>> from bloomberg 's world headquarters in new york, i am david gura. vonnie: i am vonnie quinn. we will take you from san francisco to mexico city to london. gains we see broad-based at the end of the quarter. vonnie: moments away from the rate decision in mexico, the most divided in years on whether we will see a rate hike. brexitis the brags it -- the end of britain 's revival? let's go to the markets desk with breaking news on the central bank decision. ramy: 4.25% is the rate coming out. the survey from bloomberg had a median of 4%, so we see a 0.25% higher than expected.

thenst a prior reading from last reading of three point 75%. 11 of 25 analysts surveyed by bloomberg expected this would so this isto 4%, surpassing that. let's see what's happening in terms of markets in the u.s. now. , generally across the board we are in green. three days in a row of green after two days of fallsb post-rexit, locking in 1% or more for the s&p 500 and the dow. we are inching closer and closer to recouping most, if not all the losses we saw post-brexit. the nasdaq is still the farthest from that. look at what's been happening today intraday on the s&p. notrally speaking, a rise, really looking back at the start of the trading day, up about 20 points or so, 21.5 points, up

about one point -- 1%. i want to show you the imap function for the s&p with the 10 sectors. a very broad rally. yesterday, energies and commodities led. today, not so much the case. energy still 0.6% higher, but in consumer staples at 2% and industrials not far behind, 1.6%. staples are leading because the s&p 1500 packaged food index is near a session high right now, in part because of not one, not two, but three consumer staples companies. hershey foods right now is up more than 15%, the biggest jump in at least the last 14 years, and on track for a record close, ever since 1980. this is because of mont elise -- mondelez coming out with a takeover offer of $170 a share,

making it the world's biggest candy maker. kellogg up 5%, the biggest jump in more than two years. they are opening up a new serial cafe in times square, to boost some sales there. general mills up 5.5%, the biggest jump, vonnie, in six years, after beating consensus estimates. vonnie: the mexican peso is weakening. the central bank did raise. that was divided, in terms of economists. if we can get up the mexican peso chart. the reaction in the currency? ramy: let me see if i can pull that up right now. ok. it's on my terminal, if you want to have a look. ramy: there you go. vonnie: 1.2%. david: bloomberg first word news. mark crumpton has more. mark: german chancellor angela merkel is not commenting on the suggestion by tory leadership

contender teresa may that article 50, the european union exit class, should not be invoked -- clause, should not be invoked before the end of the year. >> you will understand, if i do not want to comment on every statement. now they are first elections inside the tory party, and let's wait and see how the new government acts and we can evaluate it. i'm following the discussion, like many others, but i don't want to make any political comment on it here. u.k. home who was yo secretary, says brexit means brexit and will not support a second referendum. two suicide attacks on a convoy of police cadets killed 37 people and wounded others, west of the afghan capital of kabul. the first suicide bomber struck buses carrying trainee police officers, and a second attack

targeted people who rushed to the scene to help. the taliban claimed responsibility. the republican national committee spent a year digging into the backgrounds of hillary clinton's potential running mates, including senator elizabeth warren and representative how the are becerra, in addition -- javier becerra., an -- xavier that's according to a list shared by the committee. donald trump leads hillary clinton in a new poll of likely voters, with 43% to 39% for mrs. clinton in the rasmussen survey. another 12% preferred another candidate. 5% were undecided. in a similar poll last week, clinton led trump by five points. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. david: thanks so much, mark.

we are close to a restarted started as we wrap up the first half of the year, with the s&p lossesrecovering from after brexit. let me ask you, what we saw this morning, governor carney comes out and talks about the prospect for more easing. perhaps not unexpected. what does this mean for equities? piece was ecbr saying they might provide additional liquidity to italian banks to help them through the situation. so you have european central bank intervention, with a helping to fuel this little rebound we have seen over the last couple days. david: the sense of, the level of medication we have gotten from the ecb and bank of england so far? phil: you are never completely confident, because you don't know if they will follow through. but at this point, with the market down 6% or so from friday and monday, was dramatically oversold, was looking to bounce, so positiveounce,

news coming out of european central bankers is helping to fuel the rebound. so whether or not we actually follow through is complete we different. vonnie: in terms of u.s. markets, do we need to see political certainty in britain --in europe, for we can before we can really depend on stabilization? phil: you have an extraordinary uncertain position vis-a-vis europe, over the next two years. number one, article 50 has not been invoked yet. we don't even know if great britain will go through with the vote for the referendum. we don't know if this is the only event, or if there are other shoes to fall in terms of scotland, ireland, france, italy, netherlands. we have heard all the rumors. is this an isolated event, or the beginning of the end? this is a situation that could take years to play out. david: while this is playing out, let's look at u.s.

fundamentals. how much does what we see in the u k, with the conversation between the u.k. and the european union, matter to the economy in the u.s.? phil: it matters a lot. as you look at the year, from the beginning of the year, certainly as we went into the second quarter, the potential for brexit was one of our most significant concerns. just in terms, not just market volatility, but in terms of the economic impact. as investors look at the prospects of brexit, on what could happen on the u.k. economy, the expectation is next year could be a coin flip for recession, one way or the other. let's call it zero growth. to the degree england is an important country in the global environment from an economic standpoint, as it is, that has negatively percussions for what u.s. economic growth potential he might be. if theit happens, economic decline we expect to see could happen, that will have negative ramifications here. vonnie: how big of a decision

was it, that mexico decided to raise today, in the face of global uncertainty? is the fear that emerging-market currencies will become so weak, they will not be any options on the table? phil: that's a great question. if i was a central banker, and certainly we have seen yellen dance around this very issue multiple times over the first half of the year, she talked about the fact global volatility, global insecurity, is one of the things weighing on the minds of the central bank, and why they have remained steady over the last six months. i'm surprised that amidst that global volatility a mexican central bank would raise interest rates, even though they are trying to defend their currency amidst global insecurity vis-a-vis the pound, the dollar, the yen, etc. david: your latest note is about the u.s. presidential election, moving from brexit to that, the latest piece of risk we're

focused on here. how illuminating is what has happened in the u.k., to the presidential race here in the u.s.? do you see some of their days? what are they? phil: there are very interesting corollaries. voters throughout the world are just pissed. they are frustrated. they are upset. you look at our primaries here, with trump winning, or leading in the republican race, sanders doing as well as he did, and you look at what happened with the brexit phot, the fact -- vote, the fact that until a couple hours ago boris johnson was thought to be one of the leading candidates to replace cameron is prime minister, what that's pointing to is a lot of uncertainty, and anger, and frustration, among voters. and i think that that potentially could manifest itself out, not just in england, but we could see some volatility here with our election over the course of the next five months. david: always great to talk to you. thanks so much. chief equity strategist for

federated investors. vonnie: still ahead on bloomberg markets, does the u.k. decision to leave the european union mean the end of liberal britain as we have known it? this is bloomberg. ♪

david: bank of england governor mark carney warned there's only so much you can do to protect from the uncertainty after the brexit vote. editor in chief writes about this in the latest bloomberg businessweek. john joins us now. react to what happened this morning, governor carney saying

to expect more easing come out in from the cameras again with a major speech today? john: what is odd about carney is that he manages to seem very presidential and calm when the markets panic. he's a person who people are looking at this moment as the adult in the room, and i think most of the things he has done have been correct. he got into some trouble during the campaign for appearing to be a doom-mongerer, but at least in the face of it it appears he was correct to tell the british people that if they did it, there would be consequences to their mortgages and other things, and he has been proved right. vonnie: right now, he's the only one talking in concrete policy, concrete steps that can be done in terms of the economy and so forth. what on earth happened this morning, between 9:00 and 12:00 british time? john: that is hard to say. [laughter] it seems to be something along these lines. i think michael gove, and michael gove is a very genuine,

straightforward person for the most part, a very committed brexiter, but also quite intellectually driven. i genuinely think he was being honest, when he said he didn't necessarily want to run for prime minister. but something about the chaos that surrounds boris johnson persuaded him not to do that and to go for it. you have these bizarre things, e-mails to his wife, on top of it, people telling him to stand up to johnson. and teresa may from the other time. some tories say there is some dream team were you end up with teresa may, michael go, possibly george osborne in the background. david: looking at the recent history here of liberalism in britain. is she at theresa may, the heir apparent to margaret thatcher? john: that would be quite they stretch. but she might be the right person, from the point of view

of doing a deal. they do have some elements in common. not flashy. she has always been the calm voice. people like gove are far more flashy, at least intellectually. boris johnson is all over the place, flashy in every capacity. but i think she would seem to be, she has the calm pair of and at this moment, precise moment that's a useful thing to have. i think all these people, when you talk about thatcher and liberalism, the liberalism i'm talking about, i should reassure american readers of a certain persuasion, is the liberalism of adam smith and john stuart mill, and that is what at its kernel what thatcher grabbed onto. to be fair, tony blair and john major also pushed towards this, a gospel of individual liberty but also economic liberty, of open markets, opening things up,

and that is what i think broadly began in 1979. 1979, as a young person at the time, it felt as if britain was in almost perennial decline. that was the gospel at the time. vonnie: one of the major criticisms of thatcher and her legacy is she didn't do enough for the people. you mention this, she didn't do enough for the people that would be left behind by this revolution, if you like. didn't put in educational things for the miners losing their jobs. are the british at risk of doing this again? john: perhaps, in a different direction. there are some parallels. margaret thatcher snuck up on the british people. she didn't, she appeared in 1979 to most of them as being a rather pragmatic, i'm going to tidy this up, i will be quite hard-nosed, but i'm not actually driving and intellectual agenda. she got elected in 1979 as a

response to what was called the winter of discontent. labor was in chaos. she came in, and what british got -- britain got was a dose of free-market milton friedman, hayek, john stuart mill, and she probably would have failed if the argentines had not invaded the falklands, which provided a boost for it. you have a lot of economic debate about whether she went too far. ,he net result of what she did coincidently, the parts of england that voted heavily for brexit, those areas got knocked out. the industrial heartland. britain was an industrial power when thatcher got hold of it, and she wiped that out by getting rid of subsidies, the different versions of support. and what grew up instead was this very open services economy. david: it is a historical essay

and a personal essay as well. you go back to 1981, and your realization that things are changing, in san francisco. what made it difficult to see the change at the time? john: it is a story i have told before. myself and my friend george were on our gap year in between school and university, and we were staying with a cousin of his in san francisco who i didn't know at the time would be one of the godfathers of libertarian -- the libertarian right. he had a sauna with milton friedman, who was his neighbor, and who had been supported by him to some extent. what happened, not in friedman sat and lectured us about how thatcher would change things. she would get rid of the union. britain would become this massively confident outward going economy, and at the time, i thought this was total rubbish, because everything i was brought up with was a gospel of decline. britain, sometimes we can be funny, we can be clever, we can produce monty python. we have make jager. were not an up-and-coming

economic power. we were on decline. and what she did, for all the reasons vonnie said, not always successful, but she totally reversed that. what happened under her, under major, under blair, brown to some extent, and cameron, was britain and london in particular became the center of the place that is most comfortable throughout the whole western world with globalization, in this new age. vonnie: to bring it back to the present day. what some call a clown show in the conservative party. theresa may might have the advantage here, because she has been pretty quiet. on the remain side, but a pretty quiet remainder. how did she get away with this, if immigration was the thing that caused all of this to occur? vonnie: the answer is, i think she will perhaps subtly imply she was following orders from the prime minister, i would guess. the truth is, on immigration it's very difficult to get away with it. it's a simple thing. if you are part of the european

union, you have open borders. we have to let dodgy irish people in. [laughter] we have to let in poles. that's the way it has been, and it has been from an economic point of view an enormously successful machine. but within individual parts of britain it is deeply resented. the area where the government misled people was not in terms of what they actually do. it was in terms of how they presented it. they kept on promising, immigration would not be that high, but in fact there was nothing they could do to stop it, and that is the center of the new argument between britain and the european union. can the british given the single -- get in the single market, and can the europeans give them some kind of leeway on immigration? ckelthwait, mike bloomberg news editor-in-chief. vonnie: rates are rising in

mexico and the peso is gaining after massive weakness. reaction next. this is bloomberg. ♪

david: as we reported at the top of the hour, mexico's central bank released a new rate decision moments ago, increasing to 4.25%. watchersthis decision, of the mexican central bank were split on what would happen. what accounted for that? >> i think a couple of things. the central bank made it very clear, this position is more about trying to control inflation expectations and trying to bring financial stability. the market was actually pretty divided. there were expectations for zero, for 25, for 50. one argument for no hike or 25

basis points would be that growth is not so good in mexico and inflation is below target. the central bank made it very clear, they know these things, their knowledge these things, but given the currency depreciation, they want to hike, they want to keep expectations under control. vonnie: you saw the reaction in the peso. does it continue? do we see an even stronger reaction? should the central bank be targeting an exchange-rate? george: they do not target exchange rates. they have a floating exchange rate. what they were more concerned about was not the level, but about the speed of depreciation, and the amount of depreciation we are seeing this year. this year, mexico has seen, the mexican peso been among the worst performing immersion -- emerging-market currencies. looking at it in the second quarter. ,hat the central bank is doing is to tell these people who want to be shorting mexico as a risk hedge for events elsewhere, you

have to think twice before doing that. because we have seen an accumulation of short positions in the mexican peso since early may, and it has kept climbing. after this, i would expect a little position paring from a long dollar position back. david: george lei with bloomberg news. hershey shares are halted. hershey has reportedly rejected the proposal from mondelez international. commodity markets will be closing in new york. here's a look at oil in the second quarter, up 9%. this is bloomberg.

?c+sv david: live from bloomberg's world headquarters in midtown manhattan, this is ". convert markets" vonnie: breaking news on

hershey. ramy inocencio has the latest. ramy: breaking news that hershey's board has in total rejected mondelez's offer. hershey said it confirmed it received a prillaman a nonbinding indication -- preliminary nonbinding indication of interest from mondelez, but no further discussion off of that. her she's is halted -- hershey's is halted, but last time we checked it was up 15% and on track for the highest since shares started trading in 1988. let's go to the commodities close right now, because that has just happened. first of all, let's look at what's happening with wti crude, down sharply right at the end of the commodities close, down 3% year, giving back gains we saw over the past few days amid rebalancing over the last two days. we saw the vinci accrued rise crude rise 7.7%.

that said, it is on track for the biggest quarterly rise in seven years. wtiie check crude, up 27 -- and similar rises across the board for other safe havens. ever since the start of the year, up 25%. silver futures, similarly up. copper futures up 2.6% year today. let's look what's happening in the farming world and with corn. corn right now closing near a session low, down 3.3%. we might be seeing in easing -- , butsing on the oil glut apparently we have a glut in corn. farmers planted more than they needed for the month of march and are now reaping what they have been selling.

similarly with metals, this has been happening with farm commodities. corn up 2.7%, but year to date up only 0.6%. wheat is in the negative, down 7%, and soybeans are continuing their rally, up 29% for the quarter. david: just looking at the release here from the hershey company, dateline hershey, pennsylvania, saying the board of directors reviewed the offer from mondelez international, and unanimously, rejected it and provided no basis for further discussion between the two companies. billionaire kelsie warren built reputation as a visionary for scooping up small companies as the shale boom exploded. the williams company was supposed to be his biggest deal, but instead ended in lawsuits. kelseyout how

develops his reputation. >> in the energy space, there's a lot of big personalities, but the pipelines are more of a utility world, so you have more conservative leaders of companies. kelcy is kind of an aunt in or to the core. he made a small fortune in the 1990's, with his first natural gas pipeline company in texas, and built out a pretty solid network within texas, positioned well at the onset of the shale boom. he kind of used that to go well beyond texas, and had visions, and probably still does, of being the biggest and the baddest. vonnie: pipeline cowboys. you make money if you keep rolling out more pipeline, i guess. what went wrong with this deal? >> we saw that oil has been rebounding in recent months. before that, it had a pretty precipitous fall.

between september when the deal was announced, and february, oil dropped 40%, which really undermined the economics of this deal. around the holidays is when kelcy warren started to reevaluate whether he wanted to close the deal. since then, he, it was supposed to be a bulletproof agreement, but he found a way out of it. how the deal was allegedly structured to benefit him? >> sure. ways.s he wanted it both early on, it was supposed to be to his benefit, and was structured very effectively to do so, and then it kind of pulled a 180. when he realized he wanted to get out of it, there was no sure and easy path, and it became lifting all the stones looking for answers. i think that left a bad taste in

a lot of investors' mouse. mouths. here's a guy who has had multiple multibillion-dollar deals, but in this case he kind of moved the goalposts on the other side, not something you want to get involved with in the future. vonnie: there have to be some people who made money from this, or did not lose money, at least. >> absolutely. that's the other side of the coin. if you invested a lot of money in transfer and did not want the deal to come through, as kelcy did not, you are probably quite happy that you have this kind of brash leader who is able to fight for the survival of his company, or lease the way he wanted it to be. david: thanks so much. it's a great piece. let's check the headlines. mark crumpton has more from the newsroom. mark: david, bonnie, effective

immediately transgender individuals will be able to openly serve in the u.s. armed forces. defense secretary ash carter says service members may not be involuntarily separated, discharged, or denied based on gender identity. secretary carter: our mission is to defend this country, and we don't want barriers on related to a person's qualification to serve preventing us from recruiting or retaining the soldier, sailor, airman, one marine who can best accomplish the mission. we have to have access to 100% of america's population for our all volunteer force to be able to recruit from among them the most highly qualified. mark: the full policy must be implemented by july 2017. 15 marine drill instructors are being investigated for hazing and abuse at a boot camp in paris island, south carolina. the investigation follows the death of a muslim recruit who died after falling nearly 40 feet in a stairwell at the

installation. marines under investigation have been assigned to duties not involving recruits. paris island is one of the marine corps's two basic training installations. former president bill clinton held and a prompt a meeting with attorney general loretta lynch thehoenix, and lynch said discussion did not involve the investigation into hillary clinton's use of a private e-mail server when secretary of state. the attorney general reporters that the meeting at a phoenix airport on tuesday was unplanned. new jersey governor chris christie is being feted as a possible running mate for donald trump. christie, who ended his race for the white house after a poor showing in the new hampshire primary, was an early supporter of mr. trump. day,l news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. back to you. david: still ahead, the nasdaq

biotech index is on a three-day winning streak. a check on the stocks driving the action, next. this is bloomberg. ♪

vonnie: we are taking a deep look at the global business of pharmaceuticals and pharmacology. here's some health care stories making news. shire is not giving up on an experimental treatment for premature babies. the dublin-based company will keep investigating the treatment even after the drug failed to

meet expectations in a recent study. they will discuss late stage research plans with regulators later this year. david: microsoft cofounder bill gates says drugmakers lack incentive to develop medicines that mainly help poor nations. >> philanthropy and governments have to come in and say, malaria is a priority, despite the fact that people are not going to make much money. so we go to the pharma companies and say, we will fund it, you donate some of it. so we got their attention, and that's what we had a very strong malaria drug pipeline. david: one of the bloomberg foundatio gates foundation's investments sold this year, putting money back into the foundation. astor zeneca spent the most out of 109 companies --

astrazeneca spent the most out of 109 companies in the database. unlike in the u.s., british doctors receiving payments get to remain anonymous. david: let's get a check on biotech stocks. abigail doolittle is at the nasdaq. abigail: eight wild quarter -- a wild quarter for biotech at the nasdaq, up and down. but amazingly, the nasdaq biotech index is down just about 1.5% this quarter. the reason it is so surprising, biotech is in the worst bear market since 2000. let's look at a couple winners this quarter. one of the biggest winners, medivation shares are down today, but on the quarter up 30% on speculation competitive m&a interest could bump up their offer of about $9.3 billion. other winners include anna core pharmaceuticals, up on the

pfizer takeover. tesaro up on success with their over in cancer drug. david: what has hurt biotech this quarter? abigail: the biggest drags on the biotech sector and the nbi are the giants including gilead, biogen. take a look at the chart here, with the bull run reversing into a bear market last year. on monday, the biotech index actually put in a new lower low. typically this is bearish, which tells us sellers are gaining strength. a bit of a cautionary point here on the biotech index. it will be interesting to see what happens in the third quarter, david. david: abigail doolittle, at the nasdaq.

for more full coverage visit pharmago on the bloomberg terminal or bloomberg.com/pharma. coming up, the latest on hershey, rejecting the offer from mondelez international, saying they did not see much complementarity. we will be talking about it next on "bloomberg markets." ♪

david: this is "bloomberg markets." i am david gura. vonnie: i am vonnie quinn. erik schatzker sat down with the ceo of barclays in london, and started by asking whether barclays needs to raise additional capital. >> the amount of capital we free up by selling a stake in africa is quite significant. we have all the capital and liquidity we need, and we will free up more capital.

we don't need more capital. we are fine. and we have the profitability in our core business to generate significant returns for our shareholders. you know, the challenge that this whole referendum faces for us is, we have settled on consumer, corporate, and investment bank, and what these measures will do in terms of the u.k. economy will impact our u.k. retail bank. the whole issue of how the european union will deal with the u.k. in terms of not putting up protections between the financial industries. how do we react, as a major bank in london, to that? that's a new strategic challenge for us, but it will not deter the core approach we are taking, and will not deter the timing of getting the strategic shift in this bank done by 2017. erik: what if people, whether they are your customers, corporate, or regulators, lose confidence in your capital

adequacy? >> you know, we obviously size significant move in our stock price. erik: there was awhiff of that on friday and monday. >> but if you look at where our credit spreads were trading, which is more of a reflection of your capital levels, we were fine. all our funding was rolling. we were in or miss the liquid -- enormously liquid. for our consumer clients in the u.k. and across the country providing credit, cash, currency. we were actively engaged with our corporate clients. we closed three leveraged finance deals over this weekend. we were raising debt for a major german corporation just this morning. so we have no sense of concern about our capital or liquidity, and properly so, because there is no concern there. there is concern about our earnings, driven by this concern about the u.k. economy going forward, and that's concerned

about our investment bank, if in fact there is a challenge between the european union and london as a financial center. erik: what have you modeled for revenue and earnings? the base case scenario, given the uncertainty, and perhaps the worst case scenario, what does this year look like, and what is next year look like? >> in terms of the stress tests governor carney talked about, these banks are so much safer. we have gone through all sorts of stress testing, much more to coney and then what anyone might predict on the back of the referendum -- much more directly raconian than anyone might predict on the back of the referendum. we might have a contraction on investment banking results in london. but you had a 10% correction in the currency, and the majority of our investment banking revenues are in new york, and last time i checked, we use the u.s. dollar over there still, so therefore you will have a pop in terms of the sterling value of

our revenues outside of the u.k. same thing with the credit card business. so, let's see what will happen in the u.k.. on the retail side, i think there will be some pressures, but i am comfortable with our ability to generate a strong return for our shareholders, despite what may happen with the u.k. economy. david: erik schatzker's interview with the ceo of barclays. vonnie: shares of care.com are soaring. google capital made a $46 million investment in the company. joining us is bloomberg editor at large cory johnson. why did google capital get into care.com? corey: to make money. david: fair enough. : there we have it. thanks for joining us. no, google capital has made a number of investments in companies, and then they bring them into google and try to use the different asset and projects at google to accelerate their

growth. interestingly, google capital has been looking at some public companies as well and wondering how that might work with them. care.com, they found a number of things that are fairly unique. a big investor who wanted to liquidate shares, and they found the opportunity from the company to issue convertible shares as well that convert, interestingly, below the price a the stock, at $10 and $.50, 5.5% dividend as it goes on overtime. they think they can really accelerate the growth of the company by using the assets and abilities of google corporate, or i should say alphabet corporate. vonnie: in the context of the acquisition, $46 million is quite tiny. cory: in terms-- of the size of the business. google has had some focus on health and on different ways of delivering information through health care. that's a focus at the corporate level and chairman eric schmidt

has been talking about this for years, as an area google has interest in. it's very interesting, the notion that the uses of google's corporate cash go as far as investments in public equity to get a better return, both for those companies they invest in for the capital held in google capital, and google as it is spread across different businesses. david: i have a question about google capital versus alphabet, and the interest google and alphabet have in venture capitalists. where do they fit into the valley vc scene? cory: google venture investments are purely financial investments. they are certainly informed by the things google does and the google collect. possibly no company in the world has the data google has. they think they can use that to make smarter investments, and

look at what's really going out there and get an early. the fact they are taking this to the public market is a different thing, but this is focused on financial return, not just leveraging google's assets for the benefit of google and alfred corporate -- alphabet corporate. it's about financial return. they will make money. that is their goal. vonnie: i wanted to get into the terminal just to show you guys the love from google capital and what it meant to care.com share prices, searching. that you can see it. you can catch cory with more on andyou care for pets fo people all at once on "bloomberg west." david: hershey's has you -- unanimously rejected a takeover bid from mondelez international. craig joins us with more. ereivations on mondelez's w primarily geographic? greg: correct. mondelez was set up with a split

from kraft to attack emerging markets, and that has not worked out as well as they thought. so mondelez is looking for u.s. exposure. they make 70% of their money overseas, and her she is almost 90% selling in the u.s., so for mondelez this is a chance to sell in the u.s.. vonnie: kit-kat provides a huge chunk of revenue for the company. greg: they control the license andell kit kat in the u.s., nestle controls it in the rest of the world. the part of the deal is that, if there is a change of control, nestle could take the license back, and in the past that has complicated takeover rumors. hershey has been mentioned as a takeover in recent months, because they have not done that well. david: the board said they are not interested.

what kind of shape is this company and? we talked about how they are getting into beef jerky, expanding out of chocolate, out of candy. greg: u.s. consumers are trying to cut down on sugar, trying to eat healthy. sugar is not good. it's a health bogeyman, and hershey has felt the effects of that. people are trying to eat less of that, and people who each chocolate are trading up to dark chocolate, premium chocolate. so the company is vulnerable to a takeover, but 80% of the voting rights are held by the hershey trust, a charity set up in 1985 by milton hershey, 80%. they say the hershey company board rejected it out of hand. we don't know where the trust was on this. vonnie: shares up 16%. mondelez, shares still up 3.5%. does that indicate that

investors still think this will go through, or will they find some thing else? greg: perhaps they will find something else. it is an interesting turn for the ceo of mondelez, with that company going after the emerging markets, and now looks like they are looking back to the u.s. people thought mondelez might be a target. when bill ackman got into the stock they felt 3g might want to buy them and roll into kraft heinz. the ceo has survived two fights, so maybe she's about to get acquisitive and moving to the u.s. david: coming up in the next hour of "bloomberg markets," jack ripken joins us, expecting plenty more volatility in the coming months. this is bloomberg. ♪

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>> it is 3:00 p.m. in new york. >> this is bloomberg markets. ♪

david: from bloomberg's world headquarters in new york. vonnie: here is what we're watching. david: the s&p is poised to run three straight quarters despite great -- brexit volatility. vonnie: bank of england governor signals he could cut industries within months of the central bank's pledge to shield from the shock of the brexit vote. david: hershey rejecting a $23 billion takeover bid. ♪ are one hour from the close of trading. stocks around session highs. highs, broad market