anna: britain votes in polling stations are open across the u.k. u.s. futures and european equities are higher. the pound strengthens and we bring you extra asset checks after volatile month. gap from plugs the falling investments with state spending as it sets up efforts to hit the road targets. -- the growth targets. so, welcome to "the pulse." i'm francine lacqua. i am just getting pmi figures out of the eurozone. pmi rising 52.6, better than what economists had told us. they do split into the tw components. oservices were a little bit below expectations. this is the euro area services pmi for the month of june. it fell to 52.4. manufacturing though, a touch better than expected. we also have a little bit of central-bank action, or in action in this case. the norwegian central bank leaving rates unchanged at 0.5%, pretty much as expected. but we will get you extra for an exchange checks, including with the norwegian krona. first of all, let's get the picture across the board. the msci world index, getting some help fro. i want to show you the mexican

u.s. government relations and american business operations in the u.k. and europe, i am joined by cameron abadi, a senior editor of "foreign policy" magazine. what are the implications for u.s. companies that use the u.k. as a base, and an entry point to business in europe? >> well, you know, a lot of companies use britain precisely that way. so you cited how important an economic partner that is. but it's hard to disentangle how much of that partnership is about britain and how much of that is about europe. and i think it's safe to say a lot of that is about using britain to get access to the much bigger market in europe. now that britain has decided it's not part of that market-- or at least temporarily won't be part of that market-- a lot of companies are going to have to calculate whether it makes sense to stay in britain. and a lot of companies have said that in the run-up to the vote and we'll see in the weeks ahead whether they start to move their operations away from britain and move it elsewhere on the european continent. >> stewart: let's talk a

u.k. or the u.s.. of people say that there is some sort of persistent shortfall, a persistent shortfall on inflation measures. your reading of the current situation does not necessarily conform with that? >> well, when you look at lots of different measures of excess capacity, there are not that many measures of excess capacity still in place in the u.k. or u.s. the bank of england and the last quarterly inflation report shifted toly -- where there would be no access capacity. level ofs., average wages growing at 3.5%. unemployment dipping below 5%. these are not economies where you see loads of excess capacity. that said, there has not been a lot of investment. the productivity problem is the real issue. potentially there has been a lack of investment which is likely to be associated with the hangover from the crisis. there is excess capacity, but no rationale to invest in more capacity or invest in infrastructure, which would lead to high levels of productivity, which is now showing up in the figures

thinks of as, in the golden and of u.s.-u.k.way that stepping out of the eu means the u.k. will take on a more global role. particularly since the u.k. really got burned during the first iraq war in joining us in sort of a unilateral adventure outside of multilateral organizations and really sort of hurt -- there's no con spich wency in the u.k. for u.s. adventured ventures overseas. >> this will continue to play out. other members of the eu debating whether they want to do the same thing. i see some french and dutch politicians are calling for their and eu referendum based on what is taking place today in the u.k. if we see other members talking about leaving, and if that does happen down the road, what does it mean globally for national security? is that something we want to happen oar only complicate things further. >> it is a dangerous thing to have happen. what it does, it essentially undoes the european project of the past 50 years, which is that -- which was essentially newted not just to build economic cooperation and bi

if you look at the depth and size of the u.s.-u.k. financial relationship, it is the largest by investment relationships in the world. the united states has $5 trillion of assets in the united kingdom. that represents 22% of total u.s. corporate assets abroad. this is a huge amount at stake here for both the u.s. and u.k. economies. the u.s. has free trade agreements with 20 countries across the world. it even has agreements with nicaragua and morocco, and i would have thought that a free trade agreement signed with great britain would be a no-brainer. and i think the next president, regardless of who it will be, is highly likely to support a free trade deal with america's closest friend and partner on the international stage. there will be momentum on capitol hill for that as well. no doubt that will be threatened. and the european union, with its attempts to create a superstate, has been damaging in many respects to the special relationship and to the bilateral relationship between the united states and great britain. we should be un

u.k. and the u.s. appropriately.lled in , 49 people killed in a nightclub, these are the kind of massacres that have become commonplace here and the american people are starting to say when is enough enough? when can we pass minor bills to tweak our gun laws? francine: how will the gun control debate play out in the u.s. presidential election? will it dominate or be quietly simmering? megan: it has been forced to the forefront. donald trump has made a big play for the nra, but he has been a little bit all over the shop. hillary clinton called again to renew the federal ban on assault weapons. it is something where the democrats sense that the tide is shifting. they do feel there is a rare to have some limits. they think there should be some limits. it seems like common sense to many people that someone on the terror watch list should not be able to buy a gun. tom: we are watching live images from the house. this is the house, where the city and occurred. megan murphy, thank you so much and congratulations on your int

u.s. and the u.k. will not change.bal news, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> time for the morning must-read with tom keene. there's too much to read. tom: there is. go around the world a little bit. terrific coverages but quite a photograph of david cameron looking shocked and dismayed. this is the wall street journal from saturday with the u.k. vote. i really want to talk to about is this one. the new york times this morning, post-war unraveling. they question whether there is something bigger going on than just the u.k. separating from the eu. if this is an unraveling of the whole structure of the world set up after world war ii. >> i think they said monday, there's a meeting. the bankingd of system in europe and the united states and overarching that is where you are going in your timecode. the european experiment. this wording, confederation. not the canadian confederation, are we so disjointed we would break up into odd blockages in spain, italy,

u.k. is going to be okay. europe is going to be okay. the u.s. y i guarantee is going to be okay. >> if you ever want to know what's going on with the stock market and u.k. tune in to the fox business network. they are all over it. >> how the exit from the european union could throw a wrench into the fight against islamic terror. we hope you stay tuned to that report. vo: which is why being put first takes some getting used to. ♪ nationwide is on your side nationwide is the exclusive insurance partner of plenti. when you didn't know we had hundreds of thousands of places to stay all over the world. or that we searched billions of flights to get you here. test. test. test. test. test. test. is how you're gonna leave. expedia. technology that connects you to the people and places that matter. this is your daughter. and she just got this. ooh boy. but, you've got hum. so you can set this. and if she drives like this, you can tell her to drive more like this. because you'll get this. you can even set boundaries for so if she should be here, but instea

u.k. is going to be okay. europe is going to be okay. the u.s. is going to be okay. >> if you ever want to know what's going on with the stock market and u.k. tune in to the fox business network. they are all over it. >> how the exit from the european union could throw a wrench into the fight against islamic terror. we hope you stay tuned to that report. nexium 24 hour introduces new, easy-to-swallow tablets. so now, there are more ways, for more people... to experience... complete protection from frequent heartburn. nexium 24hr. the easy-to-swallow tablet is here. when you didn't know we had hundreds of thousands of places to stay all over the world. or that we searched billions of flights to get you here. a few weeks ago, you didn't even know where here was. now the only thing you don't know, is how you're gonna leave. expedia. technology that connects you to the people and places that matter. >>> thanks for staying with us. for bill o'reilly. and in the unresolved problem segment tonight, what britain's vote to leave the eu means for the war ag

u.s. and u.k. will continue and that the u.s. will continue to have relationships with the european union and nato. jonathan ferro has been covering this story from the beginning. n: what a day for the u.k. and for financial markets. the dow with a 500 point loss as we head toward the close. daye already wrapped up the of epic trading after the historic vote right here in the u.k. to leave the european union. two hours left in the u.s. trading day. stocks are getting hammered following massive selloff in europe. up next, the latest reaction asm brussels and westminster the u.k. and you start the process of going their separate ways. and u.k. conservative party thinks about its next leader. focus on the u.s. market. closes coming up in less than two hours. y: let's look at the snapshot of where we stand right now. it is red across the board. let me give you the numbers in comparison to where we were at our session lows. the dow down by 500 point. the s&p 500 right now is down by 3%. we were down by 68 points, now about 62. we are o

u.s. that tracks u.k. stocks three this is a five day chart three we have actually seen a rally up 6%, despite the fact we are heading into this vote. with the volatility, the five year high, shows a swing. --vix index in a lot of crises we have had over the last eight years, the chinese devaluation of the one they are passing the volatility we see now. volatility heading into this u.k. boat. joe: is it complacently about the results? alix: i do not know, it is fascinating, though. and let's take a look at u.k. yield, they have been rising a little bit, the same story as equities. this is a one-year chart, a bit of an increase in yields is a sign of optimism, because it means people are coming out of a safe haven. if you look at a shorter time , it is note end, very high, below 1.3%, but a risk-on attitude. scarlet: and we are keeping a close eye on the pound. the pound is gaining, versus the dollar. but i want to show how it is trading versus other currencies. the pound is weaker versus the euro. chart, t

andou look at the depth size of the u.s.-u.k. financial the largest, it is by investment relationships in the world. states has $5 trillion of assets in the united kingdom. that represents 22% of total u.s. corporate assets abroad. this is a huge amount at stake here for both the u.s. and u.k. economies. the u.s. has free trade agreements with 20 countries across the world. it even has agreements with nicaragua and morocco, and i would have thought that a free trade agreement signed with great britain would be a no-brainer. ,nd i think the next president regardless of who it will be, is highly likely to support a free trade deal with america's closest friend and partner on the international stage. there will be momentum on capitol hill for that as well. t that will be threatened. and the european union, with its superstate,create a has been damaging in many respects to the special relationship and to the bilateral relationship between the united states and great britain. under no illusions that the eu commission is attempting to c

u.k. are also at play here in the u.s. think hillary clinton will be watching those very closely but i would just like to make one more point. i see what we are witnessing in the u.k. and in the u.s. in terms of this fear of the unknown, fear of the future, the sense that people no longer feel this is their country for those who do feel like that, because of immigration, is a reflection on a country level of a wider global malaise about the rise of the rest, the west and other countries that are rising, and this uncertainty about what globalization means for everybody. there is always a fear of being left out, but there is certainly a way forward whereby everybody can share in this sort of global advancement. it doesn't have to be a zero sum game. that is something that i think leaders have not explained properly. >> absolutely. i think that the leaders who are the loudest are people like boris johnson. i want to play a little bit of him. you make an excellent point, this notion that people can share in the benefits of glob

u.s. >> i think generally it means american companies will sell less stuff abroad. the u.k. an exports but europe as a whole is about a quarter of all u.s. exports. that's a lot. the less well our economy does, the less stuff they will buy from us, meaning fewer sales, fewer profits and jobs here. the value to have the dollar has gone up a lot and as people freak out about what's going on in europe, the dollar foreign exchange will be higher, meaning it will be great for people vacationing in europe but makes it even worse for american exporters, it acts like a break on the u.s. economy. >> sreenivasan: outside of today, diane, what are the impacts on the u.s. companies? >> well, i think on that, as damning effect of the u.s. economy. not enough for us to take down our forecast. it is cheaper to go to europe, also easier to refinance your mortgage at a lower rate and the fed is on the sidelines to support the economy and to cushion the blow of what david pointed out, stronger dollar, hard on manufacturers, insult to injury in an economy that's already been suffering a lot. th

i've cobbled together the plethora of cfi data we've witnessed today from the eurozone, u.s., china and u.kata probably the u.s. was lackluster. the u.k. not negative as we were in april, but 50.1, china at 50.1. we've been hugging the 50 line for the better part of two years. lackluster pmi manufacturing in confirmsconfounds and his view that we are seeing mediocre growth. #btv 1518. betty: you did better than yesterday. i love your chart. however -- mark: still not good enough. betty: i like joe's chart. on theque perspective emerging market. mark: i will try even harder tomorrow. i will not give up. stocks finishing lower for the second consecutive day in europe. "bloomberg markets" continues. ♪ betty: it is known in new york, five him in london, midnight in the hong kong -- scarlet: welcome to bloomberg markets. from bloomberg world headquarters in new york, good afternoon. here is what we are watching -- markets are kicking all of june on a downbeat note but stocks are paring their losses after unexpected strengthen u.s. manufacturing. chinaare concerns over and europe reminding invest

. ♪ anna: britain votes in polling stations are open across the u.k. u.s.n equities are higher. the pound strengthens and we bring you extra asset checks after volatile month. gap from plugs the falling investments with state spending as it sets up efforts to hit the road targets. -- the growth targets. so, welcome to "the pulse." i'm francine lacqua. i am just getting

u.s. do? is it waiting to see what shakes out in the u.k.? how should the u.s.eact or should they back off? richard: i do not believe we will have a whole lot of influence. -- you not going to have are now going to have the reality of exit. this,is no script for there is no defined final outcome. what we ought to be looking for is as much of the substance as can be retained, even if the symbolism is gone. that means asking for flexibility out of chancellor merkel and brussels and moving a1 sized fits all. president obama, i would take this has a message to the united states and use the classroom that is the oval office to begin a conversation with it american people about their relationship to a globalized world, to talk about trade and immigration, to talk about lifelong education and training. this is something of a warning shot. what happened there is already happening here in the united states. affect the election and whoever wins the election. tom: look at the bloomberg headline of another resignation by the shadow cabinet. she was with the bbc for years. i

u.k. in the u.s. one of the biggest fears of the the u.k. proceed as a brother in arms of sorts in terms of, well its long history, its allied relationship. democracies,eas of and freedom. on the one hand, though shared possibles will preserve -- though shared principles will preserve the relationship. number two, i think the political chaos within the u.k. will certainly make the relationship more difficult, especially if there is distraction at home with how to relate to the u.s. and internationally. any time there are domestic distractions that undercuts international diplomacy. three, since the u.k. represented the u.s. place within the eu, there is a concern among diplomats in washington that the u.s. will lose its diplomatic leverage in europe. for example, the russia a.nctione s. sanctions can be applied unilaterally, but to become effective, you need an international agreement. the u.s. was able to strengthen its sections against russia for its interventions in ukraine with the u.k.'s help in the eu. there are some who believe withou

u.k. and u.s., oil prices are also getting sold it down as well. looking at gold, getting more and more precious every day. i will be back with more in a few minutes. you so much. the markets will be looking for any additional signals on the timeline for a brexit. david cameron addresses parliament today. the conservative and labor parties -- lyrical chaos. -- political chaos. >> we have seen the prime minister step down and no successor has been named. in the opposition labor party, there has been a call for the leader to step down. there have been 11 resignations in the shadow cabinet and one firing. all this political turmoil means the eu does not know who it might be a negotiating with. before thes happened negotiations have began. it is only the u.k. that can trigger article 15. at that point yet. in terms of what happens next, you talked about avon cameron addressing -- david cameron addressing parliament. as well as george osborne speaking about the economy. on the eu side, over the weekend, we had some hard-line comment send the u.k. had to

u.k. and the united states? >> the u.s. is having a big political debate in the run-up to this election. problems have been far more serious than the u.s. we have literally given away the control of our country, the ability to make laws, and open up the borders to a million people. in one way, trump is right. it is a seismic event, not just in britain and the u.k., but the world. ryan: a seismic moment that has yet to show positive effect on the economy -- >> last night, the prime minister's of new zealand and australia say they are racing to be the first countries to have trade deals with independent united kingdom. less than a weekend. ryan: thank you very much. nigel farage joining us, one of the most vocal campaigners for exiting the european union. jonathan, back to you. jon: thank you very much. great work. nigel farage talking about ties the single market you. what i found interesting was the point on access. access to the single market. of course, anyone can have access to the the single market. what i single market. it is on what terms. that is what they will have to negotiate.

u.k. market. look tagget u.s. corporate sector and 60% of u.k. of u.s. revenues is off the domestic sects of. 35%. we have seen a corporate sector used to adapting to different political realities over time. certainly it is long-term investors. this is a -- it is an important historic political event but in terms of business and markets it is, you know, it will -- we may struggle to find this on the chart in five years. >> the thing is how do you look at european stocks and what sort of sectors do you think are going to be impacted by a leaf vote in the u.k. in europe? >> from an economic perspective where we're more -- about the outlook. for political perspective i think the direction of travel has been set with respect to the european union. whether there was a vote to leave or remain. that is i think there is very clearly when you look across europe you can see this politically as well. there clearly is this debate being had about the powers and the participation and benefits of being part of the e.u. as we move towards this pragmatic union, which may be an optimistic view of the world, i

u.s. exported $56 billion to the u.k. last year. the u.s. imported $58 billion from the u.k. british medicines, and also alcohol are big ones. overall on trade, the u.k. makes up about 3% of the u.s. trade. it's not big enough to make a dent, but it certainly could hurt if the british economy suffers. the other key here is the trade relationship. there could be some uncertainty as to what it will mean. keep in mind the u.s. and the u.k. don't have a trade relationship right now as far as a trade deal, but the eu is in the middle of negotiating the transatlantic treaty. if that goes through there could be questions as to what it would mean for the u.k. president obama was here in april campaigning with the british prime minister, said the u.k. would go to the back of the queue, estimates from george soros who has had a good track record predicting the moves. could fall 20% against the dollar if britain moves out. that would be painful for u.s. multinational companies who do business here in the u.k. the real worry here, guys, is the financial market distress. talking about wid

world where often they are in english and spanish so we expanded and acquired companies in the u.k., and u.s., spain and the u.s. and -- >> host: and your head corners now in your? >> guest: yes as all the offices are, you wonder why? >> host: go-ahead's. >> guest: well we had think about this as we recently moved offices. we could be anywhere, wire all the big publishers in your? and? and i've read histories about it, the reason that biggest publishers were in york historically is because of the erie canal. there used to be publishers in boston, philadelphia, new york, they were about the same size because cities were about the same size. the market was growing and when the erie canal was completed the cost of getting books from the in the market to new york was so much lower that is more profitable for them, they could offer more money to authors, they could offer and promise them a bigger audience and new york became the place that authors came if they wanted a massive publication. so that's why publishers used to be in new york. but it's not driving up business anymore so what i realized

u.s. companies,, that are exposed to what is happening in the u.k..e of the. 55% of its earnings come from u.k. utilities, specifically from ppl shares. just a quick look at the lookingg, i'm basically at the rise we have seen in the s&p utilities, as well as s&p telecoms, which often do well. the 10 year yield has gone down a big way this year, and those have been the groups that have been the beneficiaries. incidentally, the best-performing groups this year within the s&p 500. david: thank you very much. julie hyman at the markets. london is often considered the center of venture capital in europe, but how long will it hang onto the title after the brexit vote? let's bring in a partner at softek. i know you spend a lot of your career in london before moving to san francisco. 40% of tech startups in europe are based in london. the follow will be that those tech startups will be starting elsewhere? >> it's a great question. right now, the overriding mood is conservancy. companies whothat were considering moving to london have talent all over europe, s

u.k. referendum may be unwelcome for the u.s.eets only in a matter referendum,re the and he says u.s. data has been more positive since the march meeting. he says the fed may be able to judge the outlook better after june. he is a nonvoting member this year, but let's talk to michael mckee who is in new york. we have a big day with the jobs report. let's talk briefly about those evans comments suggesting he might have a better viewpoint after june. how does that play into what some of the other fed policymakers have been saying? michael: a tracks reasonably well. there is a concern what the brexit vote might mean for the global economy and they are going to watch the polls very closely. if it looks like a close vote they might hold off even if the u.s. economy and their feeling justifies going ahead. it is possible the fed may want to wait. testifyllen is going to to congress two days before the brexit vote to lay it out. mark: today's jobs data will give us further ammo to assess whether june or july is likely. what are they tel

u.s. and u.k. is. yes --s well for your, for europe, yes.artside peter: that is not saying much at the moment. yellen was setting average growth at 2% -- was siding average growth at 2%. growth has been very low. manus, you got breaking news. manus: this was on tesco. estimate the consensus . u.k. has done nicely. aey are proposing to sell part of their coffee business to cafe nero. a number of people were talking about. they have announced and it is off. it is a part of the reorganization of tesco. a little bit of breaking news. let's return to peter. you are touching on terms of the ecb and what they can do. tell me this, do you subscribe to the view that the world is looking at a secular stagnation period of time? we are -- growth from my perspective looks rather tame. peter: yeah, this is such an interesting question. the whole idea of secular stagnation has been around for a long time. the better part of 100 years. it is not new but it is making a comeback, quoting the likes of larry summers. we are in a structurally low growth world. h

u.s. market will maintain that domestic reassurance that europe, u.k. and asia cannot provide it. >> too early to buy u.s. banks? >> too early to buy financials globally. they are leveraged instruments and in this down drop we're facing, u.s. depending on rate rises, are less attractive than thursday night. >> global sectors in europe or u.s. that will benefit from taking market share from british industry? >> exporters and manufacturers will benefit from those declines in sterling. particularly parts of the world in what was stronger dollar that's not good for emerging markets it could be as far away from u.k. and eurozone could be the best place for investors to be. markets might prevail despite the strength of the dollar. >> as we look at the fear of contagion politically across the rest of europe, are there votes coming up that investors need to prepare for similarly or gradually europe could unravel? >> on friday i was nervous about spain and elections that happened yesterday. you would have thought this would galvanize less mainstream political mov

u.s. as in the u.k.? think at the root of it is probably investment and capital expenditure in companies. they are doing stock buybacks, dividends, acquisitions, but they are not seizing organic growth opportunities and i think that leads to a lack of productivity gains. productivity is key because potential growth is the size of your workforce and productivity out of together, without productivity because the baby boomers are starting to retire, every country's growth rate is potentially coming down. the question is, what is the policy reaction? what can you do to try to increase that investment and get productivity up? luke: it seems to me the clear thing the u.s. needs to do is cut corporate tax rate which i think will stimulate a big remittance of offshore profits that court -- corporate is keeping offshore for tax purposes, and i think that would stimulate growth. michael: than they would see a more normal kind of economy, get out of this new normal where we do not grow it all. that is whatless we ar

u.k. does the u.s. have any position on that? >> a couple of things we have said before are relevant. values thestates critically important security relationship we have with the united kingdom. the u.k. is a critically important partner in the nato alliance which is the that rock of our national security in this country. we believe that that relationship is critically important. there is no reason that should be affected by the decision the british voters made last week. there was a referendum on scottish independence a year or two ago. we made clear at the time that that was a decision for voters in scotland to make. beennited states view has and continues to be that a is in the best interest of the united states. it makes them a stronger partner and more effective in contributing to the nato alliance, the bedrock of our national security. has the president made any more calls to world leaders in the wake of that vote? david cameronto and angela merkel but have there been any more calls? also, the president made the trip to london earlier this year in support of the u.k. remaining in

u.s. than it does in the u.k. or europe. s, in a perverse sense, people may start thinking about overseas operations, should i do more in the u.s.? the u.s. now becomes a relatively safer place. it becomes the better house, in a bad neighborhood, if it were, in the global markets. john, do u.k. is a relatively small part of the global economy, but europe isn't. it is very easy to extrapolate the problems we experience it in the u.k. politically, and sending them across the whole of the continental. if we were to see fear gripping the eu and the idea that break up risks get bigger and bigger, that could affect the global economy. >> you are absolutely right. the big danger from this is if you had a spill over and if other countries decide to leave. you have to understand, it is a lot easier for the u.k. to leave the eu because it is not part of the euro mechanism. you have to look at the pain take.he voters chose to the impact on the economy if they were to leave the currency and how financial markets been disastrous. if you l

u.k. and u.s. this year, and that is what is driving this volatility.n europe companies have gone through a lot of pain. obviously those economies have gone through a double-dip recession over the last seven years and we are seeing lots of green shoes. we have seen those economies rebounding. francine: a touch. 25% growth? joseph: spain is rebounding quite handsomely. francine: joseph: unemployment -- francine: unemployment is still terrible. joseph: it is still too high that that is where i think the economy -- the opportunity comes in. they are only starting to benefit from lower interest rates now. francine: why are they starting to take advantage of that now? ratese had low interest and qe is in quite a ways. joseph: because of the sovereign crisis, interest rates in southern europe were still much higher until really two or three years ago. the last country that will benefit that has not benefited is greece, the country we are most bullish on. francine: which is surprising because we speak to the imf on a regular basis, and there is a fear that we

u.k.. brexit is making headlines in the u.s..illary clinton rushed out a tv ad attacking donald trump, golfg it would benefit his courses and scotland. trump called clinton "his disgraceful." " this is bloomberg. guy: thank you very much. let us talk about what george osborne has been saying. we finally got to hear from the chancellor. this is what he had to say. >> there is a volatility that we have seen and will likely continue to see in financial markets. may not have been expecting the referendum results, but the treasury, the bank of england, and the financial conduct authority have spent the last few months putting in place robust contingency plans for the immediate financial aftermath in the event of this result. guy: chancellor also laying out the fact that article 50 should not be triggered until essentially the u.k. knows what it is asking for. judging by the political turmoil we see in westminster, we may be somewhere away from that. joining us now, the kick more -- luke hickmore. dan, we start with you. -- the market

u.k. and the u.s. to be leading the way in terms of interest rate hikes. all of a sudden, you see market expectations for the next bank of england meeting in july giving us a 50% chance of a cut to interest rates. it looks like hikes within the bank of england are pretty much off the board for the next year. we do not know how long it will take until they come back into where weof period could see a hike and that prolongs the amount of time where it is difficult for banks to do business in the u.k. >> thank you for your time. carroll.you, stephen a bit of sports news with that shock announcement. the star player is a five-time winner and he is just 29, and he now says he is retiring from international foot long. that is after argentina crashed to defeat against chile. miss.t, after failing to score a crucial penalty in the final, he announces retirement from international football at just 29. argentina lost to chile after a heartbreaking penalty shootout. in just three years, the team lost three major finals. i am done with being part of a national team. i

japan, the u.k., the u.s.. that is the major question.ngie: for any economist -- what do you -- you don't think that monetary policy is the answer? you have to think that fiscal policy needs to come through. been clear as not to what to expect in terms of budget stimulus. if we are waiting, and you have a wish list, what do you want to see? richard: the wish list is only structural reform side, trying to free up the economy, labor market. economies, is probably too slow facing -- to slow considering the strong headwinds we face. i think we usually think about japan is being a particular demographic story, but all the economy -- all the demographics are on the wrong side, where the working age population is shrinking. we all need to get used to this idea that we need to do things smarter and governments need to reform if we want to sustain growth. facetious,ess, to be we do have to rely on the politicians. this is also leading to pressure and voices talking about helicopter money. richard: there is nothing in the growth story that says we

u.k. economy does tip into recession in the u.s. go into the housing market. >> the housing market is based or nearly where interest rates are and where the macro u.s. economy is. we know by standard measures the u.s. job market is sad is position, certainly a jobs report coming out a week from friday we will need to take that point sense that if the u.s. economy's doing okay. we had a lackluster first quarter. the second quarter just about to wrap up is widely believed to be doing 2% is better. it is anybody's guess as to where we will be in the second half of the year. generally, most people think that is the number 2% growth rate in the second half. nicole: what is the most interesting question earnings from a kids carnival. lifetime highs in the utilities that provide dividend and that is a safe haven. gold cell at the highest level since 2014 and the banks are falling out of that particularly in europe. here at home that may be under pressure. what of those things are looking most closely? >> to mark spike on the areas of poten

u.k. and within your. reporter: big u.s. banks are looking into shifting their legal homebase and potentially even staff. the ripple effects are not limited the -- to the financial sector alone. >> days after the vote for brexit it is being felt in the u.k.. a poll found that a quarter of its members were implementing a hiring freeze. and that one in five companies are considering moving outside of the u.k.. concerns echoed across the world and the world -- at the world economic forum in china. >> this is one of the instability uncertainty and businesses do not like instability or uncertainty for investment are jobs. the people in the u.k. who are supporting these affiliates are going to lose their jobs. carmakers arenese contemplating their u.k. future. they rely on free trade access ofthe single market with 80% their car production bound for europe. with the u.k. under threat analysts predict there is a 75% chance japanese auto giants will pull out of the country. meanwhile, there is pressure on the government to come up w

u.s. dollar it could make a trip to the u.k.e affordable for your family. >> thank you, chris. >>> peaceful demonstrations in baltimore after a third trial in the freddie gray case ended without a conviction. officer cesar goodson acquitted on all charges in the death of the 25 year last year. another baltimore police officer, edward nero wasu porter and three other officers charged in connection with gray's death are facing trial. some legal analysts think the goodson case was the prosecution's best shot at a conviction. new tonight, our shomari stone has a look at where the case goes from here. >> i think we saw this coming. >> reporter: former prince georges county states attorney general glenn ivey and former federal prosecutor is not surprised that cesar goodson walked out of court today clear on all counts. the second acquittal of an officer charged in the death of freddie gray. >> the judge made it clear, based on the last trial, that he had not accepted the evidence that the prosecutors had presented. >> reporter: the go

u.s. interest to bring that negotiation forward. there's a good relationship between the u.k. s.. we will have to see. john: clive crook, a delight to have on the show. thank you for that. have jonathan friedman from "the guardian." ♪ >> june 23 needs to be a national bank holiday. we will call it independence day. >> the country requires fresh leadership to take it in this direction. >> britain will continue to be a great european power. >> our next guest is jonathan friedman of "the guardian. " london. us now from good to see you here. we just talked about the implications it was the most likely next prime minister of great britain. guest: i think it's boris johnson without any down. a lot of people are surprised. if you read what he has written over the years, he would have been a natural remainder. it paid off. he won. the conservative party will choose the next prime minister. hostile toemselves the european union. they are going to hand the leadership to the person with the most anti-europe credentials. nobody can compete with boris johnson when it comes to that. barring

u.s. two-year yield and the u.k. two-year yield. points, theas at 50 u.s. s 50 basis points bigger than the u.k. two-year yield, which was the most in 16 years. today, in the light of the week of the forecast jobs report, the yield in the u.s. two-year is falling quicker than the yield in the u.k. two-year, which means the gap between the two is about 44 basis points, rather than 50 basis points. same, still the difference in yield is the destest since 2000 -- wi since 2000. that's ahead of the speculate in the fed will raise rates and the concern over the outcome in referendum. than three weeks away from the u.k. referendum vote, and big names are offering their take on it. i cannot and will not tell the british people how they should vote on this, but i do want to give you some of my opinions. it's important that people make decisions with their eyes open. it is my opinion that it is a terrible deal for the british economy and jobs. is here, hetton covers the u.k. government. some might criticize or be aghast at the fact that they have chosen jamie dimon t

u.k. and that we generally get in the u.s. from the next chief is funneled into, you know, industries that probably don't need the excess capacity of labor. they don't need the driving down of the wage rate. they're already low and we have too many workers that, you know, that basically-- >> basically when we're talking to people, charlie, this is on their minds, talking about their jobs and their salaries. >> and it's simple economics. look at wage growth. okay, if there was a need for low-skilled labor you would think wage growth on the low end is going up. it is not. it's not here in the u.k., it's not in the u.s. so that's the problem with the type of immigration. nobody cares about a ph.d. from norway, or a syrian ph.d., who cares? he comes here, got a degree, start a business and he can do stuff. >> and hire people, your point. >> and hire people, right? and hsieh people. that's my point. it's different than a flood of unskilled labor, they see, average people say there's 20 people going to take my job, when am i ever go

u.k. seceded from the u.s. dominated eu just as we seceded from them 240 years ago.now they have their independence day, right? >> so my argument is, don't be surprised if you see the concept of succession even here and-- >> we saw this a few years ago and picked up steam, there was pacific west and detailed plans. of course, texas has been talking about it for a long time. could it happen? >> texas actually enacted a statute which the congress accepted, which permits texas to divide into five separate states, each with two senators and with the requisite number of representatives and-- >> california is is going to split up, too. >> california did not engage in that. charles: there's talk of it. texas number one and california number two, two states that want to leave. >> yes, all of that. charles: we'll have you back. we've got major rulings expected from the supreme court. one is a challenge to an abortion law in texas and another is a case that will decide whether or not the former governor of virginia will go to jail. and a mayor in france wants to move an infamo

i think it would be a significant moment my moment of reevaluation of the value of the u.k.-u.s. relationship. >> thank you very much indeed. james come identity could hear the conversation, -- i don't know if you could hear the conversation, but this is the evening where leave could come out on top. so often over the past months about the reaction would be if we woke up to that world, what is your sense in the middle of the night about the reality? >> if they do wake up tomorrow morning and find that we are voting to leave, it will be a profound shock. when they went to bed, based on the polls and momentum, same as everybody else. what have expect to this would be a close call but we got away with it and let's think about what happens. if they were kept my morning, all bets will be off. it will be the most profound shock at the city of brussels and all institutions that make up the european union, the major capitals, berlin, paris, rome will have faced that is coming crisis ofthe existing the eurozone and migration. i'm joined by jackie davis, a longtime commentator on the eu af

u.k. and the u.s.s from clients and customers, class-action suits and they have criminal issues to deal with. david: thank you so much. with two trading sessions that were up behind us, where are the opportunities? we will explore that next. ♪ alix: global stocks are getting for the first time since the brexit vote was announced. is this a fundamental shift? we have the invested manager at hearing asset management. thathetoric seems to be the only reason for a risk rally is the hope that a brexit followthrough does not happen. what do you think? >> brexit has been discussed quite a bit and it's clear that this is a political crisis, not necessarily an economic or market crisis. this is another leg down in terms of growth expectations. growth has been hard to find out there. in terms of what's happening here, this is a typical reaction in terms of the market selling down. we are trying to find equilibrium this morning. alix: what is your strategy when you see a bounce like this? >> there are opportuniti

u.k. and the u.s. and spain and they've hired this time warner book group ten years ago. >> you are headquartered now in new york. >> yes. >> all major publishers are. do you want to know why? >> go-ahead. >> we had to think about this because recently we moved offices. i had to think, we could be anywhere. any business could be anywhere. why are all the big publishers in new york? i read some history's about it and the reason the big biggest publishers were in new york historically was because of the erie canal. there used to be publishers in boston and philadelphia and new york is the cities were about the same size. when the erie canal was completed, the cost of getting books from the inland market to new york was so much lower that it was profitable to them and they could offer more money to authors and sometimes a bigger audience. new york became the place authors came. that's why they used to be in new york but the erie canal isn't in business anymore. i thought about that and publishers are in n

u.s. companies don't often have. jeff: is there any particular industry where people are going after in the u.k., the u.s.? what are the priorities? frank: consumer products certainly in the u.k.. a lot of consumer product companies in the u.k.. also health care is another big part of the uk's economy. scarlet: jeff mccracken and frank aquilla, thank you for being with us. we have more to talk about including what is called forced friendly's. ♪ alix: you are watching bloomberg markets. if there is one thing we have learned in the m&a business keeping up with the competition requires bold action. consider honeywell's pursuit of united technologies. most recent example is buyer's $62 million bid for monsanto. these are known as forced friendly's. let's bring back jeff mccracken and frank aquila. jeff: you are working on bayer -monsanto, so you will be reluctant to speak about that. is it that day companies are not concerned there is no growth out there? what is pushing these company to do these proactive deals and convincing the other side to do the deal with them? frank: essentially, when you're in a low gro

u.k. and u.s. charlie: he had the labor rank nd file and his favor. think about this.s the trump selection process? and when somebody said there was a split between trump and family, there was the question as to when they would announce the vice presidential pick. should i read anything into that about they have narrowed to the choice down and selected heir running mate? bob: trump has not made a final decision but it is a short ist. before lou left the campaign, now that he is gone, the campaign chairman and long time lobbyist and political operative is running the process. he is very preferential toward a senator. someone who can help trump navigate washington. names i hear are rob portman from ohio. senator richard burr of north carolina. senator corker of tennessee. as a potential pick, jeff sessions of alabama. he wouldn't necessarily expand trump's appeal but is a sitting senator from alabama. charlie: is portman up for reelection? bob: so is richard burr. it is tough to see how they leaf their re-election races. the campaign sees those rust belt industrial areas

u.k. was closer to the u.s. position on that. negotiations currently right now on a trans-atlantic trade deal. the u.k. was much more likely to pull the rest of europe to our position. without the u.k. that becomes much harder. it's hard tore get a deal the united states is going to like. >> just very quickly, you started by saying that the remain effort seems to have the momentum right now but that it's flip-flopped a bit. why did remain sort of gain momentum, do you think, in recent days? >> there's a couple things. first of all, the murder of jo cox i think perhaps shocked some people. i think that -- >> the mp. >> that's correct, member of parliament. i think also we have seen in a lot of these events that as people actually come close to the point of actually having to cast their vote, they may have felt i want to protest but as the reality of the event comes closer, the status quo bias of wanting things to remain the way they are sort of sets in. that might be what we are seeing. we saw that with the scottish referendum wher

just getting some headlines from george osborne, the u.s. -- u.k. chancellor.the wake of the forecast from oecd which downgraded its forecast for the 2.1%economy to 1.7 from and reiterated that brexit would damage the economy by knocking half a percent off gdp this year 1.5% innd 2018, and 2019. says the oecd forecast is hugely significant. the oecd in an earlier assessment of the economy did highlight the risk both to leave the eu. pick clearly remains in the remain cap get -- the remain camp. markets are down. both get some meat on the bone. nejra: european stocks falling for a second day, down 8/10 of a percent on the stoxx 600. things for investors to take into account at the moment. brexit, the ecb meeting tomorrow, and data from china earlier today. does this show stabilization or is it a sign of lackluster growth? i do not have the answer but let me show you a chart of the yuan. this tracks it back five years. it is drawing closer to eclipsing the lows it hit during january turmoil. a stronger dollar is playing a part, but have we come to the end of the