and europe. this is about an hour 15 minutes. >> thank you for joining us today on this beautiful morning here in washington to discuss this very important issue about the future relationship of britain with the european union and what this could mean for the united states. for americans that believe in the ideas of economic freedom, direct elections, accountable politicians, diffusion of power, transparent and good use of transparent money, many developments should come as a shock and as a concern. the european union an organization that started in the still community in the 1950s has now morphed into a super national organization that touches on almost every aspect of life across europe. eu laws and regulations are increasingly viewed as unnecessary, intrusive and burdensome. there are 70 words in the lord's prayer, 271 in the gettis berg address and 313 words in the ten commandments. but the european union regulation number 1284 laying down the marketing size for hazelnuts in a shell has 2,059

and across europe and globally. it's that period of digestion of understanding of processing of information that's now going on and clearly what we know is there are companies making decisions about letting people go or countless evidence over the weekend of companies that are canceling investment here in the u.k. pending clarity of what is going on. it's naturally important the pound will need to fall and reassessing the outlook for u.k. and european gdp growth. >> how are you reassessing that european side of the equation and what does it mean for european stocks and euro which aren't thought to suffer as badly as the u.k. but getting hammered. >> let's remember it's clearly fragile in europe and not just in the u.k. that's a seismic event. growth was already under threat. corporate earnings in the descent. fears of rising rates in the u.s. all price rising. we're in a fragile growth environment anyway. that's why this is such a seismic shock sending ripples through the global economy. there are companies that we

what does brexit mean for cisco in europe? first of all, our investments across europe stay in place and if i can transition, what you are saying and france is countries are all going to go digital. as they do that and do it effectively they can grow their gdp faster than before. this is the second internet revolution if you will. all jobs will be created by startups small to medium are inses so whether you the u.k. or france or germany or italy, all of those countries are saying it is going to be a digital world. i need tosurvive, lead in this transition. years ago many of your viewers would have said do not invest in france, and the transition they have made in the last two years, i think they will become the startup nation and europe. if you look at the number of startups and look at where they were and the consumer electronic show, and having talked with them in france, israel, and india, they realize their future is about to come at a digital nation and that is how they are going to create jobs, and the economic challenge

if you look at popular views across europe, euro skepticism, opposition to europe, desires to leave europe, desires to have their own referenda are significant and in some case majorities across many of the european states and those governments do not want to see brexit lead to a complete unwind of the european union and the you're you' eurozone. the desire to punish the uk economically and the desire to draw this out into a two-year process on the part of eu leaders that not only want to stay in the eu but also want to stay in power, that do not want the extreme left wing and right wings of their own political spectacul spectrums to come into power, that's going to argue to them very strongly and very rationally to make this process economically very punishing. britain will be heading into recession. they're going to need to raise taxes. whether or not it's osborne and cameron's emergency budget or something else. it's going to be very painful for the british people. and it's also going to be very painful for the europeans. >> why are you so confident that britain will go into recession?

influence in europe and britain were to leave the eu? richard: britain is one of our closest allies. not often, -- not always, but often we could count on them to bute, not as a favor, because we agree on a parallel line of action. having the british influence in brussels has more often than not worked to the american advantage in the u.k.'s advantage. and you look at this go put history, more often than not it served as both well. last i checked we did when the cold war and kept the peace in europe. laura: what do you think will be the most obvious consequence if there is a brexit? richard: beyond the near ones of what it means for the u.k., the economic and market disruption around the world. the markets are not braced for this. the question will be, where we began this conversation, what does it mean for the future of europe? what worries me is rather then stopping with the british leaving, it will start their. what it will mean for the dynamics in europe and if other separatist groups will gain steam. historically and strategically t

it was years ago that former defense secretary don rumsfeld described western europe as old europe. remember? he got his head handed to him for that? what do you think of when you think of europe, old buildings and countries run by bureaucracy. this is the bureau state finally hitting the wall, into the clips of dover. now the question is how are they going to start breaking up? are the other countries, like italy and france and spain going to say if they can do it we can do it? there's a whole restructuring i think that has to happen now because this is a vote of no confidence in the bureaucratic elites that have been running yurm for the last 40 years. >> it will work for europe's benefit, james, i think, if it's a wake-up call for them to do exactly what dan says. more democratic accountability, more economic reform. i'm a little worried in the short term though about british economy and the chances of recession and david cameron has already said he's going to step down. so turmoil within the tory party as well. >> i think the parties in britain are short term. long term i think

talk about europe. camp in places like france, 61% of the population unfavorable of the eu, they demand a referendum. in denmark, they demand a referendum, where there is an anti-european party with more votes than any other party. in poland, people demand a referendum, and the whole thing starts to fall apart, the whole project starts to fall apart. permany is left with a few rum states hoping for handoffs from the german table, and that is cast as the european union, which is really just a neocolonial project. this, i admit, is the worst possible outcome, but it is not totally unrealistic. that's the terrible thing. peter: ulrike, do you buy into this? ulrike: i don't. politically, europe might be divided, but economically we are bound together. it is a very small continent, with very tight economic affairs. it is impossible to somehow get independent economically, and that is something the british are going to realize. look at countries like norway, or switzerland, or iceland. they do not belong to t

we will see crackdowns on immigration in europe. to second thing is they have start to think about -- these willzing be the two key things you want to look out for. we've got spanish elections this weekend, french and german elections on the horizon. they will be in credibly distracted by what's happening at home. eric: the spanish elections are moving. i'm not too worried, they just --e to figure out how to this is why they want the negotiations to start. therent to be sure that is no illusion that you can lead the retreated quite well. you have to play by the rules or you have to walk away. there needs to be progress on the migration issue. particularly for francois on. holland.ois francine: are you still optimistic overall? my optimism was always that during the crisis, there will be a solution to this. it is a political project. the populist mood is challenging. --till cannot believe that you get into the second round of the most likely and you have to worry because something could happen. a scandal or something else to the othe

europe." yes, we're back in my homeland, but we're not here so i can hang around my old haunts. we are here because the future of the european union is about to be decided in the u.k.. the british are about to vote in a referendum on whether to stay in the european union. it is all anyone is talking about. many say they want to leave to curb migration from other parts of europe -- particularly from eastern europe. we wanted to find out more. we went to one of the areas of britain most affected by that migration. >> the small town of boston has long had close international links. in the early 17th century pilgrims started here for the united states. today, migrants are coming to boston, mainly young people, from eastern europe. zbigniew is from poland. he is an instructor at the town's karate club. when the weather's good, he trains with his polish friends outside on the edge of town. zbigniew: our main purpose is self-development through karate training. we always try to be better every day t

there are a lot of things speaking for a single europe. we have one regulatory regime with access to 500 million consumers. it makes the whole market under. europe is a 500 million market versus individual companies. if free movement of talent, they are recruiting from london, they can come from anywhere in interviews.ut any if they were to lose seats, it would be a much different place. theould you have started company and london if it was not part of the european union? guest: no. >> why not? guest: i don't think it would be a magnet for entrepreneurs if it wasn't. the status of being a finance capital would not have been achieved if it were outside of europe. to look around -- there are people who moved to london because there is free movement of labor and london is the tech capital of europe and all of these things are at risk. the future generation of these people would rather go into berlin, to paris, barcelona or stay home and stockholm. advocates for the leave campaign say some of the concerns are overstated and went written was on

and you see it with europe, all over europe. you're going to have more than just, in my opinion, more than just what happened last night. you're going to have, i think, many other cases where they want to take their borders back. so i think you're going to have this happen more and more. i really believe that, and i think it's happening in the united states. it's happening by the fact that i've done so well in the polls. >> the donald in scotland on friday. during his visit to scotland, he tweeted that the country was, quote, going wild over the brexit vote. >> in reality, the returns showed scotland had actually voted to remain in the eu, overwhelmingly in fact. trump's view has put him in hot water with british politicians and celebrities, and they're speaking about it on social media. >> yes, they are. a member of scottish parliament, joan mcalpine quickly responded, you are in scotland. we voted remain. >> singer song writer liliana, scotland voted in, you moron. >> scotland voted to remain you weapons grade plum. >> meanwhi

in europe. but if you're going to play that game, do you want to be long euro while you're playing it? >> that brings to mind scotland for instance, which voted to remain 62/38. and now they're saying, look, the fact we have to leave the eu against our will is unacceptable. and we may try for a second independence vote. there's like -- there's chapter one. >> eu, i mean, there are things about -- they're a la carte. they do have their own currency to begin with. it's a lot more difficult to disentang disentangle, remember talking about the drachma and the problems of the drachma? it's just not that easy. european justice can't overturn british laws. can't forget that. britain always had that. so britain, it always had one foot out the door to begin with. so it was easier for that second foot to come out. >> yeah. >> but there are other signs when i look at barclays, lloyd's, look at these stocks they take your breath away because that remind you of another era in our country. but are the stocks

successful europe is a europe that keeps its he-- adheres to treaties and promises. we didn't always achieve that. we had conclusions from the european council on the 23rd and 24th september 2000 in lisbon, the union gave itself a new goal for the next ten years to make europe to the most progressive and dynamic, successful economic area with more work and greater social coherence. these were promises to the european citizens to create jobs and security. this was not kept because rules were not applied because individual interests worked against the common good. but the promise wasn't wrong in itself. on the contrary, now we have to take a new push to make europe more competitive to reduce the gap between the winners and the losers of globalizations. so we mustn't lose our connection to high technology. we have to make more efforts in innovation and research. and we have to get a grip on youth unemployment especially. only then can we be successful in the long run with our economic and social model in europe. and only then can we take further steps in the unification

continental europe has begun a consolidation effort. has been 16,000 days of russian gas flows into europe with three or four days of issues due to disputes between russia and the ukraine so i think that will continue to evolve as europe integrates itself. that will mean cheaper prices and more like stability and security. francine: we talked about market volatility and funding. i do not know if you worry about currencies or political risk in other countries. marco: italy is the most diverse gas country. we havepolitical risk had and we can manage that, and from an energy securities, that has been managed. i think the greater risk is prolonged insecurity -- prolonged insecurity because that will affect the market. francine: what a great pleasure to meet you. brexit britain, a real problem for real estate. homebuilders- punched approximately 25%. ♪ francine: welcome back. we got new housing data. rise prices continue to 40.2% in june but that was before the eu referendum. how does the housing market look like? homebuilders plunged. her

europe. let's start in the u.k. outgoing prime minister david cameron has ordered a working group to begin the compress -- complex process of making an orderly exit from the european union. the work will now start but the next government, the next prime minister -- they will have to finish the jump. reporter: it was an upbeat baby camel who spoke to the british parliament for the first time since he announced his resignation last week. he told lawmakers his cabinet had agreed that their assault of the eu referendum must be accepted but he would not be pressured by european leaders to trickle -- trigger article 50. >> i have spoken to another -- a number of european leaders. we have discussed the need to prepare for negotiations and in particular the fact that the british government will not be triggering article 50. we need to determine the kind of relationship we want with you. that is rightly something -- elation chip with the eu. -- relationship with the eu. reporter: the opposition is fac

we are not tying about re-creating europe. europe will not the re-created. it is constantly evolving. it does not need to be rebuilt. it must carry on being built. by cops trading on the parties and by rapidly introducing concrete measures. angela has mentioned the four parties. , we haveh matteo talked about security, protection borders, fighting terrorism, capacity to be able to defend ourselves together. that is a really important aspect with regards to protection that the europeans are expecting from europe. employment,arty, especially with respect to the digital area, energy. we have a great deal to do, and we should do a lot better than we have done. there is another priority, very close to the previous one, which is used. we have to take concrete measures in the coming months to make sure that use is more confident in europe, especially with regard to exchanges, mobility, training, and employment. , welly, within the eurozone are well aware that there companies that are not in the eurozone, but there is a fiscal thatolitical socialization is going on.

and europe going forward. both candidates have actually said that they would perhaps expect more from europe at least in regard to contributions to nato, to supporting defense within, say, eastern europe and so on. europe on the other hand is also looking to the u.s. with a mix of resentment of u.s. power and at the same time wishing somebody would fix the middle east. would either of these candidates do things significantly differently? would either -- either of them bring the u.s. back to be the role of world policeman? >> well, with trump, i agree, you just cannot tell what he's going to do. he doesn't seem to have smart survivors. -- advisors. we don't know who he would pick as the vice president. hillary, on ththe other hand, i ressh very reliable. she would be a very reliable partner for europe and the ununion. it's always like a give and take and i think if the u.s. says, well, europe has to give more in regard to nato, you can question whether the u.s. is doing enough regarding the refugee crisis. so i

what you just saw today across europe and the u.s. markets is people stepping back saying, okay, we overreacted a bit, which is norm human nature. >> is this going to affect tech domestical domestically, and the idea, as you mentioned of this nationalism on a level in europe rising up. >> i think if it continues and is exacerbated, companies will have to become stronger and stronger at lobbying, and how they work with individual governments. in a super-national world where you have the eu, these other bodies that take care of that for you, it's a bit easier. it just may become more complex for people. i do want to touch on something that i don't hear a lot of. there is a potential silver lining on this. i think it's more focused around the uk market. at the moment we're focused on the negatives, the initial drop-off, so forth. let's imagine a scenario where they pioneer a less regulated path, a less obstructionist path. we could see some interesting things, a bit of a renaissance happening there. if that happens you're going to see pe

obviously, donald twist saying europe should be cautious. be cautious, shouldn't move too quickly, with the risk of creating division. the german justice minister said europe needs to act quickly over the issue. the french right wing nationalist, holland as well, the right wing nationalists there, calling for referendums in their own country. the fear of contanlgon in europe, the hun garrian nation, saying this was a message that they should be better connected with their electorates. there is a concern how will it be managed. as we have seen, tw americale and the justice minister, the leaders of europe are still figuring out how to handle this. internally, not as a group of now 27 nations. this will be a learning process for everyone, becky. >> not to say the process is inept. nobody is going to say it is a roaring success. what is the risk here of a conitageon, despite leaders calling for calm across the european block, that other countries might go the same way? greece,ity lie, spain. it was interesting, yesterday, the president of the eu

this is killing the ideal of europe. tsipras's right to worry about the backlash, but even more urgent now for us is what this is going to do. today, its response is not about britain. it is what happens to be european union. we've seen wave after wave for other referendums. the -- 500 million strong economic block in which is supposed to function and be one of the keystones, the capstone event of the global world economic system, is disintegrating. only that european union stands behind the banking system if the european union breaks off into separate nations, that each of them will have to stand behind their own banking system in their own banking system is 30 have collapsed. that is what is frightening the markets. amy: i want to ask you about trump's visit to scotland to push his two golf courses. he has banned your colleague, ewen maccaskill of the guardian. ewen maccaskill and his photographer. he is known for interviewing edward snowden when he was in hong kong. and also his response to the brexit vote where he fa

a new spectrum of politics very represented in europe. the u.k. has unbelievably low unemployment compared with the rest of europe. sohave a disenfranchised she'll economic group. what do you think is going on in the rest of the european union? >> let's continue this conversation. from the peterson institute, great to have you in the program. a vote against the lead, typically referendums, you vote for the status quote. what was witnessed in this referendum was a huge mass of people voting not for the state, but he danced the elite. g7, whoever it may be. as at the lesson it you draw from this? one of the many lessons you draw from this? [in on a bulk] >> we seem to be having a problem with the line. it continues, the reason that european leaders want this over and done quickly, one of the reasons, is next year french elections. next year, german elections. you talk about the a's they are holding. once you trigger that, it begins. you lose the power once you play it. >> in terry, yes. >> at the moment the ball is very much in the u.k. court. highl

europe." yes, we're back in my homeland, but we're not here so i can hang around my old haunts. we are here because the future of the european union is about to be decided in the u.k.. the british are about to vote in a referendum on whether to stay in the european union. it is all anyone is talking about. many say they want to leave to curb migration from other parts of europe -- particularly from eastern europe. we wanted to find out more. we went to one of the areas off britain momost affecd byby that migratation. >> the small town of boston has long had close international links. in the early 17th century pilgrims started here for the united states. today, migrants are coming to boston, mainly young people, from eastern europe. zbigniew is from poland. hehes an instrtructor at thehe town's karate club. when the weather's good, he trains with his polish friends outside on the edge of town. zbigniew: our main purpose is self-development through karate training. we always try toto be better

europe cannot deal like it was before. the people are waiting for the european union to reaffirm his values. freedom, tolerance, and peace. >> more and more frequently we see ourselves confronted with the fact that people have very basic doubts about the direction the european union process has taken. >> the british people chose yesterday. we respect this decision. now the page turns. it's an unprecedented day. not an easy one, but europe has demonstrated over the course of its history that become stronger in the piece -- face of every difficulty. >> don't play campaign games with europe. that is the message from mario monti. former prime italian minister. lacquaoke with francine before treating got underway on friday. they been asking -- began by asking monti whether the brexit was the worst case in history for europe's political leadership. mario monti: it may lead to a more fractured europe. the eu and the u.k. had decided to remain, the all too general treatment given in february by the other 27 to the u.k. would have

it may not be in europe. obviously, there will be elections in referendums coming out and it really does go all over the eurozone. and the ecb is running out of tours. the government does not seem to consensus hase broken down. tom: we will go to robin. changed germany, everybody reeling from the last 24 hours, so what will you look and think about over the weekend, as the reset for the european experiment? guest: this is the dilemma that europe faces, the place around it needs to organize is the european governments, but the place it will most exposed the loss of credibility will be to unify around the eurozone governments, so it is a delicate balancing act by the french and the germans, to show that together their focus will be on security, defense, terrorism, and where they can send signals about the future of europe around peoples insecurities, rather than create a big new plan. germany is very vulnerable. tom: we have headlines. francine: remember when it was that there would not be preferential treatmen

and europe. it's not just brexit. we will talk about the elections in spain and france. those risks will be with us. onhink what we have to focus is if there's an improvement in the economic story and is the ecb action fueling better growth. we would argue that yes, it is. i think eventually investors will come back to europe. it has taken longer to develop this story but we are sticking with it. jonathan: there is a potential short squeeze but ahead of that, you see it happening on cable and many banks are looking to hedge against the u.s. election. as you speak to clients, how do they hedge ahead of this event risk beyond sterling? >> at has been mostly a sterling play for us and the fact that we have been underweight u.k. equities for a while. part of it is the concern about the u.k. but part of it is the exposure to commodities. the ways we have been cautious with regard to this event next week. alix: what about earnings? headline risk is one thing but you have to grow. many analysts are call

getting out of europe is not the answer. in a world that is coming together much more, you're better able to achieve your eggs in alliance with others thinking to pluck the drawbridge and you're not. >> he is talking about fear, we are seeing that here. >> i think this is a bit of a protest vote. they didn't have election in the uk to throw the bums out, they throw them out a different way. in the united states, we're going to have an election. that's a global phenomenon, what you saw in the uk, anger of the working class to the elite, which you are seeing in america, bernie sanders, ted cruz supporters, as you grow more unequal, the rich get richer and smaller group of people control more, in democracy your choicers to vote, they had a ballot. ian bremer did a great piece saying the bums have been tossed out. >> talking about legitimate economic anxiety among working class folks or people feel they're falling behind or xenophobia. >> the fear of falling behind is legitimate, legitimate in the united states for middle aged w

how will that of all in europe? yanis: i happen to our campaign campaigned in the heart of cities in ireland and scotland and england. imposedars of austerity by london. the combination of those with ofe view across the channel the austerity and union that is now trading deflationary forces in germany. think of a housewife who sees her pile of savings dwindle, while other ultra-right-wing parties are governing. this combination of what working class, blue-collar workers in the heart of england and wales have experienced with the view from the continent has created this perfect storm. guy: thank you. joining us here on bloomberg, the former greek finance minister yanis varoufakis. jonathan: coming up, we take you straight back to the fx markets. call onkin with a big sterling. a lot of downside from here. ♪ a shock wavend through the european union, but i think that will be a good thing. ♪ a historic day in the united kingdom. live from london, this is "bloomberg ." let's get up to speed. here is david gura.

and you see it with europe all over europe. you're going to have more than just, in my opinion, more than what happened last night. you're going to have, i think, many other cases where they want to take their borders back. >> the presumptive democratic presidential nominee, hillary clinton, issued her own statement saying we respect the choice of the people of the united kingdom. have made th. this time of uncertainty only underscore it is need for calm and to support our friends and allies, stand up to our adversaries and defend our interests. a statement from hillary clinton. the uk's decision to leave the european union, sending shock waves through financial markets around the world. here in the united states, the dow plummeted more than 500 points right after the opening bell. >> three to go. we see the losses accelerate for all the major. they expected britain to vote to stay in the eu and woke up finding out the vote went in the other way. they try to unwind. that was to buy into the market and instead, it's turned into

that the uk projects that view across europe and the geopolitical stage will be alter and something that we will have to the watch as the things develop. it is interesting as we caught up with philip hammond and moments before prime minister david cameron announced the resignation, and philip hammond is one of the names on the list of who could be the next person to succeed him, and not quite as strong a favorite as boris johnson is at the moment, but as we have said this morning, i am not sure that the betting markets are anything to believe at the moment following last night's surprise note. on that regard, back to you. >> and wilfred frost in london. thank you very much. >> if you are just joining us, a glow are ball sell-off is under way as the uk votes to leave the european union, and the dow is down 2.5%, and not quite the lows of the session, and we were down currently 430 points, but obviously, the s&p is coming off of the worst open in 30 years going back to 1986, and the investors are pulling a lot of money out of of the stocks and moving to the u.s. treasuries and gold. lookin

it does remain in europe. as such, the securities remain eligible for the most widely tracked indexes such as msci and trhe stoxx 600. -- the stoxx 600. caroline: are they putting brexit to one side entirely? aleksandra: in terms of right now, yes. there are no terms to change anything. the msci did tell me the look the impact. there in process of stress testing the impact of various levels of populism. a little bit concerned. they couldn't tell me more than that because the report is due in july. they're looking at the rise of this popular sentiment in europe and the u.s. and how that impacts investors. guy: thank you very much, indeed. not all doom and gloom. with what is happening with the index compiling story. thing certainly are changing. let's talk about what is happening in the markets. you'll hear a lot today but the fact that the ftse is back to flat for the year. what we are seeing, i want to show you this right hand side of it isoomberg terminal, this. what you will see here is a locked this is the

europe has created the instability. this event is not in itself creating the instabilitinstabil actually inherent in the way that the european union is itself constructed. >> so big cash you will not be surprised to hear is a eurosceptic and has been for many years. >> and i would say with good reason. >> and you have public support as well. >> thank you. >> we'll be right back. you? be the you who doesn't cover your moderate to severe plaque psoriasis. be the you who shows up in that dress. who hugs a friend. who is done with treatments that don't give you clearer skin. be the you who controls your psoriasis with stelara® just 4 doses a year after 2 starter doses. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tuberculosis. before starting stelara® tell your doctor if you think you have an infection or have symptoms such as: fever, sweats, chills, muscle aches or cough. always t

as you had in europe. now you have twice as many in europe. as the u.s., it is structured, the whole banking sector, because -- making sector, so the banks are stronger. italy, is a case in point we have to many banks, too many small banks. you have a third of more than one trillion euros. these low long-term rates do not need to go much lower down to already be a key issue for the banking sector. francine: as promised, this is a chart i want to show you. the u.k. ten-year and purple. in white, it is japan. japan have been going lower. didier saint-georges stays with us. we will be talking currencies and a little bit about the japanese equities. how the week is been for the u.k. banks. we'll bring you coverage from hsbc's mr.nce where flynt is due to speak. ♪ francine: welcome back. let's keep with the u.k. theme. -- the eu single markets in the wake of last week's exit vote. let's get more with stephanie baker, didier st. george. stephanie, thank you for joining us. did ea, thank you for sticking around. he have any authority left? what is

europe. that is changing. but very frank, there are good ways of controlling the immigration and the welfare ways are good ways. there are bad ways to control immigration and that is leaving the single market, damaging our economy, costing jobs and hurting british working families in the process. this is not the way way to control immigration. >> vote leave accused the prime minister of spin and said cameron had no answers to people's legitimate concerns on immigration tonight and failed to set out how he would meet his manifesto pledge to bring the numbers back down to the tens of thousands while remaining in the eu. >>> now in the world of business, a nationwide campaign has been launched to encourage brits to vote to stay inside the eu. they said brexit is not worth the risk. >> there are a few occasions in your life where you can see something going horribly wrong. and this is one of those occasions where if -- yeah, the wrong decision is made, it would do irreparable damage both to great

and you see it with europe, all over europe. you're going to have more than just, in my

many big global companies get 20% or more of their sales from europe. there's three areas of potential impact that's concerning investors today. first an economic slow-down could reduce capital spending as companies simply buy less technology, buy less office supplies. second, lower consumer spending over there might hurt consumer stocks like retailers, for example. finally, a stronger dollar might reduce commodity prices and reduce earnings for energy, materials, and even big global industrials. most analysts believe that earnings will turn positive in the second half of the year as stable oil helps energy companies and the slowly improving u.s. economy helps boost sales. but a slower europe could turn a positive second half scenario into a negative scenario. and no wonder since there was a sell-off. for "nightly business report," i'm bob pisani at the new york stock exchange. >>> there is so much to talk about. let's turn to our two guests for more on what the uk vote to leave the european union will mean for the u.s. stock market in the days and week

if europe is falling apart i would rather be at the table helping europe. we are not quitters and we should carry on. there is too much risk and that means loss of jobs to everybody. francine: i could keep you on for two hours that we do need to wrap. thank you, gentlemen. lord karan bilimoria and liam fox. we speak to michael fuchs, a close ally of a german chancellor and we are live in berlin and brussels next. ♪ francine: german investor afterence unexpectedly -- it showed the remain cap gaining ground. michael fuchs is on the phone with us from germany. i know you have been outspoken in the past saying you think the u.k. should remain in the eu. would it not make it easier for the rest of the european countries to have a stronger union if brexit were to happen? no, i really want to stipulate again that it is absolutely necessary that we have the u.k. in the eu. germans need the u.k. personally and i will tell you why. there are only two countries in the whole of europe that are oriented in a free market situation, germany and the u.k. i need the help

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 economy and choke the nation of foreign currency. say that pent-up demand for dollars may push them at least 20% weaker. global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . francine: thank you so much. remain pulls ahead, the pound surges, the final days ahead of thursday's eu referendum. choose to leave, we can't leave. the let's be clear that if we do leave, that's it. we are walking out the door, and even

it was years ago former defense secretary donald rumsfeld feld described western europe as old europe. you think of old buildings, countries run by bureaucracy. they have run into the cliffs of dover. are they goinghe to break up li italy, france and spain going to say if they can do it, we can. there is a restructuring that has to happen now. this is a vote of no confidence in the bureaucratic elites 40 years. ope for >> it will work for europe's benefit i if it is a wake up ca for them 20 do what dan says. more democratic accountability, economic reform. i'm worried in the short term about the british economy and the chance of recession. david cameron has said he'll step down. so sur moil within the tory party as well. >> problems in britain are short term. this is a huge advantage for their economy. why does europe not create facebook or google? because of the bureaucracy in br brussels. the uk, people willl still want to trade with them. they can look forward -- >> let me challenge you on that. you haveve frankfurt as a financial capital potentially maybe paris,l, too. they will c

they are still down relatively aggressively across europe. in the context of the last 12 months and in context where we were at our low and our trough in february i would suggest it is a very orderly must have in many ways. the stocks under pressure, they were marked down. looking fur stops. looking for the seller and market up again. i will make one point. david cameron spoke and i was looking at exactly at the level of the ftsi 100 when cameron got up and to the surprise of many of us out there decided to resign. the it is now trading back up t 6,026. it is and i'm just looking across the board. apart from the smi, it is the best performing of the major european indices. the ftsi is current wli down 4.9%. a big move but not a historic move. the german market is down nearly 7%. the french market is down 8%. and the ftsi mib over in italy is down 11%. and again you can't extrapolate a big trend out of one mornings movement but i would suggest the moves on the london market on equities are relatively orderly. >> and a worm welcome to u.s. view

risk aversion is right across europe. lost 200 billion euros over market valuations on the stoxx 600 last week -- today we wrote yet further -- this is the imap function with the individual industry groups. consumer staples, one of the performers, down. the worst performer is energy, the oil trading lower on the back of oil rigs coming back online in the united states. the banks are also off. risk aversion is being filled with concerns -- the u.k. pound being hit harder. look at the trajectory over the ,ast month, currently trading nowhere near zero we know now see on the german 10 year debt. will not of negative as we see a search for safety because we certainly are with u.k. debt. againlls are showing once that the league's campaign seems to be ahead to the tune of 55%, which royal the market, -- roiled the market. that is pushing the british pound down 5/10 of 1%. this is the world currency rancorou, and it is -- ranker, and it is one of the worst performers today. chinese data looks a little bit better than usual. let

tom: it is a gateway to europe and asia. the airport in istanbul is far larger and more dynamic than many of us in the west perceive. isobel finkel joins us now. there have been many tragedies in turkey. changing event for the country? the first is not error attack. there was a bombing in ankara that killed 500 people. death toll has risen to 40 at the latest announcement, 13 for nationals. biggestistanbul's airport and tourism is an industry that accounts for almost 10% of the economy. it is going to have devastating effects. we know that islamic state is losing ground in parts of the middle east. is there a correlation train what seems to be more and more attacks abroad and then losing ground? although you could situate this attack on a continue on with things that have been going on in turkey, it bears a resemblance to the tragic events of brussels earlier this year where in a similar fashion isis militants detonated suicide vests. the difference is that the istanbul airport has extremely there are checks going into the a

a simple printed out one of the busiest in europe. turkey is under daily threat by both the so-called islamic state and kurdish separatist groups. the three terrorists drove up in a taxi in open on the airport before blowing themselves up. stunning video taken seconds before. not clear at this point how much the carnage was actually in the departures area. suet data from a second angle, people running for their lives before that i'm enough. here you see a security officer shooting one of the terrorists. you see him fall to the floor and dropped his gun. he himself up as an officer approaches to. talk of a possible fourth attacker who may have escaped. turkish authorities. the attack happened at 10:00 local time last night. a busy time at the airport. this is the next terrorist attack in the course of the year in turkey. this is the work of the work of iis. iis itself has not been done in a claim of responsibility. sometimes they don't. their relationship is quite complex. lauren and nicole. lauren: the next terror attack in turkey in

europe on the other hand is quite a lot cheep. you've got the european stocks at a cape of 14 versus 24 in the u.s. and with a higher dividend yield. so i think you do the scary thing and you invest right where the panic is. >> well, you say that, but at the same time you say do less than what you think you should. mean in psychological terms, is there any way to kind of outsmart a market if the majority in the market if they're playing in one direction, should i be trying to call the different direction or not now? >> i don't know that you want to do anything dramatic, but if you're going to be a buyer, i think being a buyer of european equities right now is a good thing to do for a long-term investor. you could certainly do a lot worse than just staying the course and maintaining that perspective. this is a good time to call your adviser. people who work with a financial professional do 2 to 3% better per year. and it's not because they are great stock pickers, they're going to homestead your hand during this time and keep you f

these companies were heavily exposed to europe. delphi, for example, a third of its revenue comes out of europe. and on friday, we heard that they will take whatever action is necessary to be competitive because there will be an adverse impact on operations and they need to issue new guidance as a result. will be a supplier to ford. travel stocks it very hard -- the reason is twofold. many of these companies get a lot of business from europe. we have seen cross-border deals from priceline, for example and europe, and the currency risk travel if hall on there is more joblessness, for example. are there companies that got hit quite hard? julie: one that got hit was wynn. it looks like it could come back. the currency risk, not necessarily the pound or the euro, but what are going to be the yuan knock on effects, for example? scarlet: all right, julie hyman, thank you so much. when we will discuss more fallout from the brexit vote. this is a special edition of "bloomberg markets" from new york and london. ♪ matt: this is bloomberg t

europe-wide, not just in the u.k.. anna: we will talk more the next part of the show about that subject, about the eu referendum. i want to show you this chart, which we were looking at during the break, analysts getting optimistic on european profit. what you make of this, earning upgrades over taking downgrades for the first time in a year? some positive sentiment and vibes coming around european corporate's. jim: it is definitely a bottoming out of sentiment. look at the way the graph was in the earlier months. at the beginning of the year, that was a very big preponderance of downgrade over upgrade. and all this is saying to me that the endless collectively think they are not pessimistic enough. and i do not see this as a very bullish indicator yet. ifould prove to be wrong, you do not get the disruption to trade i am afraid of, if you get more of a balance policy. that is what needs to be watched. signs of structural reform, fiscal easing, a remain vote, that will be very positive for europe, relative to others. b

and you see it with europe. all over europe. you're going to have more than just in my opinion, more than just what happened last night. you'll have i think many other cases where they want to take their borders back. they want to take their monetary back. they want to take a lot of things back. they want to be able to have a country again. so i think you'll have this happen more and more. i really believe that. i think it's happening in the united states. it's happening by the fact that i have done so well in the polls. >> there you've got, donald trump he ended a one-hour press event. largely initially to promote his new golf course in turnberry, scotland, but his message what happened in great britain, this is seismic, they're calling it a black friday over there, it's got parallels to the united states. we have got judge jeanine pirro with us this morning and peter johnson jr. with some reaction. what do you think? ladies first. >> they're calling it independence day, june 23rd. this is huge, 72% of the brits voted. and they

it could cost europe dearly. >> very few people who came into europe last year would have qualifiy eied as refugees. as i said, i think mrs. merkel made one of the worst policy mistakes in postwar years. >> so 24 hours before brits head to the polls. lacking direction as caution reigns. ♪ >> so, welcome back here, we've been sitting on the river thames. >> somewhere on the river thames. with a very large building in the background. >> which may or may not be the palace of westminster. >> for most of the morning. it did start out relatively sunny, in case you're interested in the weather for central london. >> it's a bit overcast, they did get that wrong. it's clearing up for a little time for wilfred and "worldwide exchange" in about an hour's time. >> where i think the weather is interesting even though we're not the weather channel -- >> it's portentious. >> the way that various analysts are saying we expect the older demographic more inclined to vote out. the younger demographic, more inclined to vote in. the hard working, middle classes, if they can get away from the office or whe

scotland taken out of europe. totallyld be totally, enigmatically unacceptable. country, and if that means we have to have an independence referendum to protect scotland, then so be it. speaker, thatmr. we have a scottish government and a first minister to lead and seek to protect scotland's place, it is very, very welcome of this approach is being supported by opposition political parties across the scottish parliament. speaker, project fear has turned to project farce. those who propose to leave europe have no plans. there is no plan, believe campaign don't have a post brexit plan. they went on to say number 10 should have had a plan. arewhile, u.k. share prices so volatile that some stocks of temporarily been suspended and sterling has hit a 31 year low. mr. speaker, on one thing, i hope we are all agreed. and that is that we take very serious note of the very disturbing series of racist incidents directed against our fellow citizens who have to come from other european countries. i hope that we all on all side