see you tomorrow. another big dive na surprised the world. the uk leaving the european union. the dow plummeting 260 points today. what's next. tonight, expert advice designed to help you make the right financial decisions. this is a cnbc special report. "brexit, facing the fallout." good evening, everybody. welcome. i'm tyler mathisen. >> i'm sue herera. a tidal wave of concern caused

by the united states volt to leave the un be on. >> stocks in the u.s. fell today and hard across the board. sure, the losses were worse in europe but that is scant comfort to u.s. investors like you. the dow dropped 260 points. that's 1.5%. a steeper fall for the s&p 500, 1.8%. the nasdaq though got the worst of it down almost 2.5%. cnbc's bob pasani sees two big problems in the market. he's on the floor of the u.s. stock exchange. >> it was another tough day for the markets. we did not end at the low. that was not much consolation. volume was very heavy, about 70% above normal. they came in and reduced exposure right across the board. there's two big problems weighing on stocks. first is lower for longer interest rates. it's killing financials. it was another ugly day for bank of america and jpmorgan. even regional banks like first third and life insurers like

metlife clobbered as well. the second problem is the dollar. it's rallied up 3% in two trading sessions. that put big pressure on commodity stocks. energy names like marathon and devon. copper stocks like steel stocks like allegheny and iron ore names like valley. simon property, utilities like con ed, telecoms like verizon were at or new highs. they do well in low rate environments. clorox and dr. pepper are doing well on top of that. volatility was down today. that's a little strange but i think it's a sign that some traders do not believe this wild volatility will continue. backs to you. >> thank you so much. well, if you're wondering if you should adjust your financial strategy, make a change to your investments or your 401k these days, you're certainly not alone. after a big shakeup like we've seen, it's natural to have questions and be a little

nervous about your money. that's why we have cnbc senior finance correspondent sharon epilep epps. >> it's a scary time to watch your account balance drop. the financial advisors said don't invest based on market moves, invest based on you. the best way to protect your money is to find the right mix of stocks and bonds based on three key factors. goals, when you want to retire, how long you plan to be in retirement. your risk tolerance, which means how much of a drop can you stomach or how much can you really afford? and your age because the more time you have, the more aggressive you should be. after all, time is on your side. using these three factors there is an asset allocation mix that many experts suggest. for those in their 20s or early 30s it's important to stay aggressive. keep most of your money in stocks. 60% in u.s. and 25% in foreign equities. remaining 15% should be in bonds. for those in the middle of their career in their 40s, early 50s,

use a growth portfolio which consists of 70% stocks, 25% bonds and 5% short-term investments. if you're near retirement or newly retired advisors say 40% in bonds and 10% in short-term investments. if you've been retired for a while or not comfortable with investing in stocks but you don't want to be totally in cash. conservative port fellow should have 50% in bonds, 30% in short-term investments and 20% in stocks. remember, one size doesn't necessarily fit all. these portfolio mixes are starting points basically for any investor to consider. but you're going to want to think about what your risk tolerance is, what your goals are and of course how old you are. >> the sleep test is what they used to call it. >> exactly. we're getting more answers for you tonight from two people who have been fielding all sorts of questions from their clients in the last several days. scott hanson is founding principal of hanson mcclain

advisors. he's a cnbc contributor. manesha tecor is with buckingham alliance. welcome. manesha, i'm going to start with you. you say diversification is key for helping you to weather the past couple of days that we've seen. >> hands down. the single most important thing that an investor can do right now in response to brexit is to make sure they have a financial plan that incorporates virtual certainty that during your investment lifetime you will see multiple financial crises. the way you do this is exactly what you said. you set an asset allocation based on your willingness, ability and need to take risk and then most importantly you buffer the volatility in stocks by owning high quality individual bonds or bond funds. that's where it all starts. >> you know, scott, we're basically back. let's not forget here. we're basically back to where we were three months ago on the dow and the s&p 500. >> that's right.

>> not comfortable when it happens, obviously. sharon laid out some interesting pie charts there that indicate the rough allocations that people should have for stocks, bonds, and cash. but if i've got money that i am going to need within five years, i think those pies get broken a little bit, that that money probably ought to be real safe, right? >> absolutely. i totally agree with the pie charts, what sharon talked about. the one thing, if it's money that's needed short term really shouldn't be invested for the long term. if you have cash that's needed maybe in the next year, two years, five years, it shouldn't be in stocks at all. if people can step back and realize if they have a balanced portfolio, not all of their money is getting hammered in the stock market. if someone has 50% allocation in equities, that means half the money isn't tied to the stock market. a lot of people forget that. they see the portfolio drop. what happens if it goes down every day. that's what i heard from a client. what happens if this continues every day.

how far can this go down? that's the kind of fear that's out there now. >> you know, sharon, let me talk to you about adding something to your portfolio to buffer. picking up on what scott just said. if you have put money that you need short term and invested it with a long-term time horizon, not that it's a mistake, but it's riskier. why not add something else to the portfolio to buffer it rather than try to take that money out when we're already down 1,000 points? >> one of the things to consider in the panic that people feel, they're stopping and not doing anything. i'm not going to save or invest any money right now. >> right. >> so if you have, i hope, an allocation that you're making every month or every paycheck to, say, a 401k. you're continuing to do that. maybe that money is going into safer investments. you're not taking any of the money that you've invested out at the lows but you're not putting any new money to work in stocks. >> manisha, what is your basic

response? are times like these better to do something than nothing? >> actually doing nothing is doing something. it's an active decision to stay put. >> good point. >> and one of the most important things that you can focus on right now is whether or not you're appropriately diversified. if you take a look at global markets right now, international and defined as developed and emerging markets are almost 1/2 of global equity value. so you want to have some exposure there. so when i hear people talk about whether they should be taking money out of the market, i agree with scott. you want to make sure you're not investing long-term money in the markets but the bigger issue is that if you feel that what's happening in the market right now is destroying your retirement, what that tells me is you either have the wrong asset allocation, an inappropriate level of diversification or inappropriate financial advisor who hasn't explained to you why doing

nothing is the correct corrective action to be taking in a market like this. >> interesting point of view. that's why we have all of you here. thank you so much for joining us tonight. scott hanson and manisha thakor. >> one of the biggest drivers of this country's economy is the car business. the leaders of ford, fiat chrysler and general motors fear the vote to leave the european union will dampen global demand. that will spell lower sales possibly and maybe even lower levels of employment. phil lebeau is live for us in chicago. phil? >> tyler, this is all about consumer confidence. we talk about how it's the main driver of whether or not you'll see stronger sales in the u.s. the same is true in the uk and in europe. post brexit many people are worried that not only will there be less consumer confidence in brittain but also ultimately that will weigh on auto sales. after coming out of one of the worst slumps for auto sales in

years, europe is giving automakers a fresh round of headaches. the big fear, brexit will slam the brakes on auto sales. brittain is the second largest auto market in europe with 2.6 million vehicles sold there last year but already some are predicting a double digit drop in uk auto sales over the next two years the fear being british consumer confidence drops after brexit and the britts will buy fewer vehicles. it's a major concern for the big three because europe has long been a market where they've lost billions of dollars. just last year ford finally turned a profit in europe and this year gm, which has a huge presence in europe with its opal brand, expects to break even in europe for the first time in 17 years. of course, that's assuming other economies like germany and france do not slow down as the eu restless with life after brexit. the good news for the big three

is that their largest and most lucrative market, the u.s., remains strong largely due to heavy demand and price increases for trucks and suvs, their most profitable vehicles. >> so far automakers have not had major cuts to production schedules for the second half of the year. many automakers closed plants in europe during the recision so they are leader and better prepared to handle the slowdown in sales if the post brexit fears become reality. >> and, remember, this is not just with the automakers that we're talking about, it's also some of the auto dealers. route 1 has a large presence in the uk. its shares were under pressure today, sue. so does penske auto motive group. then you have the suppliers. they're down 13% friday and today combined. >> right. >> a lot of fear in the auto industry about what might happen in europe. >> understandably so. phil, thanks so much. well, europe's banking sector has been beaten down in

each trading session since last week's vote. shares of barclays which is based in london really getting crushed losing 1/5 of its value today down 20%. credit suisse down 9%. germany's deutsche bank down 13% and royal bank down 13%. >> everyone of the biggest u.s. players have operations in london. u.s. bank shares, by the way, weren't immune to today's selloff, not in the least. but in brittain the edginess goes far beyond bank shares. in fact, it has gone so far that some in the uk are now pushing for another referendum, a do-over vote. sara eisen is live for us in london. >> reporter: david cameron shot down calls for a new vote today. those cries for a do-over vote reflect how nervous people are here. business owners are worried about the impact of brittain's

vote to leave billionaire richard branson a virgin to small businesses here in the uk. take a look. >> i'm really sad about it. i can't believe that it went that way. i just think that it's goings to impact us so much in the future. i've got a small business, exports an awful lot. i don't know where we stand. >> reporter: the concern forex porters is losing the benefit of free trade with europe. there's also anxiety for europeans that live and work in the uk. >> well, i am a bit worried about my future. i probably have to leave in two years, but if that will be their choice it's fine because there are so many other countries who would like to have an experienced recruiter like me. >> reporter: that's a big concern of big business as well. that is, would the the eu passport or the ability to live and work anywhere in the eu, there could be a real talent drain on the horizon. some of the older generation we talked to fondly remember the days before the eu and they're hopeful that brittain can return to that period.

that's why an overwhelming majority of them voted out. take a look. >> we seemed to be able to get more employment, which was easier to get employment. things seemed easier. the european roads are so similar. they've taken a lot of the joy out of people's lives. >> reporter: we could see some of these tensions come to a boiling point tomorrow. more than 50,000 people have signed up to go to a pro remain in the uk. they're looking for a path forward outside of europe. >> sara eisen, thank you. don't go anywhere. there's much more ahead tonight. next, why this global financial crisis could be a big help for the great american housing market. plus, a part of the economy you thought might be immune from a crisis like this is really getting slammed.

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"london calling." welcome back, everybody, to cnbc special report, "brexit: facing the fallout." the mortgage rate fell today all the way down to 1.44%. we have not seen a number like that in four years. now that means that potential home buyers can afford to pay more for a home. the rate goes down, the price goes up. diana olick covers real estate for cnbc. she's live. hi, di. >> reporter: another bad day in the stock market meant another good day for mortgage rates. they pushed yields to the lowest in four years. mortgage rates loosely follow the yield on the ten year. lenders that move big on friday didn't move very big today. while lenders that lagged on friday, well, they got caught up today. that according to matthew graham

of "mortgage news daily." he adds there are definitely more than a few lenders out there with 3.375% as their top tier 30-year fixed rate. there is still room of course to move lower. the rate drop is actually lagging the drop in the ten-year treasury so if treasuries hold tomorrow we could see mortgage rates move even lower. lenders are obviously being very cautious fearing a potential pop back up. so what does that mean for the housing market? well, you can expect to see a new run on refinances. even though it seems like everybody must have rephied by these low rates, a survey back in march shows there's a sizeable population that could benefit from a refi. 7 million borrowers. anyone in the low 4% range could save. >> even a marginal decrease in mortgage rates could take us back down to historically low levels which probably makes

housing more affordable, gets some buyers off the fences and into the market and probably creates a bit of a refi boom which would actually have a stimulative effect on the overall economy. >> now one thing is for sure, the expectations some had at the end of last year that the 30-year fixed would hit 5% by the end of this year, that is not going to happen. back to you guys. >> all right, di. thank you very much. diana olick reporting. how is that brexit affecting luxury real estate? high end property investors bring their cash to the u.s. from the uk and cause real estate prices here to jump? we have the director of luxury sales at douglas edelman. she saw the london real estate prices start to fall. london has been, sonata, one of the hottest, most expensive markets in the world. all kinds of buyers whether they're from singapore, china, russia, the middle east have been pouring money in there. what do you expect the price

decline to be? and as those prices fall and the pound falls, aren't some people going to think this is a bargain time to get in? >> absolutely. i think the key is really the level of the decline, both in sterling and property values. most of money masters are looking for 40%. >> declines? >> yes. >> which measure? >> in combination between decrease in british pound and property values. that's when they're going to come back into the property market. right now we're seeing property valuations going down by 20%, which is not good enough for many sophisticated buyers. >> just instantly over the past few days or the past few weeks as this vote was coming? >> in the past few weeks. i was actually there in the past few weeks with foreign masters in london who have significant holdings in london. they were trying to discern how to hedge to ensure that their properties are going to be safe, number one, and number two, if

they're going to buy some properties just ahead of the referendum and make sure that if they're going to keep the contract and know the outcome. >> has anybody canceled? have you had people pull out? >> yes. we've had people pull out from london real estate and they're redirecting that cash to major three markets in the united states. >> let's talk about that. which ones are they? where is the money coming? i assume it's coming to new york. it's probably going to miami. l.a.? >> new york, number one, always. we've seen direct correlation of any geopolitical or political stability with increase in new york real estate. number two is actually los angeles. very strong market and number three is miami. >> you know, it's complicated for those investors, i'm assuming that most of your investors and clients don't carry mortgages. they probably pay cash. >> no. >> right? >> so they've seen if they are in the pound sterling, if that's their main currency, they've

seen the value of that drop dramatically over the last couple of days. do they do less here in the united states. >> they're going to buy a few properties in the united states because those are the type of properties that retain its value regardless of the economy. and while in the past they put most of their money in london, right? regardless of where these clients were from, particularly middle east and russia, they loved london. they would spend time there. they would invest there. now even with the increase in the value of the dollar they feel comfortable having their investment in brick and mortar because it's a type of investment that you can kick. >> it's a hedge, right? >> exactly. >> very quickly, i assume that this has no affect on the homeowner in suburban st. louis or in louisville, kentucky, here in the united states. does it have any affect on

residential prices in other european cities like paris, rome, lisbon, madrid? >> we anticipate that the prices of luxury properties in those major cities in europe are going to decline, not as much but slightly because the political instability in the uk is impacting mainland europe because many people now are wondering what are some other countries, such as greece, such as france will consider exiting the eu. >> save one of those nice places for me. >> i sure will. >> thank you very much. there's a lot more ahead tonight. next up, stock shopping. "mad money" man jim cramer's advice on what to buy and when. plus, the billion dollar buyer. a man who runs businesses big and small on what he's betting on to beat the brexit. ♪ ♪ the big hilton

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brexit causing money mayhem around the globe again today. investment strategies and retirement plans take another blow and brexit hits in unexpected places proving that no one is immune. don't panic. this cnbc special report continues with sound advice and valuable perspective. now here are tyler mathisen and sue herera. and welcome back, everybody, to cnbc special coverage, "brexit: facing the fallout." i'm sue herera with the afore mentioned tyler mathisen. >> good evening, everybody. it was a selloff on wall street. the dow closed 260 points. the nasdaq falling 113 points. that's 2.5%. the s&p 500 just barely holding on to that 2,000 level after dropping 1.8% and the russell

2,000 which consists of smaller cap stocks with an even bigger percentage drop and that's despite the fact that those stocks tend to have less exposure to europe and count mainly on the u.s. for their revenue. airline stocks keep falling. delta, american, united all dropped big today. also worth noting, the internight travel site priceline down more than 200, yeah, you heard me right, 200 bucks a share over the past two sessions. that is a drop of about 15%. so the question that many people are beginning to ask, at least the bravest among us, is which stocks, if any, might be worth a sniff now. shares that tend to bounce back big after big selloff. deidre. >> tyler, sue, that's right. we wanted to look at this through the lens of history because a 3% fall for the s&p 500 is a big drop but it is not all that unusual. since 2004 stocks have seen a selloff of that size about 50 times, and if we look to past

market action, some opportunities do emerge. now we crunched the numbers and look for stocks that rebound after such a plunge for the benchmark index. here is what we found. take a look at some of these names because several of them will likely move higher one week or five trading higher. people's united bank, quantus services. that is a services contracting company and oil giant exxon mobil have all traded positive more than 70%. time. look at these gains. those outperformed the broader market on a historical basis. taking a slightly longer time, 20 days, a month, these rose, commodities trader, archer daniels midland. trades positive more than 70% of the time. has returned 7% on average, this is one month after a big drop in the s&p 500. meanwhile, o'reilly auto parts right here returned 6% on average after such a drop in the s&p. look at that, it trades positive near 80% of the time.

another good bet is u.k. drug maker bristol-myers squibb with an average of 4% and it trades positive more than 70% of the time. those are good bets after selloff. yes, the market selloff has continued. yes, there are still lots of uncertainties out there. amid the carnage there could be some opportunities. if history is any guide, here are six potential stocks that could rebound. back over to you. >> thank you so much. as you know, wherever there's opportunity, you'll find "mad money's" jim cramer. jim weighing in tonight on where to look for bargains and when to buy. >> it's not like the old days where we can say, you know what, we're going to buy america first stocks, stocks that do well here. that's because we typically think about retail stores as being the most local, most best, most insulated and also the restaurant chains but now we've got to worry about amazon, which means that you have to buy bargain basement stocks. you notice raw ross stores,

kroger, dollar tree and dollar general. when you get big moves in the down side that means you'll have more ahead or health care. united health. doing a little restructuring. bristol-myers, you know that i think that's always ideal. j. and j. campbell's soup reported a bit and the stock is up. we'll see how these stocks are when general mills reported. the stock was up today. conagra, mckes son and constellation give us the returns on thursday. my problem is there aren't many stocks that fit that depiction. i would love to give you some industrials. i looked at honeywell saying, soon. 3m. i looked at that and said maybe. i've looked at a lot of stocks down 3, 5% are going to feel real good. i can always tell you, of course, verizon and at&t, but i don't like to pick from the 52

week high lister when i try to find out something that is right and is actually not so obvious to all of you. back to you guys. >> jim cramer. our next guest is an owner of companies in both the hospitality and dining industries. so what's his best advice for navigating a post-brexit world. the chairman and ceo of fretita capitol. he's featured on, featured on he's the star of cnbc's "billion dollar buyer." tillman, great to have you with us. >> interesting to be sitting here together. >> certainly is. you know, i remember when i was in london seeing at least one, maybe two of your restaurants. have you begun to hear anything about business? i can't imagine that people aren't, you know, going to the restaurant just because they're leaving the eu, right? it hasn't shown up yet. >> it's not going to affect us, i don't believe, at least, you know, not in the near term.

where we're concerned though is the traveler coming from london and great britain, of course, you know? the whole group of countries out of europe that's a part of it, almost 32 countries. it's no different than when the canadian dollar dropped, it had an affect on our business. tourism is huge for america. you've got to have those people coming over here. >> yeah, and it's summer so it's the summer travel season. and if you're traveling from the u.k. your money is buying dramatically less than it did just a week ago. ultimately, tilman, what do you think the effect will be on your businesses and other businesses that rely on the tourist trade? >> i think it's going to have an effect. like i said, it affected us with the canadian dollar. people from america don't travel to europe as much as they used to, as they did years ago, because it costs you 35, 40% more to go over there. now it's going to happen over here and people will not travel. first off, they don't have the disposable income that americans

usually have anyway, and i think that we could really be hurt in the retail, the gaming, the restaurant industry out here if it doesn't get ahold of itself. but we all have to remember, we all might be overreacting to nothing at this point. we've got to let this whole thing kind of even out and then we'll be able to monitor what happens. let's not over react, which is exactly what the stock market has done the last couple of days. >> yeah. you know, we were talking a couple of months ago, tilman when you were on cnbc during the day, we were talking in the context of oil prices falling. you have a lot of business in texas, in houston. you were saying, you know, some of the big ticket diners were not coming out in the same numbers as before. what are you going to do? you've got to watch your costs if you're a business owner. you've got really no choice but to ride it out and figure that at some point things are going to come back and play to your benefit. so it's really the long-term view whether you're a business person or an investor that

matters, right? >> 100%, tyler. what happens is people start panicking and you just have to ride these things out, you know? our stock market is the most resilient stock market in the world. no matter what happens, we always bounce back. here we are, we've fallen 5% and we could look up in 45 or 60 days and as you know be exactly back where we were again, and that's the same way it is for the hospitality which business. you just have to ride it out. it always comes back. we're very resilient and everything evens out and we're all going to be fine. >> does this provide opportunity for you because there are some businesses that perhaps aren't as diversified as yours are or aren't as hedged as yours are and maybe they do have a harder time? do situations like this provide you big business opportunity? >> i mean, i've made a fortune on bad times and people not managing their businesses

correctly during bad times. during every single recession or slowdown in the economy management usually over reacts, makes poor decisions and never comes back as times get good. and during 2000, 2008 bought, gosh, eight to ten companies because management didn't just hold the hatches down and just manage through the tough times and they start overreacting and doing things they shouldn't do that is bad for their business long term. this is a short-term fix, just ride it out. >> tilman fertitta. one of the best restauranteurs and hosts. jane wells is looking at that for us live tonight from los angeles. hi, jane. >> reporter: hi, sue. defense on defense. the uk spells it with a c.

they couldn't make up about whether to invest. >> there's both good news and bad news for defense companies after the brexit. first, the good news. if the brexit makes europe love space, the u.s. could get more defensive. a weaker europe could embolden russia and, quote, reinforce the case for national security spending. now the bad news, a strong dollar may make products like the lockheed martin f-35 even less affordable as the nation's most expensive weapons program plans to make its debut in england. the britts want to buy 138 of the next generation fighter jets but have so far only ordered 14. there were hopes that the uk might put in orders for the poi side den and a patch chee helicopter. then there's the impact on uk defense companies. shares of bae defense systems

have taken a beating as joint ventures may get a second look, especially a fighter jet called the typhoon. and then there's the expected pause in british defense spending, some comparing the brexit to the sequester. the uk government had planned to boost its defense budget through 2020 but khs jaynes predicts spending will stay or fall. foreign investment may slow and british exports could take a hit. still -- >> brittain is ready to confront what the future holds for us from a position of strength. as a result of a long-term plan we have to make one of the strongest most major advanced countries in the world. >> reporter: british prime minister said none of that happens immediately. trade will continue as if the uk is still in the eu. >> north up there grum mond and

the uk wants to buy. quote, we are not aware of any changes. back to you, sue. >> thanks, jane. we're just getting warmed up. there's a lot more to come. next tonight, a fast break. how do you play a market like this? the "fast money" team weighs in next with picks and plays. this is a cnbc special report. "brexit: facing the fallout."

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♪ ♪ welcome back to cnbc special report, "brexit: facing the fallout." time for a fast break. karen and brian join us from denver. good to have you with us. karen, i'm going to start off with you. i feel like the headline today is you sold some of your bank positions. >> right. >> which you had long defended even during the worst of times. why today? >> why today? because i think they definitely have sensitivity, more than a lot of other companies. we'll get to that. i felt like at the place where they are right now, post brexit, the place where they are post brexit, i don't see the short term up side. i still believe over time but, you know, over time is a long time when we really don't know what the fallout will be.

when i try to think about our portfolio, i think what are the things that will really be directly affected by brexit. a lot of them will be affected by the markets going down, not really brexit. when i think about the bank holdings, yes, they will be. and so i've been a defender of jpmorgan for a long time. citi bank, sold some jpmorgan. bank america, a lot more u.s. centric so hanging on to that. >> right. >> i feel like i come back to that with other things that seem safer in this market. >> brian kelly, on ""fast money"" i don't know if you could catch it. they said now is the time to buy some of the european banks. this, of course, after the biggest two-day decline 600 bank index in history even for a bounce. can you see the validity in buying the european banks? >> yes, i can, for a dead cat bounce only. in fact, i actually covered some of the shorts that i had in the

european banks but, i mean, that is -- that is an extraordinarily risky proposition to do because there is a banking crisis that's ongoing in europe right now, particularly italy. >> crises worse than the crises we've seen in the past? >> italy is not performing. they need a bailout, which is illegal under eu rules on the order of the size -- on the percentage of gdp the same size we had for t.a.r.p. >> i want to get to some brexit buys. with these declines people out there are thinking, you know what, what can i buy? karen, you added some positions? >> yes. i bought some facebook. when i think about facebook's business and their moat and the growth that they have, i don't view the facebook story at all as one that is contingent on brexit or so that will be really materially hurt by it as much as the stock has been hurt. the stock's down 8 or 9%. that's kind of a lot.

and i think that that growth story is very much intact. if the market goes down a lot, sure, that's going to go down with it, but it just feels like that -- it's an interesting place to buy that. same for google. >> on the flip side, brian kelly, because you're a flip side kind of guy, some people say there are some stocks in the market that this is a market shock. whether or not you're directly exposed to either the uk or europe, it is a market shock and certain groups go down. is there a case for a brexit bargain in this market? can you find any here? >> well, there's certainly -- there's always some place that you can look. if you want to -- >> is b.k. looking? >> yeah, well, b.k.'s looking at gold and silver, which he's been long for a while now but, you know, i would also look at some of these kind of strange stories. look at something like a viacom, right? we've talked about that a lot. what's going on there is change, and all parties want the stock price higher. you get a dividend and it should be relatively insulated from the stock market going down because

it's kind of its own story. so i would look for situations like that. >> two brexit bargains, facebook and viacom. guys, thanks so much. brian kelly joining us from denver and karen right here on set. tyler, back over to you. >> melissa, thank you very much. next up, some brexit twists. how will the uk vote to leave the eu impact the world of art? how will the uk vote to leave the eu impact the world of sports? answers when this cnbc special report "brexit: facing the fallout" continues in two minutes.

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shortly before the trading day continues in japan, the nikkei is indicating things to the down side by better than 1%. london as you probably know is one of the global art markets most important cities. many galleries and museums call that city home. last week's vote is casting a shadow over the financial side of the world. here's cnbc's wealth editor robert frank. >> it could be the biggest test of the art market since the financial crisis of 2008. more than $300 million worth of art expected to come to auction in london this week just as brittain and global markets are reeling from the brexit vote. they're all holding their big summer contemporary art sales this week starting with sotheby's and ending on thursday night with christie's holding its blowout 250th anniversary

sale. the falling value of the pound means the art is cheaper in dollar terms. the new exchange rates have the potential to make the contemporary art sale in london more attractive to global buyers. 35 million and 50 million pounds is way below last year's total of 130 million. christie's saying, quote, we remain confident in the long-term outlook of the art market. the sale wednesday expected to fetch 40 to 58 million and the anniversary sale thursday expected to go for between 100 and 140 million pounds. the top lots include keith herring's the rain forest for 2 and 3 million pound and freud's ib and her husband around 10 million pounds. back to you. >> robert frank reporting. the crisis in the uk comes just as one of tennis's biggest events of the year begins. wimbledon.

it seems not even strawberry's and cream and the lawns of the english tennis and croquet club are safe from brexit. let's get back to sara eisen live in london. hi, sarah. >> reporter: hi, tyler. political, financial and economic turmoil. the brexit is having an unexpected impact. the prize money is shrinking by the day. that is because it is paid out in british pounds. 2 million for men and women's champions. last thursday that would be equal to around $3 million. then brittain shocked the world by voting to leave europe and the pound dropped, lost 12% of its value in just two days. and that shaved about $350,000 off the top prize. could get even worse if the pound continues to sink over the course of the two-week tournament. we were out and about today at wimbledon and surprise,

surprise, people don't feel too bad for the biggest tennis stars. have a look. >> i do think it's a shame. i mean, everyone is going to be impacted. i wouldn't say i feel sorry for djokovic if it's him because he has plenty of money. >> reporter: everybody is wondering what andy murray has to say about the brexit outcome. he did dodge questions over the weekend from reporters about his reaction to it as his countrymen voted overwhelmingly to stay inside the country and lost. >> sara eisen tonight for us in london. i don't feel too bad for djokovic. >> they'll be okay. >> thanks, everybody, for watching this cnbc special report. >> thanks for me. tune in to "squawk box" at 6:00 a.m. eastern and go to cnbc.com for continued coverage. "shark tank" is up next. ♪ we are the champions ♪ we are the champions

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