we expect to hear from christine lagarde, managing director of the imf. you're watching special coverage of the brexit aftermath from new york city. i am erik schatzker. here is what is ahead. britain's two main political parties are in turmoil following the unexpected vote to exit the eu. we will tell you what it means for the next prime minister. spanish voters went to the polls in an unprecedented repeat election. the president got the support she needs to break the political chaos. mark cuban, the outspoken billionaire businessman has an opinion on almost everything and you will find out what he has to say about brexit. we bring you the latest headlines on bloomberg's first word. : secretary of state john kerry will join european leaders in brussels and london tomorrow to discuss a smooth and visible transition for the u.k. from the eu. secretary kerry spoke to reporters today in rome after meeting with italy's foreign minister. >> the most important thing is that all of us as leaders work provide as much continuity, as much stability, as much certain

christine lagarde at 7:00 a.m. eastern time.ugh position here because it doesn't like the weigh in to local politics but she and -- have come out very strongly in favor of staying in the eu and have come up with some strong analysis. >> they have. and this report today as appears her rhetoric has been dialed back from two and a half, three weeks ago. very clear views on that day. and at lof fall out for her. meant to be impartial but come out with a clear view and just got cold feet on that. dialing back the rhetoric somewhat. >> and means an already diplomatic leader and speaker is going to be even more so. >>> in the meantime global markets appear pob assessing the risk of brexit. as wilfred mentioned the pound is making a comeback this morning. after tumble to a 2 month low versus the u.s. dollar. back above 1.42. jo cox, herself an advocate in the remaining camp. early reports speculated things might be rescheduled. it doesn't look like that is going to happen. no matter what you can say about this tragedy there was a market

we'll swepeak with christine christine lagard. >>> welcome to "street signs." looking at more data crossing the tape this morning. the surplus for the 19 country euro zone jumped sharply in the month of april according to data from the european central bank. the current act balance is $36.2 billion euros. so the numbers also adjust the seasonal calendar. as a percentage of gdp it is 3.1% versus a lower level of 2.8% a year ago. so the numbers not really having a huge impact on the euro dollar. there subpoena a risk appetite on equity markets. let's push on the tape and see how the european markets are doing about an hour into the day. across the markets you have seen an appetite for many of the different indices. we were strong on the french and german markets, but looking back, the real strength of these markets have been on the p peripher peripheral. it has been the spanish stock market that has been the real leader here. right across the charts by sectors you see a real balance and banks are holding on to a balance of more than 3% pap very firm day and if i

i sat down with its managing director, christine lagarde, at the i.m.f.lier today to hear more about the concerns about what's happening to the middle class and the poor, and what could be done. managing director christine lagarde, thank you for talking with us. >> pleasure. >> woodruff: so this latest report from the imf looks at the american economy, says it is in good shape overall, shows resiliency, but then it goes on to point out a number of factors that provide concern for the future, and one of them has to do with the shrinkage of the american middle class. what do you and your colleagues see, and what concerns you? >> we are seeing a shrinking of the middle class. if you look at the size of the middle class in 1975, it was roughly 60% of total population. if you look at the middle class today, it is about 50%. so that's a significant decline of the middle class. and it is an economic issue, because the middle class has always been the consumption force of this nation. the upper class doesn't spend as much. the lower class doesn't have as much to

i want to start with christine lagarde.ard her speaking earlier if you aresterday, in the u.k., as we have just gone past midnight here. let's hear what she had to say about the way that markets really did not price in this result. the markets had vastly underestimated the outcome. what i hear all the time for my team, which is essentially andets get it pretty right anticipate reasonably well. on this particular occasion, whether it was a bookmaker or the markets, that was not anticipated very much. that is going to be one of the big questions going forward, why was it that markets were not prepared for this to happen and why we have seen the fallout since? the other comments christine lagarde made, she said the risks depend on certainty or uncertainty, policy makers are holding that level of uncertainty in their hands, and she says it hinges on the next move. as i have been saying, nobody knows what that next move is going to be in terms of reaction from the eu. on saturday, we were getting a hard-line stance with the othe

madam christine lagarde, the m.d. of the imf.ick, thank you. that was riveting. you do say you could line the economists up end to end until they're all the way around the world and still not reach a conclusion supposedly. i don't know. consensus of economists? nah. sub prime can't possibly turn into anything serious. i love consensus. >>> tom farley, a new exchange about to get the thumbs up from the sec. >>> later, the majority of brits want to leave the eu as a referendum looms large. but who knows about these polls. council of foreign relations rich haass joins us to discuss why they need to stay. "squawk box" will be right back. >>> welcome back to "squawk box" this morning. the sec set to choose a winner in the fight over high-frequency trading. voting today on the approval of a new national stock exchange trading platform hoping to compete with the likes of nasdaq and the new york stock exchange. the company wants to impose a quote speed bump to slow down trading to give ordinary investors equal footing with more sophistic

there have been comments from u.k.,people outside the crucially christine lagarde of the imf. stine: the markets had vastly underestimated the outcome. what i hear from my team, which is essentially markets usually get it pretty right and anticipate reasonably well. on this particular occasion, whether it was bookmaker or the markets, that was not anticipated very much. christine lagarde also said it will be key as to how policymakers react in the coming days. haserms of how the eu reacted towards this, on saturday, we were hearing a hard-line stance with the eu saying the u.k. has to exit as quickly as possible. with angela merkel 's chief of staff saying let's have a timeout. the coming way, david cameron will speak to parliament. we also expect to hear from george osborne. german chancellor angela merkel will meet with her french and italian counterparts today. all of the eu leaders will meet, including david cameron, but he will only be there for part of the meeting. what is really crucial as well is the timing of when this article 50 could be triggered. that could say a lo

christine lagarde also brought this up. if we can bring up that graphic, that there are many non-eu members out there, non-eu countries, that actually have plenty of trade with the eu and doesn't necessarily think it's going to be an issue. talk about trade specifically because in essence what the uk is in right now is a trade agreement. they don't use the euro, david. >> that's right. they're also in the wto, so lots of countries are looking for ways to trade. it's a very globalized world. so i think the uk could exit the eu and still be an ally and a friend of europe and trade extensively with europe. they run a trade deficit so they're in a good bargaining position to have good trade relations with europe, and they may add better trade relations with the u.s. if they're separated from the eu. the problem is the eu is just too big and it's sinking. coming back to the neg at ththi this -- negative, to the bank stocks, bank stocks have been getting crushed. i think it's ball game negative interest rates are a negative for b

it is possible that christine lagarde on that level is a disregard.he idea of the pound seeking .uch further, that is something it could go down to 120. what is happening throughout new york is you can see banks and , how many of those are we going to keep? they are certainly not going to for more investment. any country which is running a current deficit depends on the ofrent -- kindness strangers. britain is running one of the highest. we're cutting ourselves off from the world's richest, single market. constituency next-door. the leadership in japan has been clear that this productiveness is there's export to european markets on the right terms. i feared the 3-5 consequences more than the one to two-year consequences which will nonetheless the horse severe. i think this idea that we are going to have this slow pace of with draw is going to be tested in broken in the next few months. they may not want to move ahead but they're going to figure out what to do. the negotiating start is clear. they are not even an negotiating team yet. they're not in po

it is possible that christine lagarde on that level is a n exaggeration.he idea of the pound sinking much further, that is something. it could go down to 120. these are all things people see in money. what is happening throughout new york is you can see banks and people saying we employ 1000 european nationals in the london office, how many of those are we going to keep? they are certainly not going to put more investment. >> any country which is running a current deficit depends on the kindness of strangers. britain is running one of the largest current account deficits at the moment, 5% of national income. we're cutting ourselves off from the world's richest, single market. the sunderland is a poignant one. i represent a constituency next-door. the leadership in japan has been clear that this productiveness is there's export to european markets on the right terms. i fear the 3-5-year consequences more than the one to two-year consequences which will nonetheless more severe. i think this idea that we are going to have this slow pace of withdrawal is going

. >> christine lagarde was on with wolf?> she was on with steve. >> i wish we could go back to sound bite. she actually listed a hundred different economists who said this would be a disaster. and then she said you don't get consensus like that without it being absolutely factual. i remember -- >> she is not a trainee. she has been around a while. >> she knows her bureaucracy. >> we're not going to know for several years. what we know in eight hours in the morning is not an answer. >> it's a great day for journalism. that's what we know. >> in terms of the market. you see things like this, you think things are cheaper. would you tell people to buy in here? >> the answer is yes. more turmoil to come probably, given the humility. bargains are being surfaced. must be domestic british equities that are down 12% that are fabulous before they were down 12%. i'm going to try to find some. >> spain, italy, is this the beginning -- >> they're a little bit different. sovereignty is great in theory. what is great is a sovereignty in fa

i have a huge regard for christine lagarde.re is an important letter in one of the sheets this morning about bill gates come a big investor in the u.s. for whom jo cox used to work. direct foreign investment in the , fit into they wedge is a risk. recent pew research shows in many other countries, europe is not popular. the french are even more anti-european at the moment. risk, if we go down that path, number of others might follow. is parliament able to follow through if the leave camp wins? ambassador westmacott: one vote, referendum, that's it. arliament would need to enact piece of legislation to give effect to the views of the british people. david: peter westmacott, thank you for being here. banks,ming up, european stocks down. hammered by the feds outlook on brexit concerns. ♪ jon: this is "bloomberg ." equity markets stabilizing, still heading for weaker losses the fx market, it is risk on a little bit with currency bouncing back. the russian ruble stronger on the session. the canadian dollar stronger on the sessio

. >> yeah, christine lagarde said the credible forecast said britain was going to lose 10% of its g.d.p. which is worse than the great depression or the first world war. we've also had the prime minister talk about the possible dangers of war in the continent. i don't think anybody's actually come up with the idea of swarms of locust from egypt yet. >> rose: so you're saying you do not believe there will be the kind of economic consequences that -- >> there will be the short-term hit john mentioned. there already is. the pound has fallen. good for exporters but, nonetheless, not great for some. but as far as the idea of mass economic dislocation, i don't see it happening for the simple reason that we export so much less to europe than europe exports to us, and, so, therefore, there is a direct and obvious financial danger for europe to try and treat us like norway. we are not norway. we are the fifth largest economy in the world and the second biggest one to have the european union. so it's not going to be like that. there are more jobs in europe dependent on trade with britain than the

managing director christine lagarde says the on whathinges policymakers do in the coming days. as markets react, she urged calm. >> things in perspective a little bit. rush of short memories, a to a few conclusions, which is not the best thing to do at the moment. voters backed away from forces inpolitical favor of the people's party. china's central bank has weekend the yuan's -- weakeneded the yuan's reference rate. premier told the world economic forum that china wants to see a stable and prosperous u.k. brexit is making headlines in the presidential campaign. hillary clinton rushed out a tv ad attacking donald trump. clintont back, calling disgraceful. global news 24 hours a day powered by over 2600 journalists and analysts. you can find more stories on the top go.g week, last friday, many people remember it as a trading day in markets. today looks less of a standout. juliette: that is right. that is thanks to a number of markets doing quite well. the weekend has given investors a little bit of time to take stock. we have seen some buy coming through, particularly japan hel

but christine lagarde saying that it would have a big impact on the uk economy.hat does this mean for u.s. companies which will be the most exposed, names like ford and ebay appear in the top ten of the uk revenues and their sales will be affected by any uk slowdown, and as well as a fall in sterling, but it is the banks most exposed, the u.s. banks expose sure no emea and the chart of the top five, and goldman sachs has the highest x exposure at 27%, and these names are taking a big hit of the brexit delayed rate hikes and lower yields. >> thank you, wilfred frost. we will see plenty of you next week. and now, if you could keep the comments brief, how are you thinking of the impacts on the investments that you are making? >> well, i would say a technical bid for the u.s. paper. if you went back four years ago, the eu investment grade and the domestic investment grade in the u.s. had the same yield which is 3.2%, and now the u.s. is at 3%, and the e sushgs 0.9%, and so there is such a technical demand of the pension funds and in europe that you have the backdrop

she recently sat down with christine lagarde.m glorious aspen. >> when you think about the implications of brexit and what's going on there, we've had lots of conversations this morning about the feelings around the world about the elites. how do you think it will impact the conversation in the election year? >> well, it'll impact the conversation. how it impacts the election will require some time. in political time, a day is a week and a week is a year. so there's a long time to go before november. short-term i'm very worried about a tax on airports. let's think istanbul and devastation there. as john kerry said at aspen yesterday, that could be the new normal. and i would fear and i think it's possible that airport attacks come to europe now while europe is distracted. certainly there'll be an effort in the united states. and that will throw, it seems to me, a big wrench around all this. so the goal has to be steady hand, long-term vision. that's what christine lagarde said on sunday in aspen. and angela merkel from the report

on the policy coronation, we have had similar comments from john kerry and christine lagarde. how this is going to be coordinated investors want to see how the u.k. feels with the nitty-gritty of any exit. utures,e 100 f down by 3.6%. on friday. it did retrace some of those losses to close down 3%. exporters gained on a weaker pound. it is extending its decline after that record one-day drop we saw on friday, still at the lowest level since 1985. looking at the pound against other major currencies, you can see that the pound is down against every major currency apart from the norwegian krone. happening off the back of losses in the oil price. sterling is the second worst performer against the dollar today. yvonne: it is all going to be about the currency. we have live -- live from london. we are getting more comments coming out of the premier. china hoping to see a unified and stable eu after this brexit referendum and saying special reforms are needed for global economic recovery. they are hoping to see a stable and prosperous u.k.. china -- urging china to change the develop

christine lagarde joined the central bankers and sounding the risk posed by a brexit.r ambassador to the united states broke down the economics of brexit. some of the issues, the two biggest ones, immigration and the eurozone thing. the argument has been a bit bogus. we do control our own frontiers. we have had the best of both worlds. keep arguing and saying we can't control our frontiers if we stay in the united kingdom. friends in turkey saying that if the turkish migration deal goes through that we will be flooded with turks. turks will have visa free access to the shinned and countries -- -- countries,nies not a vote. be looked at their merits, and if they meet the criteria, we should be welcoming. some of the rhetoric and nonsense and focused on the facts would be very helpful. don't need aeans visa to go to the u.k.. you don't have controls over who can come and work there. that is the problem. been why the remain campaign has been losing the immigration debate. do you see that changing over the next week? show fact, the numbers immigration from within the eu ha

francine: this was also said by christine lagarde guest today.ok, it is not the of monetary policy to do the heavy lifting. we were talking about a pretty brexit vote. of a coordinated action seemed extremely unlikely unless we get a violent, disorderly market. paul: my understanding is that of doinged action something would require a very severe situation and we are not quite at that point. it has been a coordinated statement to point out the liquidity measures already in place. beyond that, each central bank will have to handle things as they see fit. market carney has already said he will do whatever is necessary to meet his liquidity and monetary goals and that should mean a rate cut in july but they are also betting on how many at the ecb has a 50% chance. they may be de-financing. zero. following negative. francine: paul gordon there, our central bank editor. more with chief european economist. i want to point our viewers to two things. first of all, the pound dropping. there you go. the european stuff. we will get pounds up in just a secon

weekend in terms of events that could be market moving as we tried to find that certainty as christine lagarde? a central bank meeting taking place in portugal which will be looking to see if we get any coordinated action, any further commentary about the details on what central banks are doing behind-the-scenes but some people talking about the need for coordinated action from central banks, other investors are commentators talking about, let's just to see how this plays out. maybe the bank of england will not move that quickly. so, we will be looking a central bankers to see if we get any comments on the turmoil we have seen. --sef: rishaad: indeed, let's have a look at 90 minutes ago before markets open in the middle east. sam, saudi leading the slump on sunday. would we go from here? much ayesterday was very down day across the middle east. we were playing catch-up everywhere else. in the end, while saudi had the biggest day drop, he was to buy that finished the lowest. recouped some we of the losses throughout the day so i do not think we are going to see a similar scale of decline today.

we expect to hear from christine lagarde, managing director of the imf.ng special coverage of the brexit aftermath from new york city. i am erik schatzker. here is what is ahead. britain's two main political parties are in turmoil following the unexpected vote to exit the eu. we will tell you what it means for the next prime minister. spanish voters went to the polls in an unprecedented repeat election. the president got the support she needs to break the political chaos. mark cuban, the outspoken billionaire businessman has an opinion on almost everything and you will find out what he has to say about brexit. we bring

managing director christine lagarde says the search is underway for his successor.l, it is flying airplanes from boeing, in the first deal since sanctions were lifted in january. the deal includes a mixture of 737 and 747 jets. no dollar amount was given. earlier this week, the iranian aviation minister said they plan to buy about 100 planes. walmart is reshaping its operations in china. they have taken a 5% stake in e-commerce site jd.com. walmart has struggled to adapt to china as its slowing economy and to arise in online shopping. david: time for our bloomberg quick take. we provide context and background on issues of interest. should we stay or go? that is what the british will have to determine this week. here are the reasons for and against a brexit. the european union may be in the european union may be in for a messy divorce. britain's exit, or brexit, from one of the world's most powerful trading blocs will happen if britain's book to leave in a referendum. polls show the vote could go either way. here is how we got to the situation. those that want to lea

it's also on some level angela merkel, the european commission president, christine lagarde, a wholeders that were lined up by downing street have simply not been effective at moving the debate because they haven't focused on these two core issues that the electorate is really concerned about. >> how long does david cameron remain prime minister if voters vote to leave? >> if we vote to leave i think he's gone within the week. i think there needs to be a very quick succession within the party, not only because the conservatives need to demonstrate cohesion and unity and get on with the business of running the country, but also because there's going to be a tremendous amount of pressure from the europeans, not least the germans and the french, who are both heading into their own elections next year. you are going to want a very clear proposition of how the european union is going to work without the uk. now, the only way they get perspective to that question is if the new leader who emerges embarks on this negotiation with the rest of europe to figure out what this new relationship wi

christine lagarde discussed the need for a smooth transition. >> the british people have spoken and theision is to be respected. it will be time before the there of the future of united kingdom and the european union will be known. in the meantime, it is important that there be clarity on the negotiation process and that it be carried out as smoothly as possible. mark c.: before the referendum, the imf forecasted that would draw from the eu could force the u.k. into a recession in 2017. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. this is bloomberg. back to you. alix: thank you so much. one of their casualty of the day is the yield thread. , he a look at the curve keeps on flattening. the question, can the curve invert? can invert when you have a two-year yield. it is truly unbelievable. all of that weighing on the fed. scarlet: the fed is going to be dovish. here is a function that we like .o use as a bloomberg you can choose your country. i'm choosing the united states. let's start with the actives. hig

what happened, and what happened was you had barack obama go to the united kingdom alongside christine lagardellary clinton who stayed back here and advocated for this globalist sort of policy, and you had the united kingdom, the voters rejected. and northern england you had huge working class turnout saying we don't want this, it's not good for us, we're tired of regulations. thee u esu is about to put in regulations about hair dryers. you can't even make a croissant without -- >> don't mess with my croissant. >> hillary clinton's camp thinks today shows he doesn't have the temperament to be president of the united states. the uk decided to leave and hillary clinton said what? >> she put out a statement and talked about the problem here, but i think donald trump's press conference was bizarre. the fact that you would spend ten minutes talking about how building a government golf cour building a country and trying to sell suites at your gulf courol. he's talking about himself which is what he does this whole campaign is talk about himself and talk about how these events are going to impact him

christine lagarde says the fallout from europe's vote to leave the union hinges on what do today.rs sheas urged calm. >> put things in perspective a little bit. there is a lot of either short rush to confusion, which i think his optimizes the thing to do at the moment. the prime minister has consolidated his position in the country's general election. with fromked insurgent political forces in favor of the relative security of the people's party with the u.k. endorsed by political, economic uncertainties. not to jeopardize the country's economic recovery. china's central bank has we akened. it is the most since august's devaluation last year. the dollar strength surged following the u.k. referendum decision. anda wants to see a stable prosperous u.k.. brexit is making headlines in the u.s.. hillary clinton rushed out a tv ad attacking donald trump, golfg it would benefit his courses and scotland. trump called clinton "his disgraceful." " this is bloomberg. guy: thank you very much. let us talk about what george osborne has been saying. we finally got to hear from the chancellor. this is

time, imf manager christine lagarde takes place when the austrian finance minister.ussian president vladimir putin speaks at st. petersburg economic forum at 1:30 u.k. time. you.s. housing data start. and mario draghi will be speaking in munich. of the st.y two petersburg economic forum and we will be speaking to the largest outdoor advertising corporation in the world. ♪ anna: welcome back. this is countdown. 6:18 in london. 1:18 in hong kong. the hang seng up by 8/10 of 1%. let us get the bloomberg business flash. haslinda: anna, a former goldman sachs banker pleaded guilty to receiving documents that have been created from the federal reserve bank of new york, he has been banned from the financial industry. for any barred association with a broker, investment advisor, or disabilities dealer. authorities are said to be investigating employees, and varejao occasions they help customers evade taxes. according to person familiar, officials examining whether the bank helped clients dodge taxes on funds from switzerland. santander declined to comment. bnp says the bank

anna: are we going to hear mario draghi channeling christine lagarde when he speaks later, calling onovernments to do more? paul: i think there is a good chance of that. it was a big part of the debate of the less governing council meeting, the came out a little bit later on. and mario draghi did state in his last press conference that there was a renewed emphasis on the need for structural reforms. and you may see him pick that up once again today. , look we will do everything we can, but the longer governments do not put in place the fiscal flexibility where they haven't, the longer they wait on structural reforms, the national and the european level, calling for a european area finance minister, the longer it will take. and the longer the risk is that everything is derailed by some kind of shock. anna: paul gordon, bloomberg's head of western european central banks join us there with a preview. we will bring you the ecb rate decision here on bloomberg, that will be followed by mario draghi's news conference 45 minutes later. during us now is sarah hewin, from standard chartered ban

what the economic heavyweights are saying about the way the vote should go, here's imf director christine lagardet exit. >> it's going to be negative for income purposes, will reduce trade most likely as a result of uncertainty. i mean, those are blatant facts. >> so at this point what does the positioning look like? how much is priced in ahead of next week if in fact it does come to a leave vote and what managing director lagarde just spelled out actually comes to fruition? >> certainly it looks right now like it's a coin toss and that of course is not very helpful for either side because if we're somewhere muddling through in the middle, then there won't really be a mandate for either the remain side or leave side. from my perch as a strategist, i always ask this question, is this systemic. i've asked this many times with greece and other developments and the two ways this could potentially become systemic is that if the u.k. goes, and i read somewhere that if the u.k. goes, scotland will have a new referendum, maybe france or finland or some other country in the euro will have a new referendum

david cameron said that christine lagarde said that. the predictions we will enter recession if there is leave vote tonight. certainly whatever happens, we're stepping into the unknown. that is the -- stuart: hold on a second. listening the result in west oxfordshire. >> remain was 35,200. >> west oxfordshire. >> number of votes cast in favor of leave was 30,435. 30435. stuart: you saw the result there. that is west oxford shire. that is narrow victory for those in remain camp. still 51% out, 49% in. rodney, you're still with us. we have yet to hear a lot of results from london where we understand it will be a heavy stay, remain vote. could that swing things around and change this result? >> sure, that's key. i think we start remain winning slightly and, a lot of big cities and places like wales which came out in favor of leave. there will be a swing again. is it enough? is london enough to swing it back towards remain? we don't know. very exciting in about 3 or 4 hours fate of britain and world is. stuart: rodney, one more thing. the b

. >> second only to christine lagarde and i predict they stay and they should.s important for the alliance. >> i think the governor is right. i think the free trade zone which was the original idea was a good idea, okay, and regarding the european continent, it was a good idea but what's happened it's morphed itself into a super globalized government and they are making judicial decisions, regulatory decisions, welfare. >> bloated bureaucracy, fat and happy. >> huge dbureaucracy and i call this magna carta 2 and i wasn't there for the first magna carta, that it was 1215 with king john. however, the idea of personal liberty, the idea of self-government, the idea of self-autonomy, i don't believe britain should give that up. i don't think the eu has done very well on a ton of issues and maybe at the least the british rebellion here will cause the eu to change in better ways because europe is not growing and it's a bunch of socialist bureaucrats running the place. >> talk about trying to contain the french and the journalists. >> is there a school of thought that m

. >>> christine lagarde is warning of market pain if policy makers don't move quickly to reduce uncertaintybout the state of their new relationship. speaking at the aspen ideas felt value in colorado on saturday, he said they underestimated the brexit vote but no liquidity problems like during the financial crisis. >> central bankers did their job. all groupings, organizations, imminent policy makers came out publicly along the same lines of trying to reassure that the situation was under control and it was very much under control. we didn't see those sort of panic move. >> lagarde says that if the u.k. follows through, there will be no doubt an impact on the british and eu economies. that's relatively obvious. >> yes. >> the reason now is everyone is calmer this morning because there's the possibility that this whole thing gets rolled back or gets slowed down. the more you think it's going to get rolled back, the less support there might be to roll it back. >> let's talk about the possibility of what you just mentioned with this next story because scotland's first minister warned that the

remember, christine lagarde, they'd gone to the u.k. and said don't leave. that was the voice of globalism and that was rejected in the vote. stuart: you're a trump economic advisor, a guy from wall street, i know you well. you've worked in the economics business, if i can say that, many, many years. what's the negative of the united states of america for the british decision to leave? >> i don't think it's a negative. the question is what do people do as the eu evolves. i'm worried that the eu is in decline, that's probably good, but-- >> i think it's going to break apart. that's bad for us. >> no, i don't think that's right at all. what we want is a faster growing world and the eu bureaucracy has stood in the way of that. it's in the u.s. interests to have europe growing a lot faster. >> how will britain's exit from europe make them grow faster. how will it break the brussels socialist bureaucracy. >> that's where leadership comes in. there are calls to netherlands and france for their own referendum. as e retrospects and they will look at the polls and th

christine l.a. gad in vienna, u.s.a. re a. she says progress is never linear, and, of course, she goes on to make comments on brexit. no surprise, madam lagardeking about economic brecksity and talking about a case for the benefits of the united kingdom to stay within the european union. i like that idea, progress is never linear. that sounds like a good idea, francine. francine: well, yeah, everyone would rather it be linear, but we know things don't usually go according to plan. it's time for the morning messages. erik schatzker sat down with bill gates to talk about the company's acquisition of inkedin. bill: i think the value of the two companies combined is greater than the two by themselves, but i love the idea that the market wants us to show that. i mean, the company is expert in software and managing those audiences, and it's great that they have an opportunity to surprise the world and say, oh, my god, look, this speed, this professional speed and linkedin, that is how i want to learn about my career, my company, my industry, and i'm going back there. we can make that as, say, valuable as the facebook feed is in the social world, th