erik: like what?arry: i believe investing in north america over a long horizon is going to be a great opportunity. that is a mix of canada, u.s., and mexico. i believe there are going to be strategies in fixed income that will continue to be a stable return type of products with low return relative to equities, but certainly better the negative interest rates. i've never been traveling more than i have. i can tell globally investors worldwide are confused. they are looking for solutions. they do not want to keep their money in cash. they would like to find solutions. depending on the client and their geographic region, some people are putting more money to work now. other people are taking money and putting it into cash. i can speak for blackrock -- we have never been in a better position dealing with more clients globally than we are today. erik: on that note, i thank you so much. larry fink, ceo and cofounder of black rock. we are in aspen colorado. david rubenstein, the co-ceo of the carlyle group,

erik: you are watching a bloomberg special report, i am erik schatzker.utal campaign that left deep scars around the united kingdom. remain or leave? markets don't vote, but on friday, investors around the world paid the price as the shock of britain's decision to leave the eu set in. stocks changed the most since the financial crisis, with trading volumes higher than the 30-day average. currencies were shot. they pound fell to 1985 levels, and the yen surged. the drama isn't over. scotland is threatening to break away from the u.k. solidarity remains in question. we cast our net across the financial world to gather opinions that matter. here is what they have to say. >> the british people have spoken. their decision is to be respected. it will be some time until we know the nature of the future relationship between the united kingdom and the european union. in the meantime, it will be important that there be clarity on the negotiation process and that it be carried in as smooth a matter as possible. >> as a backstop and as a function of the markets, the

: i'm erik schatzker.ing our special coverage of the brexit, britain out. leaving the eu will be a messy process and business leaders may not know the full impact on their companies for months or possibly years. but already they are taking , stock of the situation and trying to come to grips with an uncertain future. >> i'm afraid that this is definitely not a good day for europe. there is no doubt the consequences will be negative on all sides. as a britain and the european, it especially saddens me that the european idea obviously has lost its attractiveness to so many of my fellow countrymen. that is a clear signal to the eu to get closer to its people and to strengthen democracy. as a bank headquartered in germany, and with a strong hub in the u.k., we are well prepared to mitigate the consequences. >> we have an unwinding process ahead of us with the eu, to its will take -- which will take considerable time. it is not just the two years, it is not just the triggering of 50. it is the renegotiation of

: i'm erik schatzker.atching our coverage of the brexit aftermath. leaving the eu will be a messy process. already they are taking stock of the situation and trying to come to grips with an uncertain future. >> there is no doubt the consequences will be negative on all sides. saddened me the european idea has lost its attractiveness to so many of my fellow countrymen. as a bank headquartered in are ready for the consequences. take time. years, itjust the two is the renegotiation, all these kinds of agreements. they could take up to 10 years to renegotiate. the uncertainty is to say the least troubling. >> we don't see riding on the street relating to this anger. you see digital writing. -- rioting. pay attention to the social media feeds. you can read the anger people have had. europe needs a new playbook. it is now looking to its largest economy to take charge. >> one of shock and concern clearly. we were talking to leaders. there was a contested for for germany and the eu. pragmatic as she is the leader

erik: about half book. mr.taley: and it was not helped on friday or monday, and we need to correct that. to correct that, we announced last march a major strategic change in barclays. we have sold, or are in the process of selling all of our retail banking assets in continental europe. we have gotten out of the wealth management businesses in the united states and asia. we announced we will sell down to a noncontrolling, non-selling position in africa. we're the second largest bank in africa. we started that process a month ago. when it to close all these businesses -- we closed investment banks in nine emerging market countries. the core bank on barclays has a return on equity of double digits, this transatlantic bank i talked about. we need to close non-core, so what you see is the core bank that you see today -- that bank is generating profitability that should lead to significant appreciation of our stock price. what we need to do is not take our eye off that strategy. we cannot let the referendum vote chan

erik: thank you very much. from london, we take you to spain where the result of the elections today are just coming in. this is a country that has not had a functioning government since last december's indecisive vote. it does appear that the caretaker prime minister and his people's party has made gains. there are celebrations taking place in madrid. fill us in on the latest, please. done way they have better than the opinion polls and the exit polls seem to suggest. as soon as voting ended at 8:00 p.m. local time. the polls suggested that anti-astaire and the, anti-establishment party had done better than the opinion polls had suggested and could form aally go ahead and left-wing government. that turned out to be wrong. in fact, the people's party has won more seats than in the inconclusive vote in december. it still does not have enough to rule by itself or rule a majority government with another party. but, they are certainly in a better position than they were in december. erik: a little bit of limbo. is

erik: they could.y could definitely vote themselves out and choose to become like norway, which means that if you do everything, you pay the bills but you are not at the table when changes are made. , their biggestlo concern that they are never consulted and they just get a letter saying please do. switzerlandagine where you negotiate back and forth, and in some ways you hear that switzerland could be the biggest loser because the eu is already tired of this one-on-one, deal after deal. back andsist we come talk about pound strength being the biggest surprise. we could go all day here. francine: we are. we are just getting started. we speak with nicola sturgeon next. ♪ you guy's be good. i'll see you later [ bark ] [ bark ] 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 the

eric. -- erik. erik: thank you.ee you again. .e are here about financials let's talk about where we are from the investment perspective. what do you see? journey, a lot of things at lay right now. everything from technology innovation, a lot of regulation change. hast years ago and it still a lasting effect. we are seeing the use of data. erik: is more electronic a good thing? >> i think it is a necessity. ,he way markets are trading given liquidity and the fragmentation, it is obviously necessary to connect buyers and sellers. to bringe model -- yone together, erik: fragmentation does not, the good thing. >> we have multiple exchanges and multiple participants. what we are always trying to do is aggregate that activity, whether that will be a platform that aggregates it. it is just the nature of different participants. fragmented onbeen different buyers in different sellers. is not up to me. i think what we're seeing is to, liquidity is migrating if you really see what -- how , thereare trading well are venues wher

erik: you take -- john: you take a case-by-case.hat's a range of families will be interested in blackstone or only one or two areas. they will have an international perspective. and a profile that does not introduce risk to the firm. john: you are making it look like we apply profile to families -- erik: wealthy families in latin america that have sponsored governments that have done unthinkable things, they may have done unsavory things -- john: everyone has to go through your client test. that is good housekeeping. that is what a blackstone would do. that is what any firm on wall street would do. you have to be careful and know who you are dealing with. they want to know who they are dealing with. erik: what does blackstone have to do differently to cater to these group of people -- groups of people? john: we are shifting from a pure product orientation where we have strong products in each area, whether it is private equity or real estate, to a longer-term relationship management. that happened anyway. steve has built a firm now

erik: corruption is corruption?believe the standards being outlined by the supreme court really focus on what they feel is corruption versus political conduct. at the end of the day, there will be plenty of corruption to go round. it will help avoid investigations and indictments that ultimately lead to reversal. erik: you were citing bill de blasio over allegations that they funneled money to state funded candidates. where does the investigation stand? cannot comment i on the precise nature of the investigation or where we are at this time. i say we received over photo -- a referral from the port of investigations. other than that, it is inappropriate and unwise to share details that may be nothing but something bad. draw connection between back, the case, and citizens united. it seems that more than ever before the connection between money and politics is fraught and demand the focus of prosecutors like yourself. you find that public corruption is taking up more more of your time? corruptionhe public cases have be

that's got to be some kind of concern, erik. erik: yes, it is.ar bonds were five basis points lower than one week before. had you asked me a week before what would happen in the scenario, i would have guessed 30, 40, 50 up. that order of magnitude. is it a concern for the ecb? yes, but you have to give it more time. you are not in a crisis mode. you want to watch this carefully and you need to think about whether some of all this we've achieved in terms of leveling the playing field -- there is -- the spreads between what we charge in italy in loans to these businesses -- when you're -- a year ago, it was a 100-basis point difference. francine: is it something more sinister than we think or was it just part of the selloff? panic, or do we need to look at the concerns? could it be even worse next week? erik: it could, i would guess not. but god knows, on a weekly basis, you don't know. i think what you saw a really was the surprise meant risk off , in a big way. it used to be that you would then in europe would sell the peripheral. but you're not

erik: let's talk about jimmy buffett. >> one of my favorite topics. erik: i'm sure.fett of all things? why jimmy buffett in terms of someone who has been able to bring that world -- the lifestyle to so many people. jimmy is an interesting guy. very successful musician, but he is a writer. there are six authors number one on the best selling list. hemingway, steinbeck, dr. seuss, and jimmy. to jimmyre is more buffett then margaritaville? >> yes it is. it is jimmy's take on life. it is really the attitude. it it is a very unique way of looking at the world. work hard, enjoy yourself, be responsible. erik: how big is this company be --you are doing 1.5 billion $1.5 billion in sales. good times the size and five years. erik: but the lifestyle is fun, but is it profitable? >> it is very profitable. it is the fact that everyone is having so much fun. they are vary connected -- they are very connected. erik: i am curious. you do have an outside investor. sleeping their ingre of profits -- sweep their share of profit. >> you know how that world works. there are so many diffe

erik: 94% of our domestic u.s.iness is electronic, over 80% in europe, we are getting there, the big one is fixed income and commodities. that will take longer, fixed income you have to pass, he had the foreign exchange and rates. -- a muchyou know is more discreet market, less than 1% of corporate bonds trade more than once a day. erik: you joined dean witter in 1989, is the right? colm: morgan stanley. erik: my apologies. we will have to make that takes in our system. -- fix our system, if you look at how many people into to run that, how many fewer people would it take to run a business today? colm: not sure it is about less headcount, about less cost, much less expensive people at the front end delivering product to clients and a lot more people supporting the business itself, programmers, i.t., etc. overall, you get cost down and by definition some headcount but i would not get too focused on headcount, focus on cost. erik: it has been a pleasure. he is a career man at morgan stanley, talking about the preside

shery: erik schatzker will be back with us in a bit. guy lebas.rri david: we will have live coverage of janet yellen's remarks. shery: let's check on the first word news this afternoon. mark crumpton joins us with details. mark: two people have been shot on the ucla campus today. the conditions of the victims not yet known. spokeswoman tells reporters she did not know the whereabouts of the shooter. the campus on the city's westside is on lockdown. we have a live press conference underway right now. let's listen in. >> i have not had that confirmed to me at. -- to me yet. [sirens] >> [indiscernible] >> what about the suspects? >> i don't know that, either. happen quickly and a lot of information comes in from a lot of different sources. >> can you start with what we do know in terms of what happened, when it happened? [sirens] >> around 10:00 this morning, a shooting occurred on the ucla campus. reports that there may be at least one or two victims. we do not have that confirmed. i do not know the status of the victims or how many we ha

erik: is there an argument to be made for other british companies?pany has to make their own decisions so i will not speculate on what they might.do i think the current environment is unpredictable and we all have the opportunity to be calm and measured and not engaged in speculation. famousearson is somewhat for a chart correlating u.s. unemployment with higher education enrollment. would you expect to see the same in the u.k. if the brexit triggers a deep economic slowdown or a recession? >> that's one factor you refer but how we chart our success over the next decade is the demand from customers around the world for good quality, accessible, affordable education and that is a strategy we share with her shareholders in a seminar the other friday we have a good strategy that are shareholders understand. we will get on with that as well as we can. your even before brexit company faced a challenging market. is open source information for education and the political fight over standardized testing. you are competing with amazon. amazon is in the used t

erik: what about four morgan stanley?ritishe are hoping the voter will show sense and listen to the economic arguments and stay, but we are clearly looking at our plans. what is not clear is what the effect of the renegotiations will be in the of -- after brexit and what it means for the market and britain's access to it. erik: come friday, what does morgan stanley do differently? -- is assuming guest: assuming there is a brexit, we have contingency plans. we will look at having a european headquarters that will be acceptable and in terms of a combined -- erik: where would that be? guest: possibly dublin or frankfurt. i like the idea of dublin. do, but youre you are biased. what's most challenging from an operational standpoint? guest: i don't know if we will see the details yet. i've think the clearing of europe will move to continental europe and the exchanges will be moved. him aactical things straightaway, longer-term, you can have all sorts of issues on movement of labor and visa travel. this is affecting risk appeti

erik: thank you for taking time to talk to us on this historic day.lk of a recession in the u k and talk the eu will have challenges if not outright difficulty hanging together. do you have a view on what is going to happen? howard: i am no economist, i do not claim to be. i do not believe much in forecasts. likenk at a point in time today, it is extremely hard to think you know what the future holds. i think it is -- the most important thing in our business is to know what you do not know. i do not think anybody knows what the long-term implications are of this. confuse ourselves on that. mohamed el-erian there are lots there are-- erik: lots of people telling us they know what will happen. howard: it does not make them right. there always are. walter conch right once famously -- ifif you do not you're not confused, you do not know what is going on. know how anybody can be itfident that they know what means. isaac economies will slow down. -- i think economies will slow down. there will be a slowdown in membership and they will do less onch could the

erik: let's talk about the fed.the treasury curve this morning, the 10-year is x handle in the14 early morning hours. talk aboute sense to a hike in 2016 or even in 2017? bill: not at the moment in the face of this. i have been suggesting it will go once this year. ory will try to normalize, at least try to give the markets they are going to normalize. outss one of the big fake that central bankers have and trying to perpetuate on the investment market. with their dots, which are one of the two 200 basis points higher than current rates. that promotes a steeper yield curve and allows banks tomorrow marginal about of money through this barrage. ago,llard suggested a week these dots don't have any relevance to future reality and they really belong closer to 75 basis points or one. what does that say what is banks such as the united states, the most solvent, best credit in the world can't receive just rates by 25 basis once? -- basis points? it's a rather pathetic condition. something they has slept themselves into in

erik: your best guess?it comes down to each manager putting capacity constraints on themselves. that will likely create a reduction in the industry of some magnitude but i would be guessing as to what the number is. maybe 30%. erik: not 50%? >> i don't think that's necessary. erik: but we are talking about trillions of dollars. >> we are. it's a huge amount of money. for activepennies managers as we cannot actually manage all the money in the world. there is a limit. passive plays a role. there will continue to be and should be a passive world. active managers should also play a role in a place in which there cap at -- there are compassionate he -- there are capacity constraints. a size have to find where we can produce the returns and produce the objectives, investment objectives, that people gave us money for. erik: imposing capacity restraints on the industry by definition means that some firms will have to impose capacity constraints on themselves which constrains growth opportunities. > if you are a pu

erik: i am curious. to be curious, whether you have an outside investor, are they happy just sleeping their share of profits, do they ultimately want to monetize? know how that world works, they have to realize upon their investments, but there are so minute different ways you can do that that don't necessarily impact the corporate structure of the company. .e are having fun doing it what is exciting is how much room there is ahead of us. one of the elements of the resort business is it is very capital intensive. we have now hit an inflection point where that capital is available to us. an interesting statistic, if you go back and ahead 18 months, a billion and a half dollars is going into the ground with our name on it. is fun, to be able to tackle projects of that size, i anticipate we will be in the all-inclusive business in the islands, which is logical. it is kind of like we're just getting started. holdingsrgaritaville ceo with erik schatzker. vonnie: let's go to the markets desk. shery ahn is with

erik: nasdaq is there?nd i think we have got to prepare for that. we started changing the company from infrastructure provider to a technology solutions provider. you have to now be a solutions provider that happens to run markets and not just an exchange. you see that happen with different firms. with an asiange exchange operator like singapore hong kong? >> anything you do like that has to be organically driven, meaning what does it do for your strategy and how does it grow your business? if it helps grow organic strategies. business, then it could here to just have a franchise or another business does not automatically help your core business. how can it actually drive our growth? i would be more interested in looking for things that drive our information and analytics is is. erik: not matching or listing? >> i and just using one as an example. if you have won a could create a franchise in another part of world, that would be -- the business. would you have better prospects if canada had a national secur

erik: absolutely.he idea is holding portuguese corporate bonds, or shares from the bank that holds those bonds. i'm concerned about the long-term risk on the possibility. i don't worry about that in terms of the current pricing for those. i know if anything goes wrong, the ecb and mario draghi will step in like he promised. that has put doubt in my mind that maybe there will not be an ecb. maybe britain leaving is the start of unraveling of the whole project. chance that5% outcome comes to pass. anna: when i'm looking at the banking stocks, especially the u.k. focus, is this about weakness in the u.k. economy. is this about eurozone debt? the difficulty making money. all of those things together? erik: all of those things. when we think about the european peripherals the that matter into the banking system with respect if they hold that debt. there is a structural problem and one that would come to fruition ifif it -- this is the unraveling. there are concerns about their ability to access the european

mark: bill gates with erik schatzker.ighlight that you could read more on the terminal as well as bloomberg.com. julie: monfils has made a takeover for hershey. dow is reporting that on the lease sent a letter to -- mom elendez -- hersey shares have halted. triggers.o see the that is why we have this temporary halt. that is where we are seeing for hershey shares. i am taking a check on the bloomberg. melendez up 2%. we will bring you more details as we get them. gets still ahead, google rated in spain -- raided in you what will tell investigators were looking for in the madrid office. this is bloomberg. ♪ ♪ vonnie: you are watching bloomberg. i'm vonnie quinn. mark: i'm mark barton. vonnie: a raid in google's office in madrid. mark: budweiser's merger is closer. file clearance in south africa -- wins final clearance in south africa. tax investigators are searching google and madrid. google says the are cooperating. last month, french investigators raided google offices in paris. mark: plans to bring more diabetes drugs to

erik: hard in a political sense?ave the prospect of finding work for aliens to would have to find different jobs. >> yes, and we know from our experience that dislocated workers is a serious problem politically and socially. it is a challenge. policyk to economic makers and they can retrain people who are 50 years it was -- 50 and younger. threading that needle is hard. but you don't have a choice. if you have excess capacity and you are grinding down your future potential growth, that is not good for people either. so they have made the policy commitment to make the changes and they now have to implement and execute. china, the line between government and state owned interest is a hard line to see. the provincialf governments that are the owners of the excess capacity. make of theou market reaction to what we saw over the currency markets in the last few months? >> a couple of things. first of all, but i think the world saw was something that was confusing. and not well communicated. to fears thatse china's economy

emily: our colleague erik schatzker with iex c.e.o. brad katsuyama.' private company launched a rocket into suborbital space and landed it in the span of eight minutes. the fourth successful landing. these tests have all been unmanned. rigin is hoping to carry tourists into suborbital space by -- this could one day cut the cost of each launch by millions of dollars. staying with space, a russian court is -- russian soyuz back -- rightt back three astronauts, all in good health after 186 days in space. peake has become an international celebrity as the first british astronaut to visit the iss. coming up, the faa is gearing up to release new regulations for commercial drones. will the new rules encourage innovation? we will discuss. ♪ emily: one story we are geeking out about, china dominates the latest ranking of the world's fastest supercomputers. for the seventh time in a row, china has the fastest machine. for the first time, it uses a chinese-made chip, instead of one made by intel. evidence that the technology gap between china and the u.s. is clo

erik pemple, media critic for the "washington post." thank you so much. erik: thank you. michelle: abc7 is proud to host a round table discussion two days away. that is thursday night. the topic the role female voters will play in november. tune in for the "woman card." i will be the host thursday at 7:00 on our sister station newschannel8 and streaming online at wjla.com. scott: all right. we waited with baited breath after the national zoo posted a picture of a positive pregnancy test. alison: there it is there. it's actually a human test. that is the one they used. the announcement coming soon. the zoo will be having a baby orangutan. >> we just gave you a little hint of what the teaser picture was yesterday. there are only a few animals at the zoo where the human pregnancy test would be accurate. test is accurate for orangutans. one of the zoo's six orangutans batang is expecting. the zoo made an announcement in a live video on the facebook page this afternoon. they even did a live sonogram showing us the baby due in september. this will be the first baby orangutan bo

erik: talk to me about how much market share you think you could have. where could that be a year from now? guest: on a typical day, we trade about 15% of total consolidated volume. that means more than one in seven shares are traded. we handle about 35% of all retail orders and we are continuing to grow those businesses. some of those are in other assets. interest-rate swaps, etc.. alix: still ahead, viewing a brexit 30 eyes of a prime minister. highlights from an exclusive sitdown with tony blair the only labor leader to win three straight elections. he reveals what a departure from the eu would mean for the global economy. ♪ scarlet: you are watching bloomberg. i'm scarlet fu. alix: i'm alix steel. this is your global business report. scarlet: what does tony blair think about a possible brexit? we alix: will ask him in an exclusive interview. amazon is planning to invest $3 billion in india. what kind of potential does jeff bezos see? scarlet: pilot projects for universal basic income are taking hold in europe. we will explore the theory behind free m

erik: what have you modeled for revenue and earnings?e case scenario, given the uncertainty, and perhaps the worst case scenario, what does this year look like, and what is next year look like? >> in terms of the stress tests governor carney talked about, these banks are so much safer. we have gone through all sorts of stress testing, much more to coney and then what anyone might predict on the back of the referendum -- much more directly raconian than anyone might predict on the back of the referendum. we might have a contraction on investment banking results in london. but you had a 10% correction in the currency, and the majority of our investment banking revenues are in new york, and last time i checked, we use the u.s. dollar over there still, so therefore you will have a pop in terms of the sterling value of our revenues outside of the u.k. same thing with the credit card business. so, let's see what will happen in the u.k.. on the retail side, i think there will be some pressures, but i am comfortable with our ability to generate

erik schatzker is live in washington with breaking news. erik: in a word, meh.t's how you might described the latest beige book. the latest reports from the 12 regional fed banks. yes, the economy is still growing but at only a modest pace. that is the word the fed chose to years. the fed use that same word modest to describe wage increases and job growth since the last beige book. in other words, this is not the kind of assessment that turns hawks into doves. there is little that suggest an urgent need to raise rates at the next fed meeting on june 15. the one area that stands out is labor markets, which the fed described as "tight." difficulty hiring should translate into inflation pressures in the months ahead. as of now, the fed reported only slight growth in price pressures. anna: next, we will take a step beyond the numbers. to the week's most compelling conversations. topics ranging from apple's efforts in india -- to the case in supporting donald trump. our best interviews are coming up on "bloomberg best." ♪ ♪ anna: this is "bloomberg best." it is time

erik: you have a 2% of all equity trading in the united states right now.cessful, worship that number be a year from now? guest: it is really hard to predict. we do not offer the same it incentives as other exchanges. we do not pay rebates. we are not paying people to send disorders. we have to earn those orders other ways. i think people need to understand the execution quality on iex. large asset managers have expressed greater execution ploys on iex. it takes time for that message to sink in. we are confident we can become one of the largest markets. erik: brad your critics are vocal, powerful, and deep docketed. how do expect them to react now? guest: we have seen a lot of strategy. the strategy was to aggressively oppose. we are very thankful of the supportive we got from investors publicly, because i think that forced the opposition to be very public about why they did not support iex, despite our being backed by larger investors. part of it is about misinformation. we have read a lot of things that simply were not true. we expect that to continue. th

vonnie: that is erik schatzker on capitol hill. right now, you can see richard shelby delivery opening statements. be openinghat will statements from sharon brown, the ranking member on the democrat side. we will bring that testimony and questions following that to you live. we are more than 30 minutes into the trading day. let's head to the markets desk were julie hyman is looking at reactions from headlines. from theocks down morning, but not much. not seeing much change overall in the major averages. the nasdaq was up two quarters of a percent, but investigators are not waiting only for the q&a with janet yellen but also with the u.k. vote coming in a couple of days. as eric was talking, he mentioned that price-to-earnings ratio and i made a chart of it on the bloomberg. this is the pe of the s&p 500. when you hear janet yellen talking about a valuation where price-to-earnings ratio on stocks that is getting to a relatively high level, this is what she is perhaps talking about. this is a five-year chart of the price-to-earnings

erik schatzker is up next, continuing our live coverage, just after this break. ♪ erik: welcome. wild weekend and the aftermath of the uk's invoked to leave the european union. in new york, it is hardly a typical sunday evening. currency has been trading for about three hours. stocks have just opened in new zealand and exchanges in japan will follow in a few hours. 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

erik: so it will look like -- howard: 1990, 2002, and 2008 were all panic of some degree. quick question for you, howard -- it always takes a trigger. could the trigger be the brexit? howard: it could be, but i think it is unlikely. anybody who thinks that the brexit has sweeping negative ramifications for the u.s. economy and credit worthiness i think is off the mark. ♪ ramy: you are watching "bloomberg best." i am ramy inocencio. the federal open market committee meets next week. most economists surveyed by bloomberg doubt that the fed will raise rates. chair janet yellen said hikes are coming but left the timing they. what impact will the decision have on global markets? we got insight from insiders and experts all week on bloomberg television. dennis: i think the combination of the jobs report on friday and the brexit consideration justified patients, but i am speaking only for myself. i do not know how the meeting will come out, the committee could arrive at a decision to increase the fed funds rate, but as i assess the situation currently, i am prepared to be patient

erik moving back to the comp does continent. -- continent.ncine: we will be back in a couple of minutes talking about the stock market, and these are the banks year to date. ♪ tom: good morning, everyone. "surveillance" from new york and london. difficult news from istanbul. nejra: authorities in turkey are pointing the finger at the islamic state for an airport suicide bombing that killed at least 40 and wounded 200. officials say three suicide bombers blew themselves near the entrance to the arrivals hall. in recent months, islamic and kurdish militants have carried out bomb attacks in turkey. the race to replace david as leader and prime minister shifts into another gear today. contenders are likely to make themselves known before the deadline tomorrow. may kept a low profile during the brexit campaign and supported the remain camp. the italian navy has uncovered the migrant ship that sank last year with an estimated 700 people on board, one of the worst known tragedies of the mediterranean migrant crisis. on capitol hill, senate republica

erik: you are ceo and chairman of the board for a long time.w well execution and integration are always tricky, especially with a deal of this size. what are the keys to not screwing it up? bill: well, you have got great people involved in this thg. a lot of what linkedin does will stay exactly the thing. the idea of how you get the contact list and the user profiles, some of that synergy without changing a lot of the engineering. so, you know, microsoft, like most tech companies, have had deals that have gone better than others. i include good preparation on this one and the nature of the synergy is pretty clear. vonnie: microsoft's cofounder of course bill gates speaking with bloomberg's erik schatzker. ase a look at u.s. markets we approach mid day here in the s&p 500 and down both down about .6%. 1%.nasdaq is down there is still have a session left in the week. 2% ate wti crude up $47.51. ♪ ♪ >> it is new in new york. scarlet: welcome to bloomberg markets. ♪ from bloomberg world headquarters in new york, good friday afternoon. oliver: here

gates, thewas bill cochair of the bill and melinda gates foundation with bloombergs erik schatzker.ull coverage of pharma, visit farm ago on the bloomberg -- pharma go on the bloomberg terminal of bloomberg.com at bloomberg.com/pharma. ♪ mark: i am mark crumpton. carney says the bank of england will probably have to ease policy in the near future to counter the fallout from last week's brexit vote. >> and now seems plausible that uncertainly could remain elevated for some time, with a greater drive on activity than we had previously projected. moreover, its effects will likely be reinforced by tighter financial conditions and possible negative spillovers to growth in the u.k. and its major trading partners. centralrney said the bank will not hesitate to act if necessary. the navy says the u.s. crew members detained by iran after straying into its waters in january were quote, derelict in performing their duties. investigators cite weak leadership, poor judgment, and a lack of toughness. six officers and three sailors have been disciplined or face disciplinary action. cleveland belie

david: that was larry think speaking to erik schatzker.nie: president obama and prime minister trudeau and and ricoh kenya -- and ricoh kenya are heading to the podiums. amongyou might expect friends, but also a little poignant. we are thrilled to have president pena here for his first visit to canada as president of mexico. at the same time, it is sad is the last chance or all three of us to get together in this capacity given president obama's impending tire meant. [applause] justin trudeau: something he pointed out more than once with a little smile. but i do want to once again think both leaders and their delegations to coming to ottawa and being open for the discussions that took place today. things we first discussed with the common respect for diversity and support for the lgbt writes. especially in the wake of the shootings earlier this month in orlando. the united states and mexico both lost citizens in orlando. that tragedy has strengthened our determination and to protect the rights of lgbt people, and on behalf of, and we urge

and erik kirschbaum now works as a correspondent for the "los angeles times" in berlin. he says there is a lot of frustration with the government n europe and it the moon i fests itself in support for right-wing candidates like pen. but it's hard to imagine americans electing anyone by clinton. can we really be sure it's going to be clinton against trump when it comes to the general election? or i iit possiblble there could be more surpriseses in store at the parties' conventions in july? >> after all the surprises, it looks like trump and clinton. clinton got enough delegates with the wins in california the other day.. it would take a miracle to prevent trump from being the nominee so it looks like trump and clinton in november. >> even though trump is alienating the republican party bosses and elights, the people he had tried to curry favor with recently, like speaker paul ryan, who now says trump's remark is racist but he will vovote for him. >> it is remarkable that trump is uniting, needs to be uniting his party around him but he seems to be cuzzing more division. w

is in brussels, and erik schatzker is an washington. jonathan: all reporters and the lives of the stories are stacked. withdwards joins us live the very latest on the polls from westminster. guy johnson alongside me to talk about the market reaction. anna, the polls in the last 24 hours are split. the bookies tell me a different story. break it down for us. anna: absolutely. the polls are split, we have a lead of two percentage points in a poll, and a lead of seven points for remain in one poll. the money ise going, at the end of monday the chances of a brexit were only 26%, 95% of the wages -- the wagers that have been placed were for remain. interestingly, many of these conversation with the bookies you see the big money going on remain and smaller bets by more people going on a brexit. that's an interesting trend we've seen so far. -- it seems as if the market is making their minds of already. -- their minds up already. have they made their conclusion too early? the pound is holding the biggest gain since 2008, touching levels not se

prager appearing exclusively with erik schatzker.peripheral europe has many of its own problems. look at portuguese sovereign bond spreads. ahead of an ipo, big italian bank, also up for its own election on june 6. weisenthal joins us now. joe: at a time when bond spreads have been grinding lower, portuguese, 10 year yields, they had a new government a couple of days ago and just this week, we saw a decline in the growth outlet for portugal. that looks at spain, but the yield.ine is portuguese you can see them going in opposite directions. is something, once again, the problems are not totally down. the ecb did not buy as many bonds. so there is interesting stuff going on. scarlet: spain dealing with an election on june 26. a four party system. it does not really have the ability -- the anti-austerity partner party has been linking up with the socialist as well. an interesting combination were no one knows what will happen. we have seen the impact of financial markets. spanish stocks. european trailed stocks overall in the s&p 500 as

erik: janet yellen and her colleagues taste a lot of criticism over that tendency point.he data was there, this fed should have raised interest rates at some point over the course of the first two quarters. now we have seen brexit and furthermore, the financial market volatility in december to mid february, can we look and say, they were right to keep their feet on the gas pedal and to keep monetary policy as loose as it is? larry: absolutely, i don't agree that they should have tightened. the data is not entirely there. we still have moderate inflation. we have a weakening economy. they revived the first quarter from one to one. corporateakening profits, and you add that up. i actually believe it was appropriate for them to pause. vonnie: that was some of the exclusive interview with blackrock chairman larry think. catch more of the interview throughout the day on bloomberg. david: coming up, we are awaiting on a news conference from the regulatory leaders. canada, u.s., and mexico are coming -- calling for action on the climate. ♪ ♪ david: this is bloomberg markets. von

coming up, erik schatzker will interview the chief executive of arc lace at 12:00 eastern. this is bloomberg. howard davies, chairman of the royal bank of scotland gave his outlook. take a listen. >> on the plus side, what we have seen is the bank of inland was well prepared. there were liquidity lines in place and markets have functioned effectively. 2008e not anything like in or 2009 and i did not either george soros line about that. think things have worked well in the bank of england deserves credit. there is obviously quite a bit of repricing going on. if you look at what has happened in the economic forecast, the consensus has fallen by half a point. that may or may not turn out to be right that people try to factor that in and say who are the winners and who are the losers? suffer in those circumstances. i think you have to try to see through the fog of these short-term changes and say what has really changed? i think it is probably true the exchange rate has changed. is having a medium-term effect, so that is probably an enduring change. vonnie: does that suggest a

erik: there were a lot of questions. we will see to justify a rate increase. shequestion might be -- said on more than one occasion you have to look beyond 18 a point. -- one data point. you have to look beyond a single data point. to isolate one thing that janet yellen seems most concerned about, it is the labor market, more so than inflation. she kept down these concerns about deteriorating inflation compensation, which is how she describes things like tips or break evens. give us a couple other clues about what it would take for the fed to want to raise rates. we have got into a bunch detailed about one of them which is international or external developments. but the other two were worth pointing out, which were subdued household formation and thirdly, meager productivity growth. those are things the fed consider headwinds. if there was progress on either of those two fronts, she believes will blow through right to job creation and ultimately we would see it in the form of higher inflation. tom: thank you so much. moving to july. i think i'm going to do a d

erik: what is too big? peter: it comes down to -- to capacity. will have to be a lot smaller. of the problem of composing capacity restraints on the industry means someone has to impose that on themselves, which by definition constrains growth opportunities. if you are a publicly traded company, investors demand growth . peter: i believe investors demand a growing income at the rate of the market. that bys you can get effectively adding new investors and those have a capacity constraint. business diversified that allows us to have more than one place to get returns and those constraints will lead to better returns. not every manager will be at capacity constraints. each manager has the capacity restraints. you as they as you should be? peter: i think we could be bigger but i do not think it would be much more than 30% bigger. our investors would be very happy. erik: you have described the role that blackrock place as a risk to the market. do you think blackrock should be classified in the city? i do not have a view. definitionnt out the applies t