds-yen. the pound versus the yen, losing 13% of its value or just about 13% of its value. again, this is the trade in asia. a egg tumble. we are off the lows of the session, but that's a drastic move for early on. about whatwe talk goes on with the boj, it's less the actual level of the yen versus the counter the euro, and more the velocity of the move. in terms of the dollar-yen, we have seen a very large move. it's a seven, eight-point move in a matter of hours. that is not something that the boj has to be happy about. scarlet: if they were to intervene, they probably would not do so right away. alix: it would negate the move

they did to begin with. scarlet: you are looking at a velocity move over time, the next 2, 3 weeks. you're looking at live coverage of the brexit follow. this is "bloomberg markets" from new york and london. ♪

alix: this is "bloomberg markets " on television and radio. i'm alix steel. scarlet: i'm scarlet fu. also joining us, matt miller. alix: deutsche bank tried to quantify the fallout of the brexit vote. those of you joining us on radio, you cannot see this chart, but these ugly this u.s., netherlands,

germany, france, japan, and their claims on the economy -- the u.s. comes in first. they have $24 billion in exposure. spanish banks come in next. the easiest going is really green-yellow line. that is the lowest line on the 100 $26ming in at billion. -- matt: and the netherlands. yeah. what i find fascinating here, japan's exposure has been increasing steadily compared to some of the other countries. germany had almost $1 trillion of exposure prior to the financial crisis and it drifted down. right, and u.s. claims rose during the financial crisis. it's interesting when you talk about systemic risk in the banking sector and ask for it saying this is not a 2008 lehman boat matt:. it's very interesting.

alix: yes, thank you. matt: a lot of traders i spoke to on friday were saying this was worse than lehman as far as the reaction of financial assets, but maybe not worse as far as the fallout is concerned later on. alix: right, the contagion. julie is joining us with a closer look at the brexit impact on american companies. which ones have the higher income relation? speaking of contagion. i am not looking at the banks because that was the most obvious reaction we saw, but a lot of companies do business in europe and there's also the currency risk their it we see the pound fall, the euro go down. technology companies are one of the areas we are looking at here that have egg contracts over in europe. when you're looking at a company like apple, for example, a fifth of its revenue out of europe, including the u.k..

there is this concern that the u.k. economy is going to see a downturn, we are going to see effects in europe overall. that is where you see this kind of reaction. ibm gets a full third, as well as hp, a third of the revenue. if you look at how these stocks reacted on friday, you saw big declines in almost everything. company's hardest hit. also looking at the auto parts makers. even when we were talking about the greek bailout, etc., etc., there were areas reactions during that time. these companies were heavily exposed to europe. delphi, for example, a third of its revenue comes out of europe. and on friday, we heard that they will take whatever action is necessary to be competitive because there will be an adverse impact on operations and they need to issue new guidance as a result. will be a supplier to ford. travel stocks it very hard --

the reason is twofold. many of these companies get a lot of business from europe. we have seen cross-border deals from priceline, for example and europe, and the currency risk travel if hall on there is more joblessness, for example. are there companies that got hit quite hard? julie: one that got hit was wynn. it looks like it could come back. the currency risk, not necessarily the pound or the euro, but what are going to be the yuan knock on effects, for example? scarlet: all right, julie hyman, thank you so much. when we will discuss more fallout from the brexit vote. this is a special edition of "bloomberg markets" from new york and london. ♪

matt: this is bloomberg television and bloomberg radio. we are simulcasting this special sunday coverage of the brexit as well,nd the fallout or what we expect it to be. the other election we are keeping our eye on very closely is in spain. the anti-austerity pajamas party -- podemos party may have come in second. with the socialists, they may have enough sees to form a nice will government. what are we looking at as far as seats are concerned? as you say, as far

as the exit polls are concerned -- and the party leaders are urging caution -- the preliminary results of the first exit polls a just podemos may have come in second, making gains from december's election. party winning the vote, with somewhat fewer seats than december. that was not much of a surprise. the big story, the surge that in this firstt on exit poll to come in second. could combine to form a majority government. it does not mean they will though. they may not want to give a helping hand to their biggest rival and a young upstart that is just teed of years old. matt: they are on the same set of the political spectrum, with podemos a little further to the left.

they could form an incredibly left-wing government. elliott: they did merge with a former communist party since december, which is one reason they put on more seats. they are often described as an anti-of sterritt he, antiestablishment party in the same vein as greece's syriza. the other possibility is the decide to allow the people's party to remain in power is a minority government rid the other option, a third election. matt: a third election. i think spain has had enough of voting. fromtt gotkine joining us a druid we will follow those results and the brexit. ♪ you guy's be good. i'll see you later

[ bark ] [ bark ] bye. see ya pal. ever wonder what your pets do when you leave home? [ laughing ] aw you cutie pie. aw. aw. aw. aw. [ barking ] [ washing machine running ] party's on! know what your pets are up to with xfinity home. xfinity. the future of awesome. see the secret life of pets, in theaters july 8th. >> this is special coverage on the historic brexit vote on bloomberg television and being simulcast on bloomberg radio as well. joining us for the next

hour, joe weisenthal. let's go to first word news, mark crumpton is at the news desk. mark: at least 3 million people in the u.k. want another vote on leaving the european union. they have signed a petition to parliament. i calls for a vote in voter turnout is less than 75%, and the remaining vote is less than 60%, or should be another referendum. won 52% of the vote with 72%. the british parliament said there would not be a second vote. john kerry is going to brussels and london for talks on the uk's exit in the european union. after meeting in rome with the prime minister, secretary kerry spoke to reporters. john kerry: the most important thing is that all of us as leaders work together to provide as much as annuity, as much stability, as much stability as

possible for the marketplace to understand that there are ways to minimize disruption, there are ways to smartly move ahead another to protect the values and interests that we share in common. mark: in brussels, secretary kerry with have to get u.s. support for the eu. betweenial relationship the u.s. and the u.k. will not change. a cbs news poll shows hillary clinton with a slim lead over donald trump among likely voters in several battleground states. in florida, mrs. clinton is 41, and in wisconsin she holds a five point average, 35 to 31. 40 to 30 nine in colorado. north carolina, she leads by two points, 44 to 42. former u.s. secretary hank paulson who served under george

w. bush during the 2008 financial crisis says he's voting for hillary clinton. paulson says publicans must use the country over presented nominee donald trump. he says a trump presidency is unthinkable. one of princes favorite guitars has been sold at auction for $137,000. the buyer was an owner of the nfl indianapolis colts. the yellow clouds solid body electric was a favorite of the late musician, who used in numerous reform and says until the mid-1990's. the 57-year-old prince died of an accidental drug overdose in april. for hours a day powered by more than 2600 journalists and analysts in more than one at 20 countries. i am mark crumpton, this is bloomberg. alex, joe, matt, scarlet, back to you. scarlet: i will brexit impact

capital flows? which countries take the biggest hit? an analyst on geoeconomics. flows,cludes capital sovereign debt restructuring. current deficit, meaning more money goes out then comes in. what will the brexit decision due to capital coming in and leaving the u.k.? be repriced, but interestingly, a lot of that is coming through the currency market. you can buy a british bond at a lower price than you would have last week. you have not seen an increase in british interest rates, which is where the real shock would come from, the really negative run on the pound, the run on the u.k. kind of story. long-term guilt rates have come in which suggests britain can send this deficit, a smaller one

-- fund this deficit, a smaller one, but from a position of weakness and will not be able to import as much. joe: so we should not worry about a funding crisis in the u.k., because the gilt market shows that. what about a recession? how much of an economic hit will we see from the ensuing uncertainty and anything else? brad: i think the impact of the uncertainty on investment is the most certain thing there is right now. there is clearly going to be a slowdown of a couple percentage points in gdp in the next couple of years on the edge of pushing britain into a recession. currentlyhen what triggers the account deficit crisis? brad: it is hard to get a current account is a crisis and the global context of ultralow interest rates. in countries where they have their own central-bank, and where they are borrowing in their own currency. so i think that has really changed the global dynamics. you say, you are only getting a

percent on guilt, but more on guilt then yen, boones -- bunds. moreover, the process of adjustment, you have your own central-bank, largely comes with the currency market. we have not really seen a run, a funding run on a sovereign which has its own currency. joe: i play for you can still see it? brad: the euro because of the unique character of the euro. joe: let me -- att: let me come in with chart i have put together. it is from the inception of the european union in 1993 until now. what i have got is u.k. unemployment here in orange, it has come down substantially to 5%. we have got you to gdp, which obviously the debt in the financial crisis, but it is doing well at 2.3%, that it has

rolled over. u.k. inflation, which is basically nothing right now. ons is what i want to touch with you. a lot of people are expecting real inflation to come through as the currency gets weaker, everything that you buy overseas gets more expensive, and that pass through creates inflation. bloomberg intelligence is saying a 1% inflation. that does not sound so bad. what do you think about that, and how will it affect gdp? brad: i agree it is not that bad. inflation is low, gives the bank more flexible in going forward. the bank of england will not have to raise rates to prevent a huge spike in inflation if that forecast is correct. it is not inflation that will cause the difficulties with the economy. it will be the fact that businesses are going to be less inclined to make investments, because they don't know britain's trading future. it will be the consumers have a

natural tendency to pull back when there is so much uncertainty. joe: what do you see with the economic ramifications of brexit to the eurozone and beyond that, how do you see the risk dynamic as being different with what we are seeing in the u.k. versus the acute. of the european crisis in 2012? brad: a lot of questions. joe: pick just two of them. brad: britain's current account deficit means britain has been a fairly rare thing, a source of demand. europe lacks demand, in my analysis. the weak demand for british will slow european growth. european growth was doing kind of ok, but not great. i think it will fall back to the not ok, and then it becomes a question of, how the politics in the euro area in particular, but also some of them like

poland, hungary, the eu but not euro area countries. whether you see the intersection between political risks, populist dynamics, which reject the current sect of european rules, which demand referendums of their own, and then you can see that set of politics undoing some of the stabilization that came in 2011, 2012. scarlet: switching gears a little bit, we have seen this asian trading and the again gaining strength. -- the yen gaining strength. the euro currently at 112. we talk about the japanese yen, why is it that money goes to the japanese yen when fundamentally, in terms of economics, it does not have a strong case for it? you have got demographics, inflation, crushing debt lows. why is money going into the japanese yen? brad: the one variable you japanned about the u.k.,

is a current surplus country, a traditional safe haven asset, and the funding currency for trading, because it is a superlow interest rate forever. -- currencies,es they tend to rally during periods of uncertainty. real quickly, i went to get your take on if there is a chinese angle. we saw the currency continue to eight region -- to weaken. between that and the sort of anti-globalization continuing, what does this mean for china? brad: it is not good for china. clearly wanted the yuan to weaken at the height of last summer, and it was able to get that weakening in a fairly stable way, so long as the dollar was appreciating.

when the dollar starts to appreciate, the pboc is a more difficult position. , there has been enough broad depreciation over the past year that tolerate -- china can tolerate the currency strength. it is not where the pboc wants to be. in terms of the wins of globalization, you have offsetting forces. mobile negative advance from the economic point of view, but emerging economies badly hit by the commodity shock, it is becoming less of a drag, and that be good. alix: oil starts to selloff 5% because of the brexit. thank you very much, senior fellow at the council on foreign relations. we go live to portugal were the ecb will hold its annual policy for him. we discussed the following from the brexit vote and that central-bank. special coverage of brexit on bloomberg tv and on bloomberg radio. ♪

♪ this is special coverage of the historic brexit vote on bloomberg radio and bloomberg television. let's go to the business flash and look at the biggest stories in the news right now. rushing to safer assets after britain's decision to quit the european union. the move added $400 billion negative yielding government bonds, according to the sovereign bond index. they are now $9 trillion worth of securities and yields below zero. scarlet: investor got it right, hedge funds raising their bets are an all-time high two days before u.k. voters decided to

leave. gold futures climbed to a two-year high after the referendum. prices could jump another 8% by the end of the year. alix: if you are working -- watching bloomberg television, "finding dori" was the winner again. wassequel to "finding nemo" well outside of the runner-up, "independence day, resurgence." it had $42 billion less than expected. john: scarlet: that is your business update. alix: "independence day" was like 20 years ago. there is a policy forum in portugal were the looming exit from the eu will be the discussion. joe: joining us from centro is a professor senior economist in town for the conference. what is the talk of

the conference right now, what are people saying? >> the talk of the conference is supposed to be about old academic issues, equilibrium rate, and financial stability. the official talks would be about brexit. i would expect there to be an opening speech from draghi about that. can,dence as much as it and try to describe what could be the policy response in europe. officially again, looking at the conference, the program is all about management officials in general. , speaking of policy response, we already see on this coming out with their -- we already see economist coming out with their expectations. goldman sachs predicting a rate cut in the boe as asset purchase cuts in. usually what we see from the ecb's experience so far with its renewed bond purchases, what can

we expect on the ec -- boe? will there be any change in a situation like this? frederik: that is difficult to say. they are the most likely choice for the rates from england, positive. they have limited room to maneuver, but they could choose a rate that helps the banking sector, do stuff with liquidity. you already have in place those arrangements between central banks that we think they have this already. they could pride that provide $250 billion sterling, and they could expand qe. that is not enough, if you have a huge falling investment in the second half of this year, a huge business drop in confidence. there is not much the bank of england could do beyond those unconventional tools people are already using. i'm glad you brought that up, because there have been

a lot of questions raised about how monetary policy can be. we were worried about the fnp before brexit happened. on the fiscal stimulus side, it is up to government to stem the tide of a brexit follow-up? -- fallout? room to: the fiscal maneuver in the country is limited, including the u.k., but there could be new initiatives. it could also be implicit ordinations with the central bank. it is probably easier in the u.k. and the euro area to do this. debt wouldvernment be used for some kind of fiscal stimulus. that could be the case, but for the government, you need a strategy, and mark carney at the bank of england could lay the ground for you -- a new monetary response.

this needs to be in place before the bank of england could even talk about this type of option. joe: what does this mean for mario draghi and the ecb? frederik: i think you have to distinguish between the short-term investment response and the longer-term policy options. in the very short-term, they may have the luxury to play a little longer. on july 23,sion is and i would not expect overreaction, any and it from the ecb ahead of the 23rd meeting. in july. maybe then they can stick with what they have done before, qe guidance. they would spend -- stand ready to do more along with buying htb and euros and bonds. , they couldo more frontload those purchases and take any indecision and expansion of the program.

and a siegel step for the ecb, as long as the euro is going fashion, itrderly is not that big a problem. the problem is the banking sector. they will very much focused not on the equity markets, not on the fx markets, but on the banking sector. was last week, it was a bit of a disappointment, and they could make those even more profitable for banks in the future. joe: the problem for europe beyond the weakness in the theomy is beyond immigration problem, i should say, is the weakness of the peripheral countries. you think the ecb will talk at all about the possibility of using qe2 by greek debt photo -- buy greek debt? only the real benefit of the qe program, the weak should get

some kind of benefit from that. frederik: you are right, and unfortunately, the qa program expands, more benefits for the poor countries than the periphery countries, as you said. countries, versus the periphery countries. no longer german or french bonds, not something they can do , but if they need to adjust the program, the need to expand month --, 200 billy a billion a month, i would do that and a gradual way, that would mean buying more of those spanish, italian, and maybe great bonds in the future. -- greek bonds in the future. joe: the germans push off a challenge to omt. is that something we will see? frederik: i don't think so,

because if you play to the market now, italy has to enter the payoff program, and they are strict conditions, they have to do austerity right now. the conditions for the ecb. isif push comes to shove, it to buy outright bonds from italy, spain, or greece, they have to come up with a new program that would justify european disintegration. that would be new, unusual that would have to be specifically designed for this kind of whatever it takes like moment. joe: thank you very much. from dictator will management. -- pictet management. matt: how the brexit vote impacts banks other than the ecb. we have the charts you can't miss on this special coverage of brexit on bloomberg television and on bloomberg radio. ♪

♪ alix: you are watching bloomberg special reportalix: of the brexit, what is next? what is next for the fed in the bank of japan, when you are looking at the turmoil in the markets. i am taking a look at what the boj is very concerned about. that is not the level of the again they are worried about -- the yen it is the velocity of the currency. this implies one dollar volatility is that white line, 12 month implied volatility is the blue line. you can see what we have seen the last few weeks. one month volatility has picked up, but so has 12 month. we are not where we were back in 1998, back in 2008, but are getting close. and that is the boj. joe: it is remarkable how much

we are talking about in fx volatility as opposed to e.m. number is really all the action was. i'm looking at what this means for the federal reserve. let's look at the never function. function, looks like the fed will not hike anytime soon if the market are to believe. this goldline here is where the market implied probability for hikes were on the 22nd. you can see this outline is above the green line. you can see the lower line demonstrates the market is really reduce its expectations for market implied the lessee. so the market does not see any rate hikes this year at all, and low income going out to three years, really tells us something about the global impact of this low. scarlet: and joe will be treating up this for all the listeners. -- tweeting this out for all the

listeners. it looks like a pancake. coming up, we look ahead to help financial markets will open tomorrow morning. that is next. the currency markets have begun trading, and the pound is getting pounded once again. ♪

♪ matt: it is 9:00 p.m. here in london. this is special coverage

following britain's historic vote to leave the european union. i am matt miller. scarlet: it is 4:00 p.m. in new york. i am scarlet fu. joe: i am joe weisenthal. alix: i am alix steel. scarlet: i am keeping my eye on equities. trading is getting ready to gear up in a few hours. we know the broadest center of european stocks, it is a .9% down. the biggest decline since october 2008. we have a chart on the bloomberg which i can tweet out for the radio listeners. this is the stoxx 600, from peak to trough, it fell 24 points. that is the biggest intraday point swing so far this year, one bigger than the last year, in which the august selloff generated by the chinese yuan depreciation. if you go out to a five-year glimpse, this move is historic by any standards. joe: