angela merkel is discussing this further. the german economy ministry is joining us now. thank you very much indeed. give us a sense. what i am intrigued by, hollande was always meant to be meeting with merkel. should we interpret there is a concern with the access of france and germany? how strong is that relationship? >> i think we have seen this slightly different perspective between france and germany taking on how to react to brexit. france wants an immediate triggering of article 50, this exiting procedure. and merkel has made it very clear, let's staky calm. let's not trigger article 50 immediately and perhaps, the british people might stay. she would like to have a three-way negotiation. caroline: there is also some path of argument within germany itself. she had to almost reign back steinmeyer. . we also heard from schulz, the president of the eu as well. how much of an argument is there in germany as well? >> there are tow perspectives. on the one hand, you want to end uncertainty. now, let's trigger that procedure

on merkel -- angela merkel expected to make a statement later this morning.e former mayor of london boris johnson campaign for britain to exit the european union. he too expected to deliver a statement very soon moving parts for you, each and every statement moving markets and affecting your portfolio. lauren: let's get you caught up on global action, let's start with european stocks, asian stocks across the board. ftse down 5%, the dax in germany down 6%. this had been down 10% so we are off of lows of the overnight trade. the cac quarante in france, 7.5%. turning to us stock market futures, down 800 points, there are jitters on wall street, the s&p futures down 69, all 30 dow components looking to the downside. goldman sachs, jpmorgan, the worst of the bunch. lauren: concern about europe affecting the oil market, trading down 4% to 48 even. the safe haven play is gold. it is up $52 trading at $13.15 a troy ounce. nicole: the only currency hire against the us dollar is the japanese yen. you are seeing a selloff for the canadian dollar all lower against the u

also, across the channel, german chancellor angela merkel says there can be no informal talks about brexit on to london makes the first move. the french president says there is no time to waste. in soccer, at the euro 2016, italy and spain go down to the wire. both hoping to advance to the quarterfinals and the right to play world champions germany. ♪ brent: it is good to have you with us. on both sides of the english channel tonight, lines are being drawn in what promises to be anything but a simple british divorce from europe. let's start in the u.k. outgoing prime minister david cameron has ordered a working group to begin the compress -- complex process of making an orderly exit from the european union. the work will now start but the next government, the next prime minister -- they will have to finish the jump. reporter: it was an upbeat baby camel who spoke to the british parliament for the first time since he announced his resignation last week. he told lawmakers his cabinet had agreed that their assault of the eu referendum must be accepted but he would not be pressured by european

angela merkel is the first.as --hn carter younger is speaking to the european parliament. >> i think what we are seeing is global. it shows what is happening. i would like the united kingdom to clarify its position and i would like the idea to become common currency that there could be some kind of secret negotiations behind closed doors between representatives of the united kingdom, national governments, some commissioners, and some directors general. ban, aplaced a presidential ban, on commissioners engaging in discussions with the british government, regardless whether it was leave or remain. they can have no preliminary discussions with representatives of the united kingdom, no notification, no negotiation. >> we lost as a result of the british vote. we lost something very important. founding fathers do not have any more rights than other member states. but launched the project are the only countries behind the project. the other countries' so-called new member states are fully fledged member states. i welco

thank you rick. >>> german chancellor angela merkel's reaction to brexit. fox business network's adam shapiro is in berlin and following all of this from the brandenburg gate. that is a historic site to be following this. what is the latest on jvrm's reaction? -- germany's reaction? >> well the chancellor angela merkel, david, is trying to control reaction from eu leaders who are very angry with the uk and want the divorce process sped up. in fact one of them jean claud juncker said there is no reason to wait, i would like to get started immediately. but angela merkel was in pots dam this morning immediating with members of the conservative party here in germany and she was putting a calm face to it. saying the uk will remain a close partner with whom we are connected economically, share mutual guarantees as nato partners and are connected in other ways. so angela merkel has reacted and of course the foreign ministers from several other eu nations are here as well. >> you are going to hear nigel farage's reaction in the next hour. but first major american c

to bring you the comments from angela merkel at this joint news , angela merkel says these discussionsart at the eu summit tomorrow and we need to help to fight youth unemployment in day eu. she says, we will propose a new impulse for the eu and the eu remains one of the struct economies in the world. take a listen on the comments francoisident front to hold hollande. de: we got thean results. therefore, they decided to exit. we deeply regret this choice, it even if it was shared by 52%. it means that nevertheless 48% wanted to remain, and especially, a great deal of young people. weak regret it because, after all, the united kingdom is a friend, an ally, and historically, in europe. but, we must respect this decision. it is our responsibility, in relation to the people that expressed themselves. the debate was particularly long . we must prove right now -- must talk about our sadness because we are sad. we must also talk about our responsibility. after all, it is our responsibility. our responsibility is to not , in time, not to lose time order to deal properly with this departure of

i merkel and not a lot happened in berlin today.m shapiro break there in berlin covering this moment to moment. on. reporter: good morning to you, nicole. they will be meeting at 3:00 berlin time at 6:30 live press conference to discuss how they plan to go forward. the president from france was a quick divorce in the united kingdom with angela merkel is telling everyone to remain calm and negotiate since for u.k. exit should not read nasty. but then there was the chief of staff to the chancellor of germany who sent them and it has all of your thinking this morning. quote, politicians in london should have the possibility to think about the fallout from an accident. that came from peter doubtfire, chief of staff to angela merkel. the way people interpret that as the fact that article l at the e.u. treaties requires that the united kingdom began the divorce proceedings. they haven't done that in perhaps the government didn't u.k. may not do that. he mentioned markets. the german stock exchange trading down as director european exchang

angela merkel in beijing.ot maker could throw its banner in the works. ♪ >> it's 10:13 in hong kong are these are the stories making headlines around the world. present obama says the gunman who killed 50 people at a florida nightclub was filled with hatred. the massacre is being investigated as an act of terror. another 53 were wounded in the attack on the gay club in orlando. it's the worst mass shooting in u.s. history. the killer has been identified a u.s. citizen born in new york to afghan parents. the fbi says he talked about the so-called islamic state in a 911 call before the attack. >> this massive core is therefore a further -- massacre on howr the reminder easy it is for people to get their hands on a weapon in which they can shoot people in a house of worship, movie theater, or a nightclub. we have to decide if that's the kind of country we want to be. that's anothing, decision, as well. its new oil contracts will need revisions, but it's confident a deal will be signed assumed -- soon. the governm

caroline: monday of course merkel has , summoned her counterparts. frenzy, and donald tusk, the head of the eu. he has been the president. he said this incredible words. if we did indeed see the u.k. leave the eu, it could spell the end of western political civilization itself. but those leaders will be gathered together, and they will want to start to decide how they will lead the eu to be cohesive , how they will prevent any sort of domino effect playing out. that way they will prevent concerns in the right-wing populist expression, starting to rear what many feel is its ugly head. there is much to look at. erik: that was caroline hyde, and this was a bloomberg special report on britain's decision to break from the european union, a historic decision rocking global markets on fridays with percussions unfolding weeks, months, and years. stay tuned this weekend for special programming here on bloomberg television, bloomberg radio and bloomberg.com. ♪ ] welcome to a special brexit bulletin. european union foreign ministers have agreed a quick brexit p

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

the yen at one away .74. 108.74.en at merkel -- angela merkel throwing support behind david cameron and the remain camp. that doesn't seem to have swayed the currency much. let's get the bloomberg first word news with eve on an. -- with yvonne man. shareholders -- these securities are poised for the biggest one-day gain since 2009. 13%, thest as much as lowest since 2003, following the announcement. the singapore company which lost its ceo says chairman and .ounder intends to go donald trump says hillary clinton should be sent to jail for her use of a private e-mail server while secretary of state. at a rally in hand -- in san that she was guilty as held. --says desk within says he clinton says he is unfit to be president. weekends.n it could spill over into global selloff. declineis poised for a -- the yuan is poised for a decline. paris on the second-highest alert level. the louvre, the museum of historic artworks will shut its doors today. the flooding is disrupting travel on motorways and some train lines. forecast.ours are global news, 24 hours a day, powered by 2400 journalists in

how much does merkel -- how much blame should go to merkel for not dealing more proactively with somef the underlying issues that are causing angst yites? >> the whole migration crisis played a huge part, a massive part, even though the u.k. part has a policy and didn't have to take any of the refugees that were flooding into europe. it made look the e.u. like a dodgey prospect. and in terms of merkel's relations with the other e.u. member states, they were extremely tense, more tense than any time i have seen and domestically merkel has lost support as well. she's still strong and has over 50% approval rating in germany and likely she still will be a the german chancellor and she will be an open negotiator. it's still not clear and we don't have a government yet and don't know what the u.k.'s negotiating position is going to be and what kind of model they'll seek from the e.u. we'll have to wait and see what they say. >> there are so many things that need to be sorted out. do you see any situation in which the brexit could bring continental europe together rather than the deeper frag

overall leading up to the referendum, we are talking the newsroom about whether angela merkel and first one look off -- ois laqua had a plan b. i really like the analogy -- i'm not a football fan -- by like the analogy of you don't have a team playing. if you go to brussels, you don't know who to send. they say, hold on, we are no .ush to article 50 he also said, we don't want general elections because the labour party is not ready for it. no one seems to be bothered with fromuncertainty apart maybe markets and business people. >> i'm fascinated with this idea that there may be a renegotiation of the deal. kind of like a labor negotiation. we keep coming back for new negotiations. if immigration is a real factor, is it possible for the eu to give up and satisfied the seven million plus brits who voted to leave the european union. francine: that is also one of the things that people are talking about. legally, the eu could do everything they want and say, they could speed up a trade agreement, but what kind of signal would like it to other european countries? withber what happened greece

whether angela merkel really once the u.k.ncine, again, chancellor merkel is always doing the best to have a long-term view, be the a donald the room. i give for credit. for me, timetable specifically, how much is under people's control? there are people who keep saying the europeans have to understand. it will maybe take to october. the fact is, this is a huge externality of uncertainty on europe. a huge uncertainty disrupting their agenda and politics. about, ohp talking well, the britons do not want to be bullied. well, the europeans do not want to be bullied either. i am not saying it is not fast, i am just not saying it is not sustainable as is. you need to be clear about the process in saying at some point when the u.k. is ready, we will pull the article 50 a court. i think that is wrong. i think we have to be feeling -- thinking about calling a general election in the u.k. and fighting the issue of remain or stay with scotland or ireland. once you have that, you have a mandate. tom: thank you so much. at imposing with t

angela merkel is on a nice trip to china in a decade, on a mission to drum up more business.alk to tony chaska. angela merkel's trips to china have met been that have not been controversial. .- have not been controversial i know some of the m&a intentions have raised if you i -- a few eyelids in berlin. tony: one word is cougar who is germany forased in which there is a chinese bid. there is a raising -- that is raising a lot of concern. that while german companies have been going to china for years, but here we are getting the same thing in return . there is a lot of domestic politics connected to that that is making angela merkel's trip more tricky this time. manus: tony, what is the feeling german-n about how the chinese trade relations will look as we go forward? it is a global relationship for everybody. it is important for germany. tony: absolutely. you can tell from merkel's latest remarks in beijing as she just gave a news conference that she is trying to sort of avoid being overly confrontational on this issue. the reason is, in so many words, the two countries need

germany's merkel says this is no time for wishful thinking.omberg survey shows a majority of economists forecast a u.k. recession after the leave vote. and terror in turkey. islamic state is blamed for the attack that killed at least 36 people. turkish airlines says the airport has now reopened for flight. ♪ anna: welcome to "countdown." i am anna edwards. it has just gone 7:00 in the morning here in london. we are getting some numbers through. this is from a retailer of electrical goods on high street. the final dividend will be 6.5 pence. like for like sales increased by 5%. full-year group comparable revenues up i four point 5%. this is a better looking story in the wake of the brexit referendum results. we will see if they have any comments to make about what they will see from the consumer in the wake of that. they say they had seen no impacts of our in terms of the numbers. we will keep monitoring that. also what they have to say for the buying side of their business. hard goods, that is sold by the likes of kingfisher and all the other

chancellor merkel and others say they want to avoid a political vacuum.dent whole lawn said brexit will force you leaders to take a close look at why people across the region have lost confidence in the bloc. the u.k. up's historic decision will be on the agenda at two meetings of leading central bankers. they are in basel this weekend, then lisbon monday, and will discuss how much the fragile global recovery may have been affected by brexit. mark carney pulled that because of the upheaval at home. janet yellen has said fed will hold. saudi arabia is showing the strongest signs yet that the oil glut may be coming to an end. despite regular output, inventories have declined for six consecutive months, the longest stretch since supply levels were first monitored 15 years ago. production rose to a record last october, but stockpiles have fallen by more than 38 million barrels. anna: italian prime minister mattia renzi flew to paris for talks with president aland. the two will joined chancellor angela merkel ahead of the summit in brussels tuesday. that is wh

caroline: monday of course, merkel has summoned her counterparts.nzy, and donald tusk, the head of the eu. he has been the president. he said this incredible words. if we did indeed see the u.k. leave the eu, it could spell the end of western political civilization itself. but those leaders will be gathered together, and they will want to start to decide how they will lead the eu to be cohesive, how they will prevent any sort of domino effect playing out. that way they will prevent concerns in the right-wing populist expression, starting to rear what many feel is its ugly head. there is much to look at. erik: that was caroline hyde, and this was a bloomberg special report on britain's decision to break from the european union, a historic decision rocking global markets on fridays with repercussions unfolding in the coming weeks, months, and years. stay tuned this weekend for special programming here on bloomberg television, on bloomberg radio and on bloomberg.com. ♪ >> the brexiteers get shy. the leave campaign softens. >> a dismembered eu changes i

wepokesman for merkel said will not move before they do, so it is all a little bit up in the air. will the british pull another card out of their pocket and eventually hold a second referendum? that is looking unlikely as things stand because over to his -- over 70 million people did vote to leave. billy thing we know with certainty -- the only thing we know with certainty is that there is no certainty. >> can scotland stay in if the rest of the u.k. pulls out? >> it is definitely trying. they are working on the idea of a second independence referendum for scotland. if they vote after the u.k. leaves the eu, they would have to reapply like any other country, but people said it procedure andt that they would get in pretty quick. people also looking at having an association agreement deal with the eu before they hold a referendum on independence, trying to work out some kind of deal that would keep them part of the eu even if the u.k. leaves. >> the fallout is continuing from that shock vote to leave the eu. david cameron's conservative party is grappling to figure out who to nomina

angela merkel is the absolute master. even a verb in germany which means to put off decisions till you absolutely have to take them. the e.u. is brilliant for that. we face something no one in the e.u. really wants, most british m.p.s really want. there is no clue how to get out of it but no one wants to deal with the consequences now. it seems to me we have a classically european situation where i don't quite see how it happens yet in large part because of the domestic politics gerry talked about, but i wonder whether we end up with something less cataclysmic than we worried about. we had the vote to leave, then the collapse over the chaos in british politics. in the end the europeans kick the can and come up with compromises. >> that's worked out well for them, zanny. this is why the euro is -- and by the way the other person brilliant for kicking the can is david cameron. he wa>> mumbling through is theo of boris johnson. >> a long proud british tradition. but it's going to be very hard -- despite zanny's desire to cli

and merkel is the voice of calm in all this. her own foreign minister over the weekend was saying we have to see the uk leave as quickly and painlessly as possible. her finance minister has earlier said out means out. no special concessions or negotiations with britain. but the chancellor herself over the weekend said there's no need to get nasty, and that's a direct quote, about negotiations. what will be interesting to see today is she has a flurry of meetings. she'll be meeting with european council president donald tusk at 3:00. after that, she'll be meeting with french president francois hollande, and the italian prime minister. it will be interesting to see in particular what she says after her meeting with hollande because hollande has also been very clear. the uk is out. let's move on. this must happen as quickly as possible. merkel is playing the good cop, if you will, where she says let's take some time here. and perhaps the biggest indication that germany could allow, for example, for a little bit of an open door for

we have already heard from angola merkel and we are hearing merkel, andla vision from france for a longyou? julie: as quick as jacob: as quick as possible. the longer it goes on, the more uncertainty will play on the -- pean is something that will not endear him very much to the other leaders, that he will meet with in a few days. jonathan: the follow-up to that would be for a lot of people he has a lot of leverage now. because these guys did not give him a good enough deal to give to the british public and sway the vote this way. does he not have leverage now? jacob: no. the european leaders have already said that the deal negotiated in february was final. there will not be any renegotiation. meanwhile, it is the u.k. economy that will be taking the biggest hit. if we are looking at potentially three months of uncertainty before the next conservative convention, then possibly after that, a general election in the u.k., we could have another six months of essentially knowing nothing about where this process will end. that is the amount of uncertainty that will have lasting implications

annette: another european leader who has held a f press conference is german chancellor angela merkel. jessica, what did the chancellor have to say? jessica: i think we have seen that she is disappointed with the reactions of many across the leader -- she gave a typical angela merkel press conference, where she did not want to incite panic. disappointmenter with the british referendum, but she said lessons would be learned from this and it was now ,ime for europe to move forward and there were consequences that she said there would take days, weeks, and month to discuss. she is buying quite a lot of time. weird for many other politicians in europe, saying a quicker brexit would be less painful of a solution. angela merkel also took the time to reiterate the importance of the eu, saying it was important that the 27 member states that remain were not disturbed by the brexit, and that there was time for more convergence in europe, saying that the best way to guarantee the future of the block was to come together for more solidarity. as i said, she did not want to invite any panic, given

as was laid out very clearly today by angela merkel.nt to have a single market, so we have to pay in money to the eu budget and to allow the principle of the free movement of labor. if we want to put up barriers and have a different migration system, we are not going to have full access to the single market , and if we don't have that the , economy is going to be worse off for that. there is a simple trade-off. in the end, the eu has compromises. i'm not attaching a high probability to this, but it seems there will be some prospect we end up with an arrangement that is economically close what we have now, and possibly not even exit. otherwise he have an arrangement that is very close. charlie: what do you say? tina: i think she is right. i don't see the motivation europe has to give us everything we want, give the u.k. everything it wants. charlie: the people in the eu are saying they give a lot to -- they gave a lot to david cameron before this took place. gerard: that is not true. tina: no motivation to give it to them, what they are

charlie: what will be the future role for envelope merkel? -- angela merkel?ot there,rits are she loses of free market ally. the other big power becomes friends and france is more protectionist and statist. it feels her right-wing element. gerry: she has an election in a year. welcome refugees was a political refugee. -- disaster. you could call it courage. you could say, was it wise we would just allow one million people to come and settle in this country? in signaling that, also signaling, come on in, everybody else. they are trying to backtrack out of it. she's got her own problems. i agree with zanny. the last thing the germans want is to go back to fungal german nco-german running the european union. >> it is ugly across the board. the rash statements. the chaos. nothing good is going to come out of this. it is good to say in a year or two we will get everything we want but right now europe is in turmoil. if you are a terrorist, if you are happy as a clam at the state of the turmoil. charlie: cut his putin take advantage -- how does putin take advantage o

not in the same party as angela merkel's, indicating there was a rush. merkel, is not saying that. that is coming through clearly. the u.k. should have a chance to consider the consequences. it is saving hand, face because the u.k. will not be able to get its act together anytime soon, given how we do not know who will lead the negotiations. that plays into a story from over the weekend, the idea that maybe after the 15th, it just may be they want to take time not to just get the negotiations and exit right but maybe they want to spend time trying to convince u.k. leaders not to exit at all or some sort of be comingund may through. >> you have the 17.6 million voted to the u.k. who leave the european union. you will want to know what happened to that. >> yes. there's also the possibility they changed the terms of the deal and you can to get back to the british people. you can understand how the conversation is taking place. valid, taking no for an answer. you see time and time again, they go back and get a second bite of the cherry. i wonder that is the thinking now. let's go to pa

angela merkel is addressing the other e.u. leaders to gather for the summit and mr. cameron will be addressing them. it is kind of an informal meeting. a working dinner much later this afternoon, early evening at which point you will discuss the brexit go. you've got the commission president and also the e.u. council president pushing for a rapid exit for the u.k. from the e.u. and then you have angela merkel once again addressing the leaders as i'm talking to you, saying let's slow down. there needs to be time for british politicians to figure out how they want to proceed, but not too much time. she has just said to the council that she will do everything in her power to keep europe from disintegrating. that is kind of yesterday what we saw with presidential francisella's prime minister for an elite when they were talking about some kind of timetable, perhaps september by which they would give the english government cannot british government rather a timetable to get its act together. they will be different working sessions today. they will have for dinner tonight w

the politicians here in germany angela merkel wanted to everyone to remain calm. we will share guaranteed and are connected in any other ways. merkel will be meeting on monday here in berlin with the fresh president hollande and the italian prime minister. and they will be discussing how to go forward. because the negotiations to divorce with the uk do not begin as you just heard until the uk begins that process. they're going to have that meeting ahead of another meeting that takes place in brussels tuesday when the leaders of all e.u. nations will gather. we saw the dow drop more than 600 points on friday. everyone is getting ready for an anxious and volatile monday. back to you. >> adam, thank you so much. >>> donald trump speaking again in scotland about britain's decision to leave the e.u. trump focusing on what he calls similarities between the brexit excisi decision and voters in u.s. senior national correspondent john roberts is leave in aberdeen scotland where fox news just spoke to donald trump. what's happening? >> kelly, good evening to you. the sun is

angela merkel said, "this is no time for wishful thinking." her comments came as david cameron used his last eu summit to express disappointment in his failure to win the referendum that he called. >> the tone of the meeting was one of sadness and regret. our partners in the european as weare generally sad, are planning to leave this organization. that was the tone of the discussions tonight. >> in the run-up to the eu referendum, mark carney wanted -- warned that a vote for brexit would trigger a recession. now it seems it is almost on the way. almost three quarters of the economy will slide into a recession for the first time since 2009. a majority also predicts the bank of england will add more stimulus, including cutting interest rates in the third quarter. day.l news 24 hours a this is bloomberg. thank you very much indeed. the pound has resumed its declined today after rallying yesterday for the first time since the u.k. voted to leave the european union. in brussels, prime minister david cameron is his last eu summit to express regret o

already france wall on and angela merkel saying this needs to be done quickly.m to be comparing that view when you time to figure out what we need to do here. does either side have a plan? does other side have a plan of what comes next? >> my hope there were contingency plans. there was a plan b being discussed. if in fact a plan b wasn't discussed you are going to see a lot more financial volatility ahead. i wonder how much a financial shock it is. we can let the intraday moves the for themselves. how much of a financial shock could this actually be with that in mind? shock.an be a financial this is not lehman. this is not a payment and settlement crisis. it is a shock to the institutional setup. it will cause major financial moves. you will see the financial sector move more than technology when the dust settles. thetill haven't seen how retail segment is going to react. what extrapolate too much you have seen so far. these are still early days. there is still an economic question. in terms ofdays yet how markets were reacting. >> is this just the start though

angela merkel comes to mind. and so do you. [laughter] christine lagarde: angela merkel comes to my mind, for sure. [laughter] , --ink on this of cohesion location, it is going to require concerted effort on the part of many. it is not going to be, and i don't and it ever could be, one single leader who tries it all. to be theulti-faceted work of one single person. whoever will be driving that bus will need to have all of the passengers on board in order to move forward. europe is an incredible construction. muccriticized. much too slow, very laborious on occasions that it is also an extraordinary achievement of the immediate aftermath of the second world war where countries had been at each other's throats and millions of people have died at the hands of each other for centuries. they decided in the name of peace and prosperity that we would establish a free market services, products, and people could move. it should not be wasted. resilienta construction and a resilient territory which is unfinished and needs to be completed.

. >> reporter: from german chancellor angela merkel there were questions about what comes next. >> (ted ): we don't know about the consequences of this step that will appear within the next days, weeks, months and years. that will depend upon how we the other 27 members are able and willing to react. there is no quick key solution that we can take from this referendum decision. that would only divide europe even more. >> reporter: so, how does britain separate itself? britain is required to invoke the e.u.'s "article 50, which gives london two years to negotiate withdrawal." that includes the fate of existing trade deals, and travel and work within the e.u. for british citizens. a majority of the 27 other member states must approve the deal. all the uncertainty sent global markets from tokyo to new york into freefall. and the british pound plummeted to its lowest point in over 30 years. the economic fallout could be a sithings to come, and those people who voted to stay in the e.u. are pointing to it as proof they were right. but it's done little to change the convictions of voters i

well, angela merkel, the chancellor of germany calling for a union.ot of traders on the floor listening to what she said. adam shapiro was on the ground in berlin. he has the very latest and what struck us here on the floor was that she emphasized is that there would be n informal exit talks until the uk takes that first step. the so-called article 50 moment. but they can't be happy. they want them out now. >> right. in fact, it's the uncertainty that everyone agrees is a problem. the german stock index, the dax closed down about 3% today because of this uncertainty and even merkel and president hollande from france acknowledged that while this decision has been made by the uk, it's the uncertainty everyone has to deal with and yet there would be no quick solution because as merkel said, there would be no informal discussions. that was a slap to the brexit supporters in the uk who want to begin talking with the eu about exiting. they will not have those discussions according to angela merkel in france and italy until the uk submits and invokes article

in the end, i think anglo mercker -- merkel knows where the center of gravity is.ou see in her and john kerry an effort to let this workout and have some cooler heads think about what to do. david: you're talking about what happens going over in the european union. i am sitting here next to a stack of newspapers. everyone has a think piece about what this means for china and russia. ,e focus so much on the u.k. what does it mean for other countries going forward? charles: but is not going to leave nato. british willhe want to emphasize european partners and their continued cooperation on security issues, especially counterterrorism. investorse are large and traders with the rest of europe. they will be mostly concerned with the impact of brexit. they will be quite concerned as all investors are. jonathan: you know europe. weekend,ssue over the it has been very clear there was no plan b. there is no key to the negotiations. thebig of a team does government need to put together to get the next two years done? triggered,e 50 is how big of a team to you need to get to

merkel has been chancellor since 2005.ng in april was the lowest in her third term. time for the memorial service for muhammad ali has been pushed back. it was scheduled to begin 2 p.m. local time in kentucky. organizers at the kfc young center say the start time was pushed back at least two hours. the funeral procession didn't get underway until mine -- until 90 minutes -- all he will be buried. global news 20 hours per day powered by our 2400 journalists and more than 100 50 news bureaus around the world. back to you. the new york state retirement fund is the for -- is the biggest pension fund in the country. >> how does this fund guarantee a sustainable return in this low yield? she is the chief investment officer and answer that question earlier on bloomberg . >> what we need to do going forward is to make sure we have investments in the asset class it's come -- asset classes will generate outside return. >> two examples you gave, converting equities into alternatives. is there an equivalent today given they'd low

there is an area of focus for angela merkel to get them on the same page. on saturday, we heard from the foreign ministers, her own minister. 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 ju

is thencellor merkel leader of germany, a balancing act. on one side, there is the desire to punish the united kingdom, to prevent anyone else calling referendums and the domino effect that is feared of. we have the right-wing parties from france and spain desiring not referendum and the leader of france talking about a rush through to try to get this deal done and to immediately start with preparations for an exit but she has been the voice of reason. she already realizes the other side of the balancing act, the business side. she once to support the business side and ensure the economy progresses best it can. covering this. what can we expect to come out of the meeting monday? >> monday, she has someone her counterparts in france and italy. and the head of the eu. he has the president and said remember those incredible words he said if we did indeed see the u.k. leave the eu, it could spell the end of western political civilization itself but those leaders will gather together and they want to decide how they will leave the eu to be cohes

angela merkel once calm when it comes to renegotiate with the united kingdom.hether or not they will be a tough stance, the debate is out. what we know is they want a quick start, they want speed. speed.s a need for they want them to start executing quickly. you just heard from the vice chancellor of germany thing that actually david cameron should resign sooner than the three months so they can start the legitimate process. you heard that from the foreign minister of belgium, whom i spoke to. he says they could speak informally to david cameron about the process of the u.k. extinct the eu even if he does not have formal the disney -- the jim missy at the moment. very different tactics going on here. on the one hand, they want to buy time, three months, to put in a new leader. on the flipside, the eu is trying to push this forward as quickly as possible to avoid what i am told is a crisis. there is concern that we will get the dumb no effect across eu. not only the u.k. will demand a referendum, but france already is on the right wing, spain already is. they wa

charlie: so, what do you think the admonishment of ongoing merkel -- angela merkel will be.an: she is the grown up in the room. she has the least to worry about the mystically, even though her popularity is down. charlie: because of migration. ian: absolutely. is taking ag -- tougher stance on the brits. and of in double digits consistently now, so she doesn't have to worry about the populist plank. but it is less about that. if we could have a negotiation between a unified and sensible british government and angela merkel we could end up with a norway style agreement where the brits have access to a common market, where they get rid of the promise to open borders to immigrants and the markets are sensible and we ticketed breath and say we dodged a bullet. but if we look at the way that they can build negotiations from the past years, any crisis they had, the idea that this europe, with this u.k., is going to have a non-acrimonious negotiation that will end in something sensible, is not a bit you want to make -- bet you want to make. charlie: will boris johnson be the next p

angela merkel told german lawmakers the u.k.red treatment once it leaves the european union. she says she will make sure that cherry picking principles will not apply in the negotiations. in spain, acting prime minister mariano rajoy is playing a waiting game. group to was the only increase its vote sunday when spain held its second election in six months. he has not been able to form a government with rivals in parliament. he is expected to push negotiations to the point where the only option is for those rivals to support him or seek a third election. global news 24 hours a day, powered by our 2400 journalists and analysts in more than 120 i am nejra cehic. this is bloomberg. francine: we are back with mervyn king. he recently wrote a great book, a best seller on amazon. i urge everyone to pick up a copy of it. it is called "the end of alchemy," in which he discusses a new world order and banks. on friday, banking stocks were pummeled. what does this tell us? is there a concern about solvency? is there just over panic on the m

i have not had a chance to meet with angela merkel. in previous press conferences, didn't bring it up in today's press conference, supported decision to allow immigrants to germany. trish: there is a lot of at stake, right, politically for angela merkel and other these political types. they have effectively, adam, staked their entire political futures on the success of the european union. so this would be a big hit to her and to the rest of them? reporter: it could be a big hit to her although look at numbers what is at stake for germany, if citizens of uk vote to leave the european union, it is expected that in germany they will lose by the end of 2017 about $50 billion less in euros, but $50 billion in lost exports but economic hit to the entire eu germany would perhaps suffer. they are looking at as much as about 1 1/2% drop in gdp and growth in 2017 would only be half a percent when it is expected to be 1.7%. so there is a lot on the line. trish: there most definitely is. adam, good to see you. keep checking in with you. we'll take

you heard him say that he spoke with german chancellor angela merkel and that they have both agreed, both of them will be talking to their allies in the coming days. he reiterated his support, america's support for the uk, insuring that our relationship with the uk would not change and he did say that he spoke with david cameron and told him that. the uk right now, meanwhile, potentially on the verge collapse with the british prime minister resigning and scotland ready to decide whether or not it should remain part of great britain. global financial markets are in a steep selloff mode as investors contemplate the consequences of the uk vote and what it all means for future of the european union and our global economy. plus is this a sign? could it be of things to come here in the united states? donald trump quick to capitalize on this revolt against big government, globalization and open borders. i'm trick reagan. -- trish regan. welcome, everyone, to "the intelligence report" on a historic day of a historic vote. dow jones industrial average is sinking now almost 500 points after th

how is merkel and the german government reacting to today's brexit?ut lunchtime she took to the airways. pragmatic as ever. she has a balancing act on her hand. there is the desire to punish to start toingdom potentially feel the domino effect. the right-wing party only -- already calling for referendums there. head amidpt a cool the stifling 34 degrees heat in berlin. she has called for a calm and measured response. you heard from her leader of the finance, the economic minister. disappointment at it from the foreign minister. i spoke to the leader of the foreign affairs committee in berlin and he says it was a catastrophe. what can we expect next? caroline: it happens tomorrow. , 8:00 up right in early a.m. and united kingdom we will see the foreign leaders of the sixth original eu founders. foreign ministers flying over from luxembourg, france, italy, belgium, netherlands. all 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 presi

merkel says there is no backing out. david cameron turns home. the islamic state is blamed for the attack at the international airport they killed 40 people. ♪ francine: "the pulse." welcome to -- welcome to "the pulse." i am francine lacqua. let's get straight to these markets. we are seeing a relief rally that we saw yesterday. that is continuing into the early hours of the trading session in europe. from 1.4% -- i want to focus on the back because overall the gains are 2.6% if we did have a downgrade by moody's. volatility down a touch. pound 1.3389. barclays getting 3.4%. if you look at five trading session chart, it looks very different. they were really slammed on friday and monday. some of them lost 50% of value of the deal.inning let's get straight to the bloomberg first word news with nejra cehic. nejra: coordinated attacks at istanbul's international airport have killed at least 40 people. the prime minister says islamic state is likely to be responsible. the attacks which injured 200 people in off at about 10 p.m. local time. turkish a

angela merkel with two other largest economies now that the e.u. will not be number two. france and hollande was there and mr. renzi, italy was there. they want a quick divorce and process sped up and done with. merkel has been what you might call the voice of calm even though she says there are consequences for the uk, she said there are consequences for everybody. she also went on to say they would probably have a bit of time and hollande agreed, that september would be the time frame by which the eu would want to know what the uk intends to do to begin negotiations which have to conclude within two years for the actual divorce. so that meeting today was taking lace in preparation for tuesday and wednesday in brussels. eu leaders are gathering in brussels. they will have a big meeting on wednesday. and that's where that issue you were just touching upon, possible contagion. there is potential for "brexit"-like discussion in the netherlands and as well as in france. that is what they're trying to cope with and put a stop to. back to you. >> very complicated. adam shapiro

angela merkel not there in her two top guys not there. also her foreign minister frank steinmeyer not present. it seems not likely. but whether merkel was physically there, it seems like it isn't going to matter very much. last year, turkey recalled its ambassador to the when austrian lawmakers made a similar move. has there been any word so far of a similar reaction from turkey? >> we have one local berlin reporting online that turkey has recalled the turkish ambassador to germany. i haven't seen anything to confirm that in the last 20 minutes so we are still waiting on official confirmation. it wouldn't be a surprising move but we also have to say 11 other eu countries have declared this to be a genocide. the same is germany did today. most of them still maintain relations, positive relationships with turkey. is hope that whatever kerfuffle this causes, it might not lead to a complete fallout. genie: thanks for that. sarah harmon reporting from berlin. flooding has been devastating in germany where at least four people have been killed.

francine: will angela merkel survive this?be the only leader with any kind of leadership sills -- with any kind of leadership skills? peter: i am not expecting any negative outcome on that side. but no question -- she said to herself, this is a loss for europe. tom: how would you mark down your estimates? what have you done, tweaks within the american economy? brexit,exit, brexit, and yet have you tweaked your u.s. model? peter: we would love to be able to give you a number, but any number you come up with is going to be pick it and it will be changed anyway. people are calling for recession in the u.k. yesterday,om draghi half a percent of gdp over there. so our sense is this is counted in tenths of a percent of gdp for the u.s. it is not a major deal at this point. yes, there are risks. anything could happen in europe at this point. there are reasons for wanting to wait to see a little bit more. tom: there you go, francine. heater hooper dropping the crystal ball -- peter hooper dropping the rest of all this morning. peter: