for now, back to you, carl. >> thank you, sarah so much. good morning. it is almost 8:00 a.m. at twilio's headquarters out west, and 11:00 a.m. on the street, and "squawk alley" is li live. ♪ they want to get mine ♪ looking on the ceiling ♪ it is just a matter of time ♪ glorious stealing ♪ it is all right ♪ ain't no time jon fortt with me here on post nine, and kayla tausche is outside, and you can mang inwhy. looking at the session highs, and best day for stocks since may 24tha and big ipo on our

hand hands and twilio is trading higher, and making it the biggest gain of the year, and a lot more that the u.s. tech in the past 12 months, and meanwhile, a first on cnbc interview with the company's ceo jeff lawson coming up later on in the hour. the top story, the voters in the uk are heading to the polls to decide if the country should stay or leave the european union, and the outcome is expected to have far reaching consequences in the financial markets overseas and at home. over to kayla standing by with the latest. kayla. >> carl, we are more than halfway through the polling day here in the uk, and of course, many of the undecided voters will depend on the turnout of this evening in this weather, but the financial industry're in the financial district here in london is dealing with the day of heavy volume on the trading side, and they are bracing for the impact of what happens when those results come in overnight as sarah mentioned, and coming in 12:30 a.m., and 1:00 a.m.

here in london and the industry has a lot at stake. it is the source and the benefactor of much foreign direct investment from europe to europe and of course, being able to sell the se e vrvices across borders is a passport of sorts which could make it expensive for the banks to do business. and the jobs picture, as about 7% of all employees here in the uk are eu nationals and the big banks employ tens of thousands of those people, and that future could be unclear. some of the employees used their lunch break in london to visit the foreign exchange shops to try to go ahead and exchange some of of the pound sterling using the fact that it is at a six-month high ahead of the preplanned travel, and ahead of other employees just trying to hedge their bets. >> well sh, i did not panic mys, but i thought that i would do it

just in case. i work in the finance, so i am thinking that the if we do go out, yes, it will be crashing. >> bangs have been keeping the atm filled to the brim with cash, and the shift is to keep businesses running overnight, and jpmorgan is putting up the employees at a hotel near the canary wharff and the banks are looking at the real estate in fran fort and paris if the uk votes to leave and they are looking for offices elsewhere. the clients are being prioritized over the bank's own business. they areal told to expect incredible volatility and some lags in pricing, and barclays has told the clients that they cannot put a limit on the stop loss as it is called in the financial sector unless they call by phone or have an interaction in person, they can't do it online. some bank executives have told me that it is so unprecedented that the only corollary that is close that they have of what to expect is when the u.s. lost its

aaa rating back in 2012. guys, we will send it back to you. >> and that is a little bit more dramatic than that right now, kayla. and don't go too far. for more on the vote and how is it going to impact the market, let's bring in allianz investor, and also, global trading executive burns mckinney. burns, what are you expecting? >> we are not making a lot of trades based on the portfolio, but folks at bloomberg are helping us to run shock and test based on the correlations what should be hit harder and what should do better, and in the case of the actual brexit which the markets are not pricing that in anymore if you are looking at the betting markets as of today, but the places that you would be seeing hit is a flight to the dollar from other currencies which is a safe haven which would hurt the multi nationals,

and flight to treasuries which is painful for the banks and insurer, and one of the biggest things that our correlations have shown is that the energy stocks would be hard hit. you don't think of that being the case, but because the argument would be that you would have slower global growth to impact the demand, and the slower growth of the dollar which is priced in, and that would bring down energy stocks. as of today, it is looking more and more they may remain, and if so, you will see the energy stocks rebound a little bit. >> and jay, are we perhaps reading too much into the bettinging markets, because as sara eisen just reported, the volume is pointing to leave, but the volume of the money is pointing to stay, and so it is one person, one vote, and you can't vote with the pound/sterling in this case, so given the way that the polling is tilted over the past couple of days, could we actually be looking at a leave vote?

>> well, yeah, i'm concerned about some of the complacency in the market, and the market is doing is looking at the history, and looking at the scotland vote last year, and you had similar is sort of thing going into the vote. both camps neck and neck, and a big decision, but when the people decided to go into the polling booth to mach a vote, they decided to stay. the devil you know is better than the devil that you don't know which is the thinking here. we don't know that and we won't know that until later on tonight, and the thing that is concerning here is that, you know, all of the betting markets showing 84% now, and the market does not seem to be positioned, and so if you get a surprise tonight, it is go g ing to be v, very messy and chaotic. >> if it is not, and we get a remain, burns, how many ancillary volatility comes from just the unsecertainty surroundg the entire exercise? >> well, the uncertainty is the

biggest factor. irregardless of the outcome, the uk economy has been hit by the uncertainty, and you can see the slower economic growth expected this quarter which has to do with the companies tight with the purse strings on the capital spending coming from are the uncertainty, and likewise, even if they remain, you are still going to be seeing a good deal of, you know, within the markets unse uncertainty with respect to wave of nationalism sweeping across europe or even the united states, and because of the volatility, if someone wants to brexit-proof the portfolio, some of the places the look is the companies with stable earnings, and dividend payers might soften the volatile going forward. >> jay, there is a lot of talk on the downside if we did see the leave vote prevail, but are there surprises to the upside if in fact that surprise does happen? >> well, i guess that some of the surprise is or some of the upside is that you could get a

little bit of the rally here in the stock, and people feeling better from that, and maybe they feel like they have dodged a bullet, because of this. but i think that there is more downside here than there is particularly the upside. the only way would be a real upside here is if remain is just overwhelmingly favored, 55 to 60% or something like that, and that would be a good upside sort of a story, but if it is a very, very close vote here, you could see, you know, okay, this issue is settled for the time being, but it could come back up again in, you know, another few years or so, if it is very close. >> jay, if in fact, we do get a remain vote, and it is overwhelmingly in that direction, how quickly codo you believe some of the economic activity would come back to the uk and say, m&a activity and capital markets activity that has slowed down with the cloud

of uncertainty hanging over it, and how quickly does it return? >> well, our forecast going forward is that we have a recovery continuing in the uk predicated on the assumption that they do remain, and you will see the investment spending start to pick up a little bit as we are going forward, but with that said, we are not looking at robust sort of the expansion as we continue in the uk. consumer spending has driven it there, and the consumers are getting a little bit tapped out, there and the 2 to 2.5% growth rates of the last year in the uk, and this is what you are looking for, and if they exit, then all of the uncertainty there, and you are potentially looking like a recession later this year in the uk. >> guys, appreciate that, and obviously, we have to wait for the wee hours of the morning to get a final decision from the uk. thank you, burns mckinney, and

bryan, you as well. and now, blackberry here, the hardware came in lighter than expect and if i are recall last quarter, you told us that in september you'd have a decision of whether to continue with the hardway and with everything that you said on the call seemed bullish on hardware despite the volumes in hardware falling short of expectations, and is that because you have been able to control some things on the expense side? >> yes. good morning. we have done well in making the hardware efficient, but the thing that is interesting this morning is that i want people to realize is that we have branchout and taking the hardware know-how, and the device software part of it, and now going to license it to other players, and it could be even co competitors for that matter.

so there is now a software twist component of our so-called hardware business if that makes sense to you. >> i think that it makes some sense to me, and i want to get some clarification on that, because it seems similar to some moves that you made earlier on when you outsourced some of the actual manufacturing to, i believe it is fox conn to sort of remove some of the risk from the hardware model. are you going further along the line, licensing out things like blackberry hub and trying to get the other oems to pick it up and higher margin revenue and less reven revenue, but the higher margin revenue. >> precisely. precisely. and we have also done, because we went into the segment reporting, and carving out separating out the hardware and the enterprise software business, and so with the hardware business, you can see that we are working a lot on the margin of the business and the

amortization, and things that are, you know, assets that are impaired and that we have written off and going forward that is going to help our balance sheets and income statement both on the segment of the hardware as well as the overall. so, those are all of the factors that are kind of driven why i am like you are said, a little bit more bullish and we with could make money on the hardware. when e focusing on making ney first in the sector and the segment, and then worry about a growing the business, you are exactly right. some of the cases, i'd rather take the less revenue and the higher margin. >> and is this waiting and seeing if blackberry is going to be making the hardware and making the adjustments to make it a more profitable business and licensing to include ing that in the mobility segment, but are you going to be making a decision come september whether it is hardware or no hardware? >> well, if we find that despite

all of the stuff that we are working on the market tells us that, you know, the hardware business by itself has a issue with making money, and the volume is just not there, then, yes, you know. we will do the right are thing with the shareholders and we will not just continually focus on losing money. so am i still looking at it that w way? i am always looking at it that way, and any business that does not make mo neex we don't have any possibilityt of making money in the near term, there is no reason for us to be in it. >> i'd like to mention that you have reiterated your expectation for software growth of 30% for the fiscal yee, and software is continuing the do well for you, and john chen from blackberry on the earnings, a first on cnbc, and thank you for joining us. >> thank you. we do want to get to breaking news out of germany, and tyler mathison is at the news desk for us.

>> than you, carl. a developing story south of frankfurt and reports that a man entered a cinema complex there in germany, and the incident is apparently over according to the various reports that we are filtering and the gunman has been subdued and there are also reports that the gunman has been neutralized or killed. again, we are filtering a lot of the reports, including the one that 25 individuals have been injured in this incident which i, again, hurry to say is over now. those 25 injuries are of undetermined cause or nature, and not sure what they are, but we are following a story of a man with a gun, shots fired in a cinema complex south of frankfurt. when we get more, we will bring it to you. carl. >> thank you, ty. our tyler mathison. and when we come back unicorn twilio started to trade and just

above the range. and also we will talk to paul ryan about the gun reform, and the sit-in at the house, and we will take his comments live. and we will look across the pond as we are looking at the brexit vote coverage when "squawk alley" continues. over unknowne differences. [ crash ] and reunited three decades later for a tour that sold out in three minutes. and your cisco hybrid cloud handled millions of ticket orders without breaking a sweat. before all of this, [ crash ] the experts at cdw orchestrated a cisco hybrid cloud solution. scalability by cisco. orchestration by cdw.

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and opening up $23.99 which is above the range priced at $15, and jeff lawson is a ceo of twilio which is on the disruptor list every year since 2015, and they have helped to price sms and apis into the software. and average tech ipo first-day gain is 18%, and you are doing 70, and that has to feel good? >> well, it is the first day and this is the beginning of a long time as a company that is pub c publicly traded and so we are not worried much about the opening price, but the long t m term. >> and for those just learning the story, and we have mentioned that we have known the story for a while, and how do you explain it in a few sentences? what do krou to? >> it is a cloud formations platform and we allow software developers to embed applications such as voice, text, individuvi authentication, and these are the apis that are going to build

communications into the apps and people have used group me and you are behind that and if you have gotten a texts because the uber or thelift is the lyft is arriving, and so talk about the expansion, of the companies that are using you throughout the p apps and the process a jound a platform now allowing more people to build into it, and where is the growth? what is the scale continuing to come from? >> absolutely. we are scratching the surface, and it is literally day one of the conversion of communications are from the legacy in hardware and like physical network s s t the future which is based in software, and we are a software developer, and if they can dream up an idea of communicating better with the company that they do business with, and that developer can build it on top of twill e owe and scale it up, and this is the beginning of the very long opportunity to improve the world's communication s ws

the power of software. >> and does that mean retailers or mean internet of thing, and where is the real volume of communication going to come from and realtime i guess is a key part of it, because uber was was using a different method and switching to you because the timeliness is key. >> we are truly seeing that every company can benefit from the better communication, and whether it is retailers communicating with the customer, and we have a customer nordstrom which allows the sales people to text with the customers and whether it is a travel, whether it is a real estate or baking or ing became a customer powering the global call centers, and amazing cases, and i.t., and we have new way for companies to develop their own wireless carrier, and program how it works and neat for the iot cases and for the corporate wireless systems that embed things such as compliance, and the opportunities here are big, and we are excited.

the world's developers, we want to help them to realize what is better made about the communications and how their company can be improve and the better customer experience because the company can communicate better. >> and this is launching on the brexit day, and you knew the day of the vote? >> well, somewhere in the world there is something happening that can cause you trepidation, and we felt that the business is ready and we wanted to go out, and hoped that the brexit would cooperate, but it is never a great time, so we decided to take the plunge. >> good to have you, jeff lawson, of twilio joining us here at post nine. >> yes, a great time for you. and when we come back, awaiting the house comments from house speaker paul ryan respond f responding to the the sit-in for democrats calling for a vote on gun control, and country on the edge, voters in the uk are taking to polls for the brexit vote. we will go live to london coming up.

we rare awaiting comments from house speaker paul ryan who is expected to respond to not only the sit-in push ing fing f vote on gun legislation, but apparently on scotus decisions as well. john harwood is in washington with the latest on that. >> yes, speaker ryan has put out a statement saying that the supreme court had vindicated article i of the constitution with the ruling blocking the obama administration's immigration executive order, and this is of course, underscoring the stakes in the vacant supreme court post which he, the president has nominated marek garland for, and the senate republicans have refused a vote, and the president is going to be coming out to make a statement at 111:45 which is just announce and he is going to be making reference to the pending appointment of potential justice

garland, and in the other issue, the house sit-in, you have the democrats who are commandeering the floor, and we still have a live picture of via periscope of that action ongoing, and this is an attempt by the house democrats to leverage the advantage they have in public opinion, though it is more passive of the popular support for some gun restruk shck shuns try to overcome what has blocked them which is the intense opposition of a minority point of view, and this is the national rifle association and its associated allies and the republicans aligned, there and they are not looking to elevate the issue, and the democrats are, and the speaker is going to be asked about it today. >> and we will get to that, john, when the speaker takes the lectern, and thank you very much. >> and meantime, more details on the report out of germany. tyler mathison with the latest? >> yes, carl. reporting up on the gunman situation in the town south of

frankfurt viernheim where a gunman entered a cinema complex and shot and he has been fatally subdued by german s.w.a.t. teams that entered the complex there, and reports of 25 injuries in all, but those reports indicate that none of the injuries thankfully were caused by gun fire, and may in fact have been caused by pepper spray or tear gas. the situation in viernheim, and none of the injuries were caused by gunshots, but it is something different, and the man was clearly subdew e ee eed -- subd. >> and now, a big day on the future of the european union. the european close is next. looking for balance in your digestive system?

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european markets are getting ready to wrap-up in lieu of the brexit vote. >> and now, the market has rallied and the pound strong as well. if the vote does stay in the uk,

then people will be avoiding all of the chaos that could happen that we have seen in the last five days. over the five-day track, you can see that the broad index of the stock has risen 7%, almost 8%, and understand that the rally is judging not only how the voting in those " -- and understand that today, it is not about prejudging how they may be vote manage the booths, but it is about the market action in itself, and if other people are cover ing t covering the shorts, that is that you are more attentive to covering yourself and the widespread belief that the hedge funds and bank and other big players in the market have done the proprietary research and they have a clearer outcome of what it will be, and ie, a vote to e remain, but that is dynamic

going through and the trading situation. sterling continues to gain. and it is up now, as you can see the stock market in general in europe up 7%, and over this track from the lows that we had last thursday, and probably another 5% for the major currency cross, and that is h e huge. meantime, as you are getting the risk on, so you will get some selling of the bond market which means that the prices are going to go down, and the yields will rise. and the yield on the 10-year in negative territory moving back into the positive territory, and higher as you can see. meanwhi meanwhile, the real buying, and the real price action on this speculation about the uk is not el really in the uk itself, and it is again on the weaker parts of the system, and those are the banks, and you can see the big banks around europe rallying, because there is less fear that financial conditions or, they will get tighter let's say in the course of friday and it is the italian banks again the eye of the storm for many people, and requiring mass capitalization of some of them moving forward and questions of

how they might survive if they are higher today, and again, presu presumably on the view that the uk will vote ultimately to the stay within the european union. over to news update with courtney reagan. >> thank you, simon. this is the cnbc news update at this hour. baltimore police officer cesar goodson was not not guilty on all counts in the murder of the black detainee freddie gray. he is the third of six officers to go on trial. the first ended in a mistrial are and the second officer also found not guilty. a powerful tornado killed 51 people, and destroyed many buildings in eastern china. the tornado hit near the city of yingchange and a factory was raze ed razed to the ground. >> a tie vote is blocking president obama's immigration plan that is sought to shield millions living in the u.s. for deportation. the decision effectively kills

the plan for the duration of obama's presidency, and hillary clinton called the ruling unacceptable. the white house passed the zika funding bill, but it is unreasonable policy changes towards women's health and well over 200 women in the u.s. have been diagnosed with zika so far. that is the cnbc news update for this hour, and now back to "squawk alley ". >> thank you, courtney a torrent of news this hour, and back to the top story, the vote ers in the uk are heading to the polls to decide if the country should stay in or leave the ur are peen union and the outarecome is expected to have are far-reaching consequences. our wilfred frost is outside of parliament in london with the latest. hey, wilfred. >> yes, thank you very much, and the weather has turned significantly in the last hour. we have been looking at that of course all day, because of the implications it has for turnout, and i will come to that, and now, first of all, let's touch on it, because we know that it

is close in the poll, and 2-point lead 48-46 for remain, and embedding the markets and the financial markets are much more pronounced. i have been out and about in london at the various polling stations, and watching them vote, and speaking to them afterwards and the sense is on the ground like the polls, close, and perhaps a possibility that remain is in the lead, but it is close, and not the 80% probability that betting markets are suggesting. and here i am talking to a number of people after they have voted this morning. # >> i voted to remain. i have always been to remain. i voted the first time to go into the european union. so it is done already all right by me thank you very much. >> leave. >> reporter: why is that. >> i'm a little concerned about the finances and how much money we are actually contributing and what do we get out of it? >> vote to remain. >> and the reason? >> main is the status quo more than anything else el really.

>> i voted out because i want britain to be britain and not part of europe. >> reporter: and coming back to the weather, guys, because we know it could have an implication to the turnout, and it is picking up again whilst we played the video it is pouring now. and if this remains for the rest of the day, and we have five or six hours of voting, i imagine that people who have not voted will be at least partly put off from doing, so and that is going to have a late impact, but either way, the polls close at 10:00 p.m. e local can time, and 5:00 p.m. your time, and it is going to be an interesting night either way. >> a long one for you wilfred frost. for more on this, we bring in bob pisani and kayla tausche outside of the bank of england. and now, we were warned about the rain, and what about you? >> well, it is nervous and that clo close, and i agree with exactly what wilfred is saying, and what concerns me is what you and i have been talking about all week is the asymmetric nature of the markets, and everybody, the market has clearly moved to the

stay-in camp will win. you can see it clearly in what some of the polls are showing, but also in the way that the stock market works. in germany, the german stock market started to move down notably june 8th or 9th indicating that brexit might be gaining, and then it dropped 5% going up to a week ago and comple completely turn around and all of the markets are looking like this, and look at the s&p 500, and we were at 2100 in the early part of ojune, and dropped down 2050 on the brexit worry and everything is the same, a u-shaped turn with brexit not going to happen or at least the market believes it. we have all of the stock market, and the sell of the materials stock turning around, and freeport-mcmoran and went from 12 down the 10 and then back up to 12 again. this is worry iing me when i se things like that weather report. >> and kayla, what does it look like from where you are?

>> well, i think that you can probably tell what it looks like where we are. it is day two of thunderstorms here in london. there are some tube stations that have flooded and a couple of polling stations that have closed and what is interesting here from outside of the bank of england, 20 feet from where i stood, an hour ago, there were remain campaigners were flags and buttons and people were stopping by and chatting them up, and taking the pictures with them, and also people riding the bikes by saying "out, exit." and pretty much all of that activity, you can't do in this type of the weather. but here in the financial district, just because some of the polls and the markets are at least telling us that maybe there might be some favor toward remain, that doesn't stop the banks from telling the workers that you need to be here all night, and we are putting you in hotels, and you will be working in shifts and it does not matter the equities desk or the currency desk or the fixed income desk, because the nature of this vote is unprecedent and the impact on the market is

unprecedent and they don't want to be caught flat footed regardless of whatps, so you will see some heavy snapping here in the financial district either way. >> yeah, we need to get you a b bigger umbrella, kayla, for sure, or you are going to be completely washed out over there. [ laughter ] >> bob? >> a dress rehearsal for "noah's arc ". >> yes, we hope it is a rehearsal. and the money is on the side of the remain, and that is what we are seeing on the betting markets even if the volume of bets are in leave, the money is on remain. >> because of to odds though. because of the odds, right? it is a -- you are not putting down the same amount of the money, because the odds are not even? >> yes. >> and is that the way -- >> yes, and the people who are willing to actually bet real money have any inside information and we have been talking all week about the hedge fu funds going out the d their private polling, and does anybody know anything more than somebody else does? i'm on the side of cautious

about this, and we have seen some spectacular wrong polls in the last really year or so, and not just here. so when i see that obviously rain will discourage the people who may be less passionate and the people who are more passionate which is brexit, and that is going to give me cautious, and the markets should be more cautious. >> and the cash saying that the funds have their own polling teams going around, and that is why they are so level the higher than the polls. >> and the hedge funds that are supposed to outperform everyone in the world, and are underperforming. >> ice cold. >> and those geniuses, okay, that makes me feel better. >> and that is the same that those were the people saying that trump had no chance of getting the gop nomination. >> and let's be a little bit more humble here who has the smart money, and we have been in the game for a long time and call out the so-called smart money. >> thank you, bob pisani. and our speaker of the house paul ryan is about to hold his weekly briefing on capitol hill.

>> one of the things that makes our country strong is the institutions, and no matter how bad the things get in the country, we have a basic structure that ensures a functioning democracy. we can disagree on the policy. but we do so within the bounds of order and resprekt for the system. otherwise it all falls apart. i won't dwell on the decorum of the house today other than to say that we won't allow stunts like this to stop us from carrying out the people's business. why do i call this a stunt? well, because it is one. let's just be honest here. here are some facts. yesterday, the house of appropriations committee considered the bill for homeland security spending. at the committee, the democrats offered in committee an amendment offering the gun measure they say they want, and

that amendment failed on the bipartisan basis. so just yesterday the democrats offered this gun measure they claim they want, and it failed on a bipartisan basis in committee. there was a vote. it was this the committee. through regular order, and the vote failed. that is a fact that they did not want to talk about. and here's another one if the democrats want to vote for a bill on the floor, there's a way to get one. it just takes 218 signature and a petition, and then they can have a vote. it is that simple. that is how the house works. it is a well known process. but they are not doing that. they are not trying to actually get this done through the regular order, and no, instead, they are staging protests. they are trying to get on tv. they are sending out fund-raising solicitations like this one. how democrats on the house floor. your contribution will go to dccc and $15 and this says try to give us $25, but if you want

you can send us $50, $100, $250 or $500 or $11,000. because look at what we are doing on the house floor, send us money. if this is not a political stunt, why are they trying to raise money off of this, off of a tragedy? what they are called for failed in a committee in the house. the reason i called this is a stunt is because they know that this is not going to go anywhere, and it already failed in the senate. they may not like this fact. but this bill couldn't even get 50 votes in the united states senate and let alone 60. why is that? why is it that this bill failed on a bipartisan basis in committee, and this bill fail op the bipartisan basis in the senate? because in this country, we do

not take away people's constitutional rights without due process. this is not just republicans say saying this. it is groups like the aclu who are saying this, and more to the point, our focus needs to be on the confronting radical extremism. terrorism is the issue, and let me say it again, terrorism is the issue, and det feeting terrorism is our focus here in the house, and let me be really clear. we are not going to be taking away the constitutional rights of law abiding americans and not allow publicity stunts to stop us from doing our job, and that is why the house powered ahead last night to provide important resources in the fight against the zika virus. one of the must-do items on the list, this week was that we had to respond to the zika virus, and we know that this is something that we have have to get on top of, and in the face

of the distraction, we passed a responsible bill that provides the level of funding that was in the senate bill that received a big bipartisan vote with a mix of offsets that we in the house felt were important. it is a good compromise and meets a urgent need and i urge the senate to take it up and pass it. now, the democrats can talk all they want, and i'm not really not sure what the plan or the end game is here, but the bottom line is that despite these distractions and we did our job, and we did the people's business and we will continue to do so. one more point that i want to bring up. i want to say a word about the supreme court ruling that we just got that halts the president's executive amnesty. this is a win for the constituti constitution. it is a win for congress, and it is a win in our fight to restore the separation of powers. presidents don't write laws. congress writes laws. this is a case that the house weighed in on, because it is fundamental to the system of checks and balances, and

congress and not the president writes the laws, and today, the supreme court validated that core essential fundamental princip principle. >> speaker, ryan a two -part question, what were your personal feelings when you were being screamed at and yelled "shame" and not comfortable not even a year into speakership, and you have spirited members in your e own conference and are you worried that it is the precedent that if the shoe is on the other foot, and anyone who is in the minority here? >> i am very worried about the precedent here, and i have an obligation as the speaker of the house to protect this institution, and we are the oldest democracy of the world, and the bailest of the free world of people, and when we see the democracy descend in this way, it is not a good sign or precedent, and yes, i do worry. and look, i have been around and i are have done the iowa state fair, and you know, the soap box, and i have done the wisconsin recalls.

so that i am used to, but on the house floor, we watched a publicity stunt, and fund-raising stunt to descend against an institution that many of us care a great deal about. and yes, it is a dangerous precedent. >> do you plan to run for the more open house, and last night the zika bill passed without sufficient time to review it according to your own rules, and if i could finish the question, the rules on the amendments and appropriations bills are much more structured now, and on this gun vote, you are not going to be bringing this forward according to the amendment vote -- >> it failed in the committee.

>> and on the floor, and aren't you undermining your principles for the open house? >> not in the least. what members wanted is an open process, but functioning process. we will learn that the democrats are not interested in advancing the process, but interested in stopping the process. our members want congress to function. our members want us to do the people's business and to do our jobs. and when the democrats are trying to stop congress from doing anything, that is not an open proare cess, that is a no-process, and that is a halting process. and to the point of last night, you think that we would have a civilized debate about the zika virus u and you think that they were interested in come ting toe mike to debate zika? of course not, they were screaming and shouting over each otherg and so we were going to get the job done and our job this week was to make sure that we were giving the author is the cdc and giving the vaccination and getting ourselves prepared for the zika virus. we are going into the summer, and people are grilling out on the fourth of july and mosquitos are biting people, and we want to mach sure that we have the

proper response and that is why we did our job and passed this bill. >> and mr. speaker, why not hold the vote like the senate did earlier in the week, and it would have taken 15 minutes. >> we have a process for this, and this is a bill that is not s supported by a bipartisan majority, and this amendment was brought up in the appropriations committee, and it failed there, and that is point one, and point two, if you want the bring a bill that you can't get through committee, you can do a discharge petition with 218 cig signatures and they are not bothering with these things, but looking for the publicity stunts, and this is not about making law, because the senate defeted it so they know it is not going to the law. this is a publicity stunt, and now a fund-raising scheme. >> and -- >> back on that. what did say yesterday or the day before in the press conference? we want to see what the senate produce produces, and we are looking at the issue, and what did i say over the weekend? we know that there is an issue in are respect to terrorist watch lists and people attempting to buy guns and we are looking at it deliberatively

and we are not doing the publicity stunts on the floor, and the fbi said, if you get this wrong, you are going to be screwing up the terrorist investigation, and if you overreact you will screw up our our way to go after terrorists and so we want to get right while allowing people their fundamental due process rights. >> and are you going to have -- >> we are reviewing everything right now as to what happen and to u how to make sure this bring order to the chaos. this is the people's house. this is congress, the house of representative representatives the oldest democracy in the world and they are descending it into chaos, and this is not a proud moment for democracy or for the people who staged these stunts. jonathan. >> on the appropriations, you won't finish the process certainly before july, and you will have to come back in september, and how long do you

want to go for, and what is the package that you are seeing can -- >> i don't want to get into how long a cr can get done, because i want to move as much appropriation product through the house floor as possible, and i don't want to talk about the crs, because that means that we are shortchanging the process. >> and you will have to hear the argument? >> we will see. >> and mr. speaker, why not shut off the lights, and the republicans have pointed out that is what nancy pelosi did in 2008 in order to end debate on -- >> we are following the rules as they have always been in place. and as you know, when the reses has been called by the chair, that is one process. when you adjourn and that is another process. so we are simply following the rules as they have always been written, and the rules as they were in 2008 as well. >> mr. speaker, your homeland committee -- >> who are you? >> scott mcfarland, nbc.

>> okay. >> and what happened with the department of homeland security investigating whether an employee was plotting to attack senior officials there, and has your office been briefed with that. >>. >> yes, we are familiar with the reports and we want more information but i am familiar with the reports, and we are awaiting certain reports. >> were you briefed? >> my staff briefed me. >> i have a trump question. >> geez. i didn't even know. i have been a little busy. good lord. >> and the one favor that the senate has done for you. [ laughter ] >> you have been extremely clear on your thought process about the supporting the nominee that you don't want a hillary clinton presidency and u how important it is for you as a party leader and you have been clear about, that and i have been wondering though if there is not something larger at stake here. because you just mentioned that this is a balance odd of the free people here of the institution, and you are head of it, and with everything that the country has been through, civil rights, racial discrimination,

fair play, and voting rights and all of those things and you are is a nominee and you have had to rebuke xenophobia and homophobia and attacking a judge based on the ethnicity and have you thought about whether somebody in your position regardless of the party needs to reject this, just somebody in your position needs to reject it for the health of the country and not party or election? anything bigger here? we take you from the hill to the brady press briefing room and the president. >> first in the affirmative action case, i am pleased that the supreme court upheld the basic notion that diversity is an important value in our society, and that this country should provide a high quality education to all of the young people regardless of their background. we are not a country that guarantees equal outcomes, but we do strive to provide an equal shot to everybody, and that is what we have upheld today. second, one of the reasons that

america is a diverse and inclusive nation is because we are a nation of immigrants. our founders conceived this country as a refuge for the world and for more than two centuries welcoming wave after wave of immigrants has kept us youthful and dynamic, and entrepreneurial, and it has shaped our character and made us stronger. but for more than two decades now, our immigration system, everybody acknowledges has been broken. >> and the fact that supreme court could not issue a decision, it does not set us back further, but it takes frus the country we further aspire to be. and to lay out the basic facts that are lost in what can be an emotional debate. and since i took office we have deployed more border agents and technology to our borders and

since the 1970s and it should have paved a way for the comprehensive reform, and as many of you know, it almost did. nearly 70 democrats and republicans in the senate came together to pass a smart common sense bill that would have bo-- authorized the border patrol to allow people to be citizens if they paid a fine and played by the rules, but the unfortunately the republicans in the house of representatives refused to allow a yes or no vote on that bill. and it is a way to make our immigration system smarter and fa fairer and more just. and four years ago we announced that those who are the lowest priorities for enforcement, d l diligent, and patriotic young dreamers who grew up pledging allegiance to the flag, and

should be able to apply to work here and study here and pay their taxes here, and more than 730,000 lives have been changed as result. they are student, and teachers and doctors and lawyers. and the decision today does not affect the policy. it does not affect the existing dreamers. two years ago we announced a similar expanded approach for others who are also low priorities for enforcement. we said that if you have been in america for more than five years as a it citizen with legal residence, you can get right with the law and work in this country temporarily without fear of deportation. both were the kinds of the actions taken by the republican and the democratic represe

representation over the past half century, and this is a challenge for the taking to take action for other edadministratis have taken, and the country is looking for the supreme court to resolve the important legal questions raised in this case. today, the supreme court could not reach a decision, and this is part of the consequence of the republican failure so far to get a fair hearing to mr. marek garland, my nominee to the supreme court. it mean s ths that the expandede of deferred policies the ones that i announced two years ago cannot go forward at this stage until there is a ninth justice on the court to braeak the tie. i know that a lot of people are going to be disappointed today, but it is important to understand what today means. the deferred action policy that has been in place for the last four years is not affected by the ruling. enforcement prior tis developed by my administration are not affected by this this ruling.

this means that the people who might have benefited from the expanded deferred policies long-term residents raising children who are americans or legal residents, they will have remain low priorities for enforcement as long as you have not commited a crime and limited immigration resources are not focus odd on you, but today's decision is frustrating for those who are seeking to grow our economy, and bring a rationality to our immigration system system and allow the people to come out of the shadows and left this perpetual cloud on them. i think it is heartbreaking for the millions of immigrants who made their lives here, who have raised families hereer and who have hoped for the opportunity to work, pay taxes, serve in the military and more fully contribute to this country we all love in an open way.

so, where do we go from here? most americans, including the business leaders and state leaders and law enforcement, republicans and democrats and independents still agree that the single best way to solve this problem is working together to pass commonsense bipartisan immigration reform. that is obviously not going to be happening in the remainder of this congress. we don't have a congress that agrees with us on this, and nor do we have a congress that is willing to do even the most basic jobs under the constitution which is to consider nominations. republicans in congress currently are willfully preventing the supreme court from being fully staff and functioning as the founders intended and today's situation underscores the degree to which the court is not able to function the way it is supposed to. the court's inability to reach a decision in this case is a very

clear reminder of why it is so important for this supreme court to have a full bench. for more than 40 years, there has been an average of just over two months between the nomination and the hearing. and i nominated judge marek garland to the supreme court more than three months ago. but most republicans so far have refused to even meet with him. they are allowing partisan politics to jeopardize something as fundamental as the impartiality and the integrity of the justice system, and america should not let it stand. this is an election year, and during election years, politicians tend to use the immigration issue to the scare people with words like amnesty in hopes to whip up votes, and keep in mind that the millions of us, myself included, go back generations in this country where the ancestors put in the pa