good morning. millions of britain sign a petition to reverse last week's decision to leave the eu. >> meantime, the nation's government is in chaos what it means for the future of europe coming up. volatility ahead. global stocks suffering a brexit hangover as the pound falls further, oil prices slide and gold continues to benefit. >> all this plus the political ripple effects. hillary clinton bashes donald trump over his reaction to the brexit vote. it's monday, june 27th, 2016. "worldwide exchange" begins

right now. good morning. welcome to "worldwide exchange" on cnbc. a special edition live from london. the center of the world right now. >> very warm welcome to london to you all. the british government is in a state of disarray. global markets seem to be a little calmer this morning although still trading lower. >> a lesson from last week. that is that anything could change at the blink of an eye. let's show you what u.s. equity futures were doing. they were down overnight. dow futures calmer off the session lows. keep in mind we're coming off a 610-point decline in dow jones industrial average. futures heading south down almost 100 points. s&p down more than 14. nasdaq futures down almost 30. this after the eighth worst

point drop in dow history. as for ten-year treasury note deal, we've seen a rush to safe haven bonds including u.s. treasuries and lower yields. ten-year yield breaking below 150. look at that. 1.47. euro under pressure. we'll look at this as leaders gather in brussels starting tomorrow with british prime minister david cameron there. euro is lower. pound down more than 2% after its worse fall on record on friday shedding more back down to 133 region. the 132.29 was the low. that's 1985 low everyone is talking about that it hit overnight after the referendum results came out. clearly more uncertainty and more concerns about this economy. >> significant move lower in the pound overnight which suggests the worst is still not over. david bloom on "squawk box" said

earlier that there are buyers and sellers at every level. not a blind leg down and for that reason he says the market is working and liquidity but clearly there are reasons for the pound to keep moving south. let's have a look at european equities as well. the dax is down .93%. ftse 100 down 1%. it's moving around. it is lower. let's have a look at asian trade. the nikkei ending up more than 2%. hang seng was down less than 1% and shanghai market was up about 1.5%. that's the asian close. for oil prices, wti just above 47. gold final one to watch up more

than 13% for the year as a whole and this morning gold trade is slightly positive by .6%. boris johnson writing an op-ed for daily tel graegraph stressing that britain is part of europe and always will be. sought to reassure britain saying those who pushed for brexit must reach out and build bridges. >> we haven't heard from boris johnson since his victory speech on friday. a lot of focus on this. three main takeaways is he says this is a vote about sovereignty and not about immigration. he also said that the u.k. is in control and there's no rush to begin these negotiations. and he also said that the consequences so far are widely overdone. it's interesting to hear we haven't heard from him or from michael but we'll hear from matthew elliott, ceo of the vote

leave campaign in just 10 or 12 minutes time. >> i went with financial times because the political turmoil as even made the cover of the financial times. it shows you that it adds another layer of uncertainty and there's more calls for labor, opposition party leader to step down. it's getting messy here. there's a vacuum of leadership at a critical time where it seems like the big debate now is what is the time frame. what is the time frame for the exit? what does it look like? who is in control of it. a lot will be determined in brussels where i know you are going. >> that's going to be important. the leadership election for the next prime minister is important. great that you pointed out about the labor party in turmoil. it's almost unprecedented to have both parties facing such significant upheaval at the same time. u.k. politics is certainly facing a volatile period. on that note, u.k. finance minister, chancellor george osborne attempting to calm the markets this morning with a speech before european trading began. he says there will likely be

further volatility ahead for the world's fifth biggest economy will be able to cope with challenges. >> those markets may not have been expecting the referendum result but the treasury, the bank of england and the financial conduct authority have spent the last few months putting in place robust contingency plans for the immediate financial aftermath in the event of this result. it will not be plain sailing in the days ahead. let me be clear, you should not underestimate our resolve. we were prepared for the unexpected and we are equipped for whatever happens. >> during the campaign osborne warned he would have to raise taxes and cut spending in the event of a brexit but now says the government should wait until david cameron's successor is in place before deciding on fiscal plans and will clarify his political future in the coming days. later today we'll hear from david cameron speaking at the house of commons in a few hours time.

>> as we mention, jeremy corbyn says he will not resign from the leadership despite a coup against him. he announced a reshuffled cabinet today after nearly 20 shadow ministers and aides resigned last night and this morning after they criticized corbyn's contribution to the stay campaign. it really was stunning to watch. i watched bbc yesterday morning. it was breaking news. one by one. every single one of these minister just stepped down and they were in shock. >> not just westminster but north of england/scotland border. the scottish parliament could try to block the u.k.'s vote to leave european union. she would ask members to stop a brexit even if it were to cause outrage in england. there's not a legal precedent for her to do that but clear different result in scotland compared to the rest of the u.k. >> after the brek brexit vote,

spain is somewhat divided after elections delivered a hung parliament for the second time six months. the prime minister's popular party did better than expected but his win did leave him just short of majority in parliament meaning he'll have to find allies who will vote in favor of him taking power. i don't want to overplay this because he actually did get a big chunk of the vote. it wasn't a flat out rejection of the status quo. >> less bad for sentiment that people feared. the imf director is warning of more pain if they don't move quickly to reduce uncertainty about the new state of their relationship. speaking at the aspen ideas festival in colorado, they said

there were no liquidity problems like during the financial crisis. >> central bankers did their job. all groupings, organizations, imminent policy makers came out publicly along the same lines of trying to reassure that the situation was under control and it was very much under control. we didn't see those sort of panic move. >> lagarde says if u.k. follows through there will be an impact on british and eu economies. >> meantime, the fallout continues across markets. japanese prime minister shinzo abe says he has told the japanese finance minister to watch the currency markets "ever more closely and take steps as needed in the wake of u.k.'s brexit vote." abe spoke after an emergency meeting. the boj governor says the central bank remains in close

contact with its counterparts to ensure global markets have enough liquidity. he wouldn't say exactly whether boj would hold emergency review. this kept the yen at bay. 101.90, which is a stronger yen. of course we're watching that 100 level very closely. if it breaches that, traders say you could see intervention. meantime, billionaire george r soros issuing a statement that he was long the british pound. he did not speculate against sterling while he was arguing for britain to remain in the european union. in fact, he was long the british pound leading up to the vote. however, because of his generally bearish outlook on world markets, mr. soros did profit from other investments. >> let's discuss more the global

implications. good morning to you. thank you for joining us. we have seen a leg lower in ste sterling this morning. how long will the fallout go on? >> what you saw last week on friday in particular was people closing t short positions. now that that started to disappear, the pound will probably continue to slide lower mainly generated by the political and economic uncertainty. this will carry on for the forsfo foreseeable future. we need to understand the length and depth of this economic slowdown caused by brexit. >> many wall street firms writing about the pain they foresee for the british economy. goldman sachs expecting a recession in early 2017. what does that do for the global economy? >> the u.k. is a relatively small percentage of the overall economy. very small amount. 3%.

risk is around political contagion to the rest of europe. at the moment there is a rising tide of euro skepticism and countries representing 50% of eu gdp are due to hold elections by the end of 2017. that could weigh on economic growth. it could make businesses uncertain and they'll pull back on investment in hiring intentions. >> we have a referendum coming up in italy on a different topic but a vote for government or not one could say and elections coming up next year in france and germany. will those events be as bindery for markets as the brexit vote was? >> they will look at general trends across europe from political point of view and work out where we'll go over the next few months into next year france and germany is where it will be key. germany particularly. the alternative a far right

skeptic party will take close to 20% in region and local pollings. areas of concern in one of the pro-european countries. >> a strategy guide? >> for me u.k. large cap equities can look attractive. globally diversified. weaker found will help earnings figures and valuation points provide an entry point for anyone who has a long-term horizon out three or four years. >> great to have you with us, alex dryden. still to come, check out the yield on u.k.'s ten-year government bond which just fell below 1% for the first time ever. >> coming up, he's the man that masterminded perhaps the most extraordinary campaign victory of modern times. the ceo of the vote leave campaign matthew elliott on his win. he'll join us in his first interview since the vote took

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welcome back to this special of "worldwide exchange." several eu leaders are pushing for a quick divorce from the u.k. following last week's referendum. the head of the official leave campaign says there's no rush to get started on a formal brexit.

joining us is matthew elliott in the first interview since last week's historic vote. good morning to you, matthew. >> good morning. >> thank you for joining us. congratulations. extraordinary victory you engineered last week. what was the key message you managed to get across that resonated with voters? >> the key message was one of taking back control as our slogan, take back control. the big issue is about sovereignty. where should decisions be made over the river in parliament or in brussels and voters said they want decisions made in parliament. >> a lot of questions now over the weekend of what happens next? when does britain formally leave. in your eyes, what's your process? >> we don't need to rush this process. i think you need to allow the

dust to settle and think about it come september or october. >> are you worried about the violent market reaction we've seen in light of the vote? >> it was slightly exaggerated in the sense the pound climbed on thursday to a high because people thought there would be a remain vote. that fall from artificial high. i think markets have seen the decision has been made and once they hear the plan from george osborne this morning and the government doing contingency planning and hear from the prime minister this afternoon in parliament and more details about the plan and once they understand that is in place, that will reduce uncertainty. >> is there a plan? >> there very much is a plan. this has been a long-term debate, not a rushed decision for the u.k., where we feel that our future lies with what is a faili ining eurozone but wants e

a free trade nation working with countries across the world. >> do you and perhaps boris johnson have a specific plan that you will now take to european leaders whether it's in one month or three months to get into action and does that actually require boris johnson to become the prime minister for your plan to hold any weight at all? >> it must be understood the vote leave was a referendum campaign. we were not one position political party. as you touch on there's a process of having a new lead foretleader for the conservative party and they will consult with vote leave and it could take several months. i hope the prime minister will head up this whole negotiation. lots of people in london are talking about making one of the key people at vote leave, bright

man, lots of speeches on what the plan could look like so he's probably the man to lead the negotiations. >> should nigel have a role in negotiations? >> we were a cross-party but it involved the conservative party, labor party, liberal democrats, greens, i think that they played a role getting the referendum but now the process of the negotiation needs to be done by people from the governing party. >> who are key people that vote your side will have to negotiate? because you have to start immediately. what do you make of that? will you seek discussions with him or is it more discussions with people like angela merkel? >> i see several people questioning the long-term future saying that he was one of the people that got us into this situation by not giving us enough during the negotiation process. i actually think merkel is much more substantial figure in this

process. it was interesting that the german chancellor says this shouldn't be a rush now to start negotiations. we should take a pause and see where dust settles and then start. >> it sounds like you say more time would be good. we heard a lot lately but even article 50 if invoked takes two years. what kind of time frame are you looking at for the brexit process? >> article 50 can take up to two years. it's not a minimum time. it's maximum time. it can be done much quicker than that. it could be far sooner. some people said the natural breaking point would be the next european parliament elections in 2018 when also the commission changes over. i think the details of the timetable, i'm hoping, will be unveiled later this year. >> there is talk we could have a second referendum that you misled voters during the

campaign. what do you make of that? >> there won't be a second referendum. there's a very high turnout. we got over 17 million votes for leave vote. that's the bigger democratic mandate than any other decision ever made in the u.k. overwhelming support and as for the petition saying there should be a second referendum, the vast majority of signatures came from overseas. >> if we just focus on one of these accused lies or exaggerations you made during the campaign, a claim that vote to leave wou, what do you think the bigger exaggeration or lie? >> our key point was about taking back control. >> that was a key point but still pinned to the top of your twitter feed is the poster that says britain will get 350 million pounds more from nhs. >> we felt we should get money received back from the eu.

now, of course it's up to parliament to decide. that's the key point here. they will decide what happens in the negotiation. they will decide what happens with the dividend from leaving the eu. >> do you think some voters voted based on the fact they expected nhs to get 350 million more pounds per week? >> i hope the government heard that message and the government takes that into account. >> was it an exaggeration? >> no. >> the net amount that will come back is less. >> we have 350 million pounds a week going to brussels. more than that. 367 million pounds a week and growing with eurozone bailouts due to come down the line. plenty of money to go for things like farmers and scientists and nhs and other priorities. >> let's touch on one other point if we may. of course we touched on fallout in markets. people's pensions have fallen

significantly. there's a sense of nervousness about voters all around the country and the possibility of a collapse of the eu. people citing that. do you feel responsible for those things? >> next week is independence day in the united states. fourth of july. back in 1776 when the 13 colonies thought about what to do, no doubt there were people at that point who would say won't this cause a lot of chaos if we break away from the british empire? isn't this the wrong choice? it was the right decision for america to break away from the british empire and similarly, it's the right decision for the u.k. to break away from the eu. it's not serving our interests. it didn't reform when assets reformed. it's the right decision for the u.k. >> cnbc comes back to markets and economy and that's not at all what they are signaling. so many wall street firms downgrading in the forecast for british economy. so many businesses are warning uncertainty will hurt investment

and hiring and painful for this economy and the entire world. >> there are plenty of wall street firms and british banks and what have you who say britain should join the euro back in early 2000s. that would have been the wrong decision for the u.k. and would britain stay in the european union, that's the wrong decision. the eurozone is failing. we don't want tbe part of that process as it goes down the sinkhole. >> british economy was better inside the eu than before. >> we weren't part of the uur eurozone. >> what next for you? a role in government? >> i don't know. i finished an epic campaign. it's been hard work. >> epic is the right word. do you think moving forward the fallout will be epic? >> i think things will settle

extremely quickly. the u.k. is the fifth largest economy. a very strong economy. george osborne made this point in his statement this morning. very good long-term prospects. lots of businesses want to keep on doing business here and i actually think once the plan is in place, once it's unveiled starting off later today, even more firms will pile in to invest. >> a lot of u.s. viewers watching right now. you just managed an extraordinary campaign victory. lots of people saying the biggest coup in modern british times. are there implications for the presidential election in the u.s. and do you think donald trump can surprise people as you have done over here? >> i haven't been following the race closely. one thing i am pleased about is quickly after the result came through, president obama made it clear he wants to keep the strong relationship with the u.k. and i know that both hillary clinton and donald trump also believe that, too. >> matthew, a pleasure to have you with us this morning. congratulations on your result. thank you for joining us with your first tv interview since

the result. matthew elliott ceo of vote leave. when we come back, financials taking it on the chin bearing the brunt of friday's market losses. is this another crisis in the making? a live report from london's financial hub is next.

welcome back. now, days after the u.k. vote,

banks across europe still have more questions than answers about what lies ahead. kayla tausche joins us from the heart of london's financial district. >> the question for today is how much longer will this selling continue? european and u.k. bank stocks are again taking a sharp leg lower in trading largely due to the fact that the market is digesting the implications of the eu referendum and bruising reports from deutsche bank and jpmorgan reducing growth outlook for this sector chalking it up to gdp that could be hit and that means fewer loan originations, margins will be hit if central banks introduce quantitative easing to the season and intervene in a stronger way. if people can't pay their loans, businesses can't pay their loans, banks will set aside money for loans that could go

bad and higher wholesale costs for institutions, too. that's something they are taking into account today. all of those risks combined are the reason we have seen credit default swaps for banking sector widen significantly since last thursday when the vote results became clear. the reason is cds are protection against a bank not being able to pay debt. when it widens certain market participants are pricing risk into the sector. deutsche bank gapping out widely but the u.k. banks and certain sovereigns are still even though they are wider, they're not quite as bad as they were even in 2011 and very far from where they were in 2008. a few things quickly that executives of watching. watching the spreads. that's how banks fund themselves. they're not seeing it yet but the political uncertainty could exacerbate that.

back to you. >> some of the losses of market cap in those european banks are just staggering. kayla, thank you for now. we want to point out british pound taking another leg lower. it's getting smashed right now after an 8% decline on friday. the selling continues. just in the last few moments back down into the 132 region. the 1.3229 is the low since 1985. >> this seems small but 3% for cable and sterling/u.s. dollar is a massive move. >> you don't see it in a year and now we saw it one in day and it's continuing. >> still to come on this special of "worldwide exchange" from london this morning's top stories and market action. plus, the political fallout from the u.k. vote spilling over to the other side of the atlantic. we look at how brexit is playing out in the u.s. presidential

race. >> here are other european countries that may be at risk of contagion following the u.k.'s referendum.

good morning. welcome back to "worldwide exchange" on cnbc. >> we're live in london today across the river from the house of parliament following the fallout from the brexit vote.

early this morning u.k. finance minister george osborne attempting to calm financial markets with a speech before the european trading began. he says there will likely be further volatility but the british economy is strong. osborne also has a message for the corporate world. >> and to companies large and small, i would say this. the british economy is fundamentally strong. we are highly competitive. we are open for business. >> let's check in on global markets this morning. red across the board. the s&p will open lower by around 18 points. the dow down by more than 100 points. the nasdaq by over 30 points. dow lower by 130 points. currencies the pound has taken another leg lower. overnight and this morning it's down around 3% adding to that 8% decline we saw on friday. the euro 110 and red across the

screens in european equity markets. dax and france markets and ftse 100 are down sharply today. it's off some 1.3% open 2% low. it rallied to almost flat but down over 1%. >> it will be a bumpy ride. dow lost 610 points on friday. eighth worst point drop in history. the question is how much more volatility is ahead. clearly there are still bumps and recalibration about what this means. >> we see a big move in pound today. less move than you might expect relative to the move in pound for u.s. futures because big development over the weekend in the u.k. has been extraordinarily levels of turmoil in domestic british politics. the pound is being hit hard this

morning once again. that has slightly less implications than of course the pulling out of eu we learned about on friday for global markets. >> there's risk aversion. i would also mention that with this the dollar strengthens china's currency overnight fell sharply back to 2010 lows. we know that global investors do not like it when the currency is falling. we experienced that in january of 2015. meantime in politics, hillary clinton going on the offensive speaking to a mayor's conference clinton criticized donald trump for promoting his golf course in scotland on friday as financial markets dealt with the brexit vote. listen. >> bombastic comments in turbulent times can actually cause more turbulence. and who put the interest of the american people ahead of their personal business interests. >> two new polls out this weekend to tell you about.

nbc/"wall street journal" showishow ing clinton widening her lead over trump amongst voters. certainly political risk is at the top of the agenda for investors globally right now. how would you describe it. >> the government needs to move fast to assemble a government to help stabilize the pound but clearly there's been winners in this situation. i think there will be a lot of companies getting cheaper here and perhaps some takeovers. defense will be interesting. new border issues to work out. and i also think that the real estate community and private equity will do well. i do think real estate will get cheap in the short-term. if someone like google or big brand decides to relocate their headquarters, it could be a steep falloff. we expect banks to move around a little bit because freedom of movement is important. if google, big brand decides to move headquarters, it could

be -- >> opportunity in the crisis. we heard doom and gloom. you look for some potential winners. >> also winners are commonwealth. great britain moves and opens up potential to trade with still. >> you mention government should move quickly to fill this political void. that doesn't sound like the plan at the moment. david cameron said he'll wait. you think that's a mistake? >> a good thing for david cameron to show stability and strength. as incoming government, you need to move quickly. you see the pound dropping because of uncertainty. the way you have certainty is coalesce around a leader. i think boris johnson has been interesting and quiet which means he's working behind the scenes. if he's able to pull a coalition together, i think he needs to move quicker. it will stabilize the pound. >> we talked about two polls in the u.s. putting hillary clinton comfortably ahead. lots of polls leading to brexit vote put remain ahead and that

was a surprise. i wonder whether a reason behind that surprise was a secret brexiteer. do you think there's a similar thing occurring in u.s. politics. lots of secret trump fans that will vote that way on the day but not saying so in the polls at the moment? >> there's people in the polls here and there that didn't want to say what they thought because they didn't want to be painted in a certain way. the leave vote and trump voters have are momentum and passion. passion matters in politics. you notice on the election day is rained. the folks from the leave camp still went out strongly. people in remain camp were hesitant. when you don't have passion, you fall behind in politics and also just quickly on hillary clinton's comments, that's the wrong narrative to the wrong audience. i keep saying she needs to get her narrative ride. going to mayors saying don't promote golf courses is not the

right message. she needs to get her narrative together. >> i wonder if we continue to see bleeding in financial markets and we continue to see this tantrum, who steps in? is it the politicians or the central bankers? >> it has to be the politicians. no one pays attention to central bankers. if you ask people in rural england, who cares. i think it has to be politicians. mark can do as much as he can but until there's a new prime minister, a leader of the government that really speaks for the whole country and everything that goes on here, you'll continue to see fall. >> which countries do you think could be the next domino to fall? >> it's interesting. france coming up. germany coming up. america this year. you're going to see a lot of fallout. if politicians don't pay attention, all elections are not the same. patterns emerge. you have to look at those patterns. people that are disenchanted are

going to the polls in record numbers. they're passionate and they want to be heard and understood and politicians need to pay attention to this. >> morris, thank you very much. morris reid from mercury. still to come, immigration was a major issue in the brexit campaign and now europeans living in london are concerned about their future in the u.k. we'll discuss that coming up and jack lew says the u.s. will work closely with the u.k. don't miss steve liesman's interview today at 8:00 a.m. eastern time. "worldwide exchange" from london is back in just a couple minutes.

welcome back to "worldwide exchange" live from london. we've been here all weekend talking to folks on the ground about their reaction to the historic brexit vote. i found europeans living here in london are shocked and confused about whether they can even stay on working visas. we caught up with a polish teacher who has been living in london for seven years. a spanish software developer and manager at a spanish restaurant about some of their anxieties after the vote. listen. >> i don't know what the employment law is going to be in a couple years. i've been here long enough that i could apply for a british passport. >> that's what's hurting the u.k. the most is not knowing what to do in the future and how it will impact all of the

foreign employees in the u.k. >> the prices of products are going to go up because we import majority of ingredients from france and spain as well. >> a lot of people feel unwelcome in the u.k. because concern about immigration was a major factor behind the vote to leave. here's the reality. when you look at the immigration to the u.k., nearly 336,000 migrants moving to this country last year. many coming from eastern europe as a result of eu policies. we spoke with a lot of voters that opted to leave the eu. what we found as you know is that this is their number one concern that people had. they were worried about the weight on the public safety net and competition for jobs and just a general mistrust of foreigners. >> it's interesting. certainly an agenda top of one of the items of the list but boris johnson's article this morning clearly saying that he

thought this was a vote about sovereignty and not immigration. he said he would protect eu workers rights. there's certainly a lot to be decided in terms of these negotiations. >> they don't want a divided europe. 48% of this country still voted to stay in europe. >> absolutely right. lots of questions need to be sorted out still. we're approaching the top of the hour. that means the team is getting ready for "squawk box" in new york city. andrew joins us with a preview of what's comie ining up. >> we have a number of big guests to talk through this this morning. jack lew will join us in the 8:00 hour and we imagine he's going to have some -- we'll see what kind of words he has for the folks in britain and europe as well as how he thinks american companies are going to fare in all this. in the 6:00 hour, we've got wilbur ross. a vulture investor but huge

investor in europe and has huge implications for him in terms of what this means. and then we have jeremy siegel. mr. market. he'll try to help us understand what to do next. that's what we have on tap. i've been watching you guys religiously. it's amazing what you guys are doing over there. thank you. >> thank you. >> andrew, that's very kind of you to say. it is an incredible story to be covering and it keeps on giving because markets sharply lower once again this morning. andrew will have all of that covered as will we in the next block here on "worldwide exchange." stocks down. pound down. taking another hit today. we'll be talking to henderson's head of global equities after the break.

welcome back to "worldwide exchange." henderson global investors has 150 billion u.s. dollars under management. head of global equities joins us now. good morning to you. thank you for joining us. we thought this was an adjustment. it wasn't something systemic but today the pound is off a further 3%. how much longer does this negative reaction in markets continue? >> there's market to market event that happens on friday and reassessing what it means for corporates in the u.k. and across europe and globally. it's that period of digestion of understanding of processing of information that's now going on and clearly what we know is there are companies making decisions about letting people go or countless evidence over the weekend of companies that are canceling investment here in the u.k. pending clarity of what is going on. it's naturally important the pound will need to fall and

reassessing the outlook for u.k. and european gdp growth. >> how are you reassessing that european side of the equation and what does it mean for european stocks and euro which aren't thought to suffer as badly as the u.k. but getting hammered. >> let's remember it's clearly fragile in europe and not just in the u.k. that's a seismic event. growth was already under threat. corporate earnings in the descent. fears of rising rates in the u.s. all price rising. we're in a fragile growth environment anyway. that's why this is such a seismic shock sending ripples through the global economy. there are companies that we like where what we found really interesting things to be invested in where now we're concerned about the macro overlay. that will cause risk. that's for certain companies and certain stocks and other investors, too. >> what have you done in your

portfolios over the weekend? >> there were stocks in europe that we want to own less and stocks in the u.k. we want to own more. markets are inefficient when you go through sudden change events. it creates opportunities. there are stocks we like more than we did on thursday and stocks we like less. stocks in europe we sold and domestic facing stocks and u.k. stocks that benefit from the fall in sterling who we like more. we shifted our portfolio around accordingly. >> we're trying to figure out what it means for the u.s. economy and markets there coming off 600-point decline for the dow and another 100 at the open. is the u.s. stock market a safe place to be? >> rule of thumb is u.s. market is always the safe haven. dollar is always the safe haven currency. despite elevated premium in u.s. equity markets, the u.s. market will maintain that domestic reassurance that europe, u.k.

and asia cannot provide it. >> too early to buy u.s. banks? >> too early to buy financials globally. they are leveraged instruments and in this down drop we're facing, u.s. depending on rate rises, are less attractive than thursday night. >> global sectors in europe or u.s. that will benefit from taking market share from british industry? >> exporters and manufacturers will benefit from those declines in sterling. particularly parts of the world in what was stronger dollar that's not good for emerging markets it could be as far away from u.k. and eurozone could be the best place for investors to be. markets might prevail despite the strength of the dollar. >> as we look at the fear of contagion politically across the

rest of europe, are there votes coming up that investors need to prepare for similarly or gradually europe could unravel? >> on friday i was nervous about spain and elections that happened yesterday. you would have thought this would galvanize less mainstream political movements. the spanish vote went the other way around. what does that do for donald trump in the u.s.? who knows. we look at france presidential elections next year. an important event for eurozone political movement. there are sect issues we have to be mindful of. >> thank you for joining us this morning. nearly time to wrap up here from london for "worldwide exchange." >> final thought would be to watch this sort of regret movement. the signatures on parliament reaching 3 million. a lot of folks including former prime minister tony blair says it's very much unclear how they're negotiating this exit if at all how much will be walked

back. >> focus on david cameron's speech today and brussels tomorrow where i'll be heading. that's it for "worldwide exchange" from london. "squawk box" picks up from new york right now. and a parade rained on the sales team's parade. and they still made the meeting, without actually going to the meeting. before any of this, cdw orchestrated a mobility solution, using the hp elite x2 1012 with intel core m vpro processors. mobility by hp. orchestration by cdw.

good morning. a case of buyers remorse in britain. millions signing a petition to reverse last week's brexit vote and scotland threatening to block the departure in parliament. with very it straight ahead. market turmoil across the globe. stocks under pressure and sterling is getting pounded once again and brexit spilling over into american politics. hillary clinton attacking donald trump for saying the vote would drum up more business for his golf course in scotland. it's monday, june 27th, 2016. "squawk box" begins right now.

♪ >> live from new york where business never sleeps, this is "squawk box." >> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with andrew ross sorkin and brian sullivan. joe is off today. brian, welcome. >> thanks. >> check out the u.s. equity futures. better than things were looking on friday at this hour. you are still looking at the dow futures down by triple digits. decline of 130 points right now. s&p futures down by 18. the nasdaq down by 39. it's all been happening as concern over the brexit continues. you can see it playing out in markets around the globe. the currency this morning, check it out pound down at 1.3272. lowest level we watched it trade at last friday. lowest level since 1985. all of these concerns coming an additional decline of 3% this morning. it does come on the back of steep losses of