nejra: barack obama has formally endorsed hillary clinton to succeed him as the next u.s. president. met withafter obama bernie sanders. i want those of you who have been with me to be the first know i am with her. i cannot wait to get out there and campaign for hillary. speaking to bloomberg politics, clinton said the endorsement was a treat. the leader of the brexit campaign has been accused of putting his own future ahead of that of british workers. force johnson was debating the upcoming e.u. referendum. opponentss in the remain cam says he is using the issue to enhance his political credentials. a favorite ton as the current prime minister if david cameron loses the vote and is forced to step down. take a seem to want to huge risk with the employment prospects of millions of people up. and this country. boris, you do not seem to care about the millions of jobs that would be at risk if we leave the e.u. i think you only care about one job and that is yours. nejra: global news 24 hours a day powered by 2400 journalists in 150 news bureaus around the world. you can find

let's get to the first word news with nejra cehic. nejra: thanks. italy's anti-establishment movement is poised to win elections in rome, threatening to derail a's reform agenda. it would give the italian capital its first female mayor. consideringin is selling stakes of the state oil company to china and india as he struggled to hit spending targets ahead of the next election according to two people familiar with the matter. almost $20d raise billion. the deal would not only cover budget shortfalls but strengthen ties with asia at a time of strained relations of the u.s. and europe. japan posted a surprise trade deficit in may as exports fell or an eighth straight month, undermining shinzo abe's efforts to revive the economy. a surplus butted instead saw a deficit of over $380 million. india's rupee weakened after the central bank governor said he would be stepping down. he said on saturday he will be leaving the top position when it expires in september. after more dropped than the year of resistance, getting into the pressure that had backed its

here is nejra cehic. nejra: thanks, tom. four new polls indicate the u.k.h to leave the european union. the surveys have the leave faction ahead of remain. came out in favor of a brexit. the u.k. staysif in the eu, it will be dominated engulfedritain will be in a few short years by this relentlessly expanding german dominated federal state." the union is the most vocal opponent of president francois a liver's plan to make market more flexible. in northern france, a news agency says a policeman and his partner were killed by a gunman who claimed allegiance to islamic state. he reportedly was convicted of taking part in a terror cell. french police killed the attacker, but a couple's three-year-old child was saved. authorities are investigating. the shooter in the orlando magic are was not on a no-fly list even though he had been investigated twice by the fbi for links to terrorism. james comey says omar mateen was taken off a watchlist because agents have no evidence he was a danger. he called 911 during sunday's murder spree and swore allegiance to islamic

here's nejra cehic.ejra: japanese stocks fell as begin soared after prime minister abe confirmed he will untilne a sales tax hike 2019. oblique previously said only an economic shock or a major earthquake would cause a delay. china's official factory gains remain in expansion territory in may. that adds to eminence stabilization in the world's second-largest economy. pmi came in at 50.1. to private measure fell 49.2, matching economists estimates and down 49.4 in april. blackrock's larry bank says he expects consolidation. new u.s. rules favor passive strategies. the are too many money managers struggling to get anything better. -- there are too many money managers struggling to get anything better. towe believe it is going create a huge consolidation in the industry. nejra: global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. you can find more stores on the bloomberg at top . -- more stories on the bloomberg at top . let's introduce our next gu

here's nejra cehic. nejra: officials have cleared dozens of u.s.ks to boost shares -- shareholders payouts. to rigorous for some subsidiary's -- even morgan stanley -- conditional permission to boost its dividend or 3%. japan's factory output fell 2.3% in may, a much bigger decline than expected and a new sign that the world largest -- third world -- the world's third-largest economy is far from recovery. to concerns that abenomics and boj stimulus are not working. companyesident says the plans to bring more product to china. camilla sobek spoke to bloomberg where one in 10 residents are said to be diabetic. we are eager to make sure these products can be brought to the market, especially within a chronic disease because there is a strong need. new products come to china a personally five years or more later than the eu and u.s. there is a delay that could benefit chinese patients. nejra: that is the bloomberg business flash. francine? francine: who will be the uk's next prime minister? the bbc has reported that michael goves is to throw his hat in

here is nejra cehic. nejra: iran has made it official that it is buying airplanes from boeing.es a mixture of 737 and 777 jets. walmart is reshaping its operation in china. the world's largest retailer has taken a 5% stake in jicarilla myers -- in e-commerce giant j.d..com. of..com will take ownership -- luxury home builders in london may get a break if the u.k. votes to leave the european union. a brexit could lead to a cheaper pound, and that may tempt buyers back into the struggling market for high-end homes. deals in london have stalled in the run-up to thursday's vote. that is the "bloomberg business flash." francine: let's get more on the dregs it debate. we are two days away from the referendum. it is too close to call, according to all the polls. remain, onelead for poll shows a lead form leave -- a lead for leave. is it too close to call? many essays that we have written on the ability of the u.k. to get accurate polling information, to interpret the polling information -- you remember in the general election there was a one-year review that concluded that there were b

here is nejra cehic.w warning from british chancellor of the exchequer george osborne on the risks of leaving the european union. he will say in a speech today that leaving brexit -- that a brexit would be left with higher taxes and cutbacks. recent polls show the leave faction is ahead. democrat hillary clinton has opened up a double-digit lead over republican donald trump in the race for the white house. a new bloomberg politics national poll shows clinton leading trump 49% to 37% among likely voters. and 55% of those surveyed said they could never vote for trump. trump does have an a 20 comes to fighting terrorism by a 50 to 45 margin third voters say he would do a better job. after polls close in washington, d.c. for the last democratic primary, clinton met with bernie sanders. they spoke privately for almost those go hours. afterwards, they released statements about the "dangerous threat trump poses to the nation." a spokesman says sanders will not concede before the democratic convention. the orland

let's get to bloomberg business flash with nejra cehic.ra: volkswagen shares have fallen the most since december to 24.2%. that comes as ceo repairs to deliver his -- as ceo prepares to deliver this morning. give been giving more time to file separate post that they have been given more time to file separate -- citing the highest technical nature of the negotiations here it deutsche bank's chairman has become the latest global banking leader to warn about potential dangers of a brexit. paul ashley says it would be a disaster for the u.k. and a political disaster for the eu. morgan stanley economists have raised the exit probability footie 5%. -- 45%. members rival in china has said to been valued at 28 billion dollars. at $28 billion. the increase on last year's valuation of $68 billion would surpassingdidi, airbnb. francine: how to investors in sri lanka -- negative returns. the skidmore from the man in charge of investing $187 billion, chris ailman. hows, we were talking about it is tough out there for people like you to invest when nega

let's get to first word news with nejra cehic.ejra: china's domestic equities have been denied entry into msci its market indexes for a third time. whose emerging market index is tracked by investors with $1.5 trillion assets says the company's desk says the countries -- says the countries policymakers -- it is a setback for the presidents effort to make the yuan and international currency. the uk's chancellor will warn that leaving the eu could spark a fiscal crisis. george osborne will say reduced trade and investment would leave a 30 billion pound black hole that would have the plug by increased taxes and spending cuts. progress -- progressive campaign that thejohnson says u.k. should leave the eu. eu, it islook at the a zone of the lowest growth of anywhere possible. it is catastrophic for unemployment and many parts of the mediterranean countries. holy eu project is a machine for generating excessive your argosy and red tape -- excessive bureaucracy and red tape. nejra: hillary clinton has opened a double-digit lead over dona

first let's get the bloomberg first word news with nejra cehic. nejra: in the u.k., conservative candidates are making their pitches today to succeed david cameron at the party's leader. the next prime minister, you're seeing live pix of theresa may, one of the candidates. according to a poll, theresa may is the favorite among party members. 55% tods boris johnson, 38%. may is speaking live now. you can see her there. johnson will try to build on his success as the leader of the leave campaign. he will argue that britain has a bright future outside of the eu. former defense secretary, liam fox, is also in the running. george soros says the uk's decision to leave the eu has unleashed a crisis in the financial market. he told the european parliament it is similar to the global financial crisis that began in 2007. he says at the time he was invited to speak to lawmakers, the refugee crisis was the biggest problem you're faced. he said that brexit maybe worse. the attack on the symbols airport has hit turkey's tourism industry. the suicide bombing kil

nejra: europe's -- britain's referendum remains too close to call.everal pulls -- separate polls show leads on both sides. thewhile the cofounder of leave eu campaign tells uncertainty reigns and no one knows what the outcome is going to be. cooks it is strong to leave. -- >> it is strong to leave. the fact of the matter is this referendum -- [laughter] george soros says the pound may slump against the dollar if it is voters decided to leave. this would be a devaluation bigger than when soros bedded in 2002.t tim cook is this set to hold a is aiming to boost because of controversial comments made by presumptive nominee donald trump about women, minority groups, refugees and immigrants. minutes from the june meeting of australia's central bank shows it held data while inflation would remain low. it remained unchanged. the r.b.i. appears to remain content as the country has toured an election next -- country heads toward an election next month. the release of the boj's april minutes. negative interest rates had .lready adduced its effects the senate ha

nejra: janet yellen has sketched a cautious view of the u.s. economy in the first of two days of testimony to lawmakers. the chair says she sees near and long-term fact is clouding the outlook or chi warned of the possible fallout if britain votes to leave the european union. >> this is a unique circumstance. this has no close parallel. it is hard to know what the consequences would be. there is uncertainty globally. we operate in an uncertain environment. nejra: mario draghi says the ecb has plans in place in case the outcome of tomorrow's eu referendum starts market turmoil. >> we are trying to be ready to go with all possible contingencies. at this point, it would be very difficult to be more precise than that. we have done all of the preparation that is necessary. nejra: volkswagen boss is faced investors in the company's abm after the emissions scandal broke. a lawsuit filed in germany in behalf of a california pension fund over losses. vw share price is down 24% since admitting to cheating on emissions test last september. hong kong's ric

tom: here is nejra cehic.the final day of campaigning before the vote on whether written should stay in the european union. >> i speak to companies around so many have their headquarters in london. don't you change your mind? we are proud of our city. >> the astonishing thing, i think, is that they underestimate our ability to better -- to do better deals, to do it on our own. bookmakers and currency markets are suggesting the remaining camp is in a strong position. north korea has launched more ballistic missiles. kim jong-un's range -- regime has tested a missile that could hit guam or japan. the first failed while in flight. japan called the launches a violation of united nations security council resolutions. donald trump beats hillary clinton when it comes to confidence. more voters with a stake in the stock market say trump would be better as president for their portfolio. -- 50%-30, 50 percent 3%. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world,

anna: thanks, nejra. -- matt: she is showing us the su"ex, but if you type in "ec you can see all of the economic data feeds we follow on bloomberg, stripping out gdp. you can see how that gauges against the expectations. speaking of the tipping point, we are just getting back to positive levels here. again "ecsu" is a great function and it breaks down what is beating and what is missing. anna: we will continue to look at that as the get more data. up next of course, sitting the -- the stakes in the airline industry. ♪ anna: welcome back. this is "on the move." we are 30 minutes into the trading day. let's see how things are shaping up. we are down by .6% on the stoxx 600. the ftse 100 is getting the worst of the losses. 1% on then 2/3 of ftse 100. let's get to the top stories. nejra: i'm watching some of the biggest movers on the stoxx 600. this is moving higher after the dutch grocery chain reported first court of profits that topped estimates. this was after cost reduction improved profitability. this

with first word news, here is nejra cehic.s in turkey are pointing the finger at islamic state for an airport suicide bombing that killed at least 40 people. another 200 were wounded in the attack at the airport in istanbul. officials say three suicide bombers blew themselves up new the entrance to the arrival hall. the race to replace david cameron as british conservative party leader and prime minister shifts into another gear today. contenders need to make themselves known before tomorrow's deadline. bookmakers have made home secretary theresa may the favorite over boris johnson. she kept a low profile during the campaign and supported the remain camp. francois hollande is taking aim of london as the financial center of europe. negotiations will determine the country's future financial relationship with the eu. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries, i am nejra cehic. this is bloomberg. francine, you have more on clearing operations. toncine: i would like welcome

nejra: barack obama says the orlando nightclub killer was inspired by propaganda.he president says omar mateen was a homegrown terrorists that authorities have long feared. >> at the last minute he announced allegiance to iso--- isil, but there is no evidence that he was directed. there is no evidence that he was a part of a larger plot. french authorities started an investigation into the killing of a policeman and his partner in northern france. the attacker was killed by police and the couple's three-year-old child was saved. a french governments spokesman says it was an act of terrorism. the attacker had claimed allegiance to the islamic state. brexit concerns are dragging on assets around the world. the chinese currency has moved closer to a five-year low just as britain's vote compounds fears. concern that authorities will not add stimulus even at the economic -- even as the economic outlook deteriorates. global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top <

let's get to nejra. nejra: china's consumer prices have climbed 2% from a year earlier. 3.4%cer prices fell from in april. the deflationary trend has now continued for 51 straight months. the bank o f korea has unexpectedly cut its bank interest cut rate to a new low. it needs increased downside risk to grow. the kiwi jumps to a 12 month high. but further easing might be required to keep inflation in the middle of the target range. u.k. chancellor has hit back at claims that he is scared mongering to keep britain in the european union. eil, if wedrew n vote to leave, we lose control. people should be under no illusions. two palestinian men have killed four israelis after opening fire in a tel aviv shopping area. first terrorist attack in the area since january. global news 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . francine: just a day after he fired the gun on the corporate bond buying program, maria

let's get to bloomberg business flash with nejra cehic.el france income cornet the tax into stumbles international airport have killed 40 people. the countries prime minister has said islamic state is likely to be responsible. the attacks was also injured 20 people went off in rapid succession at the airport at around 10:00 p.m. local time. turkish airlines is the airport has reopened her flights. -- reopened for flights. brexit may cost carmakers $2.8 billion through 28 -- 32018. -- through 2018. vodafone is wearing his options at the u.k. voted to leave the eu. the company says it will consider moving its headquarters elsewhere unless the country negotiates continued access to the single market. that is the bloomberg business flash. francine? francine: forget december and the next year. the fed is not hiking until 2018. the brexit derailed the tightening timeline. jane foley, head of ethics strategy. -- ethics strategy. we're pulled it back to 2018. jane: the market tends to overreact so they could come back. important data from the u.s.

nejra: yes, they are.ght be looking at the odds checker probability of remain versus exit. -- brexit. this is what the bookies are expecting. the percentage probability of the u.k. remaining in the eu has come to 68%. we were looking at a probability of over 90% earlier this evening. that probability of the u.k. remaining is coming down, according to the bookmakers. it is 69% right now. this is after some results. wasy was referring -- ramy referring to newcastle, but the margin was much narrower than expected. we have been expecting a 12 for remain in newcastle. that could be a factor. we also have summerland. lead, 39% remain for sunderland. another 50 in the northeast. those are two things cities we have results from. we also got gibraltar, showing for leave.ain, 4% that was expected to show remain. a few results so far. does not necessarily show what is going to happen the rest of the night. as i say, those bookmakers' odds are coming down, possibly what is pushing sterling lower. yvonne: we are seeing

nejra: and growing number of prominent u.s.rganizations have -- at the republican national convention. they include wells fargo, ubs and afford, all -- and afford all of which -- some top elected officials skipping next month's meeting in cleveland after warnings of large-scale protests. pimco is cutting jobs. the company is losing 68% -- 68 positions to the firm has seen asset under management fall by 25% in the last three years. -- before leaving at berkeley in 2014. in 2014. leaving at abruptly inaving 2014. global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. stillne: the u.k. is digesting the tragic news of the killing of jo cox. frombute to cox poured in contacts. thank you for joining us today. themuch do we know of when campaigning will resume? >> at the moment, we do not know. campaigns have agreed to set the sidelines today. that were duells today have been pushed into tomorrow. maybe over the weekend, david cameron is scheduled to appear on tv on sunday night for th

nejra: it may be an awkward meeting in brussels.on meets with his fellow european union leaders today for the first time since last week ross vote to leave -- since last week's vote to leave the eu. he is expected to give some indication of how it expects to trigger the mechanism for leaving the union. himself out of the race to succeed david cameron, the chancellor of the exchequer was the one time expected successor, but he campaigned for a remain vote alongside cameron. volkswagen's price texas huddle lawsuits -- to settle -- volkswagen's price tag to settle will be higher than expected. thanill agree to pay more $15 billion. that is $5 billion more than previous reported. drivers will get up to $10,000 per car for their trouble. turkey's president is on a ,iplomatic charm offensive ending at six years treatment with israel. they are expected to improve andtions with russia, turkey is trying to resolve confrontations that have hurt its economy and left it increasingly isolated in the region. expected court ruling to improve abort

nejra joins us with a chart.yeah, some are saying quite recently that one place where we were not seeing a brexit stress showing was in the money market. but it looks not anymore. i have the gauge of bank borrowing costs. it hit the most extreme level since 2012. just yesterday, on thursday. and you know this latest bout of turmoil also illustrating how regulation changes that came after the financial crisis are leading to great volatility in times of stress. because banks face higher costs to make markets, and they're not stepping in to take advantage of arbitrage opportunities. this leads to bigger prices. look at the spread. but i will also took about dollar funding. it is harder for big banks to obtain u.s. dollar funding. this is of course important because of dollars dominance status and global invoicing. and the outside share of dollar-denominated assets in global investment portfolios. this shows the cost to swap other currency into dollars, nearing crisis levels. in fact, this premium reach the highest s

nejra cehic. tons of disunity in london and in brussels. nejra: it's interesting to what the next step will be, because logically, the next step would be for the u.k. to trigger article 50 and start the negotiations on leaving the eu, but other governments in europe aren't expecting david cameron to do that when he meets other eu leaders on tuesday in brussels. what they will want to some kind of plan is to what happens next. it's difficult to know what that plan will be, given that there is a political crisis at the moment, not just in government with david cameron having resigned as prime minister, but also with the opposition. we've had 11 members resign from the shadow cabinet, and a senior labor lawmaker fired after he called on jeremy corbyn to quit. jeremy corbyn has said he's not going to stand down, but with the u.k. and political crisis, it is very much in a week negotiating position at the moment. not only that, but it's not clear who's going to be negotiating with the eu in the event t

i am nejra cehic. tom: we will not bury you with data.ckee across all of bloomberg surveillance this morning, we will give you a tapestry of markets. it is a backdrop. deutsche bank is down 21% in june. let me say that again, it is so profound. deutsche bank is down 21% in june. equity markets are weaker. yields need to be re-described. morning, a 15610-year. the euro is the one spot of stability with oil weaker. up theee how we can pick pieces in francine's data check. the yen, there are no words to describe it with loads of intervention talk. just talk. 104. 18 blows through, strong, strong yen. i don't know where to begin on the negative yield derby. maybe all i can say is hello copenhagen. it is like denmark this morning. francine: that could be a song. we are looking for negative yields. i have a chart that shows the 30-year yield. i want to look at pound on the back of the referendum, seven-days from now. 104.en at we recently touch 103. they set a month ago we will go to 95. tom: in euro-swiss, we do not have an hour data checks, b

nejra: we are certainly seeing risk on today.quity markets, gains of 2% on the ftse 100 and the stoxx 600. they are trapped the ftse against sterling because we are seeing both rise for the first time since brexit, sterling up after an elect -- 11% drop. up about one half 1%. we are still pretty close to that 30 year low that hit once we got the news of brexit. is this a sign of a further rally or is it just a pause for breath question mark if you look at sterling, we can look at the relative strength index. .ou saw this actually drop it is a signal that an asset has been oversold. i guess the question is, can the rally continue for sterling looking at the relative strengths index. we have been seeing a lot of risk appetite but one way that has not played out so much is in the bond market because we have been seeing money move into a number of bonds globally, pushing 10 year yields to lowe's. this is the 10 year yield month to date for japan and the aussie. in japan, benchmark yields have all dipped below 0.1%. for the first perc

nejra?ra: i'm starting with european stocks were little changed on the sto 600 ahead of the ecb meeting. so, this is a little dull. what i want to show you is what is happening with euro--doll. this trade, we have broken through 1.12 today. we have seen the euro rise to its highest in the week ahead of the ecb meeting been a lot of people saying this trade is much less about the ecb, much more about u.s. jobs and where the f ed is going. this chart shows that euro volatility curve steeping. the premium on one week euro- dollar volatility has reached the most since may 5. what this shows is the focus on this trade is actually shifting to yellen from brexit. this isssuming, of course, you see risk for this trade in the event of brexit. guess what? look at the end of that line. the spread has hit positive territory for the first time volatilityne-month gauge started capturing the june 23 referendum. this trade very much focused on the u.s. than on ecb or brexit. sticking with currencies, got to

let's move on to our "business flash" with nejra cehic. secured $63 billion for its pursuit of monsanto. selected bank of america, credit suisse, goldman sachs, hsbc, and j.p. morgan chase. they will each provide $12.5 billion in short-term loans. if the deal happens, it will create the world's biggest supplier of pharm chemicals. discussions are at an early stage. pag -- bain and pag asia are said to join kkr in bids for takata. size of increasing the a five-year loan from $1 billion to $2 billion, according to people familiar with the matter, who say that china's biggest search engine has a commitment from 21 banks. it plans to borrow the money for general corporate purposes. caroline? caroline: of course today we are still focused on brexit. we are watching the pound as it heads for its worst week since march, the worst-performing major currency this week after brexit polls begin to show favor to the leave campaign. the pound is the second worst performer, and still with us is howard ward and harm bandholz. before i get to you, i want t

nejra: we are seeing quite a mix of color, changing what to green now.y stocks look like they're leading the gains up almost .3% ahead of the opec meeting. rally not seeing a big today. it looks like utilities and it stocks leading the losses. let's take a quick look at what is happening with the u.k. ten year here. we saw the basis point drop 5 basis points lower. stille at 137, we are there. not much of a change of the u.k. 10 year yield. let's take a look at the stocks that are watching today. i'm starting with a coup u.k. stocks here. we just got a report that the may ever passengers are up 22% on the previous year. some analysts were calling a move on this stock at the open. numbers, basically, full-year revenue came in at a bi ot of a beat. also, the full-year, pretax coming in at a beat. 2016-2017 to be ahead of 2015-2017. keep an eye on those two stocks. caroline: thank you very much, 600, seeing a flat stoxx digging into the mac or of today, a busy day for the markets with the ecb decision and the press conference a few hours away. a -- let's ta

here is nejra cehic with "first word news.tors are hoping to move a step closer to solving the mystery of the egyptair plane that crashed into the mediterranean. they are preparing to test the key memory units of the plane's black box voice recorders. on okinawa, tens of thousands of people protested the u.s. military presence. okinawa hosts the bulk of the american forces stationed in japan. demonstrators were also angry about the rate of the killing -- the rape and killing of a local woman. an american contractor is a suspect. paris wants to make sure it no longer takes your breath away. older cars and motorcycles will be banned from parisian streets on weekdays, estimating that it aboutove -- a will remove 5% of vehicles that contribute to pollution. the u.s. government will release partial transcripts of calls between the police and orlando shooter omar mateen. they include what he told negotiators in the midst of the massacre inside the gay nightclub. loretta lynch will go to orlando tomorrow to meet with the victims and

. -- nejra: the stoxx 600 is up 4/10 of a percent ahead of the all important jobs data out of the u.sgy producers are leading the gains and across the board, we are seeing a little bit of demand for risk assets and ahead of this job data, so take a look at the bloomberg commodity index. this tracks returns, not spot prices, but it has risen to a seven-month high. have brent crude above $50 a barrel. indexoomberg commodity showing a general upward trend for commodities today. the commodity currencies are the best performing. look at the aussie dollar and new zealand dollar rallying against the greenback today. bloomberg dollar index pretty much unchanged ahead of the jobs data. my final chart shows that the yield premium that treasuries pay over u.k. guilt is surging. , thee two-year yields spread is the widest in 16 years. on the 10 year it is the widest in a decade. what this really highlights, because we have u.s. jobs, the fed rate decision, and the referendum on the eu happening in the u.k., this really highlights the two different views of the economies of the u.s. and u.k.. inve

first up let's get to nejra cehic. nejra: thanks. the so-called brexit campaign has been accused of putting his own future ahead of that of british workers. boris johnson was debating the upcoming referendum ahead of the ise -- his opponents said he using the issue to enhance his political credentials. he is seen as favorite to the prime minister david cameron. >> they seem to want to take a huge risk with the employment process, millions of people up and down the country. you don't seem to care about the millions of jobs -- i think you only care about one job. nejra: meanwhile, citigroup says u.s. treasury yields may fall toward record lows of britain votes to leave the eu. the bank says a brexit may weaken the trade lines and current economic growth, sparking massive demands for treasuries. european equities could lose about a quarter of their value in the immediate aftermath of the brexit according to a risk modeling firm. it from stocks of the hardest hit among asset classes on a leave of vote hypothetical portfolio. pound denomi

nejra: and south korea, latte group has put the biggest ipo of the year on hold.hey had to raise as much as foreign a half billion dollars for its hotel unit but korean investigators are widening their investigation. agreed to by blue coat systems for about $4.7 billion in cash, a deal that will add to their cyber defense tech elegy and fill a vacant chief executive position. greg clark will be in charge of the combined corporation, the fourth ceo in four years. cracking down on what he considers above the lawbreakers. memos,ng to members -- bill winter is concerned with employees' financial dealings. a number of standard chartered senior bankers have been fired. that is the bloomberg business flash. francine: we are joined by's even king, senior economic executive with hsbc. -- stephen king. we have u.k. yield in blue, germany in white, and we have the u.k. a are -- an article that came yieldsay, it means that have dipped below zero. germany maybe next. what does it mean psychologically? stephen: what we are seeing is kind of a convergence towards japanese-style

nejra joins us with an update. you have been divining the numbers. what is your take away?: if i look at asian stocks first, it is the end of a five day to winning streak or the asian pacific index. off by 2/10 of a percent at the moment. it seems that some of the markets that interpreting the chinese ada necessarily good news. we had the official gauge close to that 50 dividing line. also of course, u.s. equities settle in the first day of trading, since janet yellen spoke on friday. investors digesting what is happening in the u.s. and in china. if we look at the yuan, i want to show you this. it is drawing closer to eclipsing the lows during january's turmoil. on thend about line, verge of a five-year low. of course, chinese manufacturing data playing into this. but dollar strength has not been helping either. in fact, goldman sachs said last week that the end of a temporary sweet spot that tim china enjoyed, witness against trading partners, will actually spur renewed capital outflows. sticking with currencies, leading higher today is the aussie dollar, gaining against

. >> rose: we conclude this evening with nejra cehic of bloomberg news in london with the mood as great britain went to vote on brexit. >> there is a real sense that the way you voted today is really going to matter, not just for the future of the u.k. but for the future of europe and globally as well. >> rose: new decisions from the supreme court, the battle against isis, after orlando and the brexit vote in great britain today. all of that when we continue. >> funding for charlie rose is provided by the following: >> and by bloomberg, a provider of multimedia news and information services worldwide. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> rose: we begin this evening with the supreme court, the justices dead locked in a challenge to president obama's imgraiks plan, a 4-4 ruling leaves in place a lower court decision that the president exceeded his authority. the program would have shielded millions of undocumented immigrants from deportation. the court's decision is considered a blow to president obama's the president expr

nejra: we had a couple of polls out over the weekend. the main one the markets are focusing on is this poll showing a three percentage point lead for remain. there was also another poll from the sunday times, showing a one percentage point lead for remaining. now this shift toward remain has come with the campaigning resuming because that was suspended for a couple of days after the murder of the mp. david cameron will become the july zynga -- will be capitulating on this -- capitalizing on this, when he accused his opponents of turkey joining the eu, one being the cost of membership. what's hear more from david cameron. david cameron: as we choose to leave, we can leave. but if we do, that is it. we are walking out the door, quitting, giving up on this organization, which, even if we leave, will have a huge effect on our lives, on our children, on opportunities, our businesses. britain in the end is a quitter. we stay and we fight. -- on theid cameron flipside, you have boris johnson, the former mayor of london, who said they remain cap

nejra: that is the brexit news for this week. caroline: thank you very much.arkets -- less three weeks before britain vote on its membership. the equity investors aren't much worried about the outcome than their trading partners. and ader joins us now, global strategist always great to have you on. let's dig in, first of all to a great story got on bloomberg today, it is a chart showing how volatility is being shown through fx through the town. >> what we see in the chart is volatilities. this shows the volatility in the ftse 100 index is actually at the lowest point ever relative to volatility in the pound according to data going back to 2008. that it's interesting, we see that as we hit three weeks before the referendum equities are calm relative to the pound. it is interesting, and someone would expect there to be some kind of volatility, and there is, but when you compare it to the pound it is really kind of flat. caroline: do you agree? matt: that is what they wanted to ask how much of it is a currency story? how does it compare to your world, the fx worl

let's get to nejra. nejra: on the imap, it is red look athe board if you the stoxx 600.is financial leading the losses at the moment. health care following closely behind. the best performing group, if you can collect that is still down. that is energy stocks. offre very much and a risk and environment at the moment. i want to bring up the 10 year, we have seen this fall to record lows. move inust seeing it now. that yield is dropping lower. it is at 1.09%. is that a new record? has an eye to see if that fallen to a new record. it looks like it has to we are to japan and australia 10 year fall to records as well. look at the stocks we're watching. are keeping ane ion. we are waiting for mulder to open at the moment. we got some numbers. this was higher after those full-year total revenues coming in at 155.9 million pounds. it also saw sales continuing to grow during the year. keep an yeye on that. also being called higher. do keep an eye on this. it saw full-year earnings modestly above top and market forecasts. we have seen second half trading as robust. it had its cent

britainirl -- nejra: seems to be on course to exit the european union. sun" hash blow, "the backed brexit on its front page. yesterday saw volatility in the currency markets as the pound - microsoft's credit rating may be cut by moody's following its $26 billion purchase of linkedin. the agency made the announcement hours after the technology giant says it plans to fund the takeover with debt. it is the most extensive move so far in the ceo's plan to remake the company to the future where most business computing happens over the internet. >> there is a microsoft graph which is about people, their relationships, their calendars, their projects. you connect to that with the professional graph and then you start completing the scenarios. you do not need to change the social network, but you do need to bring those together seamlessly. orlandok obama says the nightclub killer was inspired by extremist propaganda. there is new evidence he was directed from abroad. the united states says omar mateen is the kind of homegrown terrorist authorities have long feare

nejra: the risk sentiment we were seeing seems to have fallen back.ve got caution in the markets fueling demand for bonds globally. we've seen the japanese 10-year yield fall to a record low. this after we saw u.k. and german 10-year yields fall to lowe's yesterday. we are seeing this risk off sentiment inequity markets as well. looking at the msci asia-pacific index, that has all in the most -- has fallen the most in a month. we're seeing losses in japan. with that sentiment fueling demand for some of the safer havens, look at the dollar. bloomberg dollar spot index is up for a second day. it is still headed for a second straight weekly decline. we did see a pullback in the dollar after disappointing jobs data on friday. we are seeking gains over the past couple days. finally, i wanted to focus on metals. we talk about oversupply in the oil markets. we are seeing copper rallying today from a four-month low, but we saw a selloff across industrial metals yesterday. apart from zinc, goldman sachs calls this the bullish exception. the white line is coppe

nejra is standing by with what we need to know.i looking at the imap to see how the sectors are performing. it looks like it is red across the board. banks and insurance companies were particularly punished on friday, when we saw the benchmark drop the most since 2008. now,stocks are down right followed by industrials. utilities are the best performers there, though they are still off by .2%. that is how the sectors are shaping up, but it is red across the board, all of them declining on the stoxx 600 at the moment. i want to take a look at the u.k. 10 year yield. we saw this dropped to a record low on friday. at the moment, it is down three basis points at 1.06% as these gilt market open up. we are watching a number of stocks, starting i believe, with u.k. banks. as i was saying, we did see financials punished on friday. some of those banks extended losses in asian trade. barclays is down 4.5%. hsbcs is off by 2.7% and is up by .3% of the moment. other stocks we're looking at as well this morning, if we can switch up that board. w

let's get the details with nejra cehic.ra: when i was standing here 24 hours ago, this was already. look at the difference now good we are seeing green across the industry groups on the stoxx 600. -- difference now. we are seeing green across the industry groups on the stoxx 600. energy among some of the best performers with the oil price rising today. the worst performers, they are still up 1% on the defensive. health care and utilities showing where we are seeing some risk appetite coming into these equity markets. let's take a look at how the gilt market is opening. yesterday we saw the 10 year yield dropped below 1% for the first time ever. that yield coming down 15 basis points. we are looking at it right now. it doesn't seem to be moving quite yet. much unchanged is what we are looking at. keep an eye on that 10 year yield. let's take a look at some individual stocks we have been watching it i am starting with the u.k. banks, starting with barclays. this stock has lost more than half its value in the last 12 months. t

nejra: we are speaking specifically about premiums. chart shows is that the treasury 10 year term premium has plunged to a record, -0.47% for a 10 year. reflects the extra compensation that investors demand to hold longer maturity debt instead of success of short-term security. the term premium should normally be positive, and has been for almost all the past 50 years, but since the start of this year, it has turned into a discount. what this suggests is that bond investors can't see any risks on the horizon that would push yields higher. and what's interesting is that the same is true in japan and the u.k., where it has also gone negative. 10 year yields fell to fresh record lows in japan in the u.k. today. --t: ben, let me ask you even though in june we aren't expecting any kind of rate rise from the fed, and maybe not in july anymore either, isn't the market trusting that the fed is going to raise rates at least one time this year? >> i think that's certainly the expectation. let's see where we are in three weeks, or when some of th

nejra joins us now with more on the out of market moves.i wanted to show what happened at the end of yesterday's session for the s&p 500. it closed above 2100 for the first time since april. i tracked that level in red. this is the level the index failed to hold twice this week. it is also a level where two rallies have happened in the past two months. the s&p 500 still 1.2% below the all-time high reach in may of 2015. we are at a seven-month high right now. tracking those gains rising head of u.s. jobs data up for the first time in three days. i wanted to show you what is happening over a couple of key trades against the dollar. the bloomberg dollar index but he much unchanged today ahead of jobs data. this week, we've seen a weaker pound. a stronger yen on a fourth day of gains now for the love course, for the rest of this month, we look ahead to the prospect of a fed rate hike and the risk of a brexit. this chart really sums up a lot of this. it is the u.s.-u.k. to year yield spread. the yield premium that the treasuries pay has been su

nejra has more.t a relief that they have pressed pause on the brexit-related nervousness we have seen. nejra: certainly in some parts of the market. if we look at asian equities we are seeing again today. the msci asian-pacific rising for the first time in a week, snapping the biggest four-day decline since february. it is a broad-based rally, seeing both gains in japan and china. but of course we are not seeing this risk appetite everywhere. just if we look at what is happening in the bond market, i want to bring up the treasury 10 year yield, because there are two things mainly investors are focusing on, the fed decision and the risk around brexit. of course the two becoming increasingly intertwined. but treasuries, are headed for the best first half in 2012. brexit in particular benefiting treasuries. falling below zero for the first time, yields on japanese government bonds have hit record lows across the board. that 10 year moving farther into negative territory, sing the record lows -- seeing t

manus: nejra, thank you very much.as just been talking about those record lows in the bond market. are long-term bond yields heading for a collision course yousef is 20 be sitting in this chair. i have seven days left, a little bit, and then you will arrive. before you have a nice time here in the states, tell me about the bond market. yousef: good morning, minutes. i guess time is running out for you. what a weekend it has been for government bonds, continuing to be the focus of what is happening, and with the bund in some cases getting negative yield. and brexit is playing into that. the flight to safety is playing into that. but also there is a good chunk of investors who are trying to escape the negative yield environment. and so what is happening is they are moving to the longer maturities, and pushing those longer. the yield curve is flattening. let us get some perspective on that with a gorgeous start that i have prepared for you here. you can see the blue line, which is the u.s. three-month treasury, three mont

with more on that, here is nejra.al of course, but general disappointment about what prime minister abe had to say about the lack of a stimulus program. nejra: we're at the beginning of a month weather is a lot at stake. of course we have the ecb meeting, opec, the fed, the brexit though. not a lot of risk-taking, globally really. as you say, asian stocks down for a second day. we are seeing the pacific index up by a tense of 1%. japanese stocks jumping but most of the month, largely down to the stronger yen. the yen is heading for its first three-day rally in a month, holding gains after a surge of more than 1% over the dollar yesterday. yes, abe pledged to delay the ax hike read any of back a widely expected stiglitz -- fiscal stimulus package. that is playing into this. but of course, is about risk, too and if we look at the euro, that is strengthening ahead of the ecb but also the u.s. jobs data. the job data is about janet yellen and the fed. we are at 112 now. we broke through that on euro-dollar. what i want to

nejra: certainly a good day for commodities.e seeing oil gaining for a fourth day, wdi rising from the highest closing in 10 months. that is after a fall after a third week, after a new wildfire in canada. oil is on the longest run of games since april. we are also seeing metals rise, i am tracking copper, but think is of the highest. some of that is on the china data, the weaker dollar certainly helping as well. looking at asian stocks, we are actually seeing these fall from a six-week high. markets in china and hong kong and taiwan are shut for holiday. but we are seeing losses overall, particularly in japanese stocks. energy stocks one of only the industries gaining, not surprising. i want to quickly show you the s&p 500. of course it is within a whisker of the all-time high it hit back on may 23 of 2015. still at the highest in 10 months. was ll-time high of course -- and finally, just want to show you the key we. a number of things moving, not least about a retreating. but the new zealand dollar gaining the most, hitting th

i am nejra cehic. tom: sometimes you get lucky. young university is an item of good fortune. but joining us now is kevin roberts of saatchi & saatchi. he has given us wisdom and he ,omes with a beautiful book which is my book of the summer. it is a spectacular, gorgeous book in lee's a black-and-white imagery. here are images of speak with fort moment for england this referendum that we see within the united kingdom. kingdom ofhe united another time. capturing this beautifully and his commanding book. this gives you an idea of kevin .oberts's 26 shot gorgeous, gorgeous photos. this is a spectacular, smart, beautiful book. what is the goal here, to provide wisdom for present leaders and future leaders? gap for new is a leaders and what is becoming a crazier and crazy world. most of the leadership doctrines were written and more settled times. this is to help the young people get a grip, and the old people stay focused. tom: i could be a wise guy and said if you have spoken to mr. trump on this? [laughter] tom: here is a quote from t

us see what is going on with a chart of the hour, one lady in the house deciding what to give you, nejra. nejra: well of course sterling front and center today, we see the wild moves, lowest since 1985, dropping the most on record. i wanted to see how investors have perhaps priced in the move, looking further ahead, i decided to look at sterling risk reversal, option volatility, this is thinking an interesting picture. because if you look at the pink and blue lines, this is the shorter-term one week and one it is you see that yes, still bearish. still in minus territory. but actually the premium on options to sell sterling versus the dollar has been coming back a bit. whereas if you look at the one year, three months little bit further out, that premium has actually been increasing. so what does this say? that sterling is kind of approaching a thaw, as guy has been talking about? or that we actually do have some certainty now in the very short term, but of course now as you just talked about with all of the renegotiations of the u.k. is going to have to make and so much uncertainty the n