what does mervyn king need from the next prime minister? nk it will be two or three months away. the problem at present is precisely that we do not have a new prime minister and will not have one until september, at the earliest. we do not human up -- we do not even have an opposition now. that seems to be crumbling as we speak. that political uncertainty and the consequences of that, and the uncertainty it creates are one of the things driving volatility in financial markets. i do not think we can expect anything other than a period of uncertainty between now and september. tom: very good. mervyn king will come back with us. francine, i cannot wait to get to mervyn king's book in our next section. i want to talk to him about the audacity of pessimism. it relates back to president obama's idea. francine: i like the fact that you bring it back to the u.s. i would say audacity -- who would be the best leader. i want to know what he thinks about what qualities are needed for the next leader. this is what the markets are doing. a little bit of r

kang and brexit will sit down with mervyn king -- we will sit down with mervyn king.ancine lacqua in london with tom keene in new york. he

tom: mervyn king was with us yesterday. you telling me erik nielsen is going to move to some place back on the continent? that is not going to happen, right? vasileios: that depends if there is a cafe nero. tom: i do not buy it. vasileios: about cafe nero? erik moving back to the comp does continent. -- continent. francine: we will be back in a couple of minutes talking about the stock market, and these are the banks year to date. ♪ tom: good morning, everyone. "surveillance" from new york and london. difficult news from istanbul. nejra: authorities in turkey are pointing the finger at the islamic state for an airport suicide bombing that killed at least 40 and wounded 200. officials say three suicide bombers blew themselves near the entrance to the arrivals hall. in recent months, islamic and kurdish militants have carried out bomb attacks in turkey. the race to replace david as leader and prime minister shifts into another gear today. contenders are likely to make themselves known before the deadline tomorrow. may kept a

vonnie: mervyn king, the former manager of the bank of england.head, the european central bank is leading in portugal in the wake of the brexit vote. mario draghi talks about dealing with the fallout, next. ♪ vonnie: live from bloomberg world headquarters in new york and london, i am vonnie quinn. mark: i am mark barton. you are watching "bloomberg markets" on bloomberg television. a quick check on how the markets are doing. -- a big the dax rebound after the biggest two-day job on the stoxx 600. wiped offon euros was of european stocks, 10.85%. the biggest two-day drop since tober 2008. the decline sending the european gauge to the lowest since february 11. let's look at what is happening to the currency and the bond markets in europe. stirling is in favor after the largest two-day drop on record. it is up by 8/10 of 1%. the euro is out of favor against the pound. it is in favor against the dollar. the sterling against the yen, a double-digit decline. there was very much a flight to the havens like the japanese yen . no record low yield for the e

his predecessor mervyn king was criticized for not speaking out at the start of the global financial for u.s. strategy in syria, islamic state forces launched -- the syrian rebels launched what appeared to be a poorly conceived raid in syria. wreckage from the east -- egypt airplane showed heat damage and a flight indicator indicated there was smoke on board. the plane crashed into the mediterranean last month. france's president is backing hillary clinton, saying that puts amrump's rhetoric on the same level as the extreme right and his election would hurt u.s. ties with the u.s.. news 24 hours a day powered by 2600 journalists and analysts in more than 120 countries, i'm nejra cehic. francine: banks have been taking a beating since the brexit vote. michael moore joins us in london. thank you for joining us. every day there is a new banking story. we spoke to the rbf chairman and douglas flint and they are saying if we lose all passporting rights than 1000 jobs will have to be moved. could that be more? .ichael: that is just hsbc you are starting to see the banks coalesce alarmist -

jonathan: that's what mervyn king was talking about on bloomberg surveillance. find a new equilibrium, you'll get overshifts to the downside and overshoots of the upside until you find this lower footing that most people assume is an adjustment lower. we saw that friday, monday. the bank of england, banks demanding a whole lot more liquidity today from the bank of england. the financial stability officials convened on threat needle street. what is the role in the midst of all of this? guy: making sure the plumbing works. they are plumbers right now. the financial system has to operate as it is meant to operate. we cannot go back to the time during the financial crisis when we had liquidity crunches. you can see very clearly in the ois libel spread. there is in distress there. the overnight lending rates have not become as elevated as they once were during the financial crisis. when you can see at this point in time is that the plumbing is functioning. the central banks job right now is to make sure that happened. it's a good thing that banks are demanding liquid