day, michael mckee and i will do this at 1:00 p.m. this afternoon. francine: i wonder whether she will focus on domestic risks or international. let's get the bloomberg first word with nejra cehic. nejra: a new warnings from george osborne on the risks of leaving the european union. in a speech he will say that brexit would lead to a $42 billion black hole in the budget that would have to be plugged with higher taxes and cutbacks. the eu is june 23 and recent polls show the leave faction is ahead. hillary clinton has opened up a double-digit lead over donald trump in the race for the white house. a new bloomberg poll shows clinton leading trump 49% to 39% among likely voters and 55% said they could never vote for trump. he does have an edge on it comes to fighting terrorism. voters say he would do a better job. after the polls closed and washington, d.c. for the last primary hillary clinton met with rival bernie sanders. they released statements about the "dangerous threat trump poses to the nation." the orlando massacre has some senate republicans p

michael mckee is with us and geoffrey yu is still with us. when you look at stress test in the u.s., they are credible but how can you stress things that you know may not happen? they are looking at them in isolation. michael: the fed makes up different scenarios every year and they use a three scenario process where they look at stress on banks'capital. a sort of normal consensus growth, a moderate recession and a severe recession and then they change the parameters of a severe recession every year. it would feature 10% unemployment and negative interest rates in the treasury market. the results affect the amount of a have to hold but also with their return on equity is and how much they can lend. last year there was talk that michael corvallis would lose his job if city failed again because they failed twice, bank of america failed three times. mark --they say why is do they say why? michael: they say it is deep in the details. tom: when jpmorgan was operating at precrisis and now it is 10 billion more, what is stressful about the money mr.

michael mckee is with me in washington.en flying around in different airplanes, surveillance rule -- alan greenspan has not been as cautious as he has been. >> he was talking about this back in march. he was talking about how we have a demographic problem, clashing with austerity governments and falling productivity. in that sense, brexit is a symptom, not a cause. we talk about falling incomes here in the united states. let's talk about what is happening in europe. you talk about perhaps the next countries to exit. since the beginning of the euro, there has been a rise. the netherlands france not seeing any real cane and incomes either. tom: what is your question been on policy? he speaks specifically about the fed, but we have to speak about ?op pot, don't we chuckle >> >> the real question becomes how .o you convince them to do it we have an aging society in the u.s.. iny have an aging society europe. you look at france. the retirement age is going straight up. not when you're from now, this is the next 10-20 years. they

tom keene and michael mckee will be joining me next week to cover brexit.yield below 0% for the first time ever. i want to show you the other things we are watching. the asset checks, stocks fell. here is nejra cehic. nejra: inflation in the u.k. unexpectedly stayed at .3% last month. the cost of transportation rose things to higher fuel prices, but that was offset by cheaper food and clothing. shares of sony rose in tokyo after the company announced a release date for its virtual reality headset, which goes on sale in the u.s. next october. sony unveiled exclusive gains for its playstation 4 console, including batman and spiderman titles. microsoft is betting $26 billion it can put itself at the center of people's business lives. that is how much the world's largest software company is paying for linkedin, the professional social network. a tech investor calls it a great move and spoke with erik schatzker. >> linkedin being a part of a large company might even take opposed to being a public company, which needs to report quarterly. i think that the linkedi

michael mckee there. stay with "the pulse." china steps on the gas. despite talking about -- a lull, the chinese government is wrapping up its off budget spending. i will bring you my chart, plus foreign demand from american drivers. with u.s. oil markets falling? "finding dory" scores the best film.omestic range for a we will analyze the results. ♪ francine: now let's get straight to the bloomberg business flash. matt: goldman sachs has told 98 employees in new york at their jobs are being a limited. that brings the number of dismissals disclosed to state officials to over 350. goldman has been reducing staff as it seeks to whether a slump in trading and dealmakers. volkswagen's second-largest shareholder has refused to sign off on the actions last year of two of the carmakers board members at the first shareholder meeting. bartoner saxony -- winterkorn who was current chief executive at the time and the are under chief, both investigation for market manipulation link to the timing of the public notification of the scandal. one of africa's biggest re

michael mckee joins us from new york. s known hillary clinton or met her around 38 years ago. what does it mean that she has clinched the nomination? michael: the democrats have two categories of delegates, pledged delegates and superdelegates. press, after her victories in the virgin islands and puerto rico added them up and decided she has got enough delegates to win the nomination, even without today's contests. ernie delegates disagrees and says -- bernie sanders disagrees. clinton is expected to win the biggest primaries and increase her delegate call today, so it is basically a done deal. that is relatively historic because it is the first time an american political party has nominated a woman, although that has been overshadowed by her likely opponent. how important is it that bernie sanders steps down gracefully and tells people to support her? michael: it is going to be important and she is trying right away to unify the party. sanders wants to get through today and see how he does. she is hoping he drops out, and

michael mckee joins us for more on what to expect and luke johnson is also with us.looking at the function that mark was showing us. first of all, what does this tell us? i keep on being told to ditch the plot. that is what a lot of folks on wall street are saying because the green line is where people think it should be and the purple lines down below are really interest rates say it should be. there is a big difference even though the fed came down at its last dating, it is still more optimistic about where the u.s. economy is going and she will be asked about that. i am not sure how much new we will learn but the members of congress love their opportunity in the spotlight. francine: the one thing we are still uncertain, we have to look at the macro landscape from outside including brexit, which we will get back to you, but how much will she once again talk about the jobs number that was worse than expected. michael: why was one number so important to the fed? right before that number came out everybody was pricing in a fed increase and when the number comes in, al

michael mckee joins us from new york. great to have you on the program.y is it that janet yellen could surprise the markets? >> there's probably a good chance for people that think it is off the table until december. the fed does want to raise rates. we've heard from a couple members of the fed over the weekend. just this morning, saying they still believe a couple rate increases are appropriate in a gradual way. is question for the fed whether they think it was a bit of a blip in the numbers or whether this is some new trend for the u.s. economy, slowing down and taking rate hikes off the table. francine: michael, where does the jobs report leaves the hawkish members of the fed? >> they are still out there. just a few minutes ago saying it would still be appropriate to raise rates. they have to make the case that it is a blip and they can point to the fact that wages went up and hours worked did not go down. maybe there is an anomaly in the numbers. francine: michael, thank you so much. michael mckee, our u.s. economics editor live from new york. we will

mark: michael mckee in new york on jobs day. bloomberg, plenty coming up today including the numbers in the u.s. george osborne talks brexit. jamie dimon will be speaking. next, tomnce" is keene and anna edwards will be kicking off the conversation with charles evans. ♪ tom: this morning, the may report on the american labor economy. in this hour, we searched for rage growth in america. the brexit debate heats up the prime minister. he will attempt to get to monday. a conversation with charles evans of chicago. good morning, this is bloomberg "surveillance," tom keene in new .ork, caroline hyde in london so much going on. what would you look for in the brexit

alix: coming up, tom keene and michael mckee are sitting down with formal censure alan greenspan. you that on bloomberg tv and bloomberg radio. futures soft. negative nine points on the s&p 500. the drama in bank stocks. stoxx 600 bank index down another 7%. u.k. lenders lead in the losses. the pound getting pounded again. biggest two-day drop on record. the 31 year low. look at those yields. alix: lower. joining us for the hour is head of fixed-income krishna money. krishnana met bonnie -- memani. a we have benefited from growth perspective from globalization and if this is a direct shot at globalization and do not find akly worthwhile solution and we are going to have problems from a growth perspective in the long run. david: have the odds of a global recession gone up? >> the odds have certainly gone up. this is a shot that the global economy didn't need. we will just have to deal with it. it is early to predict how much impact it will have. question. out of the at all.lix alix: do you want to sell multinational? >> i'm a true believer in global so i don't want to give up too e

michael mckee in new york. a busy 24 hours for him. stay with us.rg "surveillance" is next. ♪ . . >> tomorrow is jobs day. we consider the underlying confidence of america, back and forth, back and forth. the markets define the first days of june. vienna is sold out. the e.c.b. and opec have a disagreement. it's gorgeous in vienna. speaking of gorgeous, we have caroline in london and i'm tom kean. e.c.b. and opec, it's packed.

michael mckee and i will speak with alan krueger, jim glassman, and bill gross.we know the numbers will be distorted by the verizon strike so we brought some mad stats. let's look at the first chart here. this comes courtesy of stockton. if you predicted 200,000 jobs per month, you are probably going to be right. standard deviation is down to less than 1.5. tom loves this chart. of course, past performance no guarantee. if you want to forecast it, forecast 200,000 jobs and you will probably be very close. we conflated down to a highly predictable job economy that everybody is so miserable about? michael: we do not really know. tom: that is the right answer. knowel: we do not really what is going to happen with jobs because of verizon. let's look at a number that has changed, average hours worked. we have the equivalent of 200,000 jobs in earnings power and before the recession, we have ratcheted up in hours work. we are working more hours these days. we have an addition to that that you do not like, that we do not have enough jobs creation. notice how the yellow

i am talking with michael mckee. let's do a quick data check before we get to our esteemed guest. vice chairman blinder is scheduled to join us. setback back usual from the shock and all of the meeting, but nevertheless, these are changed screens from one 1:45 this afternoon. we will come to yen in a moment. 05.06, steepening out over the last hour. there is the two-year yield again. full this together, economics, finance and investment, with the global litmus paper, which is foreign exchange. working with james sweeney is shabab jalinoos. i want to go right to the chart and the look on dollar yen. for those of you on bloomberg radio, i will put this out. this is a chart that many of our viewers and listeners know. yen. wants a weaker a good part of a stronger yen is chair yellen. is chair yellen the central banker to the people of japan? >> we get to see tonight, i guess, with the outcome of the readingn interest-rate -- meeting. my question would be, what is the point of easing now ahead of the potential brexit risks that the markets are facing? potentially seeing a lack of resp

amanda: that was dennis lockhart with michael mckee. heard patience is called for. he believes there are two fed hikes by the end of the year. we will see with the markets make of this. the futures remain where they are. pimm: it's a little bit higher. also, he mentioned that he is going to pay attention to today's conversation with janet yellen. she will be speaking at the world affairs council in philadelphia. everyone is going to be listening to what she has to say. amanda: we will bring that to you live. 12:30 p.m. ing at philadelphia. david: one of the sectors most focused on the fed is futures. just how sensitive are bank stocks? that is next. tune in for an exclusive interview with greg lem cal. ♪ david: this is a bloomberg wrote. i am david westin. we just heard from a dennis lockhart. said to hikes are likely this year. g takeaway? they don't have anymore economic growth than the rest of us. there is not a lot of of framework for understanding where the economic growth is going to come from. if you think about the give-and-take

michael mckee reversal. .t goes right back bring on the second data screen as well. moment.how it in the a strong end. michael, very quickly. i know you have got an important, it. all you need to know is down we go. this is crushing. there is no other way to put it. are you ready? >> it is already updated. you can see what. is just talking about. a number of people have moved the forecasted down and now the consensus is basically, if you are looking at the median, one more move will take us to a range of 50 or 75 basis points. we are not expecting to more moves this year. there is a substantial number of people who think we should have att went all the way over the left-hand side. it looks like they're pricing in four moves just over 1.6% and then you go all the way out to the longer-term and you are 2.95.g at line.n see the purple you can see the market expectation has moved up a little bit as well as they digest what the fed has seen. they want to move closer together and the market wants them to move down maybe not as much as they have. >> it was the fed that came

i am looking forward to the next few hours with michael mckee. " continues.ichael mckee i am really lookingw. from london, from new york, this is "bloomberg surveillance." ♪ ?c+sv stock supporting all time highs. interest is well above the historic average. why is this so much more the face of all of these gains? stephanie: negative rate of squeezing bank progress. super aggressive super mario. the ecb began buying pork -- corporate debt. but what happens if he holds countries -- companies that need restructuring? ♪ david: welcome to "bloomberg ." towardscks going another hive. amanda: we're watching a day after initiating corporate on buying programs. mario draghi makes a case for structural reform at the economic form in brussels. david: we had there in just a moment.

before that, michael mckee and dennis lockhart. that in the 9:00 hour.loomberg surveillance. ♪ francine: you're looking at live pictures over millennium bridge looking over st. paul's cathedral. at the moment, the pound dropping after polls showing more britons favoring leaving the eu. is reallycampaign gaining momentum. let's get to the bloomberg news flash. factory workers fell in april after demands outside of the eurozone slumped. orders fell 2% from the previous month when they revised. the typical volatile reading compares with forecast of a drop of half a percent. -- tencent creating holdings increasing size of syndicated loan. asia's biggest internet company was said to be likely to raise as much as $4.4 billion with the loan. another roadblock. billion ipo. people familiar with the matter say the south korean family and company arethe dev involved in an ipo. that is the bloomberg business flash. francine: thank you so much. the u.s. secretaries of state and the treasury are in beijing today meeting with chinese counterparts meeting on strategic

to --ichael mckee with us monetary economics and japan is a -- original. michaelve an original situation. tom: they have such high debt they could not have rates go up. michael: they could have rates go up. the next question is how do they stimulate the economy. tom: is this a failure of one of his arrows? vonnie: we are going to have to wait for another generation of japanese to be born. michael: potential growth is very low. are inna, from where you london, as you observed the prime minister, what are you thinking? anna: i am reminded what happening the last time the japanese put up sales could -- sales tax. it caught people by surprise. was it the right move? david: nobody on earth thought they were going to put up the sales tax. basedoubled the monetary and added another 10 trillion to qe and it did not work. they are not going to be raising the sales tax which will slow the economy down into that environment, it is just not possible. the question is, where does that go now? are we talking the whirring sounds of helicopters? tom: michael mckee with us and that

michael mckee brings us some brilliance on our efficiency as a nation. l: you have been very efficient with this. janet yellen yesterday talked about why this matters. we have had a lot of job growth and low gdp because productivity has been low, and that hurts you and companies in your wallets. productivity has been running at a rate of about half a percent less the red line you can see on this chart. ands the average tween 2000 2010, two and a half percent. you can see wages have been depressed by low productivity. they came down after the financial crisis and the have stayed down. , it isproductivity rises not clear whether that dump is going to repeat. -- bump is going to repeat. tom: when do wages go up? that is what she says is the big debate and economics, why this has happened and what you do about it. it is not clear the fed has much of a role, the companies are not investing. a lot of uncertainty. we talked about that with does lockhart from the atlanta fed yesterday. productivity and wages when up and topped out after the tech double burst, and

francine: we have to look at the dot plots with michael mckee. when a to see exactly what the underlying strength and that is but we need to get to the bloomberg first word news. vote, two days before the the battle over whether the u.k. will remain in the european union is too close to call. a new poll has the leave campaign in front meanwhile a survey from or be has remain holding a 53 to 46 advantage. police in brussels have arrested a suspect after a bomb scare at a shopping mall. according to a belgian newswire a man called police to say he was walking around with an explosive belt. they determined the device was a fake. french police may band the planned protest march by labor unions. protesters are unhappy with labor reforms pushed by president francois hollande. on capitol hill, the senate has blocked for proposals to keep terror suspects from buying guns, two offered by democrats and two proposed by republicans. some republicans say they are trying to find a way to break a years long deadlock over gun legislation. donald trump fell far b

francine: all next week, tom keene, michael mckee and i will bring you live brexit coverage from londone latest polls on a daily basis. ♪ tom: good morning, everyone. "bloomberg surveillance" from london and new york. we are in the midst of an important conversation. right now, we need an update on brexit with our first wear news. nejra: the head of the european commission got right to the point when he was asked about the upcoming vote. ryan chilcote caught up with him at the st. petersburg international forum. ryan: we're just one week from the u.k. referendum. what would you like to say to british voters? >> don't do it. anna: the british vote is one week away. russia's president has a message for the european union. let's put ukraine behind us and get back to business. he is speaking at the st. petersburg national forum and will call for normalizing relations between russia and the eu, but he will not offer concessions over the conflict in ukraine. all of this aording to people familiar with the matter. president obama traveled to orlando today to pay his respects to the victims of

michael mckee will sit down with alan greenspan. ♪ welcome to bloomberg's coverage. ferro. in his 5:00 on late sunday you afternoon. jonathan: we are taking you from new york to london to brussels. turmoil rubbed it in u.k. politics after the vote to leave the eu. eight cabinet members have resigned as revolt against jeremy corbyn. to brusselsd live to figure out what is next. what company -- countries will stand to benefit? we look at which asset classes are poised for the biggest swings monday morning. this is special coverage from london and new york. this is bloomberg tv

madeleine albright weighed in with tom keene and michael mckee. >> mr.ery pleased with what happened -- mr. putin is very pleased with what happened with brexit. one of his agenda items has been to cause disruption within the european union to make sure that it splits apart. i think the important part is how nato will continue to function together and also what signals there are for the eu general. there's a school of thought that says nato will have trouble with security arrangements in europe because the europeans may not be getting along. another that says because they are not getting along and they don't know what's going to happen, they will rely more on nato and this could reinvigorate that organization. >> i think nato continues to be the stabilizer in many ways in the alliance that has helped together the land -- the longest. they will be looking to see how security arrangements can be strengthened. a lot of the issues are going to do with what nato is going to do in central and eastern europe. i'm sure they have to consider the entire security p

i am scarlet fu along with tom keene and michael mckee.rted with a check of what is going on the markets right now. we have the dow and s&p slightly higher. oftec up by about one third 1%. tom, you're looking at the two-year. tom: what is interesting is i know we are doing a foreign section here and that is appropriate. know, maybe it has to do with two chancellors on the stage today, but the fact the data screen this time around is typical of most fed meetings. >> the prime minister did not consult the central bank calendar around the world. help if we knew what they would do. scarlet: a big cloud is hanging over the markets. two investors are waiting. jim chanos tells us yesterday in an exclusive interview that the he does not bother trying to predict the outcome but where bets have been placed. right now in the betting market, high,35, he had been as and if you are a betting person it is to-one to say and not 50-50. meanwhile, "i believe it is over holding. tom: in on this, if you word. -- if you would. all you need to know is on the z

let's bring in our bloomberg economics editor michael mckee. external risks and u.s. jobs. ed officials had said for a long time the brexit vote might keep them from raising rates if they do not want to contribute to any market hysteria so they get a break because they are data dependent. that as an excuse for not acting without having to delve into what is going on in the markets or in the u.k. at the moment. the real question for everyone watching from wall street will be why do they say they are not moving? is it because they think the economy in the u.s. is really slowing down or do they think it was maybe a one-off, but they just want to get more data and be more sure about what is going on? the statement and janet yellen news conference will be very important in answering the question if not now, when. francine: do you think she will had on -- tackle brexit or dance around the issue? michael: she probably wants to leave a space wide enough to drive a lori through it as you would put it over there because should the u.k. vote to stay in the european union, the markets s

let's bring in michael mckee.ents will move there to hike call this year down to one? >> it is hard to tell it and i will go on a limb and make a prediction. a lot has changed. was deadt the grexit and now that has foot their there was always a question about what fed would do about grexit. now an excuse even if it goes ahead because data had been lousy. creation and consumer expectations for inflation, both trending down. a good reason for the fed to say let's pause for a month and see what happens. retail sales still holding up. is there a chance the fed chairman will have to upgrade to give the market in line? >> probably not a lot of change. they had been predicting a bit of a rebound for growth. market is not completely rolling over. what will be interesting is do they lower that? janet yellen has some explaining to do. she will have to tell people why the fed still sees a much steeper path of interest rate increases. you can see the represented rate way below where the fed is right now. probably question num

michael mckee will be really mad at me. redline is the u.k., the blue line is the eu.tighter financial conditions, nowhere where we were in 2011 and not near where we were in if you want to see what happening, you have to look at these conditions. >> if you look at the fed next rate hike, it will not be inclined for financial conditions. >> some of the safer havens. this is the chart. either one would work. what you see is the safe havens. people pile money and tv actual security itself. by and theyanding made that crystal clear. of a trillioner pounds, about 345 billion u.s. dollars. course being of into the market. by julyof a rate cut for the u.k.. >> reader of research, if you have seen anybody actually publish the outcome of a rate cut, i haven't seen that. >> i don't think i have seen a cut call yet for the u.s.. a few in the u.k. about further easing and absolutely pushing that next hike out there, how can you not? scarlet: they pushed out to june 2017. alix: let's take a look at the probability of the work function. and you're looking at 9.3% odds. and then you

tom: michael mckee, can anybody for today michael:? michael:yes.ar sent him there and deutsche bank came up short -- santander and deutsche bank came up short. tom: we will advance this conversation with michael mayo of cl essay, all wound up about .overnance at bank of america on television and radio later today. this is bloomberg. ♪ >> this is bloomberg surveillance. this week bloomberg is exploring the business of pharmaceuticals and biotechnology across all platforms. allergan is hunting for smaller acquisitions now that it's planned merger with pfizer has fallen through. the ceo tells bloomberg they are looking at smaller scale deals that would complement their strategy of being a growth leader in pharma. >> allergan is in a very strong position. days of oure final deal with teva and when that is closed, the proceeds will be spent, about $10 billion on a stock repurchase program, $10 billion on debt repayment, and that will leave us with cash flow of about $20 billion to invest for growth. nejra: in april allergan and pfizer and it plans to me

week from francine, myself, michael mckee, john farrell, matt miller, a cast of thousands -- from london francine: welcome back. it is "surveillance." tom keene in london for the week. we are wrapping up our coverage -- ramping up our coverage toward brexit and remain. tom: it is moving coverage. francine: it is time for my morning must-read. tom: please. francine: it goes back to risk and that we do not talk about china as much as we used to. 's risk suddenly dissipate and might it return? this is asking what has happened to china. nothing has really changed, does it all have to do with the fed? mike amey is with us. everyone was freaked out about china in davos. they add stimulus and then we forget about china. mike: i think there are two things going on. we had the great uncertainty, the devaluation -- nobody expected it. that put it center stage. more recently, i think the stability of the dollar is probably key. china comes into play internationally. the yen rallying hard. the dollar being relatively stable against the other majors is pretty good. unless they make a significant dome

michael mckee joins us before we -- off to radio. he and i were channeling tim geithner.that the secretary of treasury said this is going to take a lot of time. we really need to see where our friend balancing -- balance sheet is 10, 20 years from now. bring us up to she on what we have on our balance sheet. >> it is becoming very important. they are becoming that central banker to the world even more than you know. regulatory rules require banks around the world to keep enough liquidity on hand to meet their obligations for 30 days. liquidity has to be high-quality liquidity asset, reserves, or treasuries. to meet the demand for reserves the argument goes that you cannot treat the balance sheet. in fact for some analysts are arguing that has to become even larger. they have to ramp up their purchases. credit suisse has done a lot of work on this, and saying that a big balance sheet is not art. what a line represents is what valid she would've looked like , if the same liquidity requirement would it in place right we would not have had the ability. this is a great point,

michael mckee here and we can go inween you, me, and michael the vicinity of three hours there is soing on in banking. saidoward davies basically the government is going to come in and bailout italian banks. forget about malarkey stress tests, that is the ultimate stress. michael: it is a better stress test in europe. the stress tests in the united states show a few problems with the banks in europe. the first round of the test show they had adequate capital. round two was the qualitative tasks are they looked at the dutch tests were they looked at the -- deutsche bank trust did not pass. tom: that is misleading because that is hsbc and a ntd group toronto dominion. that is not deutsche bank. that is a little tiny part. michael: deutsche bank is the clearing end of the wealth management. according to the deutsche bank people, it was about 5% of their balance sheet. santander knew they were going to fail and they are still working on their risk control systems. both of these are going to be folded into separate holding companies in the u.s. starting july 1. tested with stress other po

michael mckee and i will speak gartman.d dennis gartman -- we will talk with him on bloomberg radio abouty even talk about clinton-trump with dennis gartman. "bloomberg surveillance." ♪ tom: it is your brexit scorecard. euro sterling -- i am going to call it a churn over the last three days. francine? francine: coming up shortly, it is "bloomberg " with david westin and amanda lang. what do you have today, amanda? bloomberg's editor in chief john micklethwait is interviewing tony blair. we will have that, which should be fascinating. as the ecb starts corporate bond we have a guest from jpmorgan to talk about his expectations about whether that will have much effect. tom: february 9, 2016, it was his new hampshire. we also had a warning when jim bush got 11% -- when jim bush got 11 -- when jeb bush got 11% of the vote. greg, i got a ways to go this morning. first of all, the moment of a woman as a presidential candidate -- what does it signal to the nation? greg: i think it is really big deal and a lot of women would agree. that is one of many reasons why hillary clinton is the favori

michael mckee will join francine lacqua in london next week of our coverage of brexit. "brilliant surveillance." ♪ ♪ francine: welcome back. this is "brilliant surveillance." i'm francine lacqua in london. tom keene is in new york. let's get straight to the bloomberg business flash. >> the real estate market in san francisco is starting to lose its steam. the last four years, the median price for a home has risen to 1.2 men in dollars, but now the -- but now, smaller homes are at a record high. wererancisco's high prices because of a hiring boom. erickson is operating with u.s. authorities. they don't fit with the probe is about. a newspaper says the sec and justice department are investigating erickson for suspected corruption, especially at operations in china. it is a setback for apple and one of its most important markets. regulators in beijing ruled that apple violated design patents of the chinese smartphone maker. it may have to stop selling his latest iphone and the chinese capital. apple is not commenting. he can appeal the ruling and still be allowed to keep s

michael mckee is here. willis sparks of eurasia group as well. er of ways to go on british companies, their fact, european companies, their effect. some of these have been hammered. michael: so far it has been a question for american companies of cell first, negotiation article 50 later. tom: this is not big companies, is it? michael: it is companies big and small. mostompanies who are at revenue risk are those who have a lot of operations there in mid-caps. two of the top three are s&p companies, in the middle some business software companies and sotheby's, the art deal broker bgc partners and ralph lauren is in trouble. the market is punishing those seen as most vulnerable to those revenues going down. apparently investors think this is going to drive investors to eat weight watchers. genesee & wyoming is a railroad. tom: we are glad you are on set. francine: the real leader in all of this has been mark carney and the boe. we have been told the boe's allotting 1.3 billion pounds in special liquidity operations and that the banks have been 3 bill

thank you, julie hyman, and michael mckee.has beenahead, making big moves to expand its sales of powergenerating equipment. we will talk about that with the ceo of the ge power division, who has been mentioned as a possible successor to jeffrey immelt. ♪ alix: from bloomberg world headquarters in new york, you are watching bloomberg markets. i'm alix steel. scarlet: i'm scarlet fu. mark crumpton has the first word news from our newsroom. president obama plans to endorse hillary clinton as early as this week. the timing of the endorsement has not been set, but the president is speaking at a democratic fundraiser wednesday here in new york city. mrs. clinton is expected to clinch the nomination on tuesday after six states including california and new jersey hold nominating contests. donald trump is dismissing comments that a judge of mexican heritage cannot be impartial in a case involving him. the likely republican nominee said in an interview, "all i'm trying to do is figure out why being treated unfairly." an international ai

michael mckee in new york on the fed stress test and julie hyman wrapping up a shocking second quarterer. the hits just keep coming in this dramatic story. boris johnson was set to run for prime minister as the leader of the conservative party, or at least we thought so. michael go who looked like he was going to run with boris came out and basically torpedoed his campaign, and in a real shock to everyone who has been following, boris johnson said he does not want the position. >> my friends. you who have waited faithfully for the punchline of this speech. colleagues andd in view of the circumstances in parliament, i have concluded that person cannot be me. a lot of people are talking about what this could mean. is boris holding out on his job because it is going to be so difficult and hoping to maintain and throughout the next prime minister's career, or has he just been stopped because he was never very popular outside of london and after supporting the exit campaign, and winning, he lost all of his popularity in the city of london and the metropolitan area. it has been a very intere

tune in for bloomberg surveillance radio with tom keene and michael mckee everyday of the week. the brexit aftermath sinking its teeth into commodities, oil prices down about 5% in the past wk. despite today's relief rally, you still a stronger dollar and global growth spheres potentially calving upside. barclays think rises could fall to $40 in the third quarter. toning us is the man who has put money to work in oil, rob thummel. he has $15 billion in assets in energy stocks. we heard earlier the ceo of saudi aramco saying or supplies to europe are not affected. it's not the supplies we are worried about, it has to be the demand factor. mr. thummel: global demand is really important. we are still in the sweet spot for oil prices, and demand is really strong. it was really strong last year, well above average. still well above average forecast of for this year. next year, it is forecasted to be continued higher than average. alix: what helped as the stabilization of the dollar and oil prices. both of those things totally going out the window. how do you put money into energy sto

tom keene, michael mckee mckee, 7:00 to 10:00 weekdays.quarter after quarter, facebook's success has driven earnings. this shift to digital and mobile is a trend more traditional companies cannot ignore, and that is the message that erson has been telling ceos and board rooms. point,to pick up on this facebook is part of our lives. that is for social media, communicating and buying things. in a broader business context, why is this a more profound change then say word processors? is the mostile profound disruption we have ever seen in business. at dollars in january the theme was the fourth industrial revolution and when you look at the pace, have never experienced this in the history of our economies. the average lifespan of countries -- companies is to be 67 years old and now the average lifespan is 15 years. companies that have been around for a long time be to either acquire a disruptor, have a venture fund that invests in a disruptor so they can participate in it, build a parallel organization, or rewire their culture. facebook itself

tom: michael mckee and tom keene off a stunning jobs report.bring you bill gross of jenna's capital here until the 9:00 hour. mike: we were talking about what you make of this number. does it really matter? janet yellen speaks on monday. what do you think she says given the fed posture towards interest rates in the fact that there are questions about the fed what -- the fed's credit ability? bill: i think she continues to say it. and she has changed a little bit. she was hawkish, then relatively hawkish, now dovish and inclined to move higher over the next six to 12 months. she is being influenced by many of the fed governors, to try to re-normalize interest rates. there is a contingent that believes, and i believed this for two or three years, then negative interest rates and low interest rates are destructive for business models and ultimately for long-term growth here in my don't think the fed really has that in their model making. but ultimately, janet yellen will continue to suggest one or two hikes over the balance of for and perhaps the

-- if you want to move away from tv to radio, stick to bloomberg. 7:00 to 10:00, tom keene and michael mckeeix: tom hill and in morris join us to talk about what recourse they have to combat the economic situation. ♪ alix: this is "bloomberg ." i am alix steel. 11:45 eastern, david westin will sit down with former president will clinton in an exclusive interview. here is your bloomberg business flash. a new forecast says the global oil market will be almost balanced next year. an energy agency predicts the demand will rise faster than production and the oil surplus in the first half of this year is about 40% smaller than estimated a month ago. china's largest e-commerce company forecasting a big jump in revenue next year. alibaba says that revenue would rise more than 48% in fiscal 2017. shares of alibaba have fallen more than 6% in the last you weeks and they are looking at data from a single state promotion. the two biggest companies in the u.s. are in talks about a merger. they are privately held and according to people with familiar -- familiar with the matter, people are pushing for

jonathan: you can catch tom keene on bloomberg radio with michael mckee.eene getting paid at sterling now. tom: i like that. jonathan: we witnessed a fundamental shift in markets. global equities rallying ahead of this week's referendum. joining me now to discuss it is mark boleat. he is in the remain camp, he says thousands of jobs could be lost if the u.k. leaves the european union. let's begin with the idea that they will be lost. outrgan's jamie dimon came and get the drum pretty hard about the potential for that to happen. why? we hope they won't be lost, because the vote will go the right way. but they would be lost if institutions based in london or the rest of the country could not operate through the whole of the european union. the single passport, the ability to operate throughout the whole of the european single markets from one country is really important. london is the dominant player in financial services. that's why there is a risk of jobs being lost. jonathan: the narrative is that somehow these jobs go from london to paris or london to fr

. ♪ tom: mike mckee jumps into the jolts survey. what is that? michael turnover. alaned to worry about what greenspan studied. remember that? now it is about janet yellen. we know she is watching the jolts data. it is back to prerecession levels. if you're feeling better about your job prospects, you are more likely to quit and take another job. the good news is, the quit train -- the quits rate is a leading indicator. the quits rate goes up and it polls up average hourly earnings. you can see the movement. in 2013 really started and gathered speed into this year and gradually we are getting wages higher. alix: there are lots of questions about what the labor market is going to be doing. job openings in the u.s. rose to 5.78 million in april. that was the highest level since 2000. this points to pretty strong demand in the labor market. you got big demand in manufacturing, utilities, trade, and on the downside, things like retail did not see a lot of openings. so that number was a good sign. joe: if you dig into the jolts report, this is a chart going ba

jose fire department vehicles at mckee and jackson near the regional medical center where they expect to take the hearse over to the coroner's office. 34-year-old michaelatherman, an 11-year veteran of the force, he leaves behind a wife and two sons. ♪ >> steve: from studio 6b in rockefeller center in the heart of new york city, it's "the tonight show starring jimmy fallon." tonight, join jimmy and his guests -- don rile

jose fire department vehicles at mckee and jackson near the regional medical center where they expect to take the hearse over to the coroner's office. 34-year-old michael katherman, an 11-year veteran of the force, he leaves behind a wife and two sons. ♪ >> steve: from studio 6b in rockefeller center in the heart of new york city, it's "the tonight show starring jimmy fallon." tonight, join jimmy and his guests -- don rickles, lena dunham, musical guest dj shadow featuring run the jewels, and the legendy roots crew. >> questlove: 488, mexico! woo! >> steve: and now, here he is, jimmy fallon! ♪ ♪ [ cheers and applause ] >> jimmy: oh! yeah! i feel the love tonight! welcome! hot crowd! looking good tonight! welcome, everybody! welcome, welcome, welcome! welcome to "the tonight show"! this is it! you're here! you made it! [ cheers and applause ] it's all you. thank you very much. welcome to the show. we're gonna have fun tonight. let's get to some news stories here. a big upset in the nba finals last night. that's right, the cavs beat the warriors in game five. [ applause ] [ boos ] big fan, big fan. lebron james and kyrie irving each scored 41 points. irv