hi everybody. good morning. welcome to "street signs" i'm louisa bojesen. your headlines today. the polls are officially open. prime minister david cameron among the first to cast his vote in the historic eu referendum. >> pound edges higher but weaker pmi data caps the gains. and the tesco growing for the second quarter in a row. and stateside t sit-in in the house of representatives rolls

on as democrats demand a vote on gun control legislation. >> good morning everybody. and welcome to "street signs." it is an exciting day today. we're getting some live pictures through from the polling stations in london. you are looking at one of them right here. so a small flow of people. polls across the country now open for voting in the eureferendueu referendum. tomorrow no doubt is going to be very very interesting. our coverage tomorrow very focused on the results. moments ago prime minister david cameron cast his vote in london along with his wife samantha cameron. that was just a little while ago arriving to cast their votes. and checking in on the market moves we're seeing today. sterling at the moment just edging higher by .3, almost .4

against the greenback. that is what we're seeing with regards to cable. the pound hitting its highest level this year overnight. and looking at the european stock markets today as well. quite a bit of green out there. a couple of the periphery markets trading in slight negative territory but the name of the game seems to be a little bit of cautious buying. let's talk about asia which check with martin sung out of singapore. >> good morning. good to see you. and so we're late session out here in asia. practically done. and here is the picture. the picture is mixed and patchy. i have to say the tone is trade is very thin. it is erratic and trade a also

very cautious. the nikkei 225 easily leading the way up in asia. the rest of the picture is kind of patchy. the volumes though, the volumes in this market, the second lowest we've seen this year. in fact only about a third of what they have averaged the last year or so. so there is a lot of caution in the market right now. dollar-yen at 104.45. polls 5:00 a.m. our time in hong kong. and shortly after that you have the results dribbling out. we're watching this market very closely. this is going to be a market in terms of reaction to your results. it is going to be live and trading. this is the name to watch for the nikkei 225 plus of course the dollar-yen at 104.44 but who

knows what's going to happen. >> thank you very much. antonio garcia pasquale just joined us. and just reiterating the june composite approximate, mirks, data. flash composite pmi of 52.8. slightly shy of the reuters poll of 53. and a reminder --. the output index, 49.2. you have got the flash manufacturing pmi figure of 52.6. a little stronger than reuters poll of 51.3. and the flash services pmi. 52.4 also weaker than the

reuters poll, 53.1. nicholas sturgeon just leaving the polling session as well. quite bit of activity there. here se is again. nicola. all the uk leaders placing their votes first this morning. gets votes in nice and early. it will be interesting to see what turnout does today. anyway. let's talk about the pmi data. seems services a struggling a bit antonio. >> we had relatively strong q1 growth data. .6, germany .7 quarter on quarter. so there is a bit of a payback. nonetheless it is true. there is a clear deceleration in european activity. not all countries equally. we've seen germany versus france. germany not much of an impact of

political uncertainty. in france you see quite a considerable slowed p. in fact when you were to translate the pmis into the gdp activity just to give order of magnitude we're thinking --. >> that is a very negative forecast though. is that -- that is within when? >> i think q1 was particularly strong for france. so i think perhaps that is not the best base to compare to. but there is clearly slowdown1. end of last year you had the paris attack. q1 was particularly boosted in consumption. we were expected a slowdown. below consensus but this pmi number suggests that just this -- [ inaudible ] there is also political issues in france as you will see between the government the trade

unions with the strike so that probably has -- maybe hurting con sums to some extent. >> where do you think growth is coming from? are we looking towards asia? the u.s. business cycle is coming to an end. corporates to put cash to use? what is going to spur this possible growth? >> when you look at the home factors. they are still there. they are still plain. the euro is not at the level that is particularly up competitive. inflation is very low still. ki kind. so you see this --. let's not forget this monetary policy is helping. without that you will see growth something like 1.3 percentage points lower. so let's think in those terms as

well. >> this weekend is going to be interesting too. because spain heads to the polls again on sunday. another fragmented parliament could be very likely. spanish assets might continue to underperform. that is what you are saying antonio. we have the second time they are heading to the polls in six months. four parties. do we think old school spanish politics are the name of the past? we're looking at a situation now where even if rajoy runs off with the majority win again it is going to be very difficult to form any type of government still. >> i think you are right. polls is signaling fragmented party. four large party system. the difference i think this time around versus december is that there will be a pressure for a

coalition to reform, a government reform. i will not expect another six months of political impasse. at the latest by the end of the summer we should have a government. >> you don't think the spanish people they now are becoming used to almost not having a government? >> well you will be amazed. belgian a few years ago. the country can run without politicians. will get them toe act perhaps. >> first quarter gdp growth of 8% in spain. similar to second half of last year as well. is the spanish economy recovering? >> well it's been last year was 3.2% growth. higher than other --. with carryover from last year. this year we're thinking of the baseline of 2.8. no signs of the political uncertainty hitting growth not yet. we think it will come in q2 and

q3. we expect some slowdown1 second half of the year. >> do you think a minority government can pass in reforms? won't bit difficult? and some other stuff? >> i think it is goings to be very difficult. even for a majority government it's proved to be politically complicated. i think the baseline should be that no meaningful reforms could be passed by the minority government. minority government may not be able to serve a full four year term. >> antonio, thank you very much for now.

was it raining when you came in? >> it was. >> like flood gates this morning in the car. heading in here. get your questions through e-mail to the show. "street signs" europe at cnbc.com. that is the e-mail address. twitter, we're also on twitter. you can find the show on twitter at @"street signs" cnbc or tweet me directly @louisa bojesen. . >> stateside a different story. the democratic sitt

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hi everybody. welcome pack. you are still watching "street signs." i'm louisa bojesen. guess what just happened. the norwegian central bank left rates on hold as expected. they are repeating further cuts are to come. that they could cut later basically in order to fight this economic downturn that we've seen in norway. which has been by and large onset by the lower oil prices. so that is just happened. the norwegian central bank, they see 2016 key policy rates at a level of half a percent. versus the march forecast of a half perks as well. 2017 policy rate level at .3%, a little higher than the march forecast of .2%. and 2018 policy rate levels at .3%. the march forecast was .2 as

well. and should we put 2019 in well? the policy rate level at .6 percent. so by and large they are just upping the forecast of the policy rate levels in the years to come. and they left rates steady this morning. let's just look at some of the other traditional safe haven assets. dollar-yen starting off 104.45 at the moment. relatively stable trade. looking at bond markets we've seen this safe haven flow at the last couple weeks slightly mixed out there looking at bond yields and gold. gold gold gold. hit a two week low overnight of 1260. we're now around 1268. tesco has reported a small growth in sales for the quarter raising hopes that the turnaround plan implemented might be starting to bear fruit.

and more. this is the latest of a string of divestments as tesco refocuses on its core business. the cash raised could help cut its debt burden and shed its junk rating status. vocation wagon faced investor anger yesterday. a number of shareholders called for reform to the car maker supervisory board. they basically want it to include more independent directors. volkswagen's chairman bore the brunt of criticism during the meeting. he apologized for his company's conduct but refused to go into the investigations into the car maker. >> translator: i would like to say sorry for the confidence you are placed in us. we are regrets this deeply. not only for the board but the

entire company. the most urgent task for all of us therefore is to regain the trust in the volkswagen group. because of this not only to we want to resolve the accusations in a comprehensive non partisan and relentless fashion but the purpose itself needs to be transparent. therefore i deeply regret that today i can't present any preliminary results of the investigation. this is due to the development of legal proceedings against volkswagen relate to the diesel scandal in the united states. >> fiat chrysler redoubling efforts for stuff. back in april fiat chrysler launched a recall program for more than a million cars worldwide over concerns the electronic shifters they could cause them to roll away after they are parked. jim chains has lambasted

tesla's bid for solar city say. markets reacted negatively sending tesla shares off by more than 10% in yesterday's trade. the ecb reinstated greek bank's access to cheap funding yesterday. after the lenders were cutoff from the ecb's regular funding operations when the company became close to being ejected from the euro zone back in 2015. julia in brussels. jewel jaia. so they are reinstating the greek bank's access to this money. what does it mean? >> great question louisa. basically what we've seen since last year is greek banks having access to the greek central banks emergency liquidity assistance. if they needed liquidity, they couldn't go to the ecb.

it has to be indirect. now this costs more money. about 1.5% more than getting cheep liquidity from the european central bank so it hurts the banks. what this now means is the waiver that was applied to greek government bonds -- because obviously they are junk bonds. they are not investment grade -- has now been reapplied. it means they can post those bonds to the european central bank and get liquidity back. we're talking a sum of around 62 billion euros. if you imagine 1.5 percent of that, this is no small sum of money it is costing the bank. this is step forward. progress. an improvement for the greek banks. it was expected. we were talking to mario draghi at the last meeting about this. it's been in the works we've been waiting for it. but what they have stopped short of doing is allowing the greeks

access to the ecb bond buying program. of course that would be expected to bring greek government bond yields down. so this is something that we're still waiting for here. the suggestion is that might take until september. but overall a step forward for greek banks and for the greeks overall i think. >> julia you have been covering this for a long time now. do you think that the ecb looks towards the greeks at this point? and they think you know they have actually made progress. progress on reforms. progress on implementing deals that need to be made domestically. what do you think the ecb's thinking is at this point? >> the only way the ecb can apply this waiver to junk bonds effect live, because remember they could initially only accept investment grade bond ads collateral and the reasons they apply this waiver is when they look at the risked associated with the country is say okay they are in a bail out deal and they are applying it.

they are fulfilling their obligation. so this is a sign from the ecb that they see the government fulfilling their obligations. louisa, you and i have been talking about greece for a long time. so we know that just saying you are going to do something and actually implementing it is a different thing. so we have the see how the greek government manage to apply. so it is a case of work in progress but for now this is a positive sign from the ecb that they think that the greek government is making progress and has agreed to the kind of reforms that are expected under this latest bail out deal. so as the reason to be positive i think. >> julia, thank you very much. good to see you. julia chatterly live from brussels. now we've talked about spain. we heard about greece. let's talk italy. bank poplar has did stuff. however veneto bank has much

less success and feel looking at the rescue by boil out fund atlanta. the italian banks, it doesn't look very geed when looking at the headlines. let's start with venetvenetoban. >> if you looks at valuation it's been sold for same multiple as unicredit which was much larger.

-- about 70% liquidity. and of course if you look at profitability now quite underwhelming. >> do you think we'll see an increase to the size of the fund? >> eventually yes. the founder it was basically done for this purpose: i think 70% of the fund's capital go into those institution. actually the hope is that the atlanta fund will be able to combine those two entity. and targeting some synergy and

non performing loans. >> antonio? thoughts on the italian banking sector? >> i think there is no doubt that was a step in the right direction. from a macro perspective, which is what i'm mainly focused on. you do still have a significant problem. as the handicap to monetary policy in this size. there is a side to it as well which is how long it takes for banks to recovery those assets which is much longer. and this is something probably makes farther fixing. again the size of this initial fund seems a small relative to the size of the problem. and clearly when you compare italy relative to the others it is the country benefitting the

least. >> i tweeted some of your figures filippo quoting you earlier. the 360 billion euros of bad loans. 20% of gdp, 18% of total loans. and you say of the 360 billion, 210 are the worst kind of non performing loans? is the problem. and this is a kbrosz number. and of course there are some collateral against. and the problem is the collateral is very different from bank to bank. some are mortgages are high quality. and some others --. we think it will take time to off load those non performing loans. probably talking about a 5-10 year horizon. and hopefully we don't get a very bad recession in the meantime. >> this idea of a bad bank once again that we're seeing. is this the best route to go

down to try to unwind the non performing loans at this stage? >> yeah. at the moment the atlanta fund is privately funded. of course was organized by the government and bank of italy. it is the only way considering all the legal constraint. at the moment it is the only option on the table. it is important for the monetary policy in europe. at some point in time perhaps the italian government will be able to negotiate a way out but at the moment, yeah. >> also discussion on whether or not the portuguese should be looking at doing something similar as what they are doing in italy. as opposed as. i spoke to the portuguese minister not that long lo ago: and.

>> that is the other country that will benefit from a clean up of the assets. it is expected the largest deposit taker will need considerable capital needs. so the size of the overall capital needs could be large for a country like portugal. >> antonio, thank you very much. and filippo thank you as well to you. now moving on. cristiano ronaldo's portugal squeaks through.

his first goal of the tournament. elsewhere the republic of ireland left it late to secure a last 16 place with a finish in the 85th minute defeating an already qualified italian side. this perfect delivery to brady who headed into the back of the italian net. meanwhile belgian security qualification with a one-nil win over sweden. it'sland continues its fairy tale tournament. check out our live blog meanwhile. we'll be back.

welcome back. you are still watching "street signs." i'm louisa bojesen. hope you are having a fantastic morning. these are your headlines. the polls are open. prime minister david cameron among the first to cast his vote in the historic eu referendum. the pound hits a six month high. and equities higher as well. tills ringing at tesco. sales growing in the retailers home market for the second quarter in a row. and in the states the sitton sit-in in the house of representatives continues on. as they demand a vote on gun control legislation. hi everybody. welcome back. if you are just joining us. don't worry. we'll update you on what you have missed out on so far. let's start with sterling.

so you can see where the pound is trading. of course today is the day britain casts votes on whether to remain or leave the eu. currently sterling against the dollars a higher up by a half percent, 147.73 hitting its highest level this year. 148.47 was a print that i saw. and that also means we are higher by around 6%s since last week in cable trade. european equities are trading higher. the finnish market. the polish and the greek market a little lower by by and large europe up a little more now. closer to 1% upside. and glancing to the u.s. the implied open on the right-hand side of your screen. we're looking for a green start stateside. so a little bit of a bounce on the markets in the states. speaking of which, janet yellen's second day on capitol hill got heated.

members of the house financial services committee grilled the fed chair on monetary policy pressing her to close employment gaps and address inequality. >> your actions are benefitting the rich over the poor because of your monetary policy is that correct. >> it is not correct. >> which part is not? is it not the fact is gallop wrong when he says the rich are more likely to invest in the stock market than the poor that is true. is it not true that your quantitative easing according to bernanke also benefits -- >> 14 million jobs -- >> is that -- >> excuse me. i have the floor. >> yellen also acknowledged the slowdown in the first quarter but remained optimistic. >> we've had an economy that is for the last four quarters growing about 2%. growth was quite slow in the first quarter at the end of last year. looks to be picking up.

so while we're watching things, i don't want to send a message of pessimism about the economy and where we are going. >> now, this comes as u.s. home resales rose to a more than 9 year high during the month of may. the national association of realtors said existing home sales increased last month by 1.1%. the median house price soared by 4.7% year over year hitting a record $239,700 for may. mark flemming joins us from washington nice and early. 4:30 in the morning mark. bright eyed and bushy tailed. u.s. existing home sales hitting a nine year high for may. the median housing price jumping by almost -- percent. may need to put a little brake

on the housing market. >> actually yes a really good report. 5.5 million sales is good news. up 4.5% over a year ago and we believe it is closes to reaching full potential. when we measure market potential , the gap is about a hundred thousand. not quite there still. but getting very close. >> how do you know it is full potential? >> we measure in similar ways to how the fed looks at the full potential for unemployment. we measure household formation. unemployment rate. interest rates are clearly fuelling activity in the housing market. first time home buyers are surging into the market right now stimulating demand we see in the sales numbers. >> just after yellen's congressional testimony the takeaway seems to be she was cautious and putting it down to whether or not we see this rebound this hiring. do you think a july hike is off the table at this point?

>> it is funny, yeah. i think even if we had a july hike it would be modest and unlikely to really change things dramatically. particularly at the long end of the yield curve, certainly where mortgage rates are set. so right now the moshlg rate and the 10 year treasury in the united states are being influenced by global uncertainty more than what the fed can do to it. >> even if we don't see anything in july whether or not the fed would have enough positive data come september in order to hike then. >> and that is right. and now the odds are suggesting maybe one or two more when at the beginning of the year we thought we'd have as many as four or five. >> what do you think the impact on the housing market stateside from this very low rate environment for what seems to be a very long timing coming? are we risking this housing market bubble at some point that

a lot economists still fear? >> yeah i think the persistently low rate environment is creating purchasing power for the consumer in the housing market. while unadjusted nominal house prices seem high and growing at that fast price due to tight inventory and increasing demand, when you adjust for consumer buying power prices are quite affordable that is why we see a lot of demand. housing is actually helped by the low rate environment and is now highly affordable. >> i look at kids today. early 20s. just coming out of school or being in college, not from particularly wealthy background, middle class. are first time buyers able to get into the market as of now in terms of getting a leg on that housing market ladder? >> i think the challenge today as it's always been for first

time buyers is the gathering up of a down payment. sort of being able to get that 3 or 5% you need to get that first loan. and i think if you don't have a job, if you don't have good income it is hard to save that money. the challenge is i think less an affordability problem but an income problem from those who don't have good jobs here in this country. >> the fed's message, do you think that it is likely to change much here over the coming month? >> yellen really being grilled yesterday. are they going to change their wording? i saw a line quoted yesterday i think it was saying yellen has been cautiously optimistic up to now and at the moment it seems she's more cautious on being optimistic. >> yeah, i think the word choice is so important in what the fed says these days. the cautious optimism has been there a while. we're sort of stuck in a mode of cautious optimism i guess you could say. and the reasons might change

slowly. i think the word she used in her testimony, her written testimony was vulnerabilities that she sees to the u.s. economy such as slow productivity growth. and if you haven't faster productivity growth it is hashd to see the wage growth needing to improve things. >> vulnerability can sometimes be good. if you dare show your vulnerable side it can also be a sign of strength, right? >> right. >> mark, thank you very much. mark flemming, chief economist live from washington. have a cup of tea and wake up properly now. let's move on. staying in the states. donald trump had unleashed a wide ranging takedown of hillary clinton's record. nbc news looked into the things he was saying and found many things were misleading or simply completely false. haley jackson is separating fact from fiction.

>> donald trump finally on offense after days of defending his plan. >> hillary clinton may be the most corrupt person ever to seek the presidency of the united states. >> he's working to define hillary clinton as the creature of wall street and of washington. >> her campaign slowing season i'm -- slogan is i'm with her. do you know what my response is, i'm with you the american people. >> trump never one to mince words though today not all of them very true. >> her server was easily hacked by foreign governments. >> but a state department report says it found no such evidence. only routine phishing. and on benghazi? >> late ambassador chris stevens what. he did with him was absolutely horrible. he was left helpless to die as hillary clinton soundly slept in her bed. >> that is not what clinton told a select committee this fall under oath.

>> i did not sleep all night. i was very much focused on what we were doing. >> the hears, revealing she was still at the state department in the early afternoon when the attacks started to unfold. later e-mailing her daughter from home shortly before minnesota. >> hillary clinton has perfected the politician of personal profit and even theft. >> trump leaning heavily on the book clinton cash. but that book's author admits there is no evidence to prove those allegations. >> i guess my speech yesterday must have gotten under his skin. >> one day after attacking her rival on his business record clinton again targeting trump. >> he's going after me personally because he has no answers on the substance. >> well, separately, house democrats are continuing their sit-in on gun legislation. you are looking at some live pictures from washington. it's now been going on for more

than 17 hours. the georgia congressman john lewis and around 40 fellow democrats started the process and vowed to stay until there is a vote on gun control. tracie pothsds joins us from washington. what's the latest? >> we'll see how long this goes. some went home. in fact the house officially journey adjourned. some lawmakers about a dozen at last report were still there. the lights were still on. the gallery is empty. they are still sitting in. making the point think the house needs to take a vote on no fly no buy, preventing people from getting guns at the point of sale. republicans have protested that. and so this long sit-in that started yesterday went all night into early this morning and as of this morning, some continue to sit in even at the ajourn

adjournment. before they adjourned there was a vote on some things. which democrats also said was inadequate but they are vowing to come back and make this happen. -- really trying to press for some vote on gun control even though based on what we're seeing rite now it is not clear at all that they have any consensus on legislation that could actually pass. >> so all the republicans have left, right? they voted to adjourn. so you just have the democrats thafr left. >> exactly. some of the democrats are left. >> yes. so i do like this little tidbit as well. the representative keith ellison's mother reportedly called his office and passed along a message as well.

saying your mom called and wants you to be on the floor. like it came via tweet. >> right. yeah apparently he was in a meeting while the sit-in was going on. and he got this message that says your mom called. she wants you on the floor. i mean you have john lewis a civil rights icon. several other democrats who had taken to the floor for hours at this point making the stand about gun control. and apparently ellison's mother wanted to see him there. the cameras went down at one point. they shut them off so we couldn't see what was happening inside and then some of the staff members started live tweeting via periscope and other social media showing what was happening on the florida so while the republican leadership tried to shut it down apparen y ellison's mom was able to see what was going on and say get out there and support in. >> look.

common sense. get on the floor. nbc tracie potts from washington. as usual get your tweets through. get your views through as well. we welcome all views here on the show. you can find us on e-mail strooins europe at cnbc.com. we're on twitter as well. bojesen. we'll take break. before we head to break these are the live pictures of a london polling station. as brits they vote in this historic eu referendum

hi everyone. welcome back. u.s. communications software provider twilio has priced its ipo at $15 per share ahead of its fist trade later today. above the range originally forecasted and would raise $150 million. >> twitter is looking to sell its nfl ad spots for more than $50 million. the social media platform ceo's jack dorsey is actively searching for the bybuyers for company's nfl ad packages. twitter spent 10 million earlier this year for the right to stream 10 nfl games this season. netflix is a plot that the u.s. used to have global mind control. that is the view of russia's

culture minister. he said you thought these gigantic start ups emerge by themselves? one schoolboy sat down and thought for a bit and billions of dollars rain down from above. he also -- use of propaganda. looking as the couple of indexes. the vix index starting off. we're just looking at the slightly lower vix at the moment. coming off over the last seven days. oil the price of oil yesterday you would have noted above $50 a barrel for brent and wti. following this bigger than expected draw in u.s. crude stockpiles a bit of a surprise we saw a rally coming into the session yesterday and when glancing at the u.s. futures we're around 4.5 hours away from the u.s. market open. the implied open is for a bit of green on your screens. little bit of a bounce.

kevin kelly is chief investment skpifr joins us from new york. good morning kevin. how are you. >> good morning, thanks for having me. >> thanks for being with us. what is going on in terms of the some of the flows that we're seeing a the moment. what is the picture with regards to where investors are putting their money? >> well we're actually seeing a bifurcated market what's happening right now especially between the bond and equity market. if you look at the equity markets we're almost near all-time highs. and we're seeing elevated valuations compared to historical standards. now one of the reasons that is is because of interest rates being so low but when you look over into the fixed income space and especially into the treasury markets you are seeing really low levels. the 10 year treasury has been trading around 1.6%. that is not really a strong signal of growth going forward

and then when you look globally you are seeing even governments abroad having negative interest rates. so one of the most fundamental and profound things we think is happening in the market is look at switzerland. the 30 year there, negative yield. for 30 years. so that is really signaling some structural issues that are happening throughout the globe. >> is it structural or more just investors not knowing where to park their capital at the moment and maybe not wanting to take risks on this thinking of on again, off again central banks? >> well really there are two things happening right now. and one is structural. and on the structural side, if you look at it, we're seeing the imf came out yesterday and said here in the u.s. the middle class has never been smaller and it's been shrinking about 30 years. it is at its lowest level in 30 years and that is not really healthy for the economy here. and what we're seeing too is that the job market is getting

actually weaker. the last five job reports they keep going down. and we're getting revisions. so that is not really healthy. and how will we get out of that now if there is another recession? the fed already 4.2 trillion dollars on their balance sheet. so that is not really a great sign. and when you look global growth it is coming around 2%. so there are these unconventional policy tools that governments are using but they really need to start implementing fiscal tools to spur growth. and we do have aging demographics as well leading as an overhang. >> and you say we're nearing the end of the business cycle in the states, kevin? >> yeah. the business cycle here in the united states, we're about seven years along. and we've actually had the worst gdp growth and recovery since it ended and that is not a great sign. we've averaged about 2% gdp and

we've thrown a ton of capital to work. and that goes back to we've used monetary policies and not fiscal policy. so right now i said in my note that the global markets tend to be walking on broken glass because people are in a search for yield and going into the equity markets but then also people are scared on the other side and they are going into flight to safety instruments. they are going to where liquidity is and that is on the government security side where they are not getting any return at all. >> you also make a point about the middle class. and how it is the smallest size in approximately 30 years at the moment kevin. how is this going to pan out in terms of economic growth? >> as the really significant point that the -- that the imf made. because when you have had a secular decline to its smallest part, that really influences consumer spending.

and we know here in the united states, we're a 70% services economy and the consumer pushes that a along. so it is showing that fundamentally and structurally it is really weak especially going forward so we're talking about hey we're having modest grout. if there is a shake up at all in the economy, we can see that growth go negative real quick because the middle class isn't there to really support not only the u.s. economy but the global economy. we've seen the u.s. gdp decrease from about half the worldwide in 1989 to being just a quarter of it right now. >> why do we want to invest in the dax? >> well the dax is actually one of the most developed and advancing economies that is benefitting from a low interest rate environment. as well as how the euros come down over the last two years because there really the exporting nation so they are really the locomotive for economic growth activity in

continental europe. so the trading at below market valuations when you compare to the euro stoxx 600 that is trading about 12.2. here in the united states we're trading at 17.5. if you take the dax 30 constituents and chain the zip code and incorporate them here in the united states the pes could trade up and they'd, up and down to that is interesting. on a relative basis it is a great way to get in. if you are nervous about the markets right now it is a great way to go into and get a value play currently. >> kevin let's talk about some of your stock picks. i note you point out or you highlight facebook as one example o of where you might be wanting to invest. >> yeah. facebook is providing an a tremendous opportunity to invest right now given a lot of

volatility in the market a last couple weeks and we cardiosee it is actually below its last earnings level. yet they keep exceeding expectations on the earnings side. one reason is they have hardly scratched the surface on tapping the potential of a lot of their programs, including instagram. instagram just released they reached 500 million users and that is the next wave actually to generate ad revenue. and we know that this this is the mobile ad network that advertisers are looking for. and people are consuming media in a new paradigm now and getting away from the traditional way. it should exceed expectation this is earnings quarter and going forward. >> kevin thank you very much. have a good morning when you properly wake up. >> thanks for having me. >> thank you for being with us. actually very awake compared to the rest of us. thank you. cristiano ronaldo's portugal squeaked through after playing

out a thrilling 3-all draw with hungary. elsewhere the republic of ireland did stuff. wes houlihan wasted a brilliant opportunity but rectified wit a perfect delivery to brady who headed it into the back of the net. that's it for today's show. i'm louisa bojesen. polling stations are open across the uk.

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no problem. even to friends in a growing number of other banks. ya'll ready to go? come on fellas let's go! easy to use chase technology for whatever you're trying to master. good morning. the wait is finally over. it is brexit decision day. uk citizens going to the polls right now determining their count rice future in the european union. >> investors around the world trading cautiously ahead of the referendum results as a vote to go could send shock waves through financial markets. >> the financial poll t politicians, the pundits and the all important british voter. we've talked to them all and have today's top story covered from start to finish. it is thursday june 23, 2016