chancellor george osborne with london bureau chief simon kennedy. 53 days before the summer olympicsbrazil, the rio de janeiro struggling to get ready for the games. we go there live, next. ♪ scarlet: i'm scarlet fu. time for the bloomberg business flash and a look at the biggest stories in the news right now. draft kings said to be in talks about a merger according to people familiar with the matter. investors have long held for a push for a tie up after they offered identical products and spent a lot of money competing with each other. morgan stanley won the role as the microsoft advisor, falling to the bank ahead of goldman sachs and technology dealmaking this year. the advise and -- advisor said they may be making 10 million dollars to $20 million on that transaction. they were working with another bitter. according to those familiar, due to was conflicted its relationship with the other potential suitor. airlines are doing a better job of sticking to their schedules. consumer complaints are falling. the federal government says nearly 85% of flights arrived on time in april. bett

joining us now is simon kennedy. what do we know about this event? simon: we know very little. was in her electoral district in the north of england and was shot twice. both sides of the campaign have suspended their activities. attackeray the declared britain first, which is a group that is against stage,tion, but at this we have to say there is no actual link to the referendum. it is just today campaigning has been suspended. it comes at a fraught time in the campaign. simon: there had been another day of acrimony between the sides and maybe this will be a sobering force for both sides that these things can happen. there have been a lot of political skirmishes with the chancellor of the action -- chancellor of the exchequer was criticized by members of the pro--brexit lobby. accused of scare mongering. it's not like the markets didn't have enough to go on today. the 10 year u.s. yield down at one point today. what do you make of yield going lower? simon: we will have to see the results of that. i was talking to a fund manager this morning who said these yields have less to do

now is simon kennedy. i forgot put myself on a limb here.24 hours and those holes -- polls, was at the defining 24 hours so far of the campaign? back, youn you look will say that was the moment. it's the destination. the travel has changed. hours, we'reay for walking towards the exit. with how has this happened the government using their machinery and have banged the economic drama. how his immigration supplanted the economy as the most that? -- most pertinent? simon: you can't tell people through the u.k. if we leave, the economy is going to be terrible people -- terrible. job, whether accurately or not, the cases immigration is the cause of that. it's what they resent. that is coming through in these polls. we are looking at a developing force. silent and now they are coming through. there is safety in numbers in a push for brexit. if you're looking for a defining last 24look at to the hours. it became crystallized for a lot of people out there that it should happen. they feel they can put a voice to that. crystallizing across all asset cl

let's get back to our guest, guy monson, and simon kennedy also joins us.hank you for sticking around. when you look at brexit, we were talking before the break about how you position yourself ahead of that referendum. ? i would position myself broadly for a remain, for three reasons. i think that markets have consistently underperformed, and europe is at a 25 year performance discount, and a 10 year valuation discount. we are tilted toward quality, high yields, and within many cap tilt. francine: the base assumption being that brexit will not happen. what happens if it does? >> if he gets voted through, your european and u.k. equities are protected by weakness in the euro and in the pound. 71% of earnings come from abroad, so you will have a currency buffer. i think valuations are so low, that there's not an enormous amount to fall. thirdly, i think all markets will fall in line, so i don't see a huge risk of underperformance. francine: how much should we trust the polls? there's another one coming the day before, and it shows things have shifted. pollster

let's get more on this with itrence mutkin, bnp paribas also is simon can -- also with us is simon kennedyank you so much. laurence, when you look at japan -- -- white is japan, germany is a blue. you can see the german bond 10 year was off and negative territory at what does this tell us? laurence: it tells you but risk and the risks that central banks are fighting. the risks are it is still very hard to see any evidence for getting inflation back up. the same thing, although with much less in the way with full employment is in the euro area could we have these extraordinary positions which we may be having the bank of japan and the ecb with benchmark negative interest rates. that is what you see with these charts. you see a bond yield at zero. still yielding at 45 basis pains above itbasis points would take of bonds as something you would buy to hedge your liability. urinary yield, it is bigger than ever? do you buy bonds insistbecause regulators . the other is if you can get away from caring about the level of the yield, if you look the steepness of the yield curve, is this better than

osborne has stepped up his anti-brexit stance and he made his case to the london bureau chief simon kennedyarlier today. this is an important referendum where every vote counts and whatever the market it will be the will of the british people. people are concerned or businesses that are concerned or investors that are concerned, you should speak up. many businesses like airbus and bmw have done so in recent days. this is not a moment for businesses to sit it out. people should speak out about what they see as the risks and the huge opportunities that remain in the eu mark: alex morales is here, banging the economic case, isn't he, again and again and again? what concernsw people is how it will hit the market. the government has been drumming the economic message right from the get-go. that in the clip there. osborne went on to say it would leave written permanently poorer -- leave britain permanently poorer if it were to leave the eu. mark: the messages i do not getting through or the focus on immigration has supplanted it. that has been reflected in the kohl's, particularly that white shoc

chancellor who made the case for staying in the eu to bloomberg's london chief, simon kennedy. >> obviouslywill be if ther concern population votes to quit the eu. it is very important that people understand that written is stronger being part of a big international single market as we are as part of the eu. >> despite those declines in the polls we have seen in recent days, there still seems to be uncertainty and markets regarding if the brexit will actually occur. there are some views that it is unlikely britain votes out. is there still a sense of complacency? >> first of all, this is obviously an important referendum where every vote counts. say, in the markets end, it will be the decision of the british people. who arer businesses concerned or investors who are concerned about the prospect of written quitting the eu should speak up. british telecom have done so today. many other businesses have done so in recent days, so this is not a moment for businesses to sit it out. people should speak out about what they see as the risks of quitting and the huge opportunity that britain remains i

simon kennedy joins us from london. great to have you with us. silence on both sides of the campaign. campaigning suspended by both sides for seven days -- for a second day today. very little brexit chatter. otherwise, christine lagarde making a speech in vienna in which she touched on the issue. that is the only commentary we've seen. tonight, the imf releases a delayed report on the economic outlook on the brexit and a couple of polls that may well be redundant now because they were carried out before yesterday. of pause in the campaign. jon: the questions are being asked about whether this changes the debate fundamentally or whether it drains the drama from both sides as we reflect on the severity of yesterday's incident. the debates have evolved away from here? simon: we will only know in a weeks time how much it will change. we know for sure that the campaign will be very different in the last few days. ,t reached a boiling part turned nasty between both sides. rhetoric.a level of with little sign that was going to change into the last week.

anna: let's bring in simon kennedy. richard simon, bring us up-to-date it we are going to get less meetings around the brexit, the developments over the coming days because the campaign has been suspended. simon: campaigning suspended. mark carney shortened his speech last night. david cameron [indiscernible] the imf which delayed the report will announce its report or findings on brexit overnight. a couple of polls have been delayed. today everyone -- [indiscernible] trajectory in the polls was clear to see in recent days. thencreasing mood toward move camp -- toward the leave camp. directionhe travel of -- the direction of travel. groupsthe progress that enjoy some of that sentiment yesterday. anna: let's bring you, richard. -- marketsbe moving move based on polling data. we have been talking about the odds and how we are seeing around the tragic events, we've seen the odds of changing. we have seen the pounds moving. we have seen the assets reap prizing things -- assets repricing things. there are shortcomings in wha

let's welcome simon kennedy. he is of course the bureau chief doug is also here.e move down. the rupee going back up may be on some kind of intervention. what we make of him stepping down? he was the golden child of central banks. hist seems to suggest from letter that he was willing to stay on. and thernmental members majority to not actually won him. he came under considerable pressure in recent weeks. he was very much a cold and child in india. he was appointed to be chief economist in the imf. they much and internationally known figure. he did a whole series of things that brought india some respect. is -- yourassic book class of books is "fault lines." what are the fault lines now? we will see the story of independent central banks over the years, questions about whether future assets are good for monetary policy, fighting inflation. francine: what is the greed a cross -- central banks cannot be as independent as before. can you live with this, or to get out of india? literally, he is, in my view, one of the top two or three central bankers in the world. the

simon kennedy was telling us we might the responses from the bank of england, but also global central banks. including some who have been treated as safe havens as of late. manus: the irony is not lost on anybody. guy will take us through the market reactions of the moment. we spoke in japan, suggesting that g-7 was ready to open swap lines, if needed. liquidity will be the key word throughout the day. when you look at some of the market commentators, they are s aying they would not sell if eu markets fall the on 15%. this is about market wit interpretation. anna: let's get to the latest results of the referendum. they started coming in around midnight, u.k. time. right out of the gate, it looks like "leave" was going to have a good night and they did. 370 out of 382 areas reporting. to leave and 48.33% to remain. guy johnson has the latest market reaction. guy: it is absolutely sensational this morning. we don't see these kind of moves. you can get an idea at the historical sense by looking back at the almanac. this is just a minor blip compared to the move we can see with the britis

betty: simon kennedy in london for us. more live results from the brexit phot still to come.s, early economic indicators and china are showing stability, but also some string. we will be live in beijing, next. ♪ betty: welcome back. i'm that he will in new york. yvonne: and i'm yvonne man in hong kong. we are an hour away from the opens in new zealand and australia. china is re-stabilizing, but smaller companies are still feeling the pinch. tom is looking at the divided fortunes. we will get a lot of these economic numbers. parse out for us what we are going to get. that's right, these are early indicators for june. we get the official data in early july for this month. what the overall picture is from these indicators is continued stability in china's economic recovery, though it is a fragile stability, probably the best way to phrase it. what is interesting is this divide that we see between smaller and medium-sized firms feeling less confident and seeing fewer orders and lust a man's, versus an update -- and less demands, versus an uptick in bigger companies. we have manuf