2:00 in new york. >> this is bloomberg markets. matt: live from london, i'm matt miller. david: here is what we are following this hour. markets are higher today following the brexit slide. bonnie: the u.s. commercial real estate market could see some bumps in the road. we will tell you which areas could be hardest hit. matt: nike reports earnings after the bell. the company is dominant in north america. be slipping as under armour makes inroads. david: let's go to the markets desk. >> a third day of falls wasn't

in the cards after all. after defaults following the brexit, we are coming off of that and hovering near session highs. the nasdaq is the biggest gainer, up by nearly 1.5%. the s&p 500 up by nearly 1%. the ecb coming out and saying will takerexit markets down by about .5%, not having much of an impact on markets right now. this is the imf function. it looks like right now seven of our tens vectors are in the green. that had been higher, eight or nine out of 10 in the green. losing a little bit of air right there. staples and utilities flipping into the red. were negative most of the day. energy and financials were the biggest leaders, with energy up

1.7 percent. let's go ahead and take a look at the bloomberg commodity index. it is higher on the day. 80.15 is the number we are at. off a four-week low led by energy, specifically natural , as well as industrial metals. let's take a look at what happening on the energy board. both rising. nymex crude up 2.5%. you will remember it did lose about 7% in the days following the brexit. still, we are below where we were. -- where we were just before brexit. are gains today, up 7%. this is because of the weather. in july, we are expecting a heat wave for 48 of the contiguous states. mine stocks are rising.

steel, aluminum, as well as copper prizes all rising generally across the board. as i said, financials are a sector that is rising. take a look at the biggest banks in terms of bumps up higher. bankamerica, goldman sachs, all on pace for their highest close since the brexit. mark: harsh words today in the european parliament. european commission president accused nigel farage of lying during the brexit campaign. >> you lied. you didn't tell the truth. reality.cated i enjoy sparring with you. i think we have the same sense

of humor. have a sense of humor, but i think this will be the last occasion we will have to debate because you won't be coming back. senate democrats want a republican proposal to provide $1.1 billion to fight the zika virus. they have faulted republicans for putting restrictions on planned parenthood money and changing policies to pesticide spray. the nearly partyline vote was 52-48, leaving the senate short of the 60 votes required to advance the measure. of republicanhalf voters, 52 percent, are unhappy with donald trump. he 5% say they are satisfied with him. as for hillary clinton -- 45% say they are satisfied with him. as for hillary clinton, 52% say

they are satisfied with her, 45% unsatisfied. residents have returned to their neighborhoods after a wildfire. the blaze is now about 45% contained. two people were killed and homes in the southern sirrine nevada were destroyed. global news 24 hours a day powered by more than 26 hundred journalists and analysts in more than 120 countries. i am mark him can. this is bloomberg. bonnie, back to you. -- mark crumpton. this is bloomberg. bonnie, back to you. bonnie: investors are starting to see the bigger picture. richmond, from virginia, is the director of international portfolio management of river fund investment group. does it seem like investors are taking a breather and we are stabilizing to some extent? chris: i feel i can today. let's be honest. i think uncertainty is going to

rain until september, if not longer, given the political situation in the u k -- u.k. taking a deep breath and remaining calm is a good mindset, but i think you also have to make sure you are not too far out over your skis. matt: you have exposure to european stocks in all of your portfolios. i have a chart here that you cannot the, but it shows dividend yields across different indexes. the ftse has the highest dividend yield right now, four .5%. the dax a little lower, the s&p 2.2 5%. poin the ftse dividend yield is amazingly high. people are saying exporters will benefit from a weaker pound. is it attractive to you right now? chris: i would say to me the ftse is less attractive than

some other areas in europe. yes, u.k. headquarters may expand eventually, but between now and then, i think there is a lot of wood to chop. a lot of companies have no idea what they're hiring plans will look like. they will be reticent to do capital expenditures given what we expect to be a pretty significant hit to the u.k. economy in the near term because of brexit. themes like high quality global exporters domiciled in the eurozone, those companies may be at an advantage relative to the european counterparts. they are facing less uncertainty. i think the bigger point you bring up is an excellent one. and world -- one of the things we know for certain is that global rates, interest rates, are going to stay very low for an extended time, maybe longer than any of us are possible. therefore, the value of dividend growth in this marketplace is,

in my opinion, very attractive. there are other markets like norway that play a high dividend yield. australia offers what i consider to be a very attractive dividend yield. i am curious here how you feel about european banks. we saw them dip after the referendum and go up today. is that something you are interested in now? chris: actually, no. i would say despite the huge drop, european financials are my least favorite part of the developing landscape for the exact reasons we just talked about. global rates being as low as they are are going to constrain bank earnings for a long time. i don't believe there is a massive solvency risk here. i think there is a massive earnings risk that will persist for a long time, and i think that will make european banks difficult. they also have a lot of regulation ahead of them. i think of european banks as were where u.s. banks

three or four years ago, dividends going down are being cut entirely, not going the right way. i would look at other sectors before i look at banks. what you consider distressed assets? chris: we have a process called aice matters that uses concept to try to predict 10 year returns. and developed international stocks look highly attractive, theorically attractive, at most advantageous point they have been in the last 40-45 years on this metric. does that tell you it's going to happen with brexit or in the next 6-12 months? of course not. you that in the

long term these stocks are priced to do meaningful the -- meaningfully better than in the u.s.. matt: we saw two huge days of risk off, one huge day of risk on. is it better for you to sit out and watch right now or do you while theren there is proverbial blood on the streets? chris: i think you have to pick your spots, be smart and humble about what we know and what we don't know. we talked about global rates being low for a long time, and that has implications for various sectors that we can take advantage of. also have to recognize that economies across the u.k. and eurozone are going to catch a cold from this. qualityto look at high dividend growth, low volatility, and focus on that rather than just going out and buying markets in mass, which i think might be a mistake given all the

uncertainty. across europe, it's an interesting story. yes, the european banks have spiked, especially in really problematic companies really -- countries recently, but it hasn't gone back to 2011, 2012 levels, which is when we were meaningfully and seriously questioning the validity of the eurozone construct. if you look at places like italy an 18 monthhey are highs or close to it, but it's not anywhere close to the 11 or 12 timeframe. suggests to me is that the credit markets are looking at uncertainty, but not necessarily armageddon. bonnie: do you predict the recession in the u.k.? : i'm not an economist, but my personal view is it will be difficult to avoid.

think about all the decisions we have to make on a day to day basis. brexit and the threat of brexit and how that decisions. those the appetite for investing in capital expenditures, hiring, it throws a big monkey wrench into that. british managers are globally very well recognized and well respected. i think they are going to do a good job of staying confident. but i think there will be a pol over any sort of risk and that will filter through -- paul over any sort of risk-taking and that will filter through to the economy in a significant way. next, u.s. home prices continue to be on fire. will brexit keep more international buyers on the sideline? that's coming up. ♪

live from new york, this is bloomberg markets. the latest s&p case schiller data is out today. could the brexit cause potential buyers to leave? from los angeles, our guest is here to talk about commercial real estate. let me ask you what you have heard and seen from clients about the real estate market globally in light of this referendum last week? good afternoon. in light of increasing volatility and uncertainty real estatelobe, stands out as a terrific

alternative investment for three main reasons. volatility is lowering the interest rate profile in the united states because of our safetygold standard of that the u.s. still retained. number two, commercial and residential real estate are not being overbuilt, which is highly unusual at this late of a recovery cycle, so the supply-demand is there he well-balanced -- very well-balanced. there has been consistent job growth over the past four years that we will continue to see. lastly, if you look at commercial real estate across the united states, the average yield is between 5%-7% depending on your risk tolerance. morespread is causing even interest in capital commercial real estate. the fear factor of what the brexit could mean in terms of the effect, the psychological

effect, but the fundamentals are solid. we have very low unemployment here as well as in the u.k. the jobs market in london until friday was an test it. as fantastic. but i was on the trading floor and heard about projects getting pulled immediately after the brexit vote was released. do you think we will he fewer office holdings completed -- see fewer office buildings completed and fewer investments started here and in london? guest: i do. investors have to measure the risk-reward given the nature of the magnitude on job creation in the u.k. that's not surprising to see in terms of sentiment. of what thess short-term effect may be, it's a

foregone conclusion that great britain is still going to trade with the rest of the world and the rest of the european union. it should work itself out. i do think on a short-term basis there could be major headwinds. can investors use this as leverage to renegotiate to get more out of local governments because of the uncertainty? guest: it's hard to make a broad statement on that. it depends on the locale and how the project gets funded. point, there is going to be apposite in the marketplace, even in the u.k. and i want to be clear that outside of the u.k., this uncertainty is not expected to affect the u.s. economic performance, certainly be commercial or residential real estate performance anytime soon. we have way too much development

and solid fundamentals, even in slower job creation in the u.s. because these supply-demand balances are what they are. bonnie: how do you account for of theew versus that banks? seen a lot more caution from lenders, and rightfully so, given the great recession we experienced just a few years ago. underwriting loans has been very disciplined. although that puts a little bit of a natural barrier in andsaction velocity, timing so on, we believe in the long-term, caution in the real estate market actually serves to prolong the cycle. we won't get ahead of ourselves.

we have done loan to value ratios, which is an important indication of if investors are being too aggressive. we have stayed well within balance and under long-term averages. therefore, i actually think that will help to prolong the cycle. on the investor side, we're seeing more caution. investors want more yield for the risk they are perceived to be taking. we are seeing a lot of interest -- from various types of investors, private and institutional. david: it's great to have this conversation about real estate in a global context. i want to ask you about china. we have seen a slowdown there. what effect is that having on the u.s. property market? guest: whether it is chinese investors or -- in the last few days i have gotten a lot of questions about european investors and the run-up of the exchange rate versus the dollar

and so on. at the profile of most foreign investors coming into u.s. real estate -- let's talk about commercial for a moment. the vast majority are family and private investors that are for long-term and investmentn profile. they are not looking to flip or get an immediate appreciation. it doesn't really change long-term. intogn capital coming commercial real estate accounts for roughly 15% of the total volume of sales, which is up above the long-term average of around 10%. so, while it is up, it is not a significant market mover. you see the high profile york,ments made in new l.a., san francisco, and a few

other markets, but the bread and butter or private capital is really what counts. for the a needle mover united states. on the residential side, places like miami and new york are affected and have seen a pullout from global markets. bonnie: still ahead, the nasdaq biotech index is down 26% this year. is it poised for a rebound as we near the second half of 2016? this is bloomberg. ♪

bonnie: it is focus on pharma this week at bloomberg. let's get a check on biotech starks. -- stocks. abigail: a very nice rally with the nasdaq up 1.4%,

outperforming the s&p in the dow by a pretty decent margin. biotechke a look at the over 2%, having its best day since may 18. a nice day for biotech. it is being led by jillian sciences, up 4.1%. from a percentage standpoint, a big winner here in the biotech is a bloode potassium drug that did me -- is lypsa. some -- re some of this could be a short squeeze. finally, another stock, and oh international. shares of this specialty

pharmaceutical company are their best day since december 5 of 2013. drughave a blood pressure that is doing well. they have had a very rough year, so probably some of those shorts are already pretty pleased by the poor week performance by e ndo international this year. david: we are presenting focus on pharma, going deep on biotechnology, with a range of analysis across all platforms. ♪

david: breakg news. donald trump is talking trade in at aylvania, speaking factory just south of pittsburgh.

we will monitor that speech for headlines. you can watch it live on the bloomberg. are closing in new york. let's check in on the movement. i am looking at commodities in terms of cushioning. equities are covering session highs. quickly, let's look at nymex crude and see how that is performing. byis at session highs, up 3.3%. schlumberger is the second-biggest lift on the energy sector, with exxon being the biggest. we saw nymex crude fall about 7% last friday as well as monday in the post brexit action. gas also at highs on the day. 5% to as much as 11%.

southwestern being the biggest riser in the s&p energy sector right now. not feeling the effects of bragg's it. it's feeling the effects of domestic weather. accuweather saying that the 40 -- 48 contiguous states are going to see a heatwave in july. chicago could potentially see highs 10 degrees more than average. gold is down about .7%. gold futures down about .5%. look at the effects. goes, money is flowing into the stocks, into equities, .oming out of safe havens last friday and last monday, we did see gold see its best today gains -- two today gains in years. gains forright, big gold. thanks very much. nike is set to report earnings after the bell.

the brand is under pressure on a number of different fronts. , aning us from new york analyst who covers nike at macquarie capital. nike is absolutely crushing it. last year, the best performer in .he dow in the last five years, it has returned more than double of the s&p 500. but this year, it is one of the biggest losers on the dow and really underperforming the s&p 500. what is the big difference in 20 teen? -- 2016? been one of the best performers over the last five years. right now, there is concern about the following. one, the inventory situation overall across the industry, not just from nike but from under armour, ralph lauren, you name it. .econd, adidas

adidas has been asleep for several years and is finally waking up. adidas is the second-largest player in the states. there is competition happening. nike talkingrd to about the overall landscape, talking about competition on this call tonight. we have seen under armour overtake adidas. i know they have their eyes on nike. what is the likelihood we will see them getting close in the near term? >> to your point, under armour is the second-largest player in the north american market. globally, we should think about nike and adidas from a global perspective. number two is adidas for that. is a phenomenal story. it has been growing. we are starting to see inroads with regards to footwear. that is causing some concern businessrds to nike's

where price points are much higher than the overall industry points. for example, lebron shoes or $200 versus steph curry shoes. putting some pressure, some concern around the nike stocks this year. bonnie: do you anticipate any kind of brexit reaction in the stock? >> sure. thank you for that question. while nike does not parse out the actual u.k. revenue, we estimate it is just over a billion dollars. just over 3% of the overall revenue base comes from the u.k. market. it should have a low impact on fy 17 numbers. small percentage. there are smaller names in the

consumer space that are much more exposed as a percentage of names likea brexit, fossil, the watchmaker, dekkers, who makes boots. less exposed to the brexit story. about theme ask finish line ceo, last week keeping a 10 of praise on body. and under armour. praise onlish -- adidas and under armour. not so bullish on nike. i remember an era when british knights was a challenge. reebok was the pepsi to nike's coca-cola. is under armour a real player that is here to stay? >> absolutely. it is a challenge, that we should think about challenge as an opportunity. it allows the big players out there to keep at it, to play the

game. if you are a monopoly, it gets a little boring. it is exciting to see the competition. from under armour, coming from adidas and other players, it's going to be an exciting next few years. in riodealing the games are also giving people summing variety. -- the olympic games in rio are giving people some anxiety. is there an anticipation they will be a disappointment for nike? >> it's a good question. we will see product launches at the games. there's an opportunity to grow those businesses going forward. 2012,textualize, back in the products nike launched , for fiscal games

2015, wrapping up now, they have become a billion-dollar business. i think we will see some exciting products for the rio games and some exciting revenue opportunities going forward from that. matt: what do you want to look at most closely as far as divisions? obviously, we all think of footwear, but nike is doing a clothing. as what are you going to look at in the earnings report? >> near term, i think everybody is going to be looking at what the numbers are globally. everybody is looking for revenue growth year-over-year. for the north american market, it's about 7%. we are expecting some excel. that's normal. -- some acceleration. that's normal. at prior olympic games, you do see an acceleration of order rates because a lot of retailers

have a push for the limbic games. to your point on wearables, i think we should not discount nike after they decide to no longer pursue the field band. are some there he exciting opportunities for nike. they have a partnership with a flex ticker, a very large oem technology company, and i think we will see some opportunities for nike and flex to create wearable clothing going forward. david: thank you so much for your time. bonnie: let's check in on headlines with mark trump and. mark: a republican led committee released its report today on the attacks on the american compound in benghazi, libya. they produced no new allegations about then secretary of state hillary clinton. she spoke during a campaign event in denver. ms. clinton: i understand that

after more than two years and $7 benghazipent by the ,ommittee out of taxpayer funds as of today, the report has found nothing to contradict the conclusions of the independent accountability board or the conclusions of the prior multiple earlier investigations carried out on a bipartisan basis in the congress. i will leave it to others to characterize this report, but i think it's preclear it's time to move on. killed forttacks americans, including u.s. ambassador chris stevens. but the 800 page report offered secretary gun about clinton's role. thousands of protesters marched in paris as the senate approved reformingbated bill labor laws. the reforms must be debated again in july.

in france's lower house of parliament, the national assembly. the march was mostly peaceful, but police did used tear gas to counter some demonstrators who were throwing projectiles. said thatobama has legacy is carried on by the women who have followed her example. summitt died this morning at the age of 84. she had been battling dementia brought on by alzheimer. she was the winningest coach in division i history. mastermind of two super bowl defenses has died. his innovative plays help to the 1985 chicago bears in one of the most dominant seasons in league history. his twin sons are both coaches in the nfl. ryan had been in poor health in recent years, learning he had salivary gland cancer in 2011. buddy ryan was 82. global news 24 hours a day

powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. back to you. david: still ahead, donald trump giving a speech on his trade policy right now. headlines bus far, trade reform he says is the fastest way to revive u.s. job growth. he assails nafta and china's entry into the wto. he is taking on hillary clinton as well. we will hear about her response next. ♪

is bloomberg markets. now to politics. donald trump is delivering a speech on trade and jobs right now in pennsylvania. hillary clinton is also on the road today. joining us now with the latest ,n the race for the white house jeanette, who covers politics. trump is saying that he would vow to withdraw the u.s. from the tpp deal if elected. do you expect that trade will continue to be a big heart of this campaign? >> i think so. campaign, in particular, is trying to make pennsylvania into a battleground state. it has not been one for years. in ohio, secretary clinton has had some difficulty in some of primary states where these

are important issues. there is a sense from trump that he can go by the bernie sanders playbook. he even invoked bernie sanders in an area where the far left , sayingfar right agree i am opposed to bad trade deals deal.p is a bad trade nafta is a bad trade deal. i would end all of these things or renegotiate them. it's very much something he thinks will be appealing to populist anger on both sides of the il. from my perspective, when i read that intellectual elites , areehind trade deals there educated, intelligent members of the elite who do think we have gotten wrought

trade deals, who do think corporate members of the u.s. who have wanted to sell their goods overseas have given bad deals to the u.s. taxpayers? what we areery much hearing from hillary clinton in the campaign, which is different from what she said a secretary wastate, which was, as it being negotiated, that it was the gold standard of trade deals. it has certainly become a favorite position of progressives, who say that all of these trade deals are bad for american workers. forwarde going to move with trade deals, they have to be better for workers, for labor , and that sort of the hallmark of any trade deal going forward. trump is also addressed china's entry into the wto. were he to be elected president, who would we buy the products

from that we need? >> i mean, that would be up to donald trump to figure out. he is talking about america first. i think he has this assumption that america can provide everything it needs for itself if necessary. that is not entirely true, which is why a lot of other republicans do not agree with him and think there should be trading. you have to remember the paul ryan helped get tpp through the house. supported itma has as well. there is a big group of people in both parties who do want to move forward with trade deals. matt: you could buy milk from a dairy farmer in new york. bonnie: not rice milk. matt: you could sell it to new york customers as well. there are enough people that eat beef and drink milk in new york in america.

as much as we can make, we can sell as well. >> you would have to set the price and see at what price point it would end up and who would be able to afford locally produced goods. certainly, right now, not everybody can afford locally produced goods. how will hillary refute trumps tpp agenda? >> i think she will continue on the same topic she has since she weighed in an october. she is open to trade deals. she has supported some and opposed some. anything on auate case-by-case basis. it's tough to get her nail down on this. if she would renegotiate tpp, how would she? there would actually have to be with what has already been accomplished on that.

congress is supportive of it. how do you move from that to something else? donald trump crosses the border into ohio to campaign there this afternoon. there are reports that the clinton campaign's vetting elizabeth warren as a potential vice presidential nominee. how is that working for her? >> i have been coloring hillary clinton for the last year and a half on the campaign trail. was raisingsterday their hands together, saying we are a team, we are together. they had come to memory messages about taking on the middle class and -- taking on wall street and helping the middle class. it was very different from .14 when they didn't actually share when they-- from 2014

didn't share the stage when they were campaigning for senator of massachusetts. it shows that elizabeth warren is on board to help hillary and take on donald trump. , we hear from up dallas mavericks owner mark cuban. this is bloomberg. ♪

secd: mark cuban beat insider trading charges and has criticized the agency ever sense. we caught up with him and asked if the sec has a clear definition of what insider trading is. of the sec?job

>> the job of the sec is to enable capital formation. how have they done? if you look at the end of year results when they talk about they neverave done, do research or show evidence that they have done capital formation. if you look at the number of public listings, they have been cut in half and are declining. if you look at the number of ipos, which is capital formation -- >> 200 tech ipos this year. mark: but the numbers in general are falling. i saw data that said over the last five years 15% of the money raised through ipos has gone to china. know about other countries. it's not even the united states benefiting the most. so, that's the second thing. the second question is do people have more confidence in the markets? whoou know of anybody

thinks the markets are safer today than 10 or 20 years ago? you know anybody who has more confidence in the markets today than they did 10 or 20 years ago? that's part two. i think the role of the sec is also to make sure there is a fair and level playing field. the firstou can't do two, you have to do the third. >> let's talk about the third. if you really want to make a level playing field, you create bright line rules. you make it so everybody understands. there is nobody in the sec who can give you a cogent description of what the problem is. they take it to the courts and they create some of their most ridiculous suits ever. ceo of a biotech company

calls martha stewart and says hey, my drug is not approved -- >> that's pretty clear. can you catch somebody? if you are a lawyer who works for the sec, the more people you catch, the better your job security is, but that doesn't make the market safer. i had a scenario -- i tend not to talk to ceos of public companies because i don't trust the sec. they can come in and find anything any time, so i don't trade with them. i don't talk to them. i had a scenario and i called at the sec and videotaped the whole thing and put it on youtube. i said i have a question. before i trade or do anything, i want to know about something visible. can you help me? they sent me to somebody else. they said what's the question. we can't answer questions, but we want to hear the question. they said you have to go to this page on the sec.gov website.

you know what it was? fromage of a fax of a page 1980 -- this is on their website last year -- saying send in eight copies of your request and may be they will reply to it at some point in time. no assurances. if you truly wanted to stop insider trading, if you truly wanted people to follow the law, you would a, make it so that someday can ask a question and get an answer. be, you're going to publish everything in an easy to understand format. k cuban there. this is bloomberg. ♪

,avid: it is 8 p.m. in london 3:00 p.m. in new york, and 3:00

a.m. in hong kong. matt: live from new york, this is bloomberg markets. we are live from london. i am at miller. -- matt miller. david: here is what we are following this hour, a decision eu..k. voters to leave the will it lead to economic trouble in the united states? our guest says there is no reason to worry and will tell us why. bonnie: will the relief rally last? matt: and at the bottom of the hour, mohamed el-erian will join us. we are one hour from the close of trading in the u.s. stocks