how they're redoing the stores. they're focusing on the experience in the stores. people are talking could they beat amazon? they can't. you don't walk in a store and i don't buy jeans online. there is a great, great move. having a president there move into that space is great. >> it's been great having you here. >> thank you. >> we'll see you soon. that does it for us. "power lunch" begins right now. >> we begin with breaking news from washington. john harwoodson the story. >> tyler, house democrats are now bringing to a conclusion the sit-in that they staged on the house floor for more than 24 hours. they didn't succeed in getting any gun legislation passed. they did succeed in get a lot of attention. that could have political consequences down the road. but members are heading out to have a press conference outside and that siege which paul ryan the speaker just announced disorder in the house and said they weren't going to let the house stop functioning has now ended and the house is on recess until after the fourth of july.

democrats promise they're going to be talking about guns when they come back. >> all right. john, thank you very much. john harwood reporting from washington. okay, folks. the day is here. we have about four hours left. let's listen. jonathan roth. you'll be back. soon you'll see. oceans rise, empires fall. 3:59. we're going to hear something. voters deciding whether or not to remain part of the european union. the decision coming down to the wire. the outcome could have a huge impact on your money. welcome, everybody, to a hami hamiltonian edition of "power lunch." michelle is off in london and we'll get to her in a bit. first to the markets, a huge rally on wall street. traders watch that brexit vote.

bob pisani is on the floor. >> the market is acting like it knows for sure that the uk is going to vote to remain in the european union and that makes me nervous. it's raining cats and dogs over. there the outlook is still very uncertain. the market knows what's going to happen. look what happened to the dax. this is the german stock market. the brexit won't win and then in the last week or, so it's come back. all the markets look like this. look at the s&p 500. it was 2100 in early june. then it drops to 21.50. look, it's back to 2100 again. even individual stocks getting kicked around in the dollar. look at free port and it goes from 12 to 10 and back to 12 again. also big names, even the energy names, eog, big exploration and production company, $85. drops to $79 and now a week later sh it's back essentially to $85. you can see $84 and change. same with big industrial names. kit pal ar, $78.

it drops to $73. guess what? it's back to $78. perfect views everywhere. it's like there is mass hypnosis on wall street or something like that. the bond yields keep moving up. so have bank stocks. it's another great day for the bank stocks. they've been moving up for three or four days. we'll get the result of the fed stress test of big banks at 4:30. i have a guest on an hour ago. she looked soaked over there and it's going to rain heavily for the next three hours. that concerns me a little bit. i don't think this thing is over yet, guys. >> thank you very much, bob. bob pisani. with that in mind, let's get to misch knell london. hi, michelle. >> yeah, the weather han horrific. it killed our power here for a while. there are lots of questions about whether or not it's going to affect turnout, tyler. a pivotal day for the united kingdom. but also for the european union. if they take a stand here in the uk against being a part of the eu, what does that mean for that

entire block of countries that has come together? there's a lot at stake here. and potentially as well when it comes to trading, portfolio, and the global economy. depending on who you believe. when you look at the polls, all of them lean toward remain. here's the poll of polls. 48% remain, 46% leave. so pretty close. the rest undecided. the markets as bob pisani suggested act far more definitive as if remain is for sure. if the markets awrong, tomorrow could be very, very messy. the uk papers are always so fun. i'm going to start with "the sun" here. the headline is "independence day." be-leave in britain. can you free the uk from the eu today. another favorite. "don't take a leap into the dark for your family, for your children, for your pension, for your pay, for jobs."

don't leap into the dark. vote remain today. lots of drama here. we have a lot coming up on the show. we're going to talk to the ceo of the company that specializes in currency trading. there's going to be a lot of action in the markets. but currencies is ground zero. we're also going to talk to a guy who has been doing crazy amounts of foreign exchange. the brits are lining up to buy euros and also dollars. there is a worry that if the pound falls, a lot of those things will get more expensive. >> thank you. picking up on the currency theme, barclay's is not going to accept new stock. now when dominick chu worked on wall street, he took orders at times when he couldn't order them because of drastic market moves. that's what people are expecting tonight. >> when markets really gap in a volatile fashion, can you not guarantee what prices the stock loss orders will be filled at, right? it's something that traders call

slippage. it's the difference between the price that you actually get for a trade and what you thought you were going to get when you put your order in the first place. we saw the last big time it happened was january of last year. the euro and the swiss frank, remember when you said the swiss national bank decided not to defend euros s versus the swiss frank. a lot of anybody who is trading with the bank may have lost a lot of money because it traded at 1.2 twis franswiss franks pe. so the swiss bank -- you couldn't honor. >> so there was a time i would take a stop loss order from a client. you know that the currency traded through the level of the stop/loss. >> what do you? >> you can tell your client that they are now filled and that they have been stopped out. but it's very difficult in those

gap volatile conditions to tell them exactly where you got filled for that stop/loss. in the hypothetical situation with euros versus swiss franks, if it's at 1.2 before and then all of a sudden the next trade you see is 96, 97, 98, it could have been filled maybe anywhere in. there remember, it's all about losses at that point. right? somebody -- if you own an asset that's losing value, if your bank took that from you, you sold it to them, they're losing value. so it's about managing risk in a very fast moving market. >> on the bank side of things. >> and it's very hard sometimes in conditions where they're moving that fast to manage around. >> i don't want to make this exact metaphor, but it's like a flash crash when things moved so quickly. >> right. >> and people suffered because of those orders. >> the risk management, even with the computers as fast as they are right now, can you not really expect or predict a

position where you don't know where it is going. >> what happens in the customer? we're going from 120 to 97. >> 110 or 105. >> what happens? >> it's a terrible fill. you get filled way below where you thought you were going to get filled. >> so you just have to eat it? >> the bank doesn't make good on it. >> theoretically, somebody can make good. but remember, if somebody makes good, it's about sharing the same amount of losses. if the bank took it from you in that example, 1.2 to 1, if you got filled at 1.1, 1.1, the bank or whoever you traded with owns that falling asset at 110. so that means they have taken the .1 loss. it's all about the dynamics of trading n foreign exchange markets, kit get volatile very fast and broke a lot of people out. there. >> let's get more on what could be a very volatile trading session overnight. let's go straight to the source.

gain capital ceo glen stevens. you're one of the few retail brokerage firms that successfully managed that 2015 swiss frank crisis that dom was referring to. in term of what we should expect overnight, glen, how volatile do you think it could be? and what sorts of measures you are taking right now? >> people didn't have any expectation going up it to. you talk about slippage and that being so unexpected. in this case, there is lots of expecttation. there is lots of talk and consideration about it for months now. and the reality is that the market has decided to go on both sifrdz it. we seat book makers in london. we see customers ordering with their feet. we see assets moving around and equities and currencies. there's a lot of jockeying to and fro. on the swiss national bank, it's about all bets being made and all quiet until all you know

what breaking loose. i think it's different. lots of preparation. the one thing was a question mark to your point about slippage, liquidity after the fact is still a big question mark. a lot of the money center banks have back add way from providing more liquidity than they are prepared to do. there is even a lot of notices and a lot of advance notifications to say, hey, please don't rely on a great fill as you were discussing before. so i think that's a big difference here. it's the post fact liquidity that really comes to play. in terms of the volatility that comes from it, i think it is asymetric. the markets appear to be poised for calm. an exit, that's where they'll catch people by surprise for sure. >> dominick chu here. let's speak to that asemiconductor et ri asymetric. if the vote goes to remain, it becomes the status quo. we won't see thach of a change in britain. it's what we know right now. however, if we do see a vote hypothetically to exit, that's when it becomes all bets are off, right? >> that's exactly right.

i think the remain is primarily priced in. the british pound is taken back to writ was in december of '15. that would mean push the time back. push the clock back and say brexit wasn't more than a blip on the radar screen in fourth quarter of last year much that's where cable is trading these days. to some degree that, is the -- >> glenn, i would push back. when i hear that everybody is pricing in and something is already priced into an asset, i think it will be a sell the news vent if there is a remain vote and, therefore, people are going to be racing for the exits on this trade. >> i think they race a lot faster if this is a surprise exit occurred. we really have to race to exit. too many people going to one exit and you end up with dominick's sellers. i think on the other way, it happened in a slightly more orderly fashion. people have books set up and

ability to want to sell and so i think that that exit process is asymetric. it is a much higher velocity on an exit. you're right, you could sell the news. i woe it won't be in a panic situation. >> should be an interesting session overnight. >> for sure. >> thank you. glenn stevens and dominick chu as well. news alert in the banking sector. seema mody has the floor. >> and with further restructu restructuring at deutsche bank here, striking a deal with the work council that will result in 188 branches being closed across germany. jobs cuts are being announced, cutting 3,000 jobs in total which will include 2500 at its retail unit. so some further consolidation in deutsche bank's retail unit. of course, we're talking about deutsche banc hit an all time low and has come off the highs around the brexit fears that have cast a shadow over the

european banking sector. they continue to go through this long turn around. >> thank you very much, seema. we're following a developing story out of germany. there was a gunfire vent at a movie theeter in the town of vierheim. police telling nbc news the suspect is now dead. that suspect was killed, shot while engaging with police number one else, thankfully, injured there. another developing story right now. volkswagen could pay more than $10 billion to settle claims against it in the emissions cheating scandal. phil lebeau joins us with the latest. >> what we're talking about here is the settlement of those claims and the case brought by the california air resources board and the epa regarding those 500,000 or so vehicles that had rigged diesel emissions. they say that voekz wagon agreed to pay $10.2 billion to about

482,000 diesel vehicle owners here in the united states. that works out to be between $1,000 and $7,000 per vehicle. that saul the details we v we reached out to voek wagon. they have no comment at this point. the final settlement has to be entered into a federal court in california next tuesday. so that's when we'll find out some more details about this. but again this is simply dealing with those diesel emission cases and the epa and the california air resources board. this is not the department of justice investigation. and, of course, there is some other claims and other investigation that's are going on number doubt, though, putting some clarity on how much this might cost them at least with one of these probes. >> phil, thank you. this such a big "newsday." this may be the lead storey. big news in retail. macy's shares moving higher on the news that the ceo will step down next year. he'll be replaced by macy's president. let's bring in our contributor,

former retail executive jan niffin. macy's under -- mr. lundgren had a very good run until it didn't, right? >> on tuesday morning i did a little seminar talking about the future of retail and retail real estate. and so this has been on my mind. what happened with macy's, where macy's is going as well as all the rest of the retailers. terry had a pretty darn great run. and, yes, it has been a little more difficult here the last year or so. i don't think it had anything to do with terry stepping down. t terry will turn 65 in six months. we found out two years ago that jeff was going to be the heir apparent. ervin side macy's seems very comfortable with. this they all love jeff. they think he's a great guy. he has the perfect pedigree. went from stanford and went to macy's as a trainee. he went through the organization. he set the world on fire. he cook took a couple detours.

it is similar to the story at walmart. >> why is that the perfect pedigree? maybe two years ago he may have seemed like the perfect candidate. things are going well. at this point with macy's shares down 50% plus over the past year, could this have been an opportunity to bring in another person from the outside, fresh blood, so to speak, to rejuvenate things? >> he's a 30 plus year veteran. >> he work sod well in retail. i can't believe they didn't think of. that the answer to that is, no. jeff got a vision for what they're going to do going forward just like terry h think about it, terry took macy's from being federated, actually, to being a national department store with retailing in an environment that was virtually impossible. in the dying industry where there are 100 department stores when i got it in and there is now basically macy's. that was an enormous job. i think did he a fabulous job. the fact that it's going through a little transition right now, that happens in retailing, especially old line retailers that have been around since the

1800s. but i think jeff stepping in now will have a new direction. and i'll miss terry. i think he was a fabulous executive. but i think jeff is the right guy for this job right now. and i'm a little surprised the stock did as much as it did because i see this as sort of news. i didn't think the stock would be up or down. i thought it was so well known this was going to happen. >> does anybody look more like a ceo than terry lundgren? >> i didn't want to say. >> you would say give me lundgren. >> i think they'll really miss him. he does look just like james bond and he's a fabulous ceo. yes, i do think we'll miss that aspect of terry as well. but i think jeff is going to be great. >> all right. >> i think the world is -- >> thank you very much. >> through are. more now on today's vote in the -- on what it could mean for your money, the vote in the uk. and all day we're going to hear from the british as they leave those polls.

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again, members of a trust of a former band member of the band spirit were suing led zeppelin for stealing the chords to "stair way "stairway to heaven." a jury sided with led zeppelin in this particular case. we'll bring you more tee tails details. of course we all know which chords we're talking about, right? >> the classic. we're playing it, by the way, for those that have been lifvin under a rock for decades. dom, thank you. the brexit vote may be taking place an ocean away. it could have significant influence on u.s. companies exposed to the uk. penske automotive, pra health sciences, invesco, xerox, they have the highest percentages of revenue coming from the uk. so those are ones to watch. we await the poll results overnight here. our next guest is planning to market a mutual fund in europe until brexit sidetracked things here now cole sneed at sneed

capital management. $2.5 billion under management. once the vote in, is that all systems go? >> it is interesting for us as anybody else out there. we were planning on putting an office there in august. that depend whether it will be in london or zurich. this reminds us, you know, much of say the debt ceiling that we dealt with or, you know, it's not very much like the swiss national banks ordeal of last year in our opinion. >> you got some uk holdings and a small funneled, none in the u.s. fund. what is the outlook and this volatility expected to come could create some opportunity or if the opportunity has been seen since we are in the fifth straight session of gains pretty much for european indices. >> yeah. i'd say this isn't a uk particular economic event. this is really a vote on the eu at the heart and core. you see today odds are moving more towards them staying.

you'll see, you know, european stocks are rallying as much if more than the uk stocks. that's the biggest question. not if the uk leaves, it's what's going to be next. at the same time, this is maybe been one of the most overhyped vents of the last five years. we go back to the flash crash. the flash crash, no bone was talking about trauma in market structure until the animals were out of the barn n temperature of the panic or fear, that was last week. that was the heart of. this as you see, all the shorts -- the futures being sold in the currency, they've been covered the last week. >> what would you expect to see tomorrow if the vote goes the unanticipated way or the way you don't think it will go which is to leave? >> sure. on that side, you know, everyone heard what george soros said. the only problem is that is a fear and that's why the futures on the british pound all got sold last week. so how this plays out with the odds moving the way they are, i

don't think it's very likely they're going to leave. to get major group of people like this to make a major political decision like this, you have to have immense momentum and as the markets have been, you know, pricing in the fact that they're not going to go, that momentum died last week in the polls as well. they were picking up major opportunity. >> cole, thanks. cole smead. coming up on "power lunch," much more reaction to today's historic vote. as we head to break, take a look at these unemployment numbers. european union with a rate of 8.7% compared to 4.9% in the uk. ♪ it's here, but it's going by fast. the opportunity of the year is back: the mercedes-benz summer event. get to your dealer today for incredible once-a-season offers, and start firing up those grilles.

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welcome back to "power lunch." rick santelli live on brexit day. all the charts are brexit related. look at a ten year chart. starting on february, important month. that was the first low for the year that we really stuck with at 166. what you need to see on this chart, all the congestion. we have taken the slack out of the rope, 1.65 to 1.70. january of this year starts basically 1.39 to 1.40 area is huge number difference when it comes to the pound versus the dollar. take this chart back an extra year to january of 2015. why? because 1.48 to 1.50, euro on

the pound versus euro, same dynamic, less aggressive. we have taken out all the slack. lots of technical moves either way. before you talk more and hear more about brexit, we're going to take a short break. ♪ the first stock index was created over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.

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welcome back to "power lunch." let's take a check on gold. it is illustrative of the theme on the day, we saw 1.6% gain on small caps. we're seeing weakness in some of the safety trades like gold which is trading down by .6% on the day. 1262.80. this is a two week low. take a look at the rest of the metals, one of note, copper. up by 1.3% on the notion that global growth will continue. we are seeing a bit high torte miners today. now let's get to courtney reagan with a news update. >> hi, thank you very much. here is your cnbc news update. house speaker paul ryan holding the daily briefing commenting on the supreme court decision that effectively blocks president obama president obama's

immigration plan to shield millions living in the u.s. from deportation. >> this is a win for the constitution. it's wayne for congress. and it's a win in our fight to restore the separation of powers. presidents don't write laws, congress do. >> democrats ending the it isit on the house floor. they will adjourn newly after the fourth of july. fatah represented parts of philadelphia for 20 years. and a new test could help predict which women may be at risk for osteoporosis during menopause. researchers developed a bone ball an index which considers bone formation and breakdown. it's a better predictor of bone loss than measuring break down alone. back to you.

>> thank you. checking the currency market, we see the british pound continuing the rally. it's up 4% this week. it is at the highest level since december 25th of 2015. we're live in brussels. first, let's get to our reporter in london on how the brits are lining up to trade in their currency. >> dl is some nervousness on the ground here. we have encountered lines outside of local currency exchanges where brits are going there to trade their pounds in for europe yoes mostly euros, some dollars. in fact, we caught up with a manager at one of those exchanges and a patron. here's what they said. >> i think more are panicked because at the end of the day, we wouldn't know which way the referendum would go. it could go either way. so mostly looking at the last few days, i think most of them are fine. >> didn't panic myself.

i'll do it just in case. i work in finance. so i'm thinking if we do you got oshgs yes, it will come crashing. >> clearly, fear here is that british pound with plummet if britain does vote to leave. not the same confidence on the line there that you are in the markets and in the betting odds. and there have been a lot of forecasts for the british pound, notely george soros says it could fall 20% and that would make the vacations to europe a lot more expensive. some brits hedging bets. thank you very much. >> thank you very much, sarah. now let's get to brussels and see the general reaction there. our reporter there. what is the mood on the street as i'm sure everybody is watching the uk. >> there's a lot of anxiety right now. a lot of concerns among eurodemocrats and pple in the capital about the fall youst a possible brexit. so many countries in the eu have such close trade relationships

with the uk. for example, here in belgium, the uk is the fourth largest trading partner with belgium. and ing study shows they would lose 1.9 billion a year in trade if the uk left. so each country is sort of figuring out how they're going to be affected by a brexit. there is anxiety here where there are a lot of believers in the european project. and they see one of the members leaving as possibly a sign of doomsday and more to come. in terms of the fears you mentioned, the trade agreement, but is there also a bigger fear about what a brexit could mean in terms of strengthening the desire of the periphery to also leave the eu? >> there are a lot of concerns about growing euro skepticism around europe. the far right is gaining a lot of momentum and the far left. and these groups are anti-eu. and as the polls grow and there's more interest in the idea of leaving the eu and they're going to be looking at

the u do. see how they survive afterwards, because they'll be lobbying their own people, the far right -- in fact, far left movements to also vote for an exit. for example, the leader of the national fund in france, she's been calling for a brexit as well. they're already calling it brexit. and she's seen as a strong contender in the french national election. so there's a lot of panic right now. if you lose france, you lose the power access of germany and france in the eu. and you also have ireland which shares a border with the uk. they do $1.2 billion in trade every week with the uk. it's the largest trading partner, more than china and india combined. so all of these countries are weighing out the political issues and the economic issues of a possible brexit. and there's a lot of anxiety. people are hoping that tomorrow morning they're going to wake up and still have one eu. >> i'm going to ask you a question that maybe you don't know the answer to. apologize in advance. but we hear about the euro crash. >> right. >> how many of them are there?

how many of them are employed there in brussels? >> well in, the commission alone, there are 40,000 which is part of the problem. this whole system is seen as way too bloated, way too bureaucratic. every country has the own commissioner and own staff and drivers and considered living pretty large when like you mentioned early, 7.9% unemployment rate in europe. so it's really hard for people to swallow this pill. and, frankly, it's not just a matter of love for the uk the reason they want them to stay but also because they're really big contributor into this project. and if they leave, germany has to pay $2.5 billion more per year into the eu budget. so it's not just about love. it's about money. and the eurocrats want to keep their jobs. >> it's always about money, tara. it is always about money. >> 40,000 eurocrats. oh, man. >> that's just the commission. >> yeah. that's just the commission. >> yeah, okay.

>> all right. tara, thank you very much. let's check on the markets, shall we? stocks are flying as british voters decide on whether or not the uk should stay in the european union. got a triple digit gain for the dow. it's been roughly at that level for much of the day so far. treasury prices slipping with the yield on the benchmark ten year notarizing four basis points to 1.73. let's bring in barry james, co-manager of the morning star five star balanced golden rainbow fund, ladies and gentlemen. and bernie williams, chief investment officer of usaa wealth management solutions. welcome to the studio. nice to you have here. are you doing anything in your portfolios with the brexit vote in mind? are you just saying i'm doing what i'm doing? >> well, we're doing what we're doing but we are doing some buying. we're adding just a little bit. we bought some earlier in the week. we have been in the duthe doldr.

it continues that way for a few months and then you get a breakout. we're seeing the risk level come down. we're starting to see sentiment going from really negative, starting to get a little more positive. throws good things. >> what you have been buying? it is because of the brexit vote that you decided to move in or because you see this as an opportunity? >> it's an opportunity. we look back and the stocks today tend of may, over half of them are down 20% or more from the highs. there splenis plenty of opportunities. talk about gold being down today. we like gold. newmonlt mining cut the expenses and debt. they're going to be turning a lot more positive in terms of earnings. that is something that we like. we think that's important. we've had it for a long time. but it also goes well with the brexit situation. the other side of equation is oil got hammered last year. this year it's coming back. mcdermott international, small, we think small is the way to go for the next couple years.

and it's a little over a billion dollars. and they do deep sea drilling. >> up 3% today and very strongly year to date. up by 50%. bernie, let me turn to you. what you have been doing? i see that you have moving into a emerging markets in recent months. >> you know, emerging markets are cheap for quite some time. there say big overhang because of the currency of the strength of the dollar and weakness of commodities. both of those reversed some. what i think commodity one is more important. commodity is stabilized, come up a little bit. and the earnings growth on aggrege are much better than the u.s. or developed markets. we have cheap markets and better earnings growth. i think that's a good formula. >> what do you like about synchrony? is that a proxy for financials generally or specific case? >> this is specific case. the spinout from ge, they had an investor day a couple weeks ago and a couple days later announced an increase of 2030

bits and chargeoffs. i'm sure they're talking about the communications. but here's a stock that got punished to the tune of 20% tlaen is nothing wrong with it. i think this is the way you have to trade this market now. you get the overreactions up or down. and so here's a stock that has been discounted greatly. i think it's worth buying at this point in time. >> bernie, thank you very much. we appreciate you coming fwoi day. bernie williams of usaa and barry james, james advantage funds. go to our website right now to see a real estate stock selection and a telecom stock that barry is adding to his portfolio. but you got to go to powerlunch.cnbc.com to find it. the trade in the british pound does seem to be pointing toward a remain vote. but what if there is a surprise? we'll look at the mess that could cause on the trading desk and in the currency market. as we head to the break, take a look at the star power backing the remain camp including stephen hawking, j.k.rowling and

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welcome back to "power lunch." i'm in london. this is seen as a key democratic event but london is a huge currency in the world. they'll be fully staffed. manufacture the trading desks to figure out what happened as the poll numbers come in. the setup right now and the financial markets is that there is going to be remain.

ubs sent out a letter to clients telling them we're going to run experts here. in the veevent and we may not b able to fill limit orders or take profit orders or levels or using the methodology that you expect in normally functioning markets. they think that there is a lot of gapping, et cetera. that's a letter to foreign exchange clients and the institutional level. how crazy it could get? we're going to be watching the pound for sure with when it is 1 1.4950. we have the ceo of millennium global. $16 billion that is under management. and you specialize in currency? >> exactly. the markets are set up for remain. the markets are not. if there is a vote to leave, how chaotic is it going to be

tomorrow? >> i think tomorrow could be very dramatic. even as much as perhaps the intermet bank of england in 1992 when george soros made his name by doing so. particularly as you rightly point out, the probability of remain is factored into the pound to perhaps 85 or even 95%. and today as you point out, it rallies. we expect it that it could be a visceral reaction. >> so pound today is at 1.4950 and uk votes to leave where does the pound go? >> it goes way below last week's level. it goes into 1.30 and may go further still. >> in a day? >> certainly. >> that would be -- i mean, that could wipe out congress for taking the wrong position. >> many funds haven't taken big positions because of the uncertainty and probably wanting to re-engage when we know the result after that. >> how much are people thinking p about in your business the

swiss frank back in january. they allowed it to move and nobody expected it to. >> they're beginning to show. in terms of from a investment point of view tashg, it's a dif situation. a brexit vote is entirely unexpected and there is sterling that very high. >> there is talk that if uk leaves, the financial center of europe will have to move to frankfurt or paris. i ask, you know, i don't believe it personally. do you think that's a possibility if the uk decides to leave? is this financial sentment going to leave? >> they're not going to leave. this is the world financial center. most particularly, it will affect the euro clearing

business. but london will still survive. it thrives on being independent. the euro currency market is has been found heerd. >> how long has this been a trading number europe? >> 200 or 300 years. it's not going to vote for one night tonight. >> you are working tonight? >> i'm going to be in most of the time. i'll be in 6:00 tomorrow. as i say, not many firms will have a lot of risk on. but of course the aftermath could be consequential. certainly if there is a brexit vote, we need to do a lot of thinking about how that affects our clients. and then sterling thereafter is likely to be stopped anyway. >> we learned that today is the busiest day on -- of political betting in the uk history. what do you make of that? >> you look at the big exchange book maker. they trade at $100 million on this event. and that's just one counter party.

they've been very vigorous. professional money and the man on the street looking at this and want me to place a bet. and as we before came on the show, it's around about will 81% probability they will remain. there is a lot today, in fact. >> we'll see. you'll be back tomorrow. >> yes. >> thank you. guys, back to you. >> all right. thank you very much, michelle. the countdown continues. polls closing in about three hours and 11 minutes. there you see it on our big wall. here's a time line wlof what to expect after the voting stops. in the absence of exit polls, they will publish a poll at 5:00 showing how people voted based on responses from a preselected group of people representing the wider electorate. >> we'll have the results from that poll on "fast money" at 5:00 as soon as they're released. >> very cool. >> then 7:30 p.m. eastern time, we should get first set of regional results but the final

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welcome back to "power lunch." southwest airlines, the cfo says the revenue environment remains soft according to a report. the carrier will delay $1.9 billion of spending on planes beyond 2020 to focus on technology and operational improvements and it will postpone delivery of 67 boeing max eight aircraft by six years. this as the company hosts an investor day. we're looking at shares down 2% onlt day, tyler. >> thank you very much, seema. >> new crash tests show that passengers are not always protected in a crash as those in the driver's seat. phil lebeau joins us now. the images are shocking, phil. >> they are, tyler. in part because so often we look at the crash tests, we look at the driver front corner that hits an object. it is called a small overlap crash test. it is the deadliest collisions on the road in the real world. they say what happens if we did that on the passenger side? and what they found is that not

all of the small suvs tested provided the same level of protection for the passenger as they do for the driver. here's the ihs researcher who did this test. >> we can be confident that you'll be well protected in a crash in a variety of modes. but this test is another example of how they're raising the bar of safety. we're finding areas that we haven't yet explored that need improvements. >> as you take a look at the results, this is not part of the federal regulation for crash tests. the one we're focusing on the bottom there, the toyota rav-4, it does good on the driver side but got a poor rating on the passenger side. we reachedotah. they say it is severe and specialized and goes beyond federal vehicle requirements. after the test was first introduced in 2012, toyota took steps to improve the

performancest vehicles in the test rather than waiting to reengineer the driver and passenger side. we took immediate steps to enhance the performance on the driver side. and so what you're going to see, guys, not just from toyota but the automakers, they'll start to focus on figuring out why that driver -- or the passenger side is not providing the same level of protection as the driver's side. the auto makers are saying the same thing. sub rue and nissan, we talked to them. it is interesting. quo see this become part of the whole battery of federal safety standards. >> these were done on small suvs. will they be doing similar tests on other vehicles, large suvs, sedans, compacts? >> i bet they will. i will be surprise if we don't see them replicated with other types of vehicles in the future. >> phil, thanks. up next, toothpaste, bleach, and old bay seasoning a few name hitting all time highs when "power lunch" returns.

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welcome back to "power lunch." toothpaste, bleach, and old bay seasoning, just some of the trades that are working to day. seems like there should be a story. colgate, highest level since the

1930 ipo. bleach maker clorox hitting the highest levels since going public in 1972 and mccormick, of course, the maker of old bay, trading at the highest level since the 1999 public debut. a few other name hitting record highs. interestingly, a lot of these are consumer staples names that were on a terror earlier this year until there was a risk on sort of mentality. but even today with the market gains, we're seeing gains in these stocks. >> all right. other stocks in the news today, home depot upgraded to buy from neutral at the brokerage and they say the overall market sim proving. and home depot is gaining market share. through see the stock up about 13 big cents. bed bath & beyond earnings coming in six cents shy of analyst consensus forecast. sales also disapointing there. but the company stands by its full year forecast. barnes & noble predicts same-store sales will be flat to up 1% for the year. that's a better outlook than some analyst has been looking for.

>> well, we're coming up on 2:00 p.m. on wall street. 7:00 p.m. in london where the closely watched brexit vote is under way. u.s. stocks right now holding ton gains although off the session highs. the dow jones industrial average looking at a triple digit gain. it is up by 160 points. .9. s&p 500 higher by 18 points. nasdaq composite the best of the major three, higher by 1%. financials are really leading the way and, of course, we're also taking our cues here from the european financials which has had a very, very nice week. the likes of a deutsche bank higher by 12% on the week. of course this evening at 4:30, we're expecting first round of the fed's stress test. en that is sending shares of banks higher in anticipation. meantime, take a check on the treasury yield. the ten year yield up is to 1.7% as we do see some profit taking. we're keeping our eye, of course, on pound-sterling. trading near year to date highs. actually it inks a year to date

high close to that right now. but this, of course, indicating that there is a belief that remains, so to speshgs will prevail. one stock on fire this hour, twilio. shares are higher by 76%. they're going public today. the most high profile tech ipo since square went public last november. bob pisani tracking the trading action this hour from the nyse. bob? >> steady as she goes, we're 15, 20 points o off the high. similar'other major indices. take a look at the sectors. most of the major sectors are up 1% today. just off those highs here. you see financials and materials, retail, tech stocks, all doing pretty well. it's a fairly broad rally, better than 3-1 advancing to declining stocks. you mevengs tntion the financia bond yields moving up. bank stocks have been stronger. both the money center banks and the regional banks all strong. i hope you heard me list yashgs

we'll get the relates at 4. 306789 eastern time. take a look at the dax. a little nervous today. one reason i'm nervous is the markets completely believe the vote will be to remain in the european union. can you see this with the dax in germany moving down about two weeks ago on concerns that brexit polls were increasing with those in favor of brexit. we're in the lead. and then turning around just in the last week here. a perfect u shaped situation. same thing here in the united states. if you look at the s&p 500, 2100 in early june went all the way down to essentially 2050 or so. as can you see, we're right back at 2100. my point here is there is enormous risk to the market if the vote is to leave. the markets -- right now, it's not positioned for that. you know, melissa, i have a very simple thing. don't yell at the stock market. but that didn't always mean you necessarily have to agree with everyone's position on it. back to you. >> all right. bob, thank you very much. the brits heading to the polls today with one question on their

minds, should i stay or should i go? a very tight race. the uk should remain in the european union. 46% say leave. we send michelle to a betting parlor in london. she got kicked out. she decided wisely to go next door to the pub instead. she joins us now from london. hi, michelle. >> well, where doels you go when you're in london, tyler? you go to a pub. 7:00 p.m., the polls close at 10:00 p.m. you mentioned how close the national polls are when it come to stay or go. however, if you look at the numbers based on age, there is a huge generational split in this country. look at this. people over the age of 60 when polled, 63% say they vote leave. people 18 to 29, only 27% want

to leave. so as you mentioned, tyler, we went to a pub to talk to brits to see how they're voegt. we spoke with phil goodwin, age 76, sunny gill, age 30, when you hear them reply from the numbers i just told you, when i spoke with them about how they're going to vote. >> what choice did you make? >> i want to get out. >> you voted out? >> yeah. >> so we can -- we can become great britain again. >> how did you vote today? >> i voted remain. >> there say huge dichotomy between young anticipate old. older people are voting leave. younger people voting remain. do you see that? >> yeah, do you. you do. it also depends on what part of the country they're from. the people my age, they want to remain in the eu. >> why? >> it's a lot younger people are more liberal and left leaning. people are scared of the idea of

going directly into the recession. the older generation like my father, he is of 62. he wants to leave. my dad is right-wing and what not. he's a different generation as well. >> phil goodwin age 76 told me he was very, very frustrated by how young people were voting. he said students in particular, he said here's the problem. they've always live wtd eu. they don't know how it can be without the eu. so they think they like the status quo. but he's firmly convinced it could be better. we'll see how it goes. the weather, how does that affect turnout? the leave vote is very committed. the remain for the status quo, people are concerned if they remain that young people won't turn as you out because of the weather. so it's going to be very interesting, guys, tomorrow. could be chaotic dpenlding on the outcome. >> is the weather the same all across england right now or localized in london which i would think would lean more

towards the remain camp. >> good question. remember, it's smaller than the united states. the weather is generally true across the k across the country but there is hef yishgs heavy rain in london. >> do the demographic trend play out in the periphery? those are the areas that people are saying could be the next to actually have referendum as to whether or not to stay? do they have a prevalence of younger people or older people? can we extrapolate that at all? >> additionally, in the northern part of the country, more rural parts of the country, those are definitely expected to vote leave. in fact, very first area that we expect to see tonight is sundayerland, expected to come out 1:00 a.m. and the expectation there is that sundayerland is going to vote

for leave. the question is by how much? and how wide is the margin? if the marge sin huge, maybe that means something for the entire country. if the margin is very narrow, then people think oh, then that's more likely the country stays as a whole. because it's indicative but only by degree, not by, you know, whether or not for sure. >> all right, 1:00 a.m. sunderland. thank you. >> let's get to shares of macy's. they're trading higher after the company announced terry lundgren will step down as ceo next year after 13 years in that role. he will remain as executive chairman. oliver chen is managing director with cohen and company. he has a hold rating on macy's, a $35 price target g to see you, oliver. >> you have a hold rating. does this make you more bullish on the stock at all? >> well, you know, the stock here in terms of what is happening is a reset. but it's really too early to

say. what i would say is there's a new era and retailing and there is a new strategic focus which has to do with really bringing in store traffic. so with this announcement, it's very interesting. we think he's a veteran with good operational and merchandise experience. but there is a real problem here in the industry and there's a generational change in term of how millennials and generation z thinks about shopping. so there is a lot to do as the story and we can't really tell yet about what he will do. but we think his capabilities are interesting. >> you said in your note that you thought that ginet could execute an omni channel and other growth initiatives like off price retailing. have we seen the glimmers of that already in his 33 years of tenure at macy's? >> we do think macy's has a credible program. they invested a lot in this division. fwz 14% to 15% of sales. they also do a good job with ship from store, buy online and pick up in store and have a good

mobile interface. but there is a lot to be done. there say lot left to be done. this is an opportunity. on the off price frontier, there is more work to be done here. they're in an experimental phase with macy's backstage. stocks we like include tjx and ross and coss he could. the off price channel is tractive to that younger customer. so there are parts of. this but if i were to answer your question, we would have liked to have seen macy's really been more aggressive and off price sooner. >> right. >> and here's the last question. would you have rather -- would you have become more bullish of the may macy's story if we had an ceo from the outside come in with fresh ideas? >> you know, what i would say is what is interesting about using the inside person is that he will know how to get things done infe effectively. they'll know how to maneuver the organization. from an outside perspective, me list yashgs i think company really needs to think hard about speed. i think the supply chain and the time from which they place

orders to deliver is a year and that's just too long in this marketplace. so he's really going to need to look to supply chain innovation as well as bringing a ton of new excitement to the store. the stores need to get fun again. they need to get exciting for young people. health and wellness, exercise, health care like there needs to be a lot more done in the stores so that will be time will tell if he can really make it fun and exciting and cultural. because that's where the department stores need to head if they want to be relevant for the long term. >> got it, oliver. good to see you. oliver chen, cohen and company. >> i think they all have open bars in the stores. i really do. i really do. >> really? i guess if you have a few cocktails, you may buy more. >> absolutely. zblet's look beyond the big brexit vote. our next guest says investors need to be aware of what the political risks still remaining throughout europe and its potential to impact asset returns.

welcome. i want to get to your thoughts about the broader sort of euro-zone and political ris tlk with so many elections coming over the next year or two. but let's focus first on the ft-se. british stocks so far this year basically flat for the year. but that's better than stock performance in germany, in france, in belgium, in ireland, in the netherlands, i believe, as well. why are british stocks outperforming the rest of the continent? >> one of the misconceptions so far is that brexit has dominated uk performance. in fact, it's been the commodity turn around that has really started to shapt uk dynamic so far in 2016. the bloomberg commodity index measures the broad basket of commodities up is 8% year to date. and considering the 18% weighting that ft-se 100 has towards commodity orien take theed sectors, that's a reason we've been seeing a nice bounce

in uk performance relative to our european peers. >> back to the question of, you know, i would say that brexit is what we would categorize broadly as a political risk to equity performance. once this political risk gets resolved, you point to lots of other political risks in lots of other countries, namely, all of the election that's are coming up. i believe spain has one. a very important one coming up. and that those could similarly pose risks to investment performance. >> they're about 50 countries that represent about 50% of the eu's gdp, due to have elections by the end of 2017. we have the same this weekend which may have been missed in the brexit hustle. but then next year we have france and germany and the netherlands all going to the polls in presidential and general lections. this comes in the backdrop of a heavily euro skeptic performance across europe at the moment.

take germany, for example, back at the last election in 2014, the alternative to deutsche land got about 1% of the vote. now this is a far right euro skeptic party. in the latest poll and regional elections, they're getting closer to 20% of the vote. this shows the level of rising euro skepticism there is across europe and some of the challenges it might face to european investors over the next 12 to 18 months. >> thank you very much. >> we appreciate you being with us. we appreciate it. >> ahead in the next hour of "power lunch," two major decisions from the u.s. supreme court today. what they are and what they mean for you. and after april's record high prices for new home sales, we'll see if builders sales stay strong for summer and we're all over this brexit vote. you have heard of it? from the impact in europe to the markets at home and before we head to break, more sound from the ground in london. here is one britain on how she voted. >> i want to remain.

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you position your portfolio. martin shultz is with the pnc international equity fund. it is rated five stars by morning star. martin, welcome. how much of your portfolio is in europe and how much is in britain? >> good afternoon. europe reps 50% of our current holdings. in the uk if the last few years we've been cutting back our exposure because of the current account deficit that the uk has and other valuation factors. and what do you expect the results of the vote to be and have you done anything in recent weeks to hedge or prepare or take advantage of what you expect? >> well, great question. we've been following this closely for some time since the scottish vote raft september. and put out a punch of research earlier this year. it was on the ground several time we and our team. the bottom line is we feel that britain will remain in the eu.

and much like the scottish currency, the same experience we saw there. same situation that a lot of hype right before the vote. and during that period when markets were volatile, we did pick up and add to some of our positions in the uk which we feel have long term growth possibilities. >> martin, it seems like you're severely discounting the possibility of a brexit. you say it's a very outside chance. and if it does happen, we could be in for a lehman style response. what would this lehman response entail? >> the punters and book makers are back to the 80%, 85% as of this morning of brexit not happening. again, our view is baseline is that it goes. but if it doesn't, absolutely correct. it is something that is unusual and high level of uncertainty. we think that currency markets will be hit hard. sterling will be weak. for the first time, uk will be in a position where it is selling most of the good into

the eu with which it no longer has trade relations potentially. obviously that two year period of uncertainty where they have to deal with what come next is what would be the biggest issue for investors. at the end of the day, it's about europe. it's a two steps forward, one step back. europe we feel has great valuations and we like it long term. >> what are your biggest european holdings overall if you can tell us? and what are your biggest in britain? >> in the uk, we have big holdings in the uk, again, a lot of the the companies are large multinationals. they would be obviously hurt about it brexit. again, we feel it is very unlikely. bun one that obviously we have to keep in mind. as your previous guest pointed out, there is obviously the spanish vote coming up on sunday which we've been following very closely as well much that could

be an issue that could continue to affect europe longer term. again, two steps forward, one step back. >> deutsche banc, i was pointing out before, a tweak date is up 13%. so a lot of them are coming off all time lows and really rallying into this. are you concerned about these banks because before earlier in the year, it seemed like it was a concern over the commodity composure. they came back. they still didn't recover and now we have brexit. >> right. you highlight a very interesting point which is that those banks sold off as brexit really became annish knew volatility increased which highlights the fact that really europe was the biggest potential loser long term in this scenario. yes, the banks in europe, obviously, unlike the ones in the u.s. vent been recapitalized to the extent they should have

been so far. but we're seeing credit growth. longer term, i think europe and the european banking system doll fine. it is still healing. and it highlights again that europe is the biggest potential loser with this to go through. >> how it is going in cleveland this week? >> it's great. a little tired. but a lot of people downtown yesterday. a beautiful day. very happy and excited, long time clevelander, very excited and proud of our city. >> it's been a long time coming. congratulations on. that martin, thank you we appreciate it. >> thank you. >> new numbers on new home sales are out. we'll bring you the latest ahead on "power lunch." but before we head to the break, take a look at the u.s. companies most exposed to the uk. they include ford and ebay. life insurance automobile insurance i spent 20 years active duty they still refer to me as "gunnery sergeant" when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and i'm a usaa member for life.

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lblg back to "power lunch," everybody. sales of homes are slipping. what does it say about the housing market? dianne olick is live if wash wsh with more. >> hi this is not exactlien expected. we were looking for a drop in may after the huge surge in sales of newly built homes we saw in april. and we did get that drop. new home sales down 6% for the month. but we also got a pretty big negative revision on april's numbers. they were reduced from an

annualized rate of 619,000 to 586,000. new home sales are now up 9% from may of last year. we also saw slowdown in prices after 9% annual gain in april, we saw the median price of a new home in may just 1% high thaern a year ago. that after the realtors were waving red flags yesterday on affordability. the median price of an existing home sold in may hit a new record high. a lot of that reflects more activity in sales of more expensive homes and that's due to the lack of supply of cheaper homes for sale. affordability is weakening. should rates start to rise, that's when things could get a little worse. now despite the messiness in the monthly new home sales numbers, if you average it out, they've been in the best april/may sales for the builders. we're below the 30 year average of 700,000 though, low inventories of new and existing homes are the biggest issue in housing to day because they are

pushing prices higher at the top. >> dianne yashgs thank you. >> asia has now passed the united states in one key economic metric. we'll bring you numbers. before we go to the break, here is a breakdown of the biggest economies in europe, germany leads the way. & in a world held back by compromise, businesses need the agility to do one thing & another. only at&t has the network,

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here's your cnbc news update at this hour. disney reopened the beaches for the first time since the alligator dragged a child into the water near the grand floridian hotel. they'll be open one hour before sunrise and one hour after sunset. it includes barriers to promote vast. a jury sided with led zeppelin in a copyright infringement trial in los angeles. the band stood accused of stealing the ong cords of the 1971 classic "stairway to heaven." a tornado killed 52 people and destroyed many buildings in eastern china. the tornado hit near the city injuring large numbers of people and blocking roads. houses were destroyed and vehicles blown away and a local

factory was raised to the ground. one of the six men in the famous photograph of the flag raising at iwo jima has been incorrectly identified. this for more than 70 years. an investigation by the marine corps says the navyman john gradually was not actually in the image but a private first class named harold shultz was. that's your cnbc news update. >> thank you. the oil market is closing for the day. taking a check on crude oil, it is higher. are we going to pull up a chart here? there we go. bingo. >> closing up the session highs. $50 a barrel. $50.12 is where it is closing. we do see dollar weakness. the pound sterling is off the morning highs. still hovering near year no date highs again the u.s. dollar. it did hit the highest levels since 2015 and the biggest money managers out there this rally bha not yet be over. kate kelly joins us with more on

that story. kate? >> there's been a conventional wisdom developing that remain rally that started on monday may not have much longer legs it to. hedge funding iffers have been speaking to me this morning and suggesting otherwise. they say that the remain kaum p prevails and we'll get some feel for that by tomorrow morning, what we're likely to see is a short covering rally in the british pound as traders hedging themselves for the possibility of an unexpected leave outcome actually take the shorts off. and sterling wouldn't be the only beneficiary of that trade. other instruments could see big moves as well. markets to watch could include best number one the sterling volatility would continue which you'd be taking off. bullish bets on uk or other european government bonds or short bets on italian government bonds. all of which could stand to be unwound as the results roll in on friday morning. and the process may play out over a few days, not just friday, me list yachlt we can probably look for continued activity into next week, especially if there are any limits on the liquidity. >> and we were chatting about that, on friday a lot of

institutions, it seems like are stepping aside here and liquidity may be much thinner. and so the moves could be much greater. >> absolutely. there is a narrative we heard a lot about in recent years. banks worry, you know, out loud about the fact that they have higher capital expectations from central bankers. i'll be reporting on the results of stress tests later today, in fact. and then the capital results next week. they're required to have more capital. they feel they can't put it to work in the markets. and tomorrow expect it to be potentially volatile. >> all right. kate, thank you. let's get to john harwood with breaking news. >> me list yashgs the senate has just declined to kill a compromise proposal by senator susan collins of maine that is democrats and a few republicans supporting her position to prevent people on terror watch lists from buying guns with some right to appeal that designation. this keeps alive slender hopes for some sort of narrow compromise on the gun issue. now the chances of passage

remain very slim. of course, the house adjourned until after the fourth of july. there is no sign that the house is willing to pass such a measure. but the fact that it has not died was not killed in the senate just now is a sign that at least there say chance that the tactics the democrats have been using to try to raise the attention and raise pressure on republican leaders to move this issue, they are not extinguished yet. >> there is similar to what they voted down last week? >> the collins amendment has a variety of procedures and, yes, it is not been defeated. it has a look back provision which allows law enforcement when they're doing a background check to look and see if someone has been listed on a terror watch list. so, yes, it is tailored differently. it's very narrow. wouldn't have that effect of availability on guns in the united states. very little effect on availability of guns in the

united states. but it is something. and democrats have been pressing for some reaction from congress. certainly the white house welcomes the idea that this isn't dead yet. but again, i think we need to keep in contact. this is not likely to be become law at the end of the day. >> all right, john harwood, thank you. >> let's head back to london to misch whole is covering the brexit vote. michelle? >> hey, there tyler. 2 1/2 hours until the polls close. then overnight we'll start to get the numbers in. there's been a lot of focus on cmbc on what is happening to the pound based on the polls about whether or not the brits are going to vote to stay or leave within the european union. we talked about it at the institutional level. it is also very important at the individual level. we showed you video of the long lines and the global currency exchange. if you ever traveled to london, you want to change the dollar into the pound, walk up to these places and get money. one is thomas exchange global. huge business here in london. we have the director, one of the

co-owners who helps run that business. good to you have here. >> good to be here, michelle. >> big spike in volume over the last week you were telling us, correct? >> absolutely. >> why? how much? >> pretty much just a few days. sterling against the dollar was 1.42 last friday. it jumped to 1.49 plus on tuesday. it is a 5% rise. that means additional business. people generally travel a lot during june, july, august. one of the busiest seasons. they don't wait until the last day. they book way in advance. they already booked up all the holidays in june, july and august. it makes common sense to buy the currency now. the 1.49 plus level is from tuesday, wednesday, and even today and never been seen until late december 2016.

>> so can i translate a little bit here. they're going on vacation. they think, wow, if we vote to leave, friday, the pound could plummet and it's going to be far more expensive for me to buy my euros or my dollars so i should do it now just in case? >> absolutely. i think that's the mind sest the people. we have lower levels in london. really large retail. 95% of the profits are retail. these are customers traveling out of the uk on holiday. for people traveling out. >> what percentage volume did you see in terms of an increase over last week? >> the dollar is 1.42 -- >> in terms of volume? 40%? 50%, 100%? >> it increase in terms of customers, they come into the branch. we saw a 40%. >> 40% rise. thousands of customers. even today it is raining so hard

that there are people in each branch. customers are unable to come to the branch but they place orders. >> there is a 105% increase week on week from last friday to tuesday. >> wow. institutional firm that deals with currency. they're at the individual level. he said if there is a vote to leave clshgs is not expected, he thinks the pound could fall below 1.30. do you think that is possible. >> i won't disagree with that. it's really difficult to tell where the level is going to be. but in my opinion, it will weaken a lot. 2,000 points forward in my opinion is not impossible. >> wow. >> it could be near 1.30 or break the 1.30 support level. >> thank you so much for joining us. we really appreciate it. >> thank you very much. >> we'll see how things go on

friday. >> thank you. >> guys, back to you. >> thank you, michelle. two giant supreme court rulings today. we'll bring you the latest. as we head out, listen to why there brit changed his mind on brexit. >> i was going to vote stay and i changed my mind. i'm going to vote to leave. because immigration is too much of an issue in this country. and it doesn't look like it's going to change for the better. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs.

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there may be concerns about the asia economy from a growth and productivity perspective. asia just passed the united states in one economic metric. robert frank is here with more on that story. this is a good metric. >> very important. certainly, for the first time ever is millionaires have more wealth than north america. showing that we will sj quickly moving from west to east according to the world wealth report. asia pacific millionaires have $17.4 trillion in we willth in 2015 that, up is 10% from 2014. north american millionaires only had $16.6 trillion with growth of 2%. that jum being fueled by china and japan. those two companies accounted for 60% of the entire global growth and millionaires last year. japan adding a surprising

268,000 last year. they say that asian millionaire population is expected to double to 11.7 million. the u.s. leads millionaires with 4.amillion. japan is second with 2.7 million followed by germany and china which only has around 1 million millionaires. so less than a charter of the u.s. leaner growth is expected to top $100 trillion in the next ten years. that's up from $59 trillion today. now there is a lot of money out there. we still got more of them. but they're richer. >> that's right. well, yes. total wealth. but we're talking about china which has a quarter of the u.s. millionaires. they're talking about entire asia pacific. so not a great comparison with countries. but zbit all that wealth, big news yesterday and the day before. the art auctions in london selling $189 million total. that is less than half of last year. many actually blaming brexit for this. >> really? >> a lot of uncertainty about

what's going to happen now. picasso, a monet, rodan failed to sell. there were two big sellers of a picasso. it sold for of $66 million. but when you think about properties, art, the very big -- >> that is madam hancock. >> that's right. >> whether you think about the big purchases, a lot of people, regardless of the vote are just holding off until they know what happened. en that is just a poorly timed auction, set of auctions tuesday and wednesday the day before this vote. no one wants to make a big purchase before they don't know what is going to happen global markets. >> are they rescheduled? >> number all these auctions happened and they were -- they were just so much lower than last year. so we'll have to see what happens in the fall. >> i would think if you're a frayed, worried, you would want to hold on to your real assets like that. >> yeah. you want to hold on. you wouldn't want to buy more. >> you wouldn't want to buy more. >> you don't know what will happen with asset prices. >> you said -- oh, that's her. like you ran into her at the

grocery store. oh, that's her. >> good to see her again. >> she has a long neck. >> why the long face, madam hang congress. how much did she sell for? $12 million? >> $12 million. >> all right. to washington, two major serious decisions coming down from the supreme court. hampton is there. >> a short-handed supreme court upheld the university of texas affirmative action plan to promote diversity on its campuses. i'll have more on that in a moment. but a deadlock high court dealt president obama a major setback on immigration. the 4-4 tie vote blocking his plan to spare millions of illegal immigrants from deportation with just seven months left before the end of his presidency. the ruling is a win for congressional republicans and of course puts immigration back on the front burner of the presidential campaign.

>> today's decision is frustrating to those who seek to grow our economy and bring a rationality to our immigration system. >> this is a win for the constitution. it's wayne for congress. and it's a win in our fight to restore the separation of powers. now only seven justices decided the affirmative action plan. at the time of the argument, the late justice scalia was the most vocal opponent of the plan going forward. so we might have had a completely different outcome there. back to you. >> thank you, hampton. just a few hours to go before the polls close in the uk. take a look at the celebrities supporting the remain camp including harry potter's j.k.rowling and james bond.

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bracing for a brexit. will they leave or remain? here's how a look at the british press are covering this historic day. here is the front page of "the

sun" showing the reference to the new "independence day" movie written across the top, you can free uk from the clutches of eu today. very different front page on "the daily express" covered with a large union jack flag. reading simply, "your country needs you. vote leave today." voting, of course, under way for today's big brexit vote with two hours left until the polls close. our next two guests think there is opportunity to be found regardless wlf britain leaves or stays. let's bring in robert tip from prudential fixed income and john taylor at a.b. global. let's talk about fixed income, robert tip. what will you be doing tomorrow? >> well, obviously, we'll have to see how the chips fall. and the -- on the one hand this is something that i think maybe more consequential outside of the uk than for the uk itself. the uk, as compared to, say, one

of the continental european countries, doesn't really need to be in the union. it has better growth than these other countries. it has more of an internal fiscal anchor. and so that attractive, yields are positive, spreads on the fixed income securities are attractive, the pound has depreciated a lot versus the euro, i don't think it's going to be in the long run. obviously in the short run, it's going to be very uneven. you can have a shock market reaction in the short term. in the long term it's going to be okay and the strategy is going to be to go for value. the value is on sterling and value in british bonds. >> john taylor, what have you been doing for preparation for the possibilities tomorrow?

>> the outcome is very uncertain and the polling date is very, very cloechls we've been somewhat defensive. we've been a bit more cautious on our financial exposure tipping away from the uk retail sector, which is a weak point if the brexit point were to occur. >> robert, in terms of the short term, you mentioned the short-term knee-jerk sort of reaction. let's say it remains. walk us through what you think the short-term reaction would be and some of the opportunities you might take advantage of in the coming days. >> right. i think if you get a remain result, that's what the market has been pricing in this week. so it's a risk on type of environment that would probably continue. you get some further pop in the pound and spreads tightening and so on. i this i you have to look at the big picture. if you go back over the last year or so, you know, u.s. stocks have been relatively flat. european stocks are down, both

continental european stocks and british stocks, and this has been an environment where people have not adjusted to the slow growth picture, and that's going to come back. and the overarching trends of low interest rates and so growth are going to be the dominant factor in the intermediate to long run. >> what's the message there? >> i think that equities are a bit of value trap. >> equities overall. >> that while in the u.s. and frankly in the uk, the better growth picture relative to the continent may advantage them. a lot of places like japan and continue anyone tall europe are on bare equity sides. i think this is a fixed income environmental and one where you may get more volatility or the equity side going forward. >> john, ho you do react to what robert just said? you know, we've been talking for months about the brexit risk, but the risk doesn't stop with

brexit, does it? >> no. but i think the knee jerk reaction would be very positive and i think looking very close to europe, the peripheral european debt will be beneficial because of the risk-on trade. very constructive for european debts, and i think in the near te term, no votes. i think we need to be somewhat cautious about what the outlook will be. it might be unsettled. in the median turn we still see risks on the horizon. >> john, thank you very much. john taylor. richard tipp as well. the polling stations will close.

about two hours are left. stocks in the u.s. rallying right now. let's take a look. the dow industrial is up 1%. 175 points. s&p 500 up 2101. the nasdaq the biggest gainer of 1.25% at 4893. "power lunch" will wrap it up in two minutes. ou doing? getting faster. huh? detecting threats faster, responding faster, recovering faster. when your security's built in not just bolted on, and you protect the data and not just the perimeter, you get faster. wow, speed kills. systems open to all, but closed to intruders. trusted by 8 of 10 of the world's largest banks.

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folks in britain faced floods. kayla got caught in the downpour. >> what is it like where you are? >> i think you can tell. there are poll iing stations. >> commuters delayed on their way to work. many literally wading through water to get to their destinations. let's bridge ba ee's bring backo cabrera. it looks nice now, even some brightness. >> sunshine finally. give it 20 minutes. that's how it is here. sure it impacts the weather. who likes to go out in bad weather. the people in the united kingdom are used to bad weather and

rain. if you wanted to get to gatwick and get on the gatwick express, trains are only runs four times an hour. if you're committed to your vote, people are going to come out. let me show you the last newspaper of the day. big ben is over the future. >> at least we'll know the answer tomorrow. >> it's community houses, fire centers. i heard sometimes they vote in cafes. >> yeah. ditto. all of those places are possible, tyler. they're not as ubiquitous as i think. >> you know, we make a big deal, michelle, about 3:00 a.m. eastern time which is when the final results will be announced.

hedge funds as i understand it. many of them have hired their own private polling companies and they're doing their own polls, exit polls as people are casting their votes. >> they say they have been hajj funds, getting them to commission those polls. it's expensive. but they will -- you can see the pound trade probably at some point where you're going to get an indication of what's going on. >> all right, michelle, great work. see you later. joining us from london. let's take a check on where we stand on the markets with one hour of trade here to go in the united states as we're awaiting the results on the uk referendum. we're one point away from session highs. ditto for the dow jones industrial average. the nasdaq up by 1.25.

the strength and the financials. we're seeing that higher. 4:30 is when the stress test results will be coming up. >> interesting day coming up. >> absolutely. >> thanks, everybody, for watching "power lunch." >> "closing bell" will pick it up and they pick it up right now. hi, everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> happy brexit day. >> oh, boy. >> the stocks are rallying anticipates they'll remain in the european union. the polls are set to close in just under two hours. any time. we've got full team coverage of that looming outcome. that's coming up here. >> plus, power players. david rosenberg and roger ult nan will join us in a couple of hours.