>> it's a rejection of the political ruling class from a political elite. i'm with you 100%. technology makes it easier for us to coalesce, coordinate voices and here we are. charles: by their very nature they don't listen. everyone does listen to the next guy. connell mcshane. he met her a well done, charles. we were down 334 as your screen just told you earlier. right now 251 to the downside. certainly another down day of and the fallout continues -- here on "cavuto: coast-to-coast" for the next two hours we will be talking about it. connell mcshane filling and fortran for today. we are waiting for the german chancellor, angela merkel, talking about the exit of the u.k. they should be common in the next 30 minutes or so. any news that comes out we will certainly pass along to you. i enjoyed year for the first

hour of "cavuto: coast-to-coast" by lauren simonetti, cohost of "fbn:am." she is here for the hour. for the tom sullivan post, tom sullivan. eggs are joining us. the dow was down to 57. not to be the other post about pan -- "fbn:am." let's check in with nicole petallides on this market day and then we'll talk about it a little bit. put in a bottom is the best we can hope for. >> such a hard thing to try and get. i have to tell you one thing i've been hearing on the floor over the last hour is ups put it into a notice well basically saying it is too soon to buy the selloff. while the traders want to buy the bottom, they're a little nervous to do so. the other thing giving them a quandary is the vix, the fear

index to the downside. they said something doesn't match up. that being said from what drop over 600 points on friday. another of her 300 points today off the lows. we'll keep a keen eye on the market. a shifted well in the last 24 hours which is surprising to everybody on wall street. we did these selling in europe. the london train 11, also the dax on friday. a look at those closing values. here at home, 611 points on friday for us. once again today down 1.5% for the dow jones industrial average. s&p 500 broke below 2000. talking to the safe haven of old that the treasury yield paid 1.46 right now for the bond. i will note that gold is the highest level since 2014. let's take a look about on my time.

we saw a drop over 50% when everybody thought it was time to break menem was not search on friday morning. once again, pulling back, which leads some people a little bit confused and keep a keen eye on the pound as well which missed a three decade lows for that. back to you. connell: that is something. thank you, nicole. a lot for us to talk about in the market selloff. one of the things we've heard today and this has come out of this state chance that they are still counting on the u.k. getting their way because the referendum late last week is not legally binding. maybe you've heard that as well. i find it hard to believe they could go against. the prime minister said this before stepping down. they would go against the will of the people. some people are talking now play. >> point-blank we are an unchartered, unprecedented territory. well over 3 million people sign this for a do over. that could actually happen.

the other thing to consider if great britain could use this exit as a way to negotiate better terms, they've done it. that's great. that is a possibility. the biggest overhead right now even though david kamman said he won't do this, someone needs to sign the rules for the eggs. >> that's how you officially get out. >> you're going to have even more chaos? i spent most of my adult life living in california. they have a proposition where they make amateur law. the group that loses comes along that if the constitutional issue. this is simply a matter of do you really want to make people got upset? you could align it with the same talk about the convention if the republicans replaced donald trump. if bernie sanders people and go

against the will of the people. >> donald trump has enough delegates to be the republican nominee. and the party establishment says it's not our nominee. it would be setup to lose because that would be showed up to vote. it would be a similar set up your. you have no support. >> there is bitterness they have to invite this thing. sometimes it's easier to stay married that high of a messy divorce.

now you have to sit down and figure out how to split up the properties. who's going to take care of the kids. all these sorts of things that are very emotional. that will determine whether or not britain has problems in their own country. >> other parties want to know us and other countries. it sets the template for all these other nations. connell: i want to go to ashley webster in the u.k. that has been covering all of this from london. one of the things also being taught about israel and other countries follow what the u.k. has done and then we have almost like a market contagion, but this is kind of an exit contagion. other other countries countries talking about that? >> well, just a couple quick things to pick up on the conversation. no chance. 50% plus one.

as for the divorce thing, sorry tom sullivan has been the most used analogy sends this whole thing went through that it was never a match made in heaven. could be extremely messy. there's no doubt about that. as for the contagion, there other countries certainly permanent among those. netherlands, denmark, france, italy, greece event. they should be thankful for the european union. but this is the problem for the e.u. and that is why we don't believe in the u.k. it's not going to get a very good deal when it comes to trade. they don't want other countries to see the u.k. get out of the european union cannot get away from other rules and regulations, be in control of borders, but also they've got a good deal as well. they are going to make an example of the u.k.

>> which are the most realistic where people are not just saying the right of center or far right politicians like france just talking about it. people don't think it would follow through. which of the most realistic countries on the list if you had to pick one or two? reporter: i would pick the netherlands and denmark. otted polls recently that showed well over 50% of the people say they'd much rather get out of the e.u. much the way norway has done it. they trade with the e.u., but mexico if there is one good with another lens or denmark or both. connell: ashley webster, good stuff as always. we will get everyone involved next. more next hour. as we cover the market selloff down almost 250 points right now. for one day we were down 334 at the list of today's session. a short-term bottom there. the other thing but we saw on

thursday night and friday morning. they pulled out of a european union on wednesday. as the braves say goodbye to the e.u. by spraying gary called bob -- are you guys ready? gary says we have a better chance of seeing him dunk a basketball benefactor at a rate hike this year. you're saying there is a chance. i know your vertical leap >> don't forget the snow in orlando will hit also. all things will happen. janet yellen said we don't really watch stock markets. yeah, you do. sitting by a machine all day and

watching it. you notice the last few years every move is based on whether the markets are going down where moves are made. there'd be no rate hikes anytime soon. not this year had markets are down good thoughts of uncertain to and they missed a great chance to come it three years ago. if anything, i i seems to worsen. >> i don't know where we will get all the money for that. the consequences come later on. when the market consequence if people were thinking along those lines, maybe with stabilized and we are down another 1.5% if there was the idea race would definitely not be heading higher. >> well, look. emotions take over now. i have another take. i think brexit to lift the market drop, but keep in mind valuations are at the upper end of their range. i'm a huge believer a lot of the

market economy is based on trillion dollars. the zero rate another maniacal rage. they do have some downside. this began popping up and could not this on an hourly basis, you just drive yourself up a wall. the markets are hot right now. >> this market was overpriced and always looking for some reason. all you need is something to break the straw. brexit was dead. the fed given all these messages. normally when that announcement where tom comes along, they are not rallying because of the fact they will go through a correction. we are down 5%. that's the excuse for that.

is that how you feel as well? >> let me say this. the strongest areas of the market was utilities, defensive areas like food, drug, household projects and muni bond funds. that is money being the most offensive area. the market was already on the fence. european markets were not acting now coming into last week as well as asian markets. this is what i call way overdue and i think this publicly more to go notwithstanding the wild gyrations in the fluid news that will come out. you want to do a referendum of the referendum andho knows what country max had take a step back, relax and let this thing flush itself out. unfortunately, central banks have not let anything flesh itself out in years. connell: nice if we could relax. it's hard to do it after you fall 610.1 day. boo about the little bit. i thought the lows now.

>> friday's decline of u.s. household was $3300 wiped out from under them. it is a big deal couple of it today. the issue for the federal reserve and a promised interest rate increases is how do you hike right now and with the election coming up in november? what does it do to the credibility at this point? it's great if you want to buy a home. connell: gary, go ahead. >> in my world the fed has absolutely zero credibility. just remember back when they said if we went under 6.5% that they are going to start really raising rates and everything was better. then it went to 6%, then all of a sudden china. the next thing i know general hospital is taken off the air and they're worried about that. you never know what max.

they are using money people and they will stay easy money as long as they can until the market says otherwise enforces their hand. >> were also waiting for that. >> i would not talk about maybe pick up some bargains in here. i wouldn't begin to go bargain shopping until it's done 1800, which is 10%. >> you have a real correction on your hands. >> that is tom's point. there isn't anything wrong with that. thank you. let's talk more about these market than about those overseas as the u.k. bolts what a former governor in the united states george allen says about the reason behind their revolt. red hot except for the upper left corner johnson & johnson and verizon. we are back in a moment on "cavuto: coast-to-coast."

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connell: when it comes to stocks, talking about laurentian straits a few moments ago. where is the money going? it continues to go into government wants from a u.s. government bonds in the 10 year yield down below 1.5% today. another nine basis point drop in gold is another beneficiary of this safe haven as stocks continue to sell out after rising 50 some dollars on friday. not voters, though. the u.k. choosing an exit of course and revolting against the establishment of doing so.

a lot of people join parallels in what may or may not be happening over here. republican voters doing the same thing hurt are you one of those people that these are direct parallel between the u.k. and the discussion we have here? >> there are parallels throughout history. the basic principle was expressed by thomas jefferson that the government derives its just powers from the consent of the governed people. people instinctively by government closest to them like to see a government that is honest, that has integrity, that is actually looking to improve opportunities for people rather than a remote distant government that is a hindrance more than a help. what happened in britain in the u.k., you see that in a lot of people who voted in primaries here.

in our secession from the british monarchy, if you study the texas revolution that independent and all of that come in the central piece was trying to consolidate power in mexico city and there were allover max to go. this is human nature to connell: it seems a politic and u.k. as well. i am a member of there but it hardly facing opposition from within his own party. boris johnson being a possible successor to cameron. they went to school together, come from the mueller backgrounds. johnson is really broken away from him. what about that parallel and what donald trump is dealing with inside the republican party. had he see that play now? >> the great thing is that people determine who they are the representatives are. i think donald trump and a lot of people who voted including independent. not just republican and to some

extent democrats. look at washington and the elites out of touch as distant and not looking out for their interests. it is great that we have democracies and the people can have a say. they key for a candidate, who average may be anywhere in the free countries is try to motivate him as buyer people for constructive ideas to make you do your country or your state more competitive for more investment, more jobs, more opportuniopportuni ties for you and your children. whoever can do that, the world is looking for change and positive construction change. >> we talk with governor allen, lauren simonetti and tom sullivan are with me in the studio. which parallel do you see more? the voters, anger with voters but also the internal strife within the parties.

>> areas. there was apparently in great britain in great britain the plot is mockery of people who said they wanted to leave the e.u. there's a lot of mockeries for people that are trump supporters here. you must be insane. i think the question will be, will the polls even know, will there be some secret trump supporters out there that would like to see greg redish exit voters. connell: what you think of that idea that they will tell the pollsters one thing and do another. maybe we will see it here, too. >> i think tom and you are correct. there will be some who recognize that's not politically correct. there may be some of that. being a part of the establishment this year is not a good place to be. connell: no matter what country you are in. good to see you. thank you for your insight. back to markets. earlier we were down 334.

who will talk more in depth coming on. how about this wrinkle in the whole thing. isis once to get involved. take the latest terror threat from the terror group and how it all relates to the vote overseas. that is all max. -- that is all next. if you have medicare

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connell: fallout from the u.k. vote in all kinds of different ways. one of the things today in space is calling for attacks in her lan and brussels as officials and the terrorist group out that it, paralyzed europe after the accident great britain. it is almost like they shouldn't come as a surprise. you will see as the social media or other outlets the way they get their message. they let time take advantage of the headlines. take it serious every time. >> exactly. this is not something surprising.

terrorist groups have a history of being opportunist is something like this happens. is it to provoke. individuals hear there's a reason to be concerned. it shows their ambition, desire and potential targets and it doesn't mean because they are using this as propaganda and a moment of opportunity to send out their message. it doesn't mean there isn't a colonel of truth or actual intelligence value and its videos. it can be a little bit of both. >> doesn't mean they wouldn't do something had evoked on the other way. is there anything you can think of about what is happening that makes the region of the world more vulnerable because of the votes? >> absolutely. whether or not brexit happen or not, there were so a lot is going on that are concerning. ]-close-bracket document friends, high numbers of foreign fighters. the soccer games going on in france as well. the brexit situation regardless

of isis propaganda has implications that remains to be seen if this goes through and everything plays out how britain's role may or may not change. other security measures within the e.u. at-large. the mac people in great britain who voted for the exit would argue longer term they will be safer. they were so concerned about immigration. >> theravada security ramifications in the opposite direction for the british pulling out. a lot of intelligence, britain being part of the european union and it happens to the european union. similarly for the united states, britain is our main ally within the european union. they have a nonmember and also to be honest, they can shoot it the most money in terms of defense spending to the european union. connell: is your argument that the myth of the idea because that is really front and center in this debate that the migrant

crisis in the free flow from one country in europe to another makes a country less safe. the british want to have control. we kept hearing the word control. you just don't buy that argument. >> i understand those arguments. i'm saying it's not black-and-white. there's also a number of security ramifications on the opposite side. what we're seeing going on in europe on the homeland security front and also what the groups are doing online. so a lot of work needs to be done but the security side of the equation may be negatively impacted. it's really too early to see the implications. the market don't like it i can say that. >> one more thing before we let you go. you mentioned the european championships continue and they get closer to his semifinal. how concerned are security professionals a huge event.

not only do you do stadiums, the people outdoors and public squares watching their countries play. >> sure. terrorist groups have a history of targeting sporting events. the july 4th holiday and the olympics coming out. a lot going on at a political convention. the soccer games or just one big event in a long line coming up and i wouldn't be surprised if you see heightened security alert in europe than here at the upcoming july 4th holiday as well. connell: good to see you. tara with us from d.c. we will get more from tom and moran on everything going on including a news conference with speeches overseas in berlin and germany where they have the election set up there. we hope to hear from angela merkel, the chancellor of germany, about their plan of going forward, how to put this all together with ray britain getting now. how does that work in the european union? adam shapiro is rare.

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♪ ♪ connell: so we're back here in new york, but immediately we want to take you to berlin where adam shapiro is standing by waiting for the german chancellor and european leaders to update us on their thoughts on the u.k. bit -- exit. set the stage for us, adam. >> reporter: well,com, you see the press waiting on angela merkel, the chancellor of

germany, as well as the italian prime minister, mr. remember si, and the president of france, mr. hollande. it's a show of unity as they go forward. there's the e.u. summit in brussels that will take place tomorrow, and they're expected to be in attendance. but the real issue has to do with what happens when the u.k. finally invokes article l which is the official divorce proceedings and then the negotiations that have to take place within two years. as far as what these countries will do going forward, we wait to hear if they have any outline of a plan. holland, rather, france and italy have been pushing for a quick separation whereas germany, guided by mrs. merkel, has said let's be slow about this, let's calm down, let's let cool heads prevail. so we're waiting to hear the statements and then to hear what they have to say. the markets, though, do not like this uncertainty. as you've mentioned, the u.s. stock index is trading down, the dax is trading down, and we are awaiting their official

statements as to how they go forward with the u.k. connell? connell: we'll check in with them as the events warrant, but we're down 238. let me briefly bring tom and lauren back in on this as we wait for i don't know what they're going to say, lauren, you know, but it's a process x. that's the thing. i guess if there's any way you can remove uncertainty, it would be welcome from merkel or whoever else. >> right. that doesn't look like it's going to be the case. the question is, how long does this uncertainty last for? as everyone knows, the markets hate uncertainty. we've had several down days in a row now for stocks. connell: now, i said coming into this we're waiting for them to speak. we don't know if we'll have a translation of this. my suggestion was we take it either way. they want to speak german the whole time -- >> well, we'll listen. we'll see if she looks angry or not. [laughter] connell: exactly right. >> going back to that security, you can get around europe just fine without speaking their language. you just look at their faces. [laughter] back before the e.u., the

security thing about you could not drive a car from damascus to paris like the attackers did, the ringleader did without having to go through five different border controls and be checked all i long the way. i think the security issue is going to be tougher for isis if you get more tumbling of countries out of the e.u. connell: we'll bring our next guest in and then get back to this. i've seen our next guest in a lot of movies, braveheart. brian cox is skypeing in, as a matter of fact. brian, first of all, thank you for joining us as we show a clip of your days in braveheart. there have been a lot of people weighing in on what's happened over there, and many of them have been celebrities. i will start with that. there's been criticism saying why are these actors and celebrities weighing in on a big political story? for you why express your opinion? you were with the stay crowd. why is it so important to you? >> well, basically, because the

politicians have made a balls up of the whole situation. [laughter] connell: that's a simple enough explanation, right? [laughter] >> you know, one would refrain from saying anything if we felt some kind of intelligence was at work, but what seems to be at work is kind of opportunism of the worst kind of order and playing on people's fears and playing on the, their real problem that's been in this country for some time, i disaffected minority. and, actually, it's a very, it's very similar to what's going on in the states, i'm afraid. and a minority that's been ignored for too long, and they haven't had the responsibility to understand exactly what it was they were doing. so the leave campaign has as yet no real plan, you know, no real kind of -- came into it with any plan in order. connell: he's the problem, brian, that people have expressed to me. they see someone like you whether it be a politician or a

celebrity, and you express that point of view, and they say i hate being told what to do by these celebrities, they think they know more than me. they're essentially calling me stupid by saying i don't know enough about the issues, and then you get this type of revolt where they say, hey, we do know what's going on, and we want out. what do you say to those people that just want to get out? >> i think absolutely -- don't get me wrong, i think there are very strong reasons for g out. i think there were very strong reasons for going in. but the way the whole thing has been conducted is appealing to fear. , you know in and it's also to do with the fact that people have been, you know, a lot of people, you know, we're seeing now, oh, there's a lot of people at the moment saying, oh, i didn't mean for us to leave, i just wanted to vote, make a protest vote. so it's kind of interesting what's actually happened. the following day, i think people were quite stunned, because nobody thought -- i think the person, interestingly

enough, who was stunned more than anybody was probably boris johnson. [laughter] connell: who may be the next prime minister, by the way. >> in fact, that we were leaving the common market. i don't think he really thought that was going to happen. and as they say, he's been somewhat hoisted by his own petard. connell: well, he very well may be the next prime minister. that's what a lot of people seem to be talking about. >> well, yes. i'm hoping it's going to be teresa may. not that i'm a conservative, but that's the person i would like to see. connell: okay. now, let me ask you this. there's such a split between people over there, it seems like on a couple of different lines. one of them seems to be class, between people who have money and people who don't, and you see people on the lower levels more and more wanted to get out. and, you know, what do you make of that? and the other seems to be age where older people many times wanted to get out and younger people, especially 25 and younger, almost all of them wanted to stay. >> well, this was exactly the same in the scottish referendum

two years ago. it was the same thing. it was the older people who were a silent -- actually, it turned out to be a silent majority who actually voted to keep, to say no to scotland leaving the united kingdom. and it's very much a repeat of the same thing. i think that we underestimate the power that the older people who are, quite frankly, fed up with the situation. connell: right. >> and i have enormous sympathy for people who -- because one of the problems is we've, the labour party's in total disarray at the moment, and the labour party is supposed to be the party of the workers, but they've lost contact almost completely. com congress right. yep. >> and we're seeing the result of it. and everybody's going, oh, look what's happened? isn't it terrible? connell: i'm sorry to cut you off, but we do have to go. it's good to get a different perspective. brian cox skypeing in with us. we have to get a quick break in. we'll go back to angela merkel and company and see what the

story is overseas. how does she look, tom? all right? >> so far so good. [laughter] can't tell. poker or face. [laughter]

♪ ♪ >> i'm nicole petallides with your fox business brief. stocks had been down over 330 points, right now the dow jones industrial average down 272 points. that is worth 1.5%. the s&p 500 sitting right at

that level of 2,000, traders watched when it broke below that level. it is down 1.8%. looking at the ftse here, this is the london exchange index, the financial times index of london, and we've seen it now to the downside. taking a look at that, that taxes onto the losses we saw on friday. there it is, 2.5% right now. there's a look at the dow jones industrial average as we look at a one-week chart of the dow, and we've seen the financials in particular as the worst of the wunsch. american express, jpmorgan among the laggards, and, of course, all the major averages have turned negative. and now we're watching the safe haven of gold, gold right now at $1325 a troy ounce, and so that has been a safe haven as well. i'm just a guy who wants to buy that truck.

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this is how car buying was always meant to be. this is truecar. ♪ ♪ ♪ connell: we're back on cavuto coast to coast. it is now the french president, francois holland speaking at that press conference we've been monitoring, angela merkel has also made remarks. he said there is agreement there can be no kind of informal negotiations with great britain before there's a formal application from britain, before they say they're out. there'd been some talk they would talk informally, she says no. hollande speaking, we'll translate it as we get it in. charlie gasparino is here, i'd love o'hare him translate the thing. -- love to hear him translate the whole thing. welcome back, by the way. speaking of angela merkel -- >> how do you say her name?

>> angela. angela merkel. i thought after a week overseas you'd be more cultured. >> angela. that's the italian pronunciation. connell: what's on the line for her? >> if you want to know why the germans aren't looking to really destroy the u.k. and its partnership with them, look at these numbers. 2015, the u.k. was germany's largest export market. so they sold -- for cars. 809,000 cars exported from germany to the u.k. about 18.3% of all german cars went to the united kingdom. that is amazing. connell: so she won't be too tough on the trade negotiations. >> here's the whole thing, i know the markets are trading off although the dow is starting to come back -- go back down again, and i know that the pound took a pounding this morning and will continue until they figure out what's going on over there. but the bottom line is this, europe has a vested interest in not destroying the u.k.

uncle is a big consumer market -- u.k. is a big consumer market. it's not some podunk of a country. they will lose more from destroying the u.k., meaning mainland europe will lose more than the other way around -- connell: there's the one balance ashley webster brought up was if they go too far and give them sweetheart deals so to speak, that other countries will look at that and say, man, i'm getting out too. >> what's wrong with that? connell: i don't know, from a union point of view. >> if you can have free trade with everybody, you know, with each country, each sovereign country out there doing what they have to do to their best interests, you know, i don't think that's a bad thing. i will say one other thing, let's be real clear what the european union did for so long, it masked -- partially through germany's and france's and the u.k.'s largess and also through some wall street engineering. connell: right. >> the incredible to have la georgia city and insanity of greece, italy, spain and portugal.

and these are are countries that are deficit countries, these are countries where a lot of people don't work, where there's huge welfare states. and it might be just time for them to, you know what? get with the program or get out. because i don't think you can have the economic system where three countries bail out, you know, six. connell: right. >> clearly, the british don't want to be part of that. connell: speaking of time, i'm being rushed along here because maybe we didn't time out this hour that great, but the good news ooh is i'm being told you'll be back next hour. are yo aware of that? >> that's fine. you can see how excited i am. [laughter] connell: at least pretend to be excited. jerry baker's coming up from the journal, and he's on next, matter of fact, on the impact on all of us here in the united states. stay here. ♪ ♪ you pay your car insurance

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connell: some of the live comments that we're monitoring for you, the secretary of state john kerry you may have heard is in brussels, now london after meeting with the british foreign secretary. among the comments we've heard just in the last few minutes, he did say our special relationship with britain remains strong and that kind of thing, and we will continue to monitor secretary kerry and tell you what else comes out of that in addition to merkel and hollande and everybody else that is speaking. let's welcome in from "the wall street journal" jerry baker who says some of the quickest implications will be felt right here. good to see you, sir. thank you for joining us. tom and lauren here as well. what are the biggeyou're thinki? >> look, there are going to be immediate economic impacts which you're already seeing, the pound is down sharply, banking stocks down, equities down sharply. the u.s. market has sold off quite a bit. that's understandable because

this is a shock to the global economic system. the british have decided to pull out of a bloc that has existed for 60 years. britain has been a member for more than 40. it's a trade bloc. it works well as a trade bloc. it encourages international trade. so there's going to befects on the global economy if britain pulls out. so that's understandable. the bigger question, i think, is what this vote tells you about the degree of dissatisfaction that a lot of ordinary people around the world feel about what they see as the disempowerment of their lives and about the alienation that they feel from their own government. they feel that they no longer in britain have the ability to determine, for example, who comes into the country. one of the requirements involved in being a member of the european union is that you accept complete labor mobility. now, there are 400 million people living in europe. they could, if they wanted to, all come and live in the united kingdom. connell: right. >> and that's something -- connell: they wanted control

over that. >> my point that i wrote about over the weekend this is a global phenomenon. people around the world want, are unhappy with the way things are. the global economy's not been very strong, the financial crisis has had long-lasting effects, and on top of that people want to feel that they actually run their own country. and i think that is reflected in britain, it's reflected in large parts of europe, and i believe it's also a factor here in the united states. connell: right. now, i hate when people say -- when we were in the commercial break, you always hear that, but lauren, when we were waiting you asked jerry a question. ask it again, because it was about really what's happening in europe and what if. >> my question was, what would be so bad if europe went back to being europe, just a trade bloc and not this european union system where you pay in and you help other countries out and all of that? >> that's the question that was on the minds of 17 million people who voted in britain to come out. that, remember, is what britain joined in 1973 and had a referendum to rati that in 1975. it was then the european economic community.

it was a trade bloc whose principal function was to promote trade among the various countries, the then-nine countries and now 28 countries. tariff barriers were eliminated, regulations in the many areas were eliminated when they introduced the single market in the 1980s. part of that, however, has never been satisfactory for much of the european leadership. the european leadership wanted to create a super state, they wanted to create the united states of europe. there's an exclusive commitment in the treaties of the european union for what what's called ever closer union. they want to create a super-national identity. and that, unfortunately, the british people aren't willing to accept that, nor are hundreds of millions of other people all over europe. they believe they are british first, french first, german first, they're not members of a european country. connell: thank you very much for coming in, really appreciate it, jerry. and tom and lauren, thank you, both of you, for spending the last hour with us.

we're going to talk more about the u.k. and the vote and especially the markets when cavuto coast to coast continues. we'll be right back at the top of the hour. ♪ ♪ if you have medicare

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♪ ♪ connell: all right. it is a market selloff, no doubt about it, and we have a number of people speaking about it w. the dow down 52, overseas leaders are speaking. there's the secretary of state top right of your screen in london, john kerry, there meeting with the british foreign minister and making remarks that are still ongoing. these are are live shots that you're looking at and also european leaders, the italian prime minister, german chancellor angela merkel joined by the french president, francois hollande, they are all in berlin speaking, everybody trying to reassure us that everything is going to be okay after what we saw late last week. we will update you on their latest comments, but chaos still sort of rules the day if we look at markets and talk about politics. we've got you covered from c cot to coast, that's the one thing we to know for sure.

i'm connell mcshane filling in for neil cavuto, and we have some fbn all-stars. deirdre bolton will be with us for the entire hour and also ron christie is with us in studio, and he will be joining us for the hour. a lot to talk about, and let's begin speaking with liz claman standing by again -- you know it's a big day when liz is on the floor of the new york stock exchange where she'll be for the "countdown to the closing bell" this afternoon. ahead of that with the dow down 255, liz, what are you hearing? >> well, i'm hearing that a lot of the traders are keeping their ear to matteo renzi of italy who is saying the e.u. is strong. right. i mean, look, the e.u. together with 27 other nations, fine, but what is strong, our markets, they are orderly down here at the new york stock exchange. in the aggregate we've now lost, what, about 800, 900 points over just two sessions? but if you're sitting there looking and saying, well, what am i out? nothing if you haven't sold, but you're looking at certain stocks you may own, the exposure,com,

that is out there for u.s. stocks is pretty significant. i wanted to pick out a couple of names that not only fell terribly dramatically on friday, but are continuing to fall anywhere from 4 to, what now, about 8%. asset manager invesco is jusust getting slashed. why? it's a u.s. asset manager, but they have a lot of foreign exchange education ebb pose your. they -- exposure. they held a big position in the british pound which has continued to fall. lincoln national, delphi, charles schwab, american airlines, e trade, all of these names are getting hammered once again. so you're looking at losses of anywhere over two sessions of between 8 and 12 or 13%. what about the names that have the most exposure to the united kingdom and the export/import chain of command? you could look at say, for example, cyber, cbr, and willis powers, we've put them on the screen here. they've got anywhere from 14% to

look at ppl, 31% exposure to the united kingdom. so keep an eye on these stocks. right now with the dow down about 244 points, it's actually the russell 2000 that's getting torched at the moment, down two and two-thirds percent. connell: we'll check back with you. i want to talk about what might be next in terms of at least the markets. believe it or not, i know we talked last hour a lot about interest rates, there's a lot of talk in some circles now about more stimulus, more spending, government spending, to get us out of a hole that we may or may not be in. and bob weed mere is with us. bob, what do you think? maybe i'm naive in thinking about it this way, but where would we get the money to pend on more stimulus? what's your thoughts? >> same place you always get the money, we print it. connell: or borrow it. we're all here anyway. >> yeah. so that's where we'll get it. and i think a little bit of spending increase maybe, but look for the monetary policy, look for the central banks to be doing most of the action here,

shortly in the short term after brexit. and that's why i think if you're going to see any stimulus, that's where it's going to come from, the ecb, bank of japan and the fed. connell: lenore, it was one of those questions you already know the answer to, but it's just a matter of whether we should be doing what we're doing, printing more money. your take on that approach given what we saw late last week. >> it's the only approach that anyone seems to be willing to do. in fact, a recent "wall reet journal" poll of executives around the world found that over 70% of them cited regulation as the number one challenge that they face. connell: right. >> legislators are unwilling to do what it takes to make it a lot easier for businesses to grow, to start, to be successful. they just keep putting more and more red tape on, and when you do that, the only thing you can do is print money. it's easy, it's cheap, you don't have to risk not being reelected, right? if you go out on a limb as a legislator, you may not get your job again. monetary policy, well, those

guys don't get elected. connell: no, of course not. they get appointed, and nobody's around to deal with it by the time it comes due. deirdre, we've within down that path so many times in the past -- >> yes. printing more money at this juncture seems like the worst possible idea. we already know that in response to the u.k. leaving the e.u. that it probably has put fed rates, rises here on hold for at least 16-18 months. connell: sure. >> i sort of feel like we're all close to zero. how much lower can you go? and in europe they have negative deposit rates. >> oh, deirdre -- connell: go ahead, lenore. >> we'll be going towards those negative rates because there's no way we can withstand -- yeah. we can't be so much higher than the rest of europe. and all of this is going -- >> unfortunately, i think you're right. >> this is going to make the u.s. dollar stronger. the u.s. dollar is going to keep getting stronger. that's to going to hurt our economy, and the fed is going to have to reverse course and try to push the dollar down. whether or not they can do that,

whether or not the dollar gets away from them, that's another question. >> yeah, i'm going to jump in here, connell -- connell: go ahead, bob. >> yeah. i mean, there's another tool, and i agree interest rates are low and maybe we'll go negative, i doubt it. i don't think you'll see any interest rate increases for the next year or next couple of years. they can print money. but i think if this market goes down because of brexit or china crisis 20% or more, they will print money, they will bring back qe. yeah, that's end of interest rate increases, but that is one tool they can use. it's not just interest rates. connell: and, ron, you more, obviously, of a political guy which is our next topic anyway. we always look, i think it's in our nature, we always look for solutions as opposed to letting things play out. >> i think that's exactly right. what are politicians doing? they're rushing to the microphone and saying, oh, it's chaos, what are we going to do? what are the markets going to do? the market will self-correct itself here. if you look more long term, politicians staying out of this and not trying to inject a political solution is the better

way to go. if you're going to be productive and useful, fed governors -- [laughter] connell: here's a message for you -- >> stop printing money. >> and i also think this is very different than 2008. connell, you covered that as closely as i did. i mean, that actually -- okay, people argue both sides very well. i could see the argument for some sort of intervention at that point. this is not the current, this is not the credit crisis of 2008. >> right. >> this is a shock, it's unexpected news, this is digestion time -- connell: yeah. it creates a lot of uncertainty, and it's going to take a long time to play through it. thanks, bob and lenore, for joining us. the dow is down 239 right now. my point with ron to talk about the politics of all of this, of course, in the middle of a presidential campaign you have hillary clinton and her camp just ham herring donald trump. the accusation has been that he cares more about his own personal bottom line, the golf courses and the like, than the u.k. exit and how it impacts our economy. so let's bring in along with ron and deirdre tara rosenkranz to

the conversation. on friday donald trump was over there talking about golf courses and that if the pound sterling is weaker, that's only going to help him because more people are going to visit, and clinton says, ah, come on, really? what's the political impact of that type of conversation, do you think? >> well, i think when trump continues to sort of do these outlandish comments especially in times like this where, like you said, it was a very chaotic moment, it was shock value, and then he's kind of responding in kind at that same level just shows that he's sort of fundamentally unfit to be our commander in chief. the primary reason is, you know, we need somebody to be providing steady leadership at times like this, not caring about their own bottom line. connell: so that's the argument, and i know you've been a republican strategist, ron, for many years -- although i think it's fair to point out not donald trump's biggest backer. >> good point. connell: i thought his timing

actually worked pretty well for him on friday that he was there, and the issues they were talking about, they were his issues, immigration, trade. >> it worked well for him. it worked well for the trump bottom line, but does that work well for the republican party and for a major political party in the united states? i think donald trump should spend more time, if he's running for president, full time talking to people, listening to them, figuring out what's on their minds and how can he incorporate that and weave that into what he's saying? connell: you don't think it was a win? >> no. connell: you don't think it was a win politically? >> no. he's in scotland on the day britain decides to leave the e.u.? connell: my point was why did they leave? immigration is a big trump issue. >> he should be saying and doing those sorts of things on the u.s./mexico border. we talked in the last ock about how regulations are crippling our ability to create jobs, that's what he should be doing. but i will say this, for hillary clinton to suggest donald trump

is only looking after his bottom line, what about the clinton foundation's? the hundreds of millions of dollars for her to say that, you know, that she is looking out -- or that donald trump's looking out for the bottom line is and she's not? hypocritical. connell: hillary clinton has her own issues, no? >> oh, absolutely the -- absolutely. and the clinton foundation does good charitable work, so i think comparing the two is really just apples to oranges. connell: all right. we'll get back to the markets. by the way, we're down 257. one other political comment, almost 258, that's like 1.5% on top of the big drop on friday. one more political comment comes via, of course, donald trump's twitter account which seems to be the way we get a lot of our topics. this is a tweet from mr. trump: people in our country want borders, and without them the old-liners will not win. kind of what you're getting at, ron. >> exactly. this guy needs to get off twitter.

he needs to be talking to people. he needs to be interacting with folks but not sitting there in 140 characters putting out statements like what he just did. his cementments, right? -- sentiments, right? come on, be a presidential candidate. connell: it just seems like things work so well for you, at a certain point it's hard to get away from them. >> an inside baseball penchant where you say, okay, must be more presidential. that seems to be the paul manafort line. corey lewandowski lost his job over the mantra let trump be trump, but to your point,com, tweeting out saying this is going to help my business has helped his campaign. i mean, like him or you don't like him, he is the nominee. >> totally agree with you. but here's the difference, hillary clinton has nearly 800 employees, and she has tens of millions of dollars in the bank. donald trump has a handful of employees and a million. he needs to go out and actually build his campaign infrastructure rather than tweeting. connell: well, you know what he

rest of it. let me get back to the issue of immigration, taryn, with you. do you acknowledge that kind of the sentiment around the globe to bring it back to what we were looking at in the u.k., so the sentiment around the globe from, essentially, working class people, we saw this in northern england, in other parts of the country pretty much outside of london, outside of scotland that there was this sentiment that there was, you know, immigrants are coming in, they're taking our jobs, and we need to get a handle on this. and a similar sentiment exists here in the u.s. isn't that a risk, that type of thought for hillary clinton politically? >> well, it may be a type of risk, but i think what hillary clinton is doing is exactly what you were suggesting that trump should be doing earlier, right? it's like she's going out and there she's talking and listening and trying to figure out what are the best policies forward because she absolutely believes in comprehensive immigration reform that is going to take away some of the problems and struggles -- >> but don't you think she's worried that she's the establishment? she's the establishment the same way david cameron was the establishment, the idea that

such a huge anti-establishment feeling all around the world and maybe that's a lesson of the u.k. or no? >> well, i do think that there is a feeling of anti-establishment and same old same old and the status quo, and i do think what donald trump has actually done is start the conversation about how we can change things. i think bernie sanders was the same kind of appeal and, obviously, that was working. but one thing i will say is that i think at this point and just looking in the aftermath of this decision that great britain has had and we're seeing sort of the ramifications of that, i think it does have a couple of people stopping to think twice a little bit about what kind of extremes we need to be doing. and if donald trump is the one to lead us into that change or if he is just fundamentally unfit to be the one to be a commander in chief who can address these issues in a way that makes sense for all of us and our place in the world. connell: taryn, thanks for your point of view. ron and deirdre are staying here. keeping an eye on the markets, 247 down, 1.4%. so the big questions liz was getting at, and she'll be back,

you know, how do we close? that was our question friday, went down more than 600. here it is day two of reaction, and up next why our next guest who is coming up here says one of the big winners out of the u.k. exit is vladimir putin. explanation on that right after a quick break. ♪ ♪ get ready for the rio olympic games

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you guy's be good[ bark ] i'll [ bark ]later bye. see ya pal. ever wonder what your pets do when you leave home? [ laughing ] aw you cutie pie. aw. aw. aw. aw. [ barking ] [ washing machine running ] party's on! know what your pets are up to with xfinity home. xfinity. the future of awesome. see the secret life of pets, in theaters july 8th. connell: market selloff, we'll stay on top of it all day long, of course s and another angle on this whole british exit from the european union is who are the winners and losers, and one of the wincers may -- winners may well be vladimir putin. we said -- thank you, by the way, for coming in. we appreciate it. ron and deirdre still with us.

we were just saying you try to look at the people who may benefit, and you say putin. why? >> in the post-cold war security or strategy, you know, a united europe is something that putin is strongly against. i mean, you watched what he just did, you know, in the invasion of the ukraine simply because the ukraine had come forward and said they were interested in actually joining the e.u. so one of the consequences of this -- and i think nobody would disagree -- is that there is a lot of uncertainty now in terms of, you know, how unified will europe be moving forward. so not just the fiscal a and the military prowess. separate between e.u. and nato. but the fact is e.u.'s going to have to spend a lot of time looking inward, and that's going to be a great benefit. connell: it does bring up this larger debate about does this vote make us more -- or make them, i guess more to the point, more or less safe? are you arguing it makes them less safe in europe? >> so there's a strategic, there's a long-term strategic thing which the threat is russia

and putin and certainly his aggression -- connell: versus immigration. >> and the terrorist threat. connell: right. >> again, there are issues that will now arise in terms of how they share data and intelligence and information, joint operations, things like that. these are answers that are going to have to be bet, you know? what are the knock-on effects of what if scotland gets out of the u.k.? well, now england would use their, you know, the single place where they house their foreign nuclear submarines which would change the security, the nuclear policy. there are just a lot of issues that we are going to have to address, that they're going to have to address. connell: you can see how much uncertain i think, but go ahead, ron? >> i largely agree with ben on this. look, the e.u. are distracted, they're looking here and there, and what do i want to do if i'm vladimir putin sitting in the column lin? on the other hand -- kremlin? on the other hand, britain is still in the nato alliance, and if putin decides to the get a little bit too cute, shall we stay, nay -- nato's still there.

>> but in many way, nato is really us. all you have to do is look a few winters ago, putin essentially cut off that entire natural gas pipeline, people in ukraine had no heat. it was this friendly relinedder, must remember -- reminder, just remember your buddies are pretty far away. what are they going to do, send troops here and get you heat back in your houses? no. connell: one final thought, ben, before we let you go on all of this? >> two quick things is, one, you know, if there is something, a silver lining perhaps, it's that, you know, you look at which countries have kind of actually do, you know, pay the 2% of their gdp into supporting, you know, nato, this might force some of the other countries to step up and start investing more in research and development. connell: right. >> the one staunch opponent or the one organization, you know, the one country that's been kind of helping us be aggressive with sanctions against russia has been the u.k. so now that they are out of the e.u., that's going to be a problem, and the e. utah's talking about standing up their

own army which would be in conflict of nato and -- connell: a problem. >> that's, so just a lot of unknowns. connell: exactly. which speaks to markets. thank you, ben. ben collins with us. we see the uncertainty playing itself out in the markets. people don't know what to make of this and don't know how it's going to play out, so we're down another 234. a lot of pain in particular in the financial sector. we're going talk about banks up next. ♪ ♪ this woman owns this house, with new cabinets from this shop, with handles designed here, made here, shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits

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connell: we have the market selloff down 232 on the dow. for some perspective, again, we were down 334 at the elope, so the question is have we put some sort of a near-term bottom in? we've been monitoring the live comments coming out of europe from the european leaders, also from our secretary of state, john kerry. from what i understand, all of those comments have now wrapped up, so with an update on that, we're joined once again by ashley webster.

what's the latest, ashley? >> reporter: yes. hey,com. it's kind of interesting, secretary of state john kerry arriving in london after he met with e.u. officials saying, hey, listen, don't panic, e.u. he came to london and met with phil line up ham only and said -- phillip hammond, and he said i'm near the aftermath of the vote. i think that's an interesting choice of words. in other words, we didn't like the outcome, in other words, we're going to call it the aftermath. he also talked about the unbreakable bond between the united states and the u.k. which, of course, nothing has changed because of a referendum. and he made that point very clearly. phillip hammond also had some interesting comments himself. he said he could definitely feel fear from some of the e.u. countries about the contagion brought about by the u.k. vote. in other words, fears that other countries within the e.u. could,

indeed, decide you know what? why don't we have a referendum? we'd love to get control back. maybe we don't want to have to deal with brussels at time. there is that fear. and then we heard from chancellor merkel and president hollande, they're saying we're not going to talk to the u.k. until they actually come forward with a proposal, ie, that article l from the lisbon treaty. so some interesting maneuvering going on. not a whole lot has changed but certainly some battle lines being drawn can, connell. connell: ashley webster there on a busy day and what you can see is still a very busy city, london can, england, with the double-decker buses. what look to be a normal monday but i guess is anything bull. thank you, ashley. we're going to go back to markets getting hit all around the world from the fallout of the u.k. we're off the lows, still down 1.3% on the dow. the financial stocks, though, have really been taking it on the chin and did so friday, and many of the financials are adding to those losses today,

whether it be american express, pnc and wells fargo all down again today along with goldman and morgan and ubs. we have a harvard professor be on with us right now, hal scott, who says a british exit may trigger a run on the banks. explain that if you can, sir. >> well, i don't really think it will, but i'm afraid that if it did, we wouldn't be prepared to deal with it. so i think the probability of a run on the financial system is quite low are. my concern is that the weapons that we now have in the united states to deal with it are not good enough. connell: my follow-up question would be, boy, what we went through in 2008, i thought we were supposed to have those, as you say, weapons in place. what went wrong after that crisis? >> well, we strengthennenned the capital -- strengthened the capital effects and we now have resolution procedures, but on the other hand, we have limited the ability of the fed to lend to the nonbank sector, we have

limited the ability of the fdic to raise insurance l limits, and we took away the power of treasury to guarantee the money market funds. all of these actions were critical to stopping the panic post-lehman. and let me stress again, i don't think this is going to happen with brexit. my concern is that if it did, we would not be able to deal with it. connell: no, i understand. it is important to stress that, we're not trying to scare anybody, but it is a conversation that an issue like this brings up. are you in the camp that we just should have smaller banks, forest them to completely break up -- force them to completely break up more than we did after '08? >> i don't think that's really the issue here. you can have a panic in the financial sector with big bankings or small banks. once you get a run on the financial system, you get a run on everybody. so the question is, you know, are you prepared to deal with that run. connell: all right. let me bring it back then. as you say, you're not predicting it in this case. let me bring it back to this case.

what risks do you think the u.k. vote has created for the financial sector if you're not certainly predicting or worried about a run on the bank, say it's a very low probability? what issues have been created that you are concerned about? >> well, the biggest issue from this point of view is what you've been talking about all day, the uncertainty. runs on financial systems are irrational to a large extent. it's not based on sort of reality, it's just based on people's fear of what could be reality. and so in a situation of high up certainty which we certainly have right now, i worry about it. and this is going to keep unfolding. we're going to produce more uncertainty. you talked about the fact that other countries might want to leave the e.u., we've got kerry talking about nato -- connell: right. >> there are a lot of different things that are going on here, and at some point i'm concerned that people say, oh, my god, what's happening here? that's when you get panic. connell: right. and one thing leads to another.

hal scott wrote a book called "connectedness and contagion," which explains why we would have him on at a time like this. we appreciate it very much. social media, they're taking a stand against terrorism with some of these big technology companies. we google and facebook are taking to combat extremism on the internet. that's after this. ♪ ♪

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connell: so social media sites, facebook, google, are taking a stand against terrorism. from "wall street journal," video reporter shelby holiday is here. ron and deirdre are with us as well, on this role these companies have. what is new here, shelby? >> instead of relying on users to flag content and playing whac-a-mole with terrorist groups and facebook and google are using technology that hashes content. which means it recognizes the digital footprint that videos have, audio, images and automatically blocks it before the content gets out. connell: something new they developed or something they were doing? >> the technology has been used for example, to flag child pornography. it has not been used for terrorism purposes. connell: why? >> there is big difference between freedom of expression and hateful speech that incites violence. these companies pushed back a lot. they are obviously fighting terrorism. they are definitely blocking content that incites violence, but, they have to be careful

they don't want to be seen as censoring free speech. connell: that is the issue, deirdre, trying to find this balance. it is having they have been able to do this and just haven't. >> there are a lot of people, conservative writers, bloggers, june thatnallists especially with facebook their material has sanctioned. connell: ron christie can't get anything writes on facebook. looking all over for it. where is ron christie. >> people are saying how come my blog post is censored when isis puts out new recruiting video seen by a million people. connell: they can't keep up what they say. >> here is what the evil ron christie has to say. i'm a member about board of directors of the american consve union. we put on cpac. one of the things we found we were, filtered out for content not wanting to have conservatives on air. when zuckerberg had the big confab, why should we come out to talk to you, when you are the one filtering us. to shelby's point, very narrow line looking at first amendment

to make sure people have the right to express themselves, in this case we make sure terrorists don't have the ability to put in video and bad propaganda out on the air. >> interesting that facebook and google are doing it quietly. they're not confirming or denying they're using the technology. they want to get ahead of government. they don't want to be seen by conspiring with governments censoring speech and they have been sued. maybe this is ahead of lawsuits. we're doing what we can. it is not our fault. connell: shelby, thank you for coming on. >> thank you for having me. connell: next topic up here, agency moody's is great britain headed for downgrade. we talk with our crew. bringing in charlie gasparino and first liz claman on the floor of new york stock exchange. let's start with you, liz. what do we make of this? >> tell you something, it is a big warning when you get put on credit watch negative, it is like a yellow flag, saying you guys better get your act

together, if you don't we will take away your aaa rating. what you're seeing, i read the whole moody's report, they in essence said, this meaning the response reaction "brexit" will herald long periods of uncertainty. i can tell you this, connell, maybe charlie disagrees, everything will depend going forward when it comes to the credit rating how they are able to negotiate new trade deals. can they still have access, cheap access without high tariffs to that single market which is the eurozone. connell: how big of a deal is this, charlie, in your view? >> it shouldn't be a big deal because we as market participants give way too much credence to moody's and s&p. i have written a book on some of their screw-ups. connell: just talked about facebook. >> that is probably true but they missed new york city financial crisis. they missed orange county financial crisis. missed mother of all financial

crisis, 2008, they helped propel it. connell: everybody feels that way. >> everybody feels that way. reality, do investors agree with moody's or s&p when they do -- i think they will down grade them. will they believe that the, that britain is a lousy place to put their money? i think that is up in the air. remember when they downgraded u.s. guess what? treasury bonds went up. connell: yep. >> guess why? we're tallest midget in the room. connell: i was phrasing it differently. >> if britain comes back and basically come back with basically pro-growth agenda and in angela merkel does what they think they will do not drive them into the ground, germany needs britain as much as other way around based on who sells whose cars -- connell: could be really uncertain environment. >> i know that. but it needs to be, it needs to play out. we should put moody's and s&p in context. other thing i would say, they hate pro-growth supply side strategies.

they are the biggest keynesians in the world. >> ratings agency they have lost credibility goldman came out today, likely uk goes into recession 2017. goldman on u.s. gdp took a few points off of ours. this is not the end of the world. this is not 2008 by any stretch. >> call it keynesian ii. connell: what is that, liz? >> we've seen this movie before. february of 2013, moody's downgraded united kingdom citing growth will remain sluggish for years. how original. that is what they're citing again. there is uncertainty because we don't know how trade deals will shake out but absolutely, europeans don't want their citizens having to pay extra for brittish goods and britain doesn't want same thing going other way for the chunnel. >> not just trade deals. does britain go out there and do what i think boris johnson wants

to do and some of the more conservative members, do they go out and bring back thatcherrism? do they -- reduce the size of government. do they cut taxes. do they make great britain a better place to do business which i think they might do. if they do that, if they do that, who cares what moody's says? connell: we'll be in the period where we don't know if they're going to do that. cameron is hanging on now to october. don't have any early negotiations we heard. there is a period of uncertainty that will continue for a while before we know how it really looks. >> i think so but i think charlie is absolutely right. what sort of great britain will emerge from this? they have opportunity to get rid of some regulations. they can slash bureaucracy. they can find ways to get new trade pacts, new trade deals and expand the economy in a free market society. >> even if s&p and moody's lost credibility, when they downgrade, if the uk wants to borrow money they have to pay more. we can say they lost credibility -- >> why did we pay less when they downgraded us?

we actually paid less. i think, listen, you never want to be downgraded. always a bad thing to have these two idiots, even though they are idiots yapping at you how horrible they are. britain's record is better than moody's record, let me finish. net-net, fiscal policy can do a lot to change business climate. won't matter what moody's and zap. connell: make it real quick. >> connell, we have to wait and see what will happen when it comes to trade deals but right now the french are certainly acted like a scorned woman. get out quickly. we don't want to deal with you people. connell: good analogy. >> we'll see if it tams down. connell: scorned women and all divorced analogies. very uncomfortable. >> we got you, connell. connell: global revolt we're talking about with britain leaving eu certainly says something to you about the power of the voter. we'll talk about, whether it's a preview of our election in the fall, trump, hillary and more.

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>> hi, everybody, live from the floor of the new york stock exchange i'm lori rothman with the fox business brief. it is post-"brexit" vote trading day two. let's look at numbers. obviously another sharp selloff underway here. you're looking at dow over the last week. it is down 1.6%. let's move on to the s&p 500. very important perspective here.

we're well off the february lows. over the last 52 weeks however, we are down. two days of deep losses, more than 4 1/2%. that is over the last year, down nearly 2%. all right, travel stocks, no surprises. weakening global picture. among weakest performers in the sessions look at those airlines, 8% off on united continental. american down 6% and change. delta is down as well. there are stocks in the green. interesting, kroger, one of the best performers on s&p -- weakening global economy. get you back to "coast to coast."

connell: back here with market sell-off day number two after the vote in great britain. we have piece with breaking news after the conversation about ratings agencies. we have not heard from moody's just yet. we heard at s&p perhaps angry of charlie gasparino characterization of their operations. they lowered the sovereign credit rating from double a to aaa. no longer tribble a in the eyes of stand and poor's. that just came in. we were having conversation with regard to moody's. we're down 287 on the dow. as we talk about fallout from the uk vote. this is day number two of such fallout. 610 points on friday. at worst of it we were down 334. if anything we stablized a little bit.

we'll see if s&p move means anything for markets. other thing about the move and vote to leave the european union, it's a vote many people's eyes for freedom. it was something you heard a lot about it is control and having power and putting power in the hands of the voters. we're joined by former bush 41 campaign advisor mark serrano, frequent guest on "cavuto: coast to coast." does this have a fquent effect on the presidential race? we've been talking a lot about that. what are your thoughts? >> connell, in many campaigns there are defining moments. this is one of those defining moments. what it is doing to the u.s. race better defining side. individualism versus collectivism. freedom versus multiculturalism. and globalism. so what i think's happening is, we're getting much better definition between what these two candidates have to offer the electorate, especially at a time, where just like in britain, the middle class and working class have struggled for

eight years in this economy and now they're rebuking the elitism and ruling class. connell: you see here and see there, it is more simple argument. deirdre and ron are with me too, but to be honest, mark, they're both very elitists. maybe i would be better -- >> put our game of risk away here. connell:ss guys. connell: maybe bert off i handle the interview. seriously the argument is a simple one and the real elitists, real people in up in the towers will say, boy, you guys don't know what you're doing. you don't know the problems you're causing. people hate that. they hate being spleen to that way. that is a very tough argument. if you are in the elite class you have to find a better argument than that. >> think about it, you know the remain campaign, their tag line was, stronger together. that is the identical tag line for hillary clinton. connell: that's right.

>> what does that say to people who struggled in the economy. okay, you want me to stay with you who will be stronger together? you're the one will be stronger. connell: yes. >> elite will be stronger. we'll continue to get the shaft frankly. connell: i will point out real quick, ron, market extended loss as it about, if you noticed, giving that news from s&p with the downgrade of uk cutting its rating from a aaa rated nation to double a. what do you think about anti-elitist sentiment, ron, to be serious? >> i climbed out of my elitist tower this weekend and went out to colorado. there is real sense on the ground in real world, people are saying we have not had our concerns listened to. the economy is not improving. i know people who are looking for work who are out of work. connell: right. >> what do the folks in the status quo, elitists in the ruling class for so long, why should we put them back in office. connell: exactly. >> failed me and my family. people who have jobs they don't really get raises.

connell: powerful simple argument with people and resonates. mark, we have to run. thank you very much. >> okay. connell: just for time we have to get back to the markets. we really appreciate it as always. last couple days it has been close to 900 points. add the whole thing up, 610. friday, almost 270 or 280 now. our next guest says, don't panic. okay. that's next. ♪ you pay your car insurance

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connell: that's right. we have very simple messages here. one way we look at market selloff is with this message, do not panic.

we welcome bill isaac, former fdic chairman is our next guest. not everybody's first in:of many to look at day like friday and add it up today, and easy to say but hard not to panic. what is your advice? >> well i think that the worst thing anybody can do right now is panic. that's never a good course of action. the reason why the markets markets were hit because they were surprised. people weren't expecting vote we had and they expect ad different outcome. when we get you surprised i don't know what to do because i was surprised and react to protect themselves first. later they start thinking about, what really happened here and what is the future? and that's when the markets will start to settle down.

connell: so tell me your view of that, briefly. what did really happen here and how do you see it playing out? forget about the markets, how do you see it playing out economically and politically here in europe over the next several months? >> i things will be unstable for a while because there is a lot of things that need to get sorted out including the exit path for britain and there will be turmoil, ups and downs for a while. i don't see anything here that causes me to think that the long-term future of england is, or britain is in doubt. i, the country has been around for a long, long time and will be around for a long, long time. it has been successful for most of itory and i have a lot of confidence in the brits and in the london. london is a great marketplace people can't ignore. however much they would like to. connell: right. and it could come out, some

argued this with us last couple days, they could come out stronger when all said and done if we let it play out. bill isaac, thank you very much, sir. we appreciate you coming on. good message, right? , don't panic. we're down by 282. since the s&p news where they downgraded uk we extended losses a little bit. the worst of it was down 334. more "coast to coast" to come right after this.

connell: so much for our bounce back monday. we're down another 275 after the 610 last friday. we're keeping it steady last couple hours. ron and deirdre doing their part. nothing crazy but s&p downgrade -- >> affected sentiment. connell: another leg down. thank you, ron, by the way.

always a pleasure to have you on, we give you a bit of a hard time, you elitist. be curious, deirdre to see how it closes up. it is obvious. >> it is not obvious. this year has proven anything, right, there is nothing obvious. we'll keep watching. connell: we'll watch you this evening at 5:00. trish riege grand -- reagan. thanks very much. trish: extending friday's 600 point selloff. the fallout from grit britain's vote to get out of the european union, sinks in. angry brits who voted against leaving the european union demand a recount and and to overrule the people's vote. i'm trish regan, this ask the "intelligence report." we're down over 280 points on the dow jones industrial average. we're off the lows of the session. trading down nearly 4%, all coming on heels of european