we will talk to luxembourg's finance minister for his take.lanation on trending business. ♪ >> it is 10:15 in hong kong. these are the latest first world headlines. brexit making headlines in the presidential campaign. hillary clinton rushed out a tv ad attacking donald trump for saying a falling pound would benefit his golf course in scotland. disgraceful,it accusing her of trying to wash away her bad judgment call on brexit. the malaysian prime minister is expected to announce a cabinet reshuffle later today. councilthe supreme expelled two from leadership. the son of a former prime minister was sanctioned for appearing with opposition leaders to force him from office. shareholders of lotte hol dings rejected a proposal to remove seven from the board. lotte has been dealing with an investigation into alleged bribery, which has delayed the opening of its hotel unit. global news powered by 2600 journalists in 120 countries. i am rosalind chin. this is bloomberg. exitad: the u.k.'s strategy from the eu is plagued by uncertainty. we have david c

anchor: a court in luxembourg suspended jail sentences for the two behind the lux leak tax scandal. former employees showed that the withnment had colluded companies to avoid tax. journalists were acquitted. reporter: there was dismay, atulsion but not surprise the courthouse in luxembourg as rulings in the notorious lux leak whistleblowers case. two whistleblowers were convicted and handed suspended prison sentences and fines of euros.000 and 1500 supporters of the whistleblowers say they were acting in the public interest by copying and handing on to journalists detailingof documents the tax rulings in luxembourg multinational firms to pour their profits in a secret tax regime and pay tax rates sometimes under 1%. case has concluded for now. the two men convicted say they europeanal to the court of human rights. meanwhile, we've had european officials saying the european to do more tods stop whistleblowers from being prosecuted. the commission has yet to take concrete action on that. of our a reminder headlines this hour and europe's first post-brexit summit without the united kin

caroline: would luxembourg benefit if the u.k. left the european union?r financial services might not get larger? andre: some people say so, it would be a very short-term benefit. the most important thing is that we have the u.k. inside the eu because it's financial center is the largest in the world. our financial center is working very closely with london and we are more complementary than competitive. caroline: in terms of politics within the eurozone, greece has remained a concern. how optimistic are you? pierre: totally optimistic on greece. i think there should be no talk anymore about grexit because it does not make sense anymore. we have struck a deal last week in the sense that we are implementing the first stage of the bailout package. courageoushad very and ambitious measures in the past few weeks and parliament and i encourage everyone to look at up because they are tough, but good for the productivity of the country. second, we have agreed with the readjustment of the debt for greece in the medium and long-term, which means there is some alle

for ministers met in luxembourg today. focus of the talks was sanctions against russia but several ministers voiced concern about that brexit possibility. we asked our correspondent to sum up the mood in luxembourg. reporter: before and in luxembourg set the clear message to the united kingdom. the first part was u.k., please stay in the european union. the second part of that message was if you decide not to stay in the european union, that means this is definitive. how is out, -- out is out. other than that, the authorities of the eu institutions, most cap quiet. they still have their vow of silence, something they agreed on with david cameron. he said just let me do that, because the bad image that the eu institutions and especially brussels has, the deal was the other leaders would stay out of it and david cameron would deliver a yes for the referendum on thursday. so far the institutions and other leaders have kept their part of the bargain. now it is up to cameron to keep his part. brent: the united nations says that

that was the exclusive interview with luxembourg finance minister.re also speaking with the co of transfer wise about the uk's decision to leave the eu. >> it puts europe and a much worse position from a competitive -- it puts europe in a much worse position from a competitive point of view. a lot of the discussion is on immigration and we are failing to understand without immigration, europe would be slowly contracting. yvonne: let's do a quick market check. slump deepening for the pound after hitting that record drop on friday. shares in australia, a little bit of upside. gold miners are rising today with gold at a two-year high. let's go to hong kong. ,e did see the pboc weakening the most since its august evaluation. that is sparking some fears across the market. we are looking forward to the afternoon business in tokyo. governmentom the boj . ♪ >> japanese stocks have rebounded from the worst day in five years after priming to all they called for action -- prime e called for action to stabilize. equities higher in china and australia today, but

indext luxembourg's luxx since february 11, when it also fell to it to an out year low.n 26%. only greece, peru, russia, egypt, and brazil have said it. x is worth 40 billion euros. -- biggest since february 11, the world's biggest steelmaker has risen 124%, along with steel and iron o. re. two other investors account for two thirds of the gain. a bit of love for the luxx. the balance has been restored. if you want to show your love, g #btv 1562 . was that chart, i think that is a runaway winner. x's.constituents and three where else will you get that. so mark, you are the winner. and joe, a wonderful runner-up. stay tuned for the next hour of "bloomberg markets." ofwill have live coverage federal reserve chair janet yellen at 12:30 eastern. you can see the event on the bloomberg through our live . function. ♪ >> it is noon in new york, 5 p.m. in london. >> welcome to bloomberg markets ." ♪ >> from bloomberg world headquarters, good afternoon. r.i.m scarlet fu. -- i'm scarlet fu. stocks rising as speculation grows the fed will not raise rates after the jobs repor

were enough to go it alone so belgium, germany, france, italy, luxembourg, and the netherlands stuck together. the u.k. applied only to be rejected twice by france. the french president cited incompatible economic interests. it was 1973. [applause] and britain was already questioning its membership. two years later, it was put to a referendum. -- opted to stay by 67%. mid-80's, the u.k. wanted to see its relationship with the group change. , notablybenefited less because of the large chunk devoted to farming which meant the french got much more. to strike a deal and get a rebate. biggest on to back the transfer of sovereignty to brussels in the history of the block. she signed the single european act, creating a single market. before the end of the decade, thatcher support turned. french president jack dalymple ere infuriated her -- jacqu delour infuriated her. thatcher was ousted by her own party. >> i was turned out because i no."to europe "no, no, >> john major took over. she opted out of the single currency. that was not seen as enough by eurosceptics. a friendly relationship wit

luxembourg and cyprus are also in the top four, with switzerland in fifth place.ny british businesses are trying to figure out what a brexit would mean for them, and that includes the tourism sector. tourism in the u.k. is worth --ut 22 -- billion pounds about 22 billion pounds. the industry worries about the consequences of a leave vote. charles pellegrin has more. charles: big ben, st. paul's, and tower bridge. visitors come to see some of the world's most iconic landmarks. but with that number fall if -- but would that number fall if they were to leave the european union? for this man, the answer is clearly yes. >> the majority come from eu countries. there are reports that people from germany, italy, and france are less likely to come to the the u.k.ou -- come to if we leave the eu. charles: the tourism industry in the u.k. is worth just over 20 billion euros per year. 2015, 67% of the visitors came from the eu. some travel analysts say a brexit could attract more visitors. valueld cause the pound's to fall and make the u.k. a cheaper destination. >> the u.k.

luxembourg, germany, the netherlands, france all coming together. they want the u.k. to leave us swiftly as possible. france has called for referendums of their own. angela merkel is calling for calm, a calm and measured response. it took to the radio. her chief of staff saying overall, there should be time for the u.k. to pause and to even rethink brexit. could he be hunting a second referendum -- good he be possibly hinting a second referendum should be held? from the merkel camp, there is a desire to calm the situation and make sure they progress slowly. she is very aware she has lost a key ally. this is interesting stuff. she will be talking with italy and france. politics are rudderless here. who would negotiate a trial separation, let alone a divorce? what does john kerry expect to accomplish? meet the topg to foreign-policy official and then he will go to london and meet the foreign secretary. the message is just that, we simply both, we love you both, we are here to help you through this messy divorce. try to make things better in the process. he is a little b

. >> luxembourg has put aside millions in public money for asteroid mining.he tiny european --is investing the not so astronomical sum of 200 million euros. the aim is to become the so-called silicon valley of space mining and set up the first legal framework to solve private operators claims to extraterrestrial resources. sarah: we have to leave it there. that is all we have time for. see you next time. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> this program is brought to you in part by cie tours international. for over 80 years featuring all-inclusive tours and go as you please value vacations throughout ireland and britain. cietours.com. [music] [music] ♪ ♪ [music] [music] >> hello, and welcome. i'm patricia o'reilly and

. >> reporter: law firm weiss and luxembourg has been carrying out its open probe gathering details forotential lawsuit against defendants that could include the navy, celebrity consumer advocate erin brokovich is on their team she skyped into the meeting. >> i cannot believe 22 years ago i got involved in a water issue and here we are in the future and it hasn't gotten better. >> reporter: that future is what concerns this mother. considering her own family's past. >> my father died of cancer when he was 30. and i grew up in warrington and my kids, i have three kids -- sorry, yeah, i just want to kind of have a little bit better idea of what's going on and if there's anything we can do about it. >> reporter:. (inaudible). >> water contamination has been found in public and private wells that's why governor wolf is calling for the military to cover blood testing for 70,000 people who may be affected prolonged exposure to chemicals is linked to cancers. public meeting on health effects and pfc's set for august 15 in this horsham. in the sat center i'm justin finch cbs3 ooh witness news.

that is half the size of luxembourg economy. 11 billion pounds betting against the pound in march, andf you cannot afford the volatility of the pound, do not worry. you can always short the euro. repe seeing a mini prieve, would last as we get on to first word? mini-repreive seems to be the best thing we are seeing. we're showing to the asian market and the currency market, cause for breath, whether we go back to the concern of brexit we will see. i have a chart also talking about volatility. this is the index here in white bettingthe odds checker odds for brexit or you will talk about this many times, manus, the volatility of brexit going up according to the odds in the betting market. and is being reflected in what they are seeing at higher volatility, this is the chicago bond option matter of volatility. let us get the bloomberg first word news. the u.k. anna, chancellor will warn in a speech today that leaving the eu could spark a fiscal crisis. george osborne says reduced trade and investment believe a 30 billion pound black hole that would have to be fixed by increased taxes and

luxembourg down as well. casting somewhat of a shadow across the global equity markets. shares down by 5.7%. earlier, they were down 7.2%. a british distributor of plumbing materials. they say third-quarter revenue for ongoing operations rose 10.8%. recent revenue growth trends have been weaker. a hold rating on the stock saying third-quarter trading was strong, driven by the united states. they note the sharp slowdown in organic revenue growth. sure is down 8.4%, the most since march. the swedish maker of radiation surgery equipment. in on the's check bloomberg first word news this morning. searchers may be one step closer to solving the mystery of what happens to that egypt airplane. they possibly detected signals from the black boxes, the only thing that can tell investigators why the plane went down. the united nations is asking for iraqi troops and islamic state fighters to spare children. few families have been able to get out since the iraqi troops their move to retake falluja. trump is committed to keeping house speaker paul ryan and senate majority leader mitch

there for meeting organized by law firm whites and luxembourg. >> i think everybody has the same concernthey don't want to be drinking contaminated water. you know, you got to bathe it in and drink it, cook with it. >> reporter: three communities are dealing with alarming levels of chemicals called pfoa and pfos in the water used they're used to fire fighting foam from nearby military air bases and linked to forms of cancer. >> my father died of cancer when i was 30. i grew up in warrington. i have three kids. i want to have a better idea of what's going on. if there's anything we can do about it. >> the firm is gathering information for potential lawsuit against the navy and other defendants. but some hope brokovich's name alone will push officials to action. >> that's what i'm hoping. that's why i'm here. you know, hopefully they hear the name erin brokovich and get little nervous. >> just last night horsham township's council voted on remediation plan that will ask the nave to pay for. many local officials are pushing the navy to pay for blood testing for residents. in willow grove, i

there for meeting organized by law firm whites and luxembourg. >> i think everybody has the same concernthey don't want to be drinking contaminated water. you know, you got to bathe it in and drink it, cook with it. >> reporter: three communities are dealing with alarming levels of chemicals called pfoa and pfos in the water used they're used to fire fighting foam from nearby military air bases and linked to forms of cancer. >> my father died of cancer when i was 30. i grew up in warrington. i have three kids. i want to have a better idea of what's going on. if there's anything we can do about it. >> the firm is gathering information for potential lawsuit against the navy and other defendants. but some hope brokovich's name alone will push officials to action. >> that's what i'm hoping. that's why i'm here. you know, hopefully they hear the name erin brokovich and get little nervous. >> just last night horsham township's council voted on remediation plan that will ask the nave to pay for. many local officials are pushing the navy to pay for blood testing for residents. in willow grove, i

we got italy, the netherlands, .nd indeed, luxembourg as well tomorrow, angela merkel was always meanto meet with francois hollande of france and she has expanded that out and says she now wants italy to come over and the leader of the european council. what is interesting, in the press come at time press, for example, they did that france -german axis is not as strong as it could be. she needs more voices on the table before they go to brussels on tuesday to sit down with the rest of the 28 eu countries in the next few days, discussed the remaining ones to discuss how they fund as they go forward. to italy,kel speaking andce, the eu president council of the president saying, if the u.k. left, it would be the end of western political civilization as we know it. angela merkel desperate to ensure that does not live up to the previous warnings. vonnie: thank you. coming up on bloomberg markets economic winners and losers from last week's historic brexit vote. ♪ vonnie: but i'm from london and new york, i am vonnie quinn in new york. mark: i am mark barton in london. this is a special edit

we will expect to see the foreign ministers from france, belgium, luxembourg, italy, the netherlands. bonnie: want to ask you whether reaction from regular germans on the street today was if you manage to get out at all. >> everyone in the office had in no way anticipated this. and we see eu flags being held up across germany. we saw the use of the green party demonstrating. behind me, this is a famous square in germany and they have been there saying the eu is better together. the feeling is one of shock and dismay. you.e: thank much more breaking news, coverage of the brexit vote, and the aftermath just ahead. ♪ bonnie: this is "bloomberg markets." a quick check on the markets. we have seen a decline today and it is a gathering seen as we approach the last half hour of trading in about 15 minutes. the s&p 500 down three point 6%, a drop of 75 points. the dow down 3.4%. and the nasdaq is down more than 4%. some cross assets, most of the green on this green in spreads because german bond yields declined and spreads widened. hadgerman 10 year yield been as low as minus seven basis poin

last year, the city of london, the financial district one a big victory over the ecb in a court in luxembourghat allowed it to continue those operations. what the french president is saying is if you leave the eu, then in two years time, and the u.k. officially exits, you will not be up to do that, because he would love for france to take up that business. francine: ryan, the mccammon is coming back to the u.k. 20th is when other eu leaders gathering today on the agenda brexit. brexit, group hug, group therapy. today is perhaps more important than yesterday. yesterday, met with a lame-duck prime minister who can i do what they want him to do which is to start the active negotiations. what they can do amongst themselves as a group of 27 is decide what kind of european union they want in the future. that is going to be a robust discussion. all 27 are politicians and they want to be reelected. they are well aware that back at home there is some of the same euro skepticism, some of the same questions about how good the eu is that they need to address. i think we are going to see a push for reform

indices,he equity after five days of losses, we have gains across equity markets across spain and luxembourg. it follows a five day decline which wiped over 670 billion of europeane value equities which fell to their lowest levels since february yesterday. this is a developing story. french aerospace supplier, zodiac. look at its shares in the last half hour or so, shooting up 20%. we are hearing from a french newspaper that the french company is preparing a bid for zodiac will stop the bid is valued at 30 or 35 euros per share. just to put that in perspective, shares are 23 euros. by the way, bloomberg back in april had a story that they were preparing a bid for zodiac peoplece according to familiar with the matter, so this is simply reiterating the story bloomberg carried in april. aerospace supplier maintained its outlook for current operating profits. ubs says its third order exceeded estimates. that is something we shares up today. volkswagen planning to bundle the components difference to unit-- per -- components as part of a sweeping the strategy review in the face of the emissions sc

foreign ministers flying over from luxembourg, france, italy, belgium, netherlands. meeting with a german foreign minister to decide on the next step. we will be at that meeting. and monday we have merkel franceng holland from and the eu leader, the eu president to meet on monday. the very fact that the u.k. leaving the eu, he warned this could spell the end of the western political civilization as it stood. we really hope that does not happen. for germany, it is all about business. the u.k. is germany's biggest trading partner. merkel wants to support her german businesses. mark: thank you very much. front seen, what is the mood like on the ground? mood is a little bit surreal, a little bit subliminal. you have a lot of shouting in the background. it's clear there is a sense of resentment from the eu. people come up and ask if it is true? is a treat the eu parliament president wants us out as soon as possible? is a true he ceases as infighting with the party rather than the u.k. really deciding whether they want to leave the eu? there is quite a strange story at wes

evening. .hat is moving very quickly at the very same time we have eu foreign ministers meeting in luxembourglready scheduled to discuss the eu heads of state meeting that is supposed to take place on tuesday and wednesday of next, that they could decide that it is important to have an emergency heads of state needing that we are hearing, perhaps will take place on saturday in addition to the already scheduled meeting on tuesday and wednesday. , send at to show message that the european union is united even if we get a brexit. they want to do that before spanish voters go to the polls on sunday, lest anyone there thanks the union is not as strong as it was before the brexit took place. francine: thank you so much, ryan chilcote in brussels. here are some of the highlights for your day ahead. 2:00 p.m. u.k. time mario draghi speaks at a hearing. an hour later janet yellen starts her monetary policy testimony with congress and it will continue tomorrow with the house. if you are a bloomberg user, bbc 8:00 p.m. u.k. time the posts it's great debate eu referendum show. irveillance is up next and

. >> you mention the czech republic and luxembourg.conomy is worth more than both of those countries combined. you also take a look at the venture capital flow. million, received $266 which is a third of how much was received by companies in singapore, and also there are only about 10 deals closed so far this year, less than south korea, singapore, and japan. rishaad: what is the government trying to do? >> they have tried various things with varying success. the cyber port development project was an expensive deal, luxury apartments and great venues, but the jury is still out on whether it was a success. over the past 12 months, a lot of effort coming out of the government. there is a $2 billion hong kong dollar fund to encourage more venture capitalist to invest in startups, and they're doing it through a matching basis, so hopefully things will turn up. rishaad: let's get quickly to what's happening with some markets out there. asia-pacific stocks at levels we have not seen, the regional benchmark near a six-week high. heinz sang an

. >>> united kingdom leaving the oavment -- eu, officials from germany, france and belgium and luxembourg are meeting this morning. >> reporter: the brexit vote causing a tsunami. exiting the eu is complicated and it could take two years to formalize an agreement. >> voting to leave the eu it is vital to stress there's no need for haste. >> reporter: eu wants britain to get out an get out quickly. a political earthquake was made force, the british prime minister david cameron who was in favor of staying in the eu resign. >> i loved this country and it was an honor to serve have it. >> reporter: bombshells are hitting hard for those who wanted to stay. but jubilation for the people who voted for an independent britain. >> wonderful, the best news ever. >> reporter: deep divisions in the country, erin erin ascertai- ascertaining -- earning the harsh divided kingdom. >> britain has to look at the trade deals and regulations in place right now under the european union and they will have to trade that and redo trade deals. >> that was lama hasan. >>> new for you, democrats approved a draft of

isina: hong kong's economy bigger than luxembourg and the czech republic combined.lion invested in hong kong tech startups, one-third of what was invested in singapore. there are a lot of systemic reasons. money.s not enough vc most of the pc costs -- most of choose not to set up in hong kong. angie: it is absolutely like a self realizing -- what can the hong kong government do about it question mark -- about it? selina: the development project you probably heard of, it cost 13 million hong kong dollars. over the past 12 months, i think the government is really starting to get some fear of missing out and they have been putting in some investment. wang, thank you so much. coming up, the hunt for anglo american australian coal mines. live in sydney. ♪ okay, ready? whoa! [ explosion ] nothing should get in the way of the things you love. ♪ get america's fastest internet. only from xfinity. >> china's exports weakened in may. still not delivering sustained growth. the shipments fell 4.1% in .ollar terms from a year ago 0.4% to leave a $50 billion trade surplus. in emot

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. >> i was just speaking to the finance minister of luxembourg about whether or not the imf is going to remain on board in these talks. do you fear that the imf might step off the train? >> well, this agreement was also concerning imf where it's clear that imf management stuff is ready to recommend a new program for greece to the imf board by the enof the year. but this was a subject that left sustainability for me for hours. so imf willing and has to be part of the program piece shown in this agreement. >> do you fear that we could have to revisit a potential breaking up of the eu, that we're even more so than the potential brexit, as well, but we could have to see especially that coming from periphery markets. >> y saw you are having that in 27 out of 28 eu member states with the only exception being greece. but also in greece successfully contacts that revenue now, implements all the prior actions and greece can return to growth in the second half of the year. so in this case, there is no need to discuss so much. >> oh, and i think we just lost louisa there. we let her continue th

there was also the netherlands, as well as luxembourg, a beautiful lakeside retreat, sweltering heatbout 95 degrees fahrenheit. i spoke to the foreign minister of belgium, and the demand is they must exit, and the process will start now. >> we will start next week. we will have a meeting of the .uropean council discussions formally. if it's possible for the u.k. to introduce a request on article 50, but we need to start as soon as possible to avoid any possible crisis. caroline: avoid an economic crisis, political crisis. they are terrified about the forming of a political vacuum. they are worried about the domino effect that could spread across the eu, other right-wing parties in france and spain voicing demands for their own referendums. this is what eu leaders want to stop in their tracks, and this is why they are pushing -- david cameron, gathering with a 27 remaining heads of the eu on tuesday, he's going to be forced to discuss about whether he will trigger article 50, starting the process of exiting. he wants to buy time. you know he wants to wait another three months. he want

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with 70% of our laws being made by foreign institutions, our own supreme court being overruled luxembourg and with an open bored for 500 million people. whatever problem in the u.s.a. there's nothing to what we have had and what we did last thursday is we said, we want our country back. and we voted for it. and we have got it back. >> kind of an independence day nor you guys. thank you very much. >> absolutely. >> good to see you. >> thank you. >> the market still plunging, off 260 on the dow. the big question is, will it last? or is this brexit selloff overdone? we'll debate it. why pause to ta? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, u

but also belgium, netherlands, luxembourg, and italy, all of them looking at what happens next. foreign minister steinmeier already said this is a bitter day, but the priority is keeping the eu together. so what they'll be looking at is what is the quickest, most painless way that the uk can leave the eu, and how can they make it clear that this must not happen to any other eu members. they want to give a clear message that there must be no benefits to leaving the eu. how this happens, the legal framework is what they'll be discussing, but they will also be discussing how to reform the eu from within. whether or not there needs to be more flexibility for members who just don't want to move in the same directions all at once. so these are the things that they'll be tackling today, but it will be a long process to go, max. >> nic, angela merkel called this a watershed moment for europe and for european integration. it's a watershed moment potentially here in the united kingdom as well. what happens next? >> reporter: well, smp first minister nicola sturgeon, and the ref ren campai

luxembourg down by 3.8% today. big moves in the currency market today as well.ook at the second column. the norwegian krone at 2.5% lower against the dollar. sterling down by 3.5% today after falling 8% on friday, which was the biggest ever fall. just remember that before friday, the biggest ever fall in sterling was black wednesday in 1992. we are almost at that fall today. the euro fell 3.2% against the dollar today. 1%.y, it is down a mere in the sovereign bond market, we are seeing yields fall in for free today. look at the spanish 30 year -- 22 basis points lower. we have yields falling in sweden, france, and belgium. credit risk is on the rise and the number of commodities are following today. have a look at what is happening to the 10 year yield across europe today. something very significant happened here in the u.k.. is the white line and this is the yield of the 10 year going back 12 months. the u.k. 10 year falling below 1% for the first time ever. that is increasing the bank of england cutting rates next month. 14 andeting is on july futures pricing

70% of our laws being made by foreign institutions with our own supreme court being overruled in luxembourg with an open border to 500 million people. whatever problems you've got in the usa, they are nothing to what we've had as part of this year of -- and what we did last thursday is we said we want our country back. >> we'll get you in here. so he's saying it's not exactly a parallel, but as americans we always make everything about ourself, but there are some similarities. do you agree? >> i think britain is to the u.s. what california is to new york. it's a glimpse into the future. if you want to know what this country could look like a generation from now, you look at the uk. that's been true for generations. this is a complicated thing. people who support brexit shouldn't pretend there's no economic cost to pit -- it. europe has become weaker financially and it's become demonstrably and critically less english, not just in the appearance of the people who have moved there, but in their attitudes and behavior. if you wake up one morning and your country looks nothing like the country

we're not slovenia or luxembourg.s a big country with a big weight that comes with a big economy. >> liam fox, thank you, indeed. >> christiane, thank you. >>> let's get some context on thun precedented decision. first of all let's bring our viewers this breaking news, itv news, our affiliate, is calling the referendum result for the "leave" camp to win 52 to 48%. >> 85% probability. and the bbc, british broadcasting corporation, is also now formally calling the referendum in favor of "leave." brexit. the two national broadcasters, itv and bbc in the united kingdom are now saying that they believe brexit has won. >> this is happening. the united kingdom has voted to leave the european union. it's been a member in some way, shape or form of the european economics community first, then what morphed into the european union since the early '70s. first of all, reaction? >> this has been -- in terms of forecasting and in terms of expectation, an historic mispricing by the markets and by the commentators and so many people.

the country was one of the six founding members of the eu along with belgium, france, italy, luxembourgherlands. the german ambassador to the u.s. is joining me now. let's first of all talk about chancellor angela merkel. she has said, quote, i would not fight now for a short time frame. but germany's foreign minister said this process should get under way as soon as possible. which position is the position of your government? >> well, it's good to be on your show, first of all. >> thank you. >> this is a watershed moment, and no doubt about it for europe. but it is not the end of the european union. we deplore that decision of the british, but we respect it. but the european union will remain a strong and reliable partner even without britain for the united states. the most important international part. and there's no reason for panic. the eu will remain to exist, and the eu will remain strong. now, we've got to give the british some space to digest the aftershocks of that decision in the referendum. they might have to cope with the consequences, but then after a while, it is important

later they speak with luxembourg's finance minister in paris.berg. ♪ marco the deflation delay. japan's prime minister postpones the hike. stocks drop amid surges. crude slips as opec gathers in vienna. test lost control of the markets? no news for jaunty with inflation -- no news for jaunty with inflation the lowest in a month. when were data snapshot ahead of tomorrow's meeting.

some from portugal, some from luxembourg, you are allowed to be at the head of the council or the commissionne top class to head the eu in order to shore up borders. isondly, what we need to do to agree on the fiscal policy at it hasl in order to -- been asked for jointly. that is a key step. both central banks are asking. --h bundesbank and automatically, with the finance minister in the budget they can spell it out. otherwise they are just back in red tapes. tom: that is the doubt that the brexit supporters have. davide serra with us. a conversation with ian bremmer of eurasia group. g-zeroder if it is a united kingdom. ♪ francine: tom keene is in london. i am looking at charts. we will also look at brexit. let's get straight to the bloomberg business flash. nejra, you have more news on the businesses we are watching. nejra: shares of volkswagen rose the most in two months in germany. there are signs that it will emerge from the emissions cheating scandal. a $10 billionbmit settlement offer in the u.s. general motors new cadillac is on a collision course with silicon valley. it has gadgets

we've got a lot more guests coming, including luxembourg's finance minister.oming up at 9:40 in "the pulse." anna: up next, former government minister iain duncan smith joins us live from berlin. that is next. ♪ is 10:19 in dubai. let's get the bloomberg business flash. here's julie at sally. : a former barclays director is being accused by the u.s. of giving tips about future mergers and acquisitions to a plumber friend in exchange for cash. stephen mcclatchy was arrested by fbi agents yesterday. he faces conspiracy and securities fraud charges. dutch bank, the largest investor in alibaba group, says it will sell $7.9 billion in its stake in the chinese giant to bolster its cash position and pay down debt. even after the sale, softbank will remain alibaba's largest shareholder. alibaba's u.s. listed shares gained almost 21% since the inl gained almost 21% since the initial public offering in september of 2014. the operation, which includes still works and to mills, look trade under the name british steel. the is this employs around 400-4000 people -- 4400 peo

and no less rosa luxembourg. my only city of thessaloniki enjoys a large presence of jews dating back to the times of saint paul. thanks to this it was born again again. in particular it was the ingenuity of its sephardic jews who were expelled from spain in 1492, trained the poor settlement into a thriving mediterranean port. those spanish jews named the synagogues of the cities they were forced to leave, sevilla, aragorn, zaragoza, toledo. but as time passed, they made thessaloniki their new home, one that proudly and rightly was called the jerusalem of the balkans, the mother of all israel. cities are nurtured in tolerance -- the ghetto was invented in venice. modern anti-semitism was invented in vienna. and the holocaust was conceived in berlin. european jews symbolized urban decadence and were persecuted and eventually exterminated for this. today almost every european city from paris to krakow is a city of ghosts. haunted by the absence of its most exemplary citizens. with their death as part of our own --

and no less rosa luxembourg.only city of thessaloniki enjoys a large presence of jews dating back to the times of saint paul. thanks to this it was born again again. in particular it was the ingenuity of its sephardic jews who were expelled from spain in 1492, trained the poor settlement into a thriving mediterranean port. those spanish jews named the synagogues of the cities they were forced to leave, sevilla, aragorn, zaragoza, toledo. but as time passed, they made thessaloniki their new home, one that proudly and rightly was called the jerusalem of the balkans, the mother of all israel. cities are nurtured in tolerance -- the ghetto was invented in venice. modern anti-semitism was invented in vienna. and the holocaust was conceived in berlin. european jews symbolized urban decadence and were persecuted and eventually exterminated for this. today almost every european city from paris to krakow is a city of ghosts. haunted by the absence of its most exemplary citizens. with their death as part of our own -- has

we will be looking at what the continental european view is with the luxembourg financial minister. ratings agency. "trending business" next. ♪ ♪ it is monday, the 27th of june. i am rishaad salamat. this is "trending business". ♪ rishaad: sterling continues its slide, near 31 year lows amid reports the leaders of the brexit campaign never had a plan. the

if i pull out a gun and shoot alan luxembourg, you would know i did it because i was right in front of them. phone, forll out my all you know i was texting my wife. so there is a gray area of what is and is not an act of war and it is hard to decipher and right now we do not have an answer. conflict,ry kind of it is the aggrieved nation that tends to make its on whether ones to go to war or not. in 2007, when russia released war against estonia, estonia is the most wired country on earth. is a cashless society. every transaction is done electronically and the russians shut down their whole internet for the whole country for three weeks over a tiny political issue, essentially the estonians offended russia by trying to move a statue of a page russian soldier away from the city center into a garden and the russians got angry. was that an act of war to shut down the entire estonian economy? to shut down the estonian power grid? to shut down the estonian banking industry? you could call it enacted for. damaging. tiny estonia, population 3 million, do you really want to pick a fight with yo

that ends up showing up in places like they'll demand luxembourg. this is oafish holdings.sting to figure out what is happening. we found that if you look at private selling in the chinese country, there investors have been flat. private sellers have sold of equities but not to the same extent. as you saw from that chart, the treasuries have been flat. they have shifted toward equities and you look at the market since they started selling, they are good at timing stocks and the fact a soul before the market turned around. maybe they know the market better than we do sometimes. scarlet: they were accumulating as the market went up so the cut -- timing could not be better. we will be back with more on bloomberg markets. ♪ oliver: you are watching bloomberg markets. scarlet: it is time for the bloomberg business flash with a look of the biggest business stories in the news. oliver: long-term mortgage rates are lower in the u.s. for the second straight week. the average 30 year fixed-rate --ddipped.bt scarlet: airbus says it will struggle to meet a goal of delivering more than

i am very, very confident the next week on the 16th of june in luxembourg, we will be capable 10.3ecidinghat the billion euros, that will give a really strong oxygen for the greek economy. that is what we need. there must be a clear deal. there needs to be a deal. they are necessary, and important to us. to watch a growth coming back into greece, investments coming back into greece. that is where we are. at the moment, we can enter into in our relationship with greece. that doesn't mean that all efforts are behind us. we need to implement the reforms. that willnt that now open the new page. have someimf seems to disagreement about the sustainability of those agreements. 3.5% as forarget of as gdp is concerned. do you think that those things can be made? discussed for the -- we agreed on methods that would be shortened by measures. , after that, we will take the midterm and long-term more ambitious measures. it is very important that it is to take a positive stance. the staff and management are ready to be convene to be with us in this program. that needs to have some checking about the sy

or some of the smaller countries are positioning themselves like the notorious tax havens like luxembourg malta and ireland, an english-speaking hub, dublin could possibly also take that role. so they're all sort of jockeying to figure out who might be able to open their arms to the financial services industry. >> why would they be so cut off, tara? the uk doesn't use the euro as it is, right now, right? if i'm in london i've been listening to you guys in brussels talk about a financial transactions tax. how much they hate the banks. i think paris is dreaming if they think they're ever going to be a financial hub. they make clear all the time how much they hate finance. >> right. but if they're not if they're not in the european single market, it's difficult to do trade. there could be that tariffs on any sort of services and goods. a lot of countries they put their offices in london to passport their financial services into other countries as the he. if the uk leaves, they won't have that access point any more. they're going to have to find another hub to passport their services around.

the end of the war in europe, germany, france, alongside with other four nations, italy, belgium, luxembourg and netherlands, created the european community which paved the way for the founding of the european union. thanks to the foresight and the strong political and economic support by the united states, something that was impossible to think about a few years before was able to become reality. so things that seemed impossible just last week can become reality now. we think at this time to face the challenges europe has had in transforming opportunities with ultimate aim of creating more prosperity for european citizens and the whole world. this is why we launch the euro growth initiative last march. through our publications and events like this, we want to galvanize this transatlantic community to contribute its ideas. i want to thank jose manuel barroso for leading this effort as well as the whole task force, the euro growth task force and i'm particularly happy some members of the task force are here today. ambassador boyd gray. i also invite all of you to bring home our first three pu

it might not be paris, it could be luxembourg or dublin or frankfurt.me cases, it might be they could move the business outside europe at all. we hope that doesn't happen at all. votes to leave, every big institution that operates throughout the european union from britain would have to assess where it should be operating from. they will have a couple of years of uncertainty until our relationship -- the new relationship of the european union will become clear. two years of uncertainty would be one thing, the talk of 1000 -- 100,000 jobs being lost in the city. --ers have estimates out that really resonate with you? mark: it's a plausible figure, difficult to estimate. it depends on what deal britain could secure within the european union. if we could stay within the -- then union uncertainty is not helpful. that will be resolved to some extent with the vote on thursday. if it is leave, we have a couple of years more uncertainty. we want that resolved as quickly as possible. jonathan: you mentioned the eu passport. best to put uncertainty around the cit

a meeting to begin in a short while behind me, the european commission, also another meeting in luxembourgof meetings under way in various european capitals as to how best to respond, how best to deal with the outcome of this referendum. i'm speaking to one eu official who told me that a brexit would be a great tragedy for the european project, a blow to the eu, symbolically, politically, economically, and there's a real concern about the rise of euro skepticism across the continent, the rise of nationalism as well as the far right. already we're hearing calls for referendums in countries such as the netherlands, as well as france. and going forward, we can expect that to have an impact on any sort of negotiations. brexit negotiations with the united kingdom. i was speaking with one diplomat who told me there will be no niceties in those negotiations. they want them to happen wrappedly. i was speaking to another senior diplomat who took a more cautious tone and said they're waiting to hear from british prime minister david cameron. waiting to hear what he has to say, also expressing confid