after newshour contacted aetna, lehman's insurer, the company reviewed his case. it told us lehman was not, in fact, responsible for the $2,200 balance bill he received. and that it will be reimbursing him for what he paid. but, lehman is still paying off that earlier $4,500 emergency room bill. >> it gets a little crazy. it gets to the point where you're reluctant to go see the doctor. >> thompson: read more stories about surprise medical bills online at pbs.org/newshour. >> this is pbs newshour weekend, sunday. >> thompson: in california, a wildfire raging since thursday has now consumed 200 homes, including that of an elderly couple who died. more than 1,700 firefighters, taking advantage of light winds today, established a perimeter around the 58-square mile blaze, which is only 10% contained. 2,500 homes are threatened by the fire, an hour east of bakersfield and two hours north of los angeles. president obama has declared a state of emergency in three west virginia counties overwhelmed by flooding, triggered by 10 inches of rain over two days last week. the

oil and other product prices have fallen faster than during the lehman shock. development has also fallen. so emerging countries have seen their economies damaged. this means that the global economy could lose its growth engine. global demand could stagnate. this is concerning as it undermines the principle of growth. the world economy -- economic experts have shared a warning. nobel laureate professor st stigletz and bergmann have said along with other experts from europe and asia and the u.s. have shared their opinions wuit us. many have said that, due to the slowdown in global demand, there could be a further slowdown of the economy this year and next year. the g7 leaders have gathered for a frank discussion over this risk at the summit in ise-shima. as a result, in order to avoid falling into the new crisis, we agreed to appropriately employ all policy measures, and that was incorporated into the leaders' declaration. the risk that we face is completely different from the lehman shock-like financial instability. however, we must learn from that experience.

>> john lehman: ( laughs ) i don't believe in coincidences. >> kroft: john lehman, who was secretary in the reagan administration, says that he and the others make up a solid majority of former 9/11 commissioners who think the 28 pages should be made public. >> lehman: we're not a bunch of rubes that rode into washington for this commission. i mean, we, you know, we've seen fire and we've seen rain and the politics of national security. we all have dealt for our careers in highly classified and compartmentalized in every aspect of security. we know when something shouldn't be declassified. and the, this, those 28 pages in no way fall into that category. >> kroft: lehman has no doubt that some high saudi officials knew that assistance was being provided to al qaeda, but he doesn't think it was ever official policy. he also doesn't think that it absolves the saudis of responsibility. >> lehman: it was no accident that 15 of the 19 hijackers were saudis. they all went to saudi schools. they learned from the time they were first able to go to school of this intolerant brand of islam. >>

japan's prime minister postpones a sales tax hike after having vowed only a lehman-like shock or a massive earthquake could prompt the delay. we look at the future of the financial services industry as hsbc and mcquarrie are said to count headcounts, and larry fink warns of huge consolidation. opec dissents on the in a. crude dissents under $50. is saudi arabia's oil minister calling the shots? a warm welcome to the program. let's have a look on what is happening at the futures. we are not getting an incredibly strong picture from the futures this morning, i have to say. we've got euro stocks up just a fraction at the start of the are p and trading day. the ftse 100, perhaps it's a little bit on the back foot. of getting a great deal momentum perhaps coming through from the asian session. we still have some big agenda items on the radar with the ecb meeting and the jobs report, plenty still to digest. matt: take a look at the nikkei, down 1.6%. take a look at the yen strength that we are seeing, 109.95, how many yen you get for your u.s. dollar. the aussie dollar on the other strength,owin

but throughout and after lehman soap opera played out we saw something similar, remember lehman shocked world it file for bankruptcy monday september 15, 2008, it was a frantic weekend. they were looking for buyers, did not happen. then is rebounded, and moved mostly sideway, until the september 29 the house rejected request for 700 billion bailout. that was a knock out blow for the market. now the news was seen as a surprise. not unlike british exit vote but there was a do-over, they voted it in there was a bounce in stock market. that was short lived, bottom line, that financial world descended into chaos, and landing in the abyss in march 2009, i am saying, we can't evaluate the impact of key events in just a handful of sessions, yes that british exit vote was a severe react it does leave a lot of questions and concerns. but actual exit, when they actually leave, i think it will be a long drawn out process, we know it will two years or longer to assess the impact of new policies there. there are unknowns but this is not lehman brothers, this not the end of the world. now today, we ha

we're not looking at a lehman moment. so if we think it's just about negotiations taking place over the course of the next couple of weeks or months or whatever the time frame is, to have a third wiped out of your value in a session for these banks, is it justified or does brexit really cause something like this or is it because people are worrying about the health of the banks in themselves again. >> i would say both. both uncertainty and concerns about the bang balance sheets. the impacts t s typically when look at back, here, uk banks the value is politics. in terms of short term impact, we're looking at additional stress in the market. the lack of financial maneuver to raise some equity and also the incapacity to tap the new markets with additional. longer term you're looking at deteruation of asset quality, especially for the uk world. you're looking at a version of your profitability margins. especially if the bank of england ends up cutting rates later this year. and lastly the whole of the bank business models in

that was the lehman-style event he was raising the flags for. >> look, i don't think this is a lehman-stylevent. there is so much uncertainty were she here. we don't know what the terms of exit will be. we don't know if they'll get a norwegian-type solution, keeping them in the market. >> systemic the point he's making? >> no, it isn't systemic. i think germany will be focused on doing whatever it can to keep the eu 27 cohesive. not going to make concessions. you do not get a do-over. everyone is talking about a revery dote and everythir re-vote. no. there will not be a do-over and further concessions. we may not agree. policy, an advisory vote and it's the will of the people. not invoking article 50, it's very tough. also because of the changes we've had in britain in terms of now the fixed five-year in parliament, it's not as easy to consult a general election and give the new pm that general mandate he really wants and so we don't know who is going to lead the conservative party. you have so much turmoil. i actually think it is a much different situation than lehman. lehman we knew the p

on the back of the lehman crisis. this is the scottish referendum -- in white you have the pound, -- they kind of match, and you can see is at an all-time high. stay with us, there's plenty coming up, including the governor's exit from the reserve bank of india. it leaves open room for indian investors. what it means for the country's credibility, and with three days until the vote, how brexit worries are affecting not just europe's currencies, but markets around the world. and we bring you top guests to discuss the referendum, one a former bank of england governor, coming up. ♪ francine: welcome back. let's get straight to the bloomberg business flash with nejra cehic. nejra: thanks. italy's anti-establishment movement has been elected to run the city halls of rome, threatening to derail matteo renzi's reform agenda. for theg support skeptic party gives the italian capital its first female may or. vladimir putin is considering selling stakes in russia's state oil company to china and india as he struggles to his spen

you take that uncertainty out and i do not think it will be comparable to lehman brothers all.haad: what would be the likely outcome of a leave? it would be quite different but it would affect things in an entirely different manners because lehman was more a systemic event taking place with the financial industry. this encompasses a lot more. all i do think this wouldrg.co trigger a safe haven demand for the currencies. all these and pleasant things in a slippery slope when the political voices start to get organized. it does not take the much to have an orderly process. this is the european union we are dealing with. they're not known for taking decisions and sticking to it. for negotiating in a sensible manner. that is the likely outcome inc. case of a brexit vote. of theregardless outcome, stay or go, does the sterling status change, does the athow the world' looks british assets, will that change? is likely. there are forces at work that are completely independent. the market was getting pricey. taxationequirements, and some of the special conditions have been gradually rem

lehman brothers or the major earthquake would prompt to delay.ata, a hatchet to jobs cutting investment banking positions as part of the ceo governor's plan to reduce cost. according to knowledge of the matter, 30 positions shuttered in hong kong. japan and india. about 8% of the workforce, following an industrywide trend that is scaling back on these trading volumes. barclays,s, including had similar cuts this year. larry saying he is expecting consolidation in the asset management industry. this is as they struggle to meet many money too managers struggling to get anything better than average returns. larry: we fundamentally believe there will be a massive shift, and we believe it is going to create a huge consolidation. china's official factory gauge expanded in territory in may, as gradual economic stabilization in the economy, pmi coming in at 5.51. to private measures grew 49.2. more or less in line with economists estimates, down from april. new yorker trent doyle said it would be the longest decline, as opec ministers gather in vienna ahe

we saw them around the lehman crisis.he movement and the volatility that we have seen is on if not worse. i can tell you volatility in sterling is much worse than it was during lehman crisis. the fact that it happened so quickly and expectedly adds to the extraordinary nature of market actions this morning and as well.into next week rishaad: we even have wales voting to leave here. this is quite an evening, quite an early morning there in britain. it is 18 minutes past 4:00. tell me something. sterling. we haven't seen this since 1985. this is having repercussions nobody anticipated. john: you're absolutely right. it is again an understatement of some scale. no one had this concept or idea. market pricing was obviously for a moderate victory for the remain campaign. and as we pointed out, we're still 51-49. i suspect there is a mathematical probability that remain could still edge in the coming third of votes. but it appears increasingly unlikely. rishaad: we haven't had birmingham and a lot of london. john: you would thi

it is not a lehman moment. it will be very complicated to figure out. it is going to take a long time to figure out. the fact other countries like france, italy, netherlands saying hey, me too. we want to get out of eu. what do we do? we have to wonder fear or it is fantasy. with that said i think it is good time to be overweight low beta stocks. consider that to be utilities and health care and telecom and leave everything else for everybody else right now. long time, in the long run it could be a great opportunity but i would hold off right now. liz: five minutes, folks. five minutes to go before closing bell rings. i know larry will run and trade, before i let you go, tell me right now what you see here. will we see more bargain hunting as we have few more minutes to go on very rough day. dow is down 530. arguably well off the lows of the session. more than 630 down? >> definitely some bounce back here. i think the fact that people realize this is localized issue. i don't mean to diminish it because it is potentially a big issue. but the fact impact

manus: this is going back to lehman. many people are asking the question, is this a lehman moment?atility is nowhere near that. of course, this is before the event. tracy: we don't know what is going to happen if the decision newsbrexit, but the good is -- never say i don't leave you with good news -- we have learned something from 2008. we have put these liquidity facilities in place, and i we get use them and see how they work. manus: pending home sales -- obviously, i am trying to get my head around this -- pending home sales and new home sales, we are seeing quite a buoyant u.s. market, the third consecutive month for pending, but it's the other piece of data that caught your eye. tracy: existing home sales have been really strong. i wouldn't say this is fantastic news for the u.s. economy, but it turns into a massive headache for people like janet yellen, because it speaks to the overriding theme we have seen in global markets or in the u.s. markets, i should say, which is that the domestic u.s. data has been quite good. it's on the international front that things -- manus: th

it's up clear departure will trigger a financial crisis hike we saw after the collapse of lehman brothers. >> we will track the stock market and see if there are any immediate changes. so tune in kron4 news at 4:00 a.m. >>> big news tonight, oakland police sergeant will not face criminal charges over his girl friend filing police reports for him. the alameda county district attorney's office said it reviewed ten criminal cases where the woman was involved and concluded all evidence was there, in each case, and nothing was withheld from the defense. the da's office adds while the sergeant may have voted policy -- violated policy, there was no criminal misconduct. >>> a new twist to the oakland police scandal. the city has hired a bright investigator to find out who has been leaking information to the media. the administrators is concerned that employees may be blowing the whistle. however, the attorney cautions against this kind of action. >> i don't think it's wise to spends a lifetime -- when the public wants to know what happened to the police department, how did it happen? maybe some o

if we do go out, i think we are looking at a lehman scenario.t is actually -- when i am talking about long-term money -- i don't think they have taken proper insurance. they could've done -- and if you go back and look at some of the interviews, two or three weeks ago, people were pretty certain that this is a storm in a teacup . anna: do you think the u.k. leaving the eu could be as significant as a lehman moment? stephen: i do, for currencies. anna: markets overall would like liquidity. stephen: the short run, i think for the stock market is not quite as obvious that there will be a major collapse. the reason, there is no question that the central bank considers doing cost of easing and other measures to calm the situation. the bond yield is already tumbling. look how much lack of opportunity elsewhere is already holding insults pretty well. the real story is in currencies. where will cable be on the 24th or a week or two after? manus: that is exactly where i wanted to come in which is many people through the door talking about 135. you said i

our bloombergrom columnist about why it doesn't live up to a lehman moment.tuned. ♪ erik: this is special coverage, aftershock after the decision to leave the european union continues to jolt markets worldwide. they touchedd as lows not seen in 30 years. they begin by asking what bank of england's mark carney needs to do next. >> he needs to make sure they have enough liquidity. he needs to get on the phone like others and talk about developing a plan b that had an association agreement. to continueing is having this notion there is nothing to replace eu membership. coming up with a plan b is going to be critical. >> it doesn't look like we will have a plan b for a long time. they have not triggered article 50. there is talk of waiting for october. we could be here until october. how significant is that? guest: that would be bad news. markets don't respond well to vacuums. if there is no clarity on what institutional arrangement could emerge next, you have the worst combination, institutional uncertainty, on top of financial fluidity. having a plan b is going

let's go over it and say, this is lehman's, bear stearns, we have these other emotions.d at the economist james buffett and he said, come monday it'll be all right. jimmy buffett, legendary songwriter. goingonday, is everything to be all right or are we going to get this? >> it does not look all that dad even relative to the sovereign debt crisis in 2011. but if you look at all of the asset classes, commodities, all asset classes spiked dramatically. specifically for 2008 for the fx market. this is dramatic. radio plus.t out on this is incredibly important, this weighting of the assets. i would call it the litmus paper to test the depth of the market and stocks as an afterthought. >> i would agree. the equity markets are would trade with most liquidity. the other as set classes, mostly credit. those markets tend to shut down when liquidity dries up. you did not see a big selloff in theit assets mostly because price discovery process becomes impaired on days like friday. we should look at friday from a monday perspective. whatould you worried about is going to happen. fra

seeill be fascinating to how the currency shakes out and how it compares to lehman brothers. it will be an intense week. the decision to leave the european union is a watershed of that. the exit.chs outlined he talked about the meaning of brexit being a triple protest. i would like to thank from article to give you a sense of what he said. we're going to speak to him in a moment. that up again. jeffrey, let's bring in the a skype. thanks for joining us. jeffrey: thank you. thate: what is the action be taken? jeffrey: we have to understand ist what brings it reflects more than u.k. phenomenon. all of europe and the united states is divided roughly in half and how they view globalization right now. course isoint of migration. refugees and immigrants, that was the decisive tipping point for brexit. it is what is fueling donald trump's campaign. it is the antiestablishment anti-immigrant politics to the european union. it's not going away. it reflects several facts and real. there is surging immigration and people feel deeply unnerved by it. part of it is the syrian refugees, whi

is this a lehman type moment? anne: that is not the case, but it is a surprise. the markets weren't expecting this. everybody was in the belief that remain had pretty much won. interestingly, we moved quickly from panic into starting to find a bottom. francine: chris, when you look at the banks, deutsche bank down 25%, barclays down 25%, are they going to need extra liquidity? >> i'm not convinced by that. i've been asked by your correspondence a lot. what is the bank doing? making sure they have liquidity available. i think that is important. the other big factor is they've told them, get out with your clients. there could be claimants -- francine: rbs down 18%. socgen down 18%. these are companies that have already been battered. >> we are not going to northern rock, i don't think, but what we have is uncertainty about earnings, the economy, recession. what happens in the capital markets? there will be very little activity in the next few months. what is the earnings impact? francine: stick around. let's go to guy johnson. guy: the gmm function allowing us to s

crisis with the collapse of lehman. look at difference. the market is reacting to that. that was overplayed and overblown. i don't think it runs much further. a rebound from complete scare tactic because of folks streaming it is lehman collapse. this was not about contagion. this political decision needs to sort itself out. let's give it time to sort itself out. melissa: dominic, we knocked 100 trillion zillion out of the dollars. everyone sold and took cash off the table and won't make the money back. this is what happens. now it bounced back, right? >> a lot of large institutional hedge funds made big bets on britain staying in the eu. they had to unravel trades and sell into nasty market. hope investors stayed in the market. if you sell in the mouth of crisis, end up selling in the bottom, the market recovers whether a week or year. you don't participate in the recovery. melissa: jason on the flipside, i will say for example, we bump up 18,000 and can't get traction and go beyond that. we are back at this level but w

interesting you bring up lehman brothers and wiped more equity back then than in 2008.aking the point that we lost more value in equity globally on friday than we did in september 2008 when lehman went bankrupt. put this sell-off in perspective, is it 2008, august 2012 when the u.s. got downgraded, what does it feel like? >> it doesn't feel like either one of them. i used to work for williams, that is one of my history about me, but no, it doesn't feel like that at all. it just feels that there's a lot of uncertainty as far as the foreign, you know, what's going on in europe. i think that will work out. i think that we are looking at a lot of opportunities to get back in the market. you also look at a market that was fairly pretty highly priced and there was -- >> right, it was bought up -- >> it was bought up prior. >> what the fear factor down here? nervous, uncertain, but still selling? >> i think they're nervous because they think that there is the potential of having this spread a little bit. maybe france, maybe italy might decide to have a referendum. i think that

they were teetering people awaited, lehman brothers like, no, lehman brothers ten times over. now we're hearing the same warnings again. stocks sink like rocks every day. >> can i interject something we learn from 2011. >> in this country that's true. namely what we learn, european capitalism isn't like our capitalism, or certainly isn't as much as we prefend it to be. in the eurozone, they practice crony capitalism. where the governments work in tandem with their financial institutions, when they can be as loathsome as ours were. i ask you is the low interest environment here that any rational mind would think paul in comparison to the big scare in 2011. really worth running to the hills for? >> i don't think so. >> the interest rate on the treasury bond sinks to a million. >> including those like utilities that have as much to do with brexit as they do the next exit. no way. should you be selling the stocks that have nothing to do with europe? >> i don't know. seems silly to me. >> all this comparison work doesn't mean a hill of beans, if today turns out to be october 1st or

i am suggesting -- >> lehman brothers?> i heard it from my hotel room this morning, and i thought it was a rather poor choice of words. we'll say that. >> i don't know if it was the choice of words. could have said it different ways, but just the idea. god forbid something happens now. that would be -- seems like a housing crisis seems, you know, cdos and all that stuff, might be more systemic than one country in the eu deciding -- >> now we're into a political -- >> you don't know the second and third order effects. there are banks -- >> could be ripples. could be people who are not set up for this. >> could be waves. >> hedge funds could go out of business on this, right? could be some -- >> if you were on the wrong -- yes. questions is are there operating businesses that go out of business as a function of this. >> it's a point of comparison -- there are banks in italy, for example, that are barely making it as is. and if there were to be the bad kind of ripple, we might see a severe banking crisis on the continent of e

when you talk about systemic risk in the banking sector and ask for it saying this is not a 2008 lehmanoat matt:. it's very interesting. alix: yes, thank you. matt: a lot of traders i spoke to on friday were saying this was worse than lehman as far as the reaction of financial assets, but maybe not worse as far as the fallout is concerned later on. alix: right, the contagion. julie is joining us with a closer look at the brexit impact on american companies. which ones have the higher income relation? speaking of contagion. i am not looking at the banks because that was the most obvious reaction we saw, but a lot of companies do business in europe and there's also the currency risk their it we see the pound fall, the euro go down. technology companies are one of the areas we are looking at here that have egg contracts over in europe. when you're looking at a company like apple, for example, a fifth of its revenue out of europe, including the u.k.. there is this concern that the u.k. economy is going to see a downturn, we are going to see effects in europe overall. that is where you see t

coming up we hear from mohamed el-erian why the doesn't live up to the lehman moment.d. ♪ erik: this is special coverage, britain out, i am erik schatzker. aftershock after the decision to leave the european union continues to jolt markets worldwide. on friday, stocks tumbled as the pound touch lows not seen in more than 30 years. the bloombergith chief advisor mohamed el-erian ready for exchanges on friday morning. jon ferro and guy johnson for this interview, and they begin by asking mohammed what bank of england director mark carney needs to do next. >> he needs to make sure banks have enough liquidity, that is the first thing. second thing he needs to get on , the phone like others and talk europe into developing a plan b that has some sort of association agreement. the worst thing that can happen to markets right now is to have this notion there is nothing to replace eu membership. coming up with a plan b is going to be absolutely critical in weeks to come. john: it doesn't look like we are going to get a plan b for a long, long time. they have not triggered artic

this lehman crisis he warned about, this may add the case for further boj stimulus.athan: paul gordon joins us live with the latest on inflation and jobless numbers. in line, but still not great for president draghi. >> inflation just below zero, unemployment just above 10%. a slight improvement for sure and reason for the ecb to say its stimulus is starting to work. but a very long way to go. a big question is where does the inflation come from? it has never come from industrial goods. it used to come from energy. that may be returning briefly now but it is hard to see that sustained. services inflation is where the ecb needs to see prices increasing. that also is a hard stretch in this climate. jonathan: april was a strong month for the u.s. consumer. spending in april climbed by the most in seven years. will it impact the fed debate? >> that is a great number but not quite so great if we take three factors into consideration. first of all, spending was flat in the prior month. there was a little bit of a catapult or snapback effect there. number two, gas prices in

but the good news is, this is not lehman. this is not a payment and settlement crisis. to the institutional setup. it will cause some major financial moves. and you are going to see the financial sector block more than technology when the dust settles. i would just caution, don't draw too many implications from what you have seen so far. we still haven't seen accounts close their positions. we still haven't seen how the retail segment is going to react. so don't extrapolate too much on what you have seen so far. this is still the early days of the technicals perspective. there is also the economic question. it is early days yet in terms of how markets are reacting. guy: why shouldn't we actually -- extrapolate into other events? donald trump was on our side of the pond today. why shouldn't we actually we have more political events like this? we have french elections, german elections, so much more political upset that could come down that results from this, maybe doesn't result from this. this could be the first of many. mohamed: it is not even the first. this is just a

. >> we heard a lot of arguments saying this wouldn't be as bad as the lehman brothers fiasco.the barometer? why are comparisons being made with that? is it because it wasn't that long ago, and people are still feeling the effects and hoping to build upon their losses from them? >> it was a surprise, this vote was. it was a shock to the system, though a much more leveraged shock, and an economy that had really grown and had excesses in spending and debt that led to a long decline. that was a two-year 50% decline in the stock market. this is quite different that it more of a shock, akin to maybe the 2011 debt ceiling debacle that we saw the downgrade in the u.s. or the 2011 debt crisis in europe. very different than the lehman crisis in many ways. >> larry, the president of the united states was very quick to remind the u.k. that despite his feelings before this vote happened, the uk and america remain great friends. this is what he said specifically. >> while the uk's relationship with the eu will change, one thing that will not change is the special relationship that exists be

after lehman, after the whole recession, 9/11, there are going to be bounce backs. this is a reaction to the unknown. this is the us versus them that went on in the uk is the same discussion going on here in the united states. >> i'm going to get to that. the lix politics of it all and e mirroring what happened in the uk. and so i can just take a peek at how significant this is. >> the thing to worry about, you see earlier, as we're digesting this, the markets were open. frankfurt and paris. germany and france. two biggest economies in europe. they're the ones most affected. you can see as you get further away from it, less affected and one thing to remember here, keep in mind the velocity of this market. four more hours of trading to go. if it starts ticking down towards the end of the day, you get worried because then it falls back into hong kong and tokyo. at this point after the recession of everything we've been through, i don't look at this market and say something to worry about. if you haven't sold your stocks, don't do it yet. >> what nic said. no one knows

but this is not lehman.ettlement crisis that results in a sudden shock in the global economy. it is a shock to the institutional setup. it will cause major financial moves. you will see the financial sector move a lot more than technology, when the dust settles. but do not draw too many locations from what you saw. a still have not seen counselor at the close their positions. we have not seen how the retail segment will react. so do not extrapolate too much from what we have seen so far. this is still early, from a technical aspect it. there is also the economic question. so it is early yet in terms of how markets are reacting. if this is the start, why should we not extrapolate forward into other events? donald is on our side of the pond -- why should we not extrapolate that? why should we not extrapolate that we have significant a more political events like this. we have french and german elections coming up. there is so much more political upset that could come down. is not even the first. this is just a

sameyou don't have the stress on the system we had with lehman.s you said, that has got to be the fear. the banks have been running checks to major the market is functioning. let me ask you another question. if you were to see more qe happening in the u.k., why would you sell your gilts to the bank of england? wayne: this goes back to my earlier point and the question about insurance. i don't think you would. i think he would want risk-free asset in your for polio. you look at this supply and demand equation as well. i think the ecb will be very forward thinking in terms of expanding. on the other side of it, the prospect of a multi-year and very low yield environment also enables governments to finance, not only short-term debt, but long-term programs at an extremely low rate. from a corporate perspective, you would expect refinancing at a very low rate. why shouldn't countries do the same? clearly, they are going to come down. in europe, they will come down. what we are looking at, very interestingly, is what is the stick, in terms of the europe

tonight on fast, the number of european financials trading well below their lehman brother lows. muhammad will be here to explain. a mad dash for cash. bank of america said investor cash levels are, quote unquote, consistent with the recession. but that may not be a bad thing for stocks. looking for yields? one top ranked portfolio manager said he's got the answer. but it could come at a little bit of a price. we start off with the markets here. we had an interesting move, negative yields around the world, the ten-year german bond yield going below zero for the first time ever. tim? >> yes, i get it within the european union. we talked about this, other places to trade if brexit happens. the periphery was selling off in yields. if you think about what happened in the u.s. bond market today, we got very close to the february 11 cloes on the ten-year. and then traded back. interday it was ugly. same thing with the s&p. ultimately settled at the important 2075, 2076 level. ultimately i think markets right now are digesting the fed. even if the fed is out of the picture for tomorrow.

this is not thus far a lehman brothers moment., obviously, if europe breaks up, that could have a lot of systemic implications. thus far, the crisis has been relatively well-contained. another lesson to take away is that central bankers have learned some lessons. >> donald trump is hoping the past is prologue. >> donald trump has already waumd this as a great and wonderful thing. i think you are already seeing, and you saw it earlier. the hillary side is going to say he's president chaos. if there is chaos in britain, it might look less good. jillian is absolutely right. the financial markets have just about coped with it. sterling has plunged. stocks not doing too badly. in america, the pressure on the fed saying maybe we need to cut rates, rather than raise them. this will have ramifications for a long time. if the european union begins to unravel in some way, that is the world's biggest trading block. that's hard. >> two important data points that everyone should note. before thursday night, the betting markets put a higher pro

i am wondering if this is a lehman moment.r: i don't think this is a lehman moment, in that the world is not come to an end, but it would be a severe problem for the u.k. the average home in the u.k. is 250,000 pounds. if you allow for the leverage on it, if the housing prices went down 10%, that would wipe out something like half the net worth of the average u.k. older person. so, it is a very serious issue for them and i don't think they really recognize it. i think they also don't recognize what what happened if the "leave" group won. now, the price of petrol would go up. now, price of many important things would go up. and yet, it is the people who are retired who seem to be most in favor of leaving. and that is really strange because in most countries, the older people are more conservative. here, it is the him people who want to stay. and the old people who want to plunge off into the dark. it is quite counterintuitive. guy: we will carry on the conversation and see what else is counterintuitive out there. we will carry

the european project is unraveling and by that, they mean the eurozone, and if that went down, the lehmanollapse would be a side show arguably the concern. is that real? >> no, i don't think so. i mean, so much invested that britain has never really been a loyal and very, very good partner really with the european project. and thinking about the european union without great britain as a partner, so i believe that the eurozone can still get together, and so we won't have this big crash coming out of the situation. although, there is going to be some turbulence over the next months. >> and it is an important message, sir, and thank you for sharing it with us. bo lundgren, the former sweden deputy finance minister. coming up, gold is soaring to a new two-year high as the investors are rushing into the safe haven assets, and jon najarian has been riding this trade all year and find out if he is sticking with it. >>> and as we go into the break, a look at the global yields right now as the flight to safety continues. it's more than a network. it's how you stay connected. with centurylink as yo

economically this is not as bad as the post lehman environment. looikz 1985 sterling traded down to 105 against the dollar. we don't need to go there. you had 15% rates and all sorts of things going on in the united states then. really probably end up in the 120s -- >> when crow say this town is going to be okay explain that. going into the vote there were all sorts of doomsday scenarios what would happen to the british economy, as the financial center if they vote out. >> i would still expect that we will see a slowdown in growth. growth over the next five years will average about half a percent less than i would have thought it was had we not done this. so let's pencil in something, a number with a one in front of it. not a two. and lowish one possibly on average for five years. that is what i mean by this isn't the end of the world in that sense economically. but what we have got and what currency people look at endlessly. we have years of uncertainty as we try to untangle ourselves from the european union. and that is just going to weigh gradu

and all the comparisons to lehman, we don't see this being the same financial crisis.s is a crisis of leadership, a crisisf confidence. this is not an overlevered bad toxic asset crisis. so to your point, we do think there are opportunities and actually some of the things we're looking at are a little bit more domestic centric right now. i woke up today, all the things i spend money on and all the people my company, we continue to spend. so as far as we're concerned, if the baby is going to be thrown out with the bathwater, which is this extreme volatility and downturn just showed us, we do think there are opportunities that pick up very good companies. so i'm not trying to be a hero. but do not think that this is the is same as the on set of the crisis. liz: okay. and we don't have capitulation yet. >> the market is coming back. liz: yes, the market is coming back. charlie, i'll get to you in a second. is business confidence temporarily starts to get shaky in the uk and then companies stop hiring and that tends to reverberate across the pond? do you see going into a r

. >> this is not a lehman moment either. >> thank you for saying that. because i've heard about a dozen people call it as a lehman moment, including some of those people who remember me when they were in kindergarten. >> we aren't going to pull back in that way, but we don't know the answers. >> last 100-point drop was august 21st, last 600-point drop was august of 2011 when we had that ult um oil regarding that aaa rating. [ bell ringing ] that's the opening bell. quarum health celebrating its recent listing. at the nasdaq amc networks doing the honors today. >> i like to use verizon because it's plain vanilla as you can get. you come in, you find this dramatic change so different from what you thought. and verizon's down 25 cents. now, the problem is it's down 25 cents on 300,000 shares. so if i am a fund and i need money, i'm going to drill that thing down to 53. what i'm saying first bite maybe wait a little. >> maybe wait a little. >> verizon 54 to me is not the greatest buy in the world. again, i'm using a big cap stock with a good yield. that's a

. >> this is not lehman brothers 2. 0.ou're not going to see some sort of shock like we had in 2008. >> tonight donald trump says brexit is a good thing. >> we do see a parallel between what's happening in the united states and what's happening here. people want to see borders. they don't necessarily want people pouring into their country that they don't know who they are and where they come from. they have no idea. >> reporter: the republican made the comments while promoting his golf course in scotland. which by the way voted to stay in the eu. hillary clinton is against brexit. the democrat issued a statement saying this time of uncertainty only underscores the need for calm, steady, experienced leadership in the white house. bernie sanders says clinton has his vote tonight but he's stopping short of endorsing her. >> the issue right here is i'm going to do everything i can to defeat donald trump. i think trump in so many ways will be a disaster for this country if he were to be elected president. we do not need a presi

various authorities have been working hard post-lehman in order to build up the resilience of the world's financial system. laura: an hour and a half, as you say, until polling closes, but it's going to be an all nighter for the traders. markus: absolutely. banks, investment funds have been pulling in extra people to work throughout the night. they will be watching this vote and the counting very closely. financial companies have called in extra staff. polling stations will close at 10:00 p.m. local time in the u.k. or 11:00 here in france. some financial companies have ordered their own polls. we could see them taking their own opinion polls so we could see them taking action before the end of voting. laura: french companies also watching closely to see what happens. markus: absolutely. one of the questions is what kind of trading relationship britain and the rest of the european union would have if there is a brexit vote. french companies are among those firms with question marks. we're going to take a closer look at that now. reporter: this small workshop produces around 50 trucks per

. >> this is not lehman brothers 2.0.you're not going to see a shock like we had in 2008. >> americans with 401(k)s lost an average of $3100 yesterday. >>> republican presidential candidate donald trump says brexit is a good thing. >> really do see a parallel between what's happening in the united states and what's happening here. people want to see borders. they don't necessarily want people pouring into their country. >> trump was in scotland yesterday promoting his golf course there. scotland voted to stay in the eu. democratic presidential candidate hillary clinton, meantime, is against brexit. she says uncertain times call for steady, experienced leadership in the white house. now, democrat bernie sanders is still running for president but says hillary clinton has his vote. however, he stopped short of endorsing her. >> the issue right here is i'm going to do everything i can to defeat donald trump. i think trump, in so many ways, will be a disaster for this country if he were to be elected president. we do not need

since lehman brothers collapse, that is once every three trading days.ow they do not show any signs of stopping. and so far this year, we had 35 interest rate cuts in the top 50 banks. there doesn't seem to be any sign that this low yield or even know yield world that we are entering into will be reversed anytime soon. for that to happen, really we need the fed to start raising interest rates at a bit of a steeper incline and they're doing at the moment. and we need the central banks to get in a position to do so before this low yield world starts to reverse. anna: are you in the camp that blame central banks for the negative interest rates in the world and what that does to resources, but do not blame the central bankers there's spotting to a gloomy outlook. alexander: i fully understand while they did what they did with the data, i would've probably done the same thing, a similar approach of cutting interest rates to try and stimulate the economy. but now we are seeing central banks, particularly in place ofe japan, the very limits monetary policy. the

are we going to start seeing another lehman bankruptcy? i don't think we'll see that. but it definitely is hurting -- when you think about the tangible book value of a bank, the tangible book value is going to go down very shortly if they have anything that resembles a risk asset. closely resembles a risk asset on their balance sheets. loan origination is not going anywhere. that's a grim picture. >> it's a mess. let's put the numbers in context. we know that the bank index in europe just had its largest one-day drop ever. we also know that the broader aggregate, the stock 600, the index itself has only dropped more than 7% twice in history. the first time was october 19th, 1987. the second was october 6th, 2008. this is the third biggest drop for that aggregate on record. our banks, if you look at the kre, vkx, only 15 times they dropped this much. they're in '08 and '09 and 2011, which is the u.s. debt camera. the banks are the heart of the problem. the notion that somehow we could stop here, i mean, who would make that bet? >> here's a question for you. in terms of