a bit of euro weakness in the last hour. the euro down to 11250. mario draghi same further stimulus is in the pipeline. a reference to the measure already announced not yet started, so not necessarily new measures, but the reference to the measures announced and not yet started. more specifically the time of the lending and refinancing operation. it will take place in this coming week. it will be interesting to see how big that stimulus actually is and how much take-up there is some eurozone thanks. the markets about 18 minutes into the session. let's go to julie hyman. julie: the best-performing stock in the s&p 500 is a aul -- is airline aul. to have extra revenue and they are setting that target for 2018 and trying to close a profit cap with competitors. among other things, aiming for $1.5 million because of increasing customer segmentation and they will make changes to their frequent flyer program, and it will also try to save $1.3 billion by using larger planes and slimmer seats. scherzer up like 2%. checking on planet fitness. shareholders to

bank 5 million euros in unauthorized trades. laura: we begin this hour in istanbul and the fourth major bombing to hit that city this year. seven police officers and 4 civilians were killed after a car bomb went off in rush hour. there has been no claim of responsibility, but turkish president recep tayyip erdogan has suggested the involvement of kurdish militants. 4 people have been arrested according to turkish media get kate moody has more. kate: police patrol a security perimeter set up around the side of the tuesday explosion istanbul. investigators have made some arrests as they hunt for the perpetrators, while local residents and shopkeepers clean up the damage. >> the damage to our store is the most -- is not the most important thing. there should not be any more terrorist attacks in our country. damn them. we would be ready to give up our shops if our lives were safe. kate: at the hospital, president recep tayyip erdogan arrived hours after the blast. he vowed to continue turkey's fight against terrorism and put kk. fin

and 65% of the countries that are in the euro will focus on the euro surviving. it relies on the independence and support of all the nations in the eu. britain is not in the eu. so i question that we can say that britain is at the center of the euro. i would argue it lost its position at center in 1999 when it voted to hold on to the pound. if you go to europe, and i know you have just been to europe, if you go there and talk to your peers, they are inclined to scoff at british demands, we want this and we want that. they say, if you are really with us, be with us. be in the euro with us. and, of course, britain doesn't want to be. so the risk is now that the decision is being made, will be made in the isolation of the uk. you have to remember france has a veto in agriculture. britain should have a veto on financial services but it has not gotten it. so britain will be managed as if it is one of 28 countries when it comes to this. let me give you an example, in the next financial crisis the ecb said it would not allow there to be short selling of currencies or pr

authorities say the cost of damages will likely exceed 10 billion euros. in paris, the riviver sand -- seine burst its banks. many roads in the areas flooded. another disruption for tourists and locals amid labor strikes already paralyzing travel. in the region just south of the french capital, several villages remainin submemerged. water r in t the loire has reacd levels not seen in a century, and more heavy rainfall is still expected. according to authorities, more than 5000 people have had to evacuate their homes to escape the rirising waters. anchor: we have to take a short break. when we come back, the latest from the business world. don't go away. anchor: welcome back. a quick reminder of our top stories. german lawmakers approved a resolution that describes the massacre of armenians by ottoman turks during world war i as a genocide. turkey is reacting angrily, and the turkish prime minister says this will damage relations between the two countries. and, u.s. presidential hopeful hillary clinton told voters donald trump is unfit for office. she also

we are looking at euro-yen as well. the euro down 7%. there is a decline on friday and there is the decline this morning in asia and trades. euro-yen trade is definitely be one to watch going forward according to one analyst. there is pounds-yen. the pound versus the yen, losing 13% of its value or just about 13% of its value. again, this is the trade in asia. a egg tumble. we are off the lows of the session, but that's a drastic move for early on. about whatwe talk goes on with the boj, it's less the actual level of the yen versus the counter the euro, and more the velocity of the move. in terms of the dollar-yen, we have seen a very large move. it's a seven, eight-point move in a matter of hours. that is not something that the boj has to be happy about. scarlet: if they were to intervene, they probably would not do so right away. alix: it would negate the move they did to begin with. scarlet: you are looking at a velocity move over time, the next 2, 3 weeks. you're looking at live coverage of the brexit follow. this is "bloomberg marke

and britainen is on the euro "titanic" as it sinks. >> it's not part of the euro? >> it's not part of the euro. but we have bailed out euro's own countries. we bailed out greece. we bailed out ireland. last year david cameron over his dead body, and he's not dead yet. basically paid 1.9 euro pounds in despite saying he would never do it. we may be on the hook. is this not part of a treaty, it's part of a joint agreement between the budget to pay the other countries and that could be as much as two-thirds of our national gdp. that's from a rejected institution is. >> despite that argument, and it is focused more on the negative effects of a european collapse on britain than the positive effects on the uk economy of leaving, despite your argument, would you admit, though, that the economic argument has been won bit remain side and those voting with their wallets are going to go that way? >> probably, because the key points have not been made by the leave side. you know that the eurozone is say customs union with high protectionist barriers. one of the things that rem

in total. 0ber self was fined 800,00 euros. half of the fines were suspended when -- suspended. this was the first trial in france involving uber managers. the case revolved around uber pop, which connected on professional drivers with customers. suspended that service in france last july and now only operates with professional drivers in the country. prosecutors were calling for a maximum fine of 1.5 million euros. mario draghi is throwing down to eurotlet politicians. the president of the european central bank is calling them -- on them to be bolder. he spoke in brussels, saying fieldhe ecb alone cannot the economy. he said national leaders are not doing enough, and that their action is needed. the ecb president warned of a democratic timebomb as the eurozone is getting older. >> your area's working age population is projected to start gradually decreasing in the next decade. in that context, employment growth is likely to start decelerating in the not-too-distant future. markus: that was mario draghi speaking. now, the ecb p

suggesting when it is up and running, between 5 billion euros and 10 billion euros. one, it will begin later in june as expected. we need a bit more detail. paying -- paid to land money. roughly 45ence in minutes, mario draghi, of course, will push governments to do more on structural reform and loosen fiscal policy is able. we could have something significant happening. economic forecasts have been cut by the ecb for the better part of the year. today, we may get an upgrade for gdp for this year and inflation forecast. s. that signifies a turnaround. reinstate the waiver for greek assets to be eligible as collateral? will the ecb start buying greek assets? probably not. but it could be reinstated. day on thexciting announcement front, but we are looking forward to the press conference in 45 minutes. jon: mark martin, always looking forward to the news pressed -- for the press. at 111 .91. targeted longer-term refinancing operations over in the ecb. came the sheer, the deadline program. the other, with targeted long-term refinancing operation could have a negative in

problems of the euro. but it is exactly that which is unpopular. i think we are on the brink of something catastrophic in europe. if britain looks for brexit, which looks possible, it could all, part. -- they could all come apart. matt: we are feeling that in the bond market right now. bonds are continuing to fall this morning, yielding 0.35%. let me ask you this morning, is there a solid remain vote, philip? if we get a solid remain vote, does everything go back to normal? will the french and germans feel better about the eu then? philip: if we get a solid "remain" vote, and we will have a tremendous political and economic opportunity. what we need britain to do this -- and to be fair, britain has not done this -- but if we had british leadership, britain let'scome in and sayk, face the facts. the eurozone is not working. we've got to create a position whereby southern countries connect to the euro. for instance, forget greece. italy has not had a single quarter of gdp growth since it entered the euro. th

one insurance company has estimated it could reach as high as 2 billion euros. the government is now set to declare the floods a natural disaster, unlocking compensation payments for homeowners and businesses that have been affected. genie: we focus now on the eu referendum in the u.k. and the effect it is having on the pound. stephen: we have seen -- surveys published over the weekend showed an increase in support to , justthe european union under $1.44 to the pound. it is the most volatile in seven years, and we can expect that to continue. genie: what about the stock market? stephen: we are seeing some gains in london, mainly driven by mining companies, trading up after an increase in the price of copper. pretty flat in paris and in frankfurt. where let's go to china, there has been some strong words from the u.s. treasury secretary. it was said that china's overcapacity would have a corrosive impact on the country's economy and distort global markets. european and american producers have suffered as china dramatically outpaced their production recent years.

the french quarter find the -- fined uber 800,000 euros. uber drive is required to obtain a chauffeurs license but now unlicensed drivers can accept there's like a standard taxi. both services have proven popular abroad but are facing which back from european regulators. the berlin-based startup incubator rocket internet is posting millions in losses. some of its online delivery and fashion shots are keeping it going. rocket ceo says shareholders should not expect their investment to achieve liftoff anytime soon as he is expecting a lean period. rocket's business model is to expand rapidly before turning profits. that is your latest business news. back to you, brent. ? brent: returning to the soccer championships here the german national team may be a favorite but it has been beset by injuries. the latest player to go down is defender antonio. germany still has a big to do list including who is going to play in front of the goalkeeper. >> the hotel is all booked. they have taken over the room. after -- the players are slowly starting to app

what i would watch is euro-yen. we are pushing toward three-year lows. 120.33, that takes us back to 2013. anna: david, thank you very much. that sets up our next conversation nicely. japan's benchmark 10-year government bond yields have fallen to a record low. driven by rallies in u.s. and european bonds, amid concerns about the outlook for the global economy, the bank of japan and under -- and other central banks are under fire from bill gross. the money manager says global yields are the lowest in recorded history. supernova that will explode one day. gross has argued for some time that the economy is at the end of a decades long struggle of expanding credit. he says this is a situation that is unsustainable. joining us now is manish singh. great to see you this friday morning. what we a chart echoing were hearing from david ingles in hong kong. weakness in bond yields, strength and bond markets. this chart goes back to 2000. it shows the trajectory in a move downwards. the japanese wanting white lows,ng negative

euro 2016 kicks off today. we're all very excited here. ♪ mark: this is the european close on bloomberg markets. vonnie: there is continuing coverage of the commonality funeral. you can see a live shot there of session. the yum kfc is center. president clinton will deliver a eulogy and there will be remarks hatch,lly crystal, orrin bryant double. ofdied last week at the age 74. the: the opening match of euro 2016 is tonight in paris. the french face-off against romania. it's the 10th time in the french capital that have stepped up security after the attacks and november. fans are dealing with a rail strike and a garbage collector strike. --t has left heaps of traps trash on the street is -- street. it's not the perfect backdrop. it is intended to show off the best of france. it is not the perfect back drop for this tournament. fan, i'm sure you are very excited about the opening match tonight. that is about three hours from now. it is between france and romania. the challenge is the security. 100,000ll be as

of the euro? >> i've been saying that for a while. i think the euro is gone within three to five years as it axises. it is unsustainable. >> are you headic off to the pub now to celebrate. >> i'm heading to bed actually. >> thank you very much. >>> historic moment no doubt. the uk voting to leave the eu. the question is how was does that happen? what is the process going forward? our very own julia chatterly has been following that story from brussels. >> good morning. and for all the reasons you were just discussing i can say who knows? there are a number of different avenues but what i can tell you is the ball firmly lies in the uk's court. this is a non binding referendum remember. so the uk government has to come to the europeans and go, okay, this is what we want to do. are we going to invoke as you were just discussing article 50, a separation from the eu, something completely unprecedented? or are 245i going to negotiate another way? and it depends chand what kind of tone these leaders are

the problem is that even though italy is part of the euro, it is the euro that is the problem. the as straight jacket to a lot of other countries that need some stimulus. we saw mario draghi talk about the fact that nothing they are doing and there really is no pick up in demand that is significant to have any kind of confidence. that is the level of frustration i think everybody is seeing. having said this though. it still i think looks to be likely uk is going to remain in the eu. >> seems like the polarization of politics and the sense of nationalism we've seen exist throughout europe continues to be the case. over the past five years that level of uncertainty around political risk hasn't changed. suspect that something that investors have to get used to when you are getting exposure to europe? >> the problem with all of these scenarios is that everything is fine until it it isn't. everybody is complacent because they know despite the grumbling everybody says in the union and does anything. until one actor changes the script. and this is how source made a lot of one is betti

where do you trade sterling against the euro? the dollar against the euro? where is the biggest price right now? >> it is kind of interesting has gotthe market increasingly similar. headline risk for the euro as well as the lands -- pound. we will see how the election plays out. a tendency to sell the euro on any eu-negative headlines. i would be careful about that. the special situation with the euro is different. the euro has held up very well in the aftermath. -- fish and sea euro a little bit. we would not rush to sell the euro aggressively. certainly they were sacred because of the downside. we penciled in 108 in terms of the euro-dollar level. think 86 is realistic because we think cable is going to go to 130. i think the tendency would be to sell the euro along with sterling. want to pick up on something you said, the bank of england steps in. simpson and does what? >> we will obviously have to see pillow with it brings to the economy from the financial volatility. we think there is a high chance of a technological recession. obviously, the first step

we have seen 3% swings on the euro-dollar exchange rate on ecb days. how is the euro going to fare? aerek: i think brexit is factor for the euro. it is more focused on the u.k. economy. i think longer-term there is much more serious applications for europe in terms of the fifth-largest economy in the world falling out of the e.u. -dollar ratethe euro would get paid -- get hit pretty hard. theecb did not dismiss idea of more easing. we have not even started next season, which is from 8 june. at with the inflation target 1.6% in 2018 despite the stimulus incorporated into the forecast -- mark: is that the big disappointment? derek: and the crude oil price was higher but the inflation rate was the same. it does beg the question, what needs to be done to lift inflation if after all they have done, it has and done that. that, i think, rightly leaves the ecb thinking that perhaps they might have to do more. a taper of q.e. is the obvious next step. they will never go from 80 billion of q.e. in march 2017 to zero in april. i think there will be a timetable set up. and that will be another

we are focusing on the 2016 euro. it begins this evening. will there be any boost or help for the french economy? >> more than one million fans are coming to france. a study carried out estimates hosting the tournament is worth more than one billion euros to the french economy. there are major cost involved. on the face of it, no matter what happens on the pitch of euro 2016. study, around two point 8 billion euros will be spent on competition, including money spent on foreign service desk foreign visitors. the work of organizing the tournament has led to the creation of around 25,000 jobs. that means more tax revenue. the governor's to -- the governor -- the government stands to make 800 million euros. not so simple. the money was not magically created by the tournament. some economists point out the money spent by those living in france would have been spent even if there had not been a tournament. 2016 -- the competition is expected to deliver an economic boost. a tidy sum. one that represents a tiny percentage of the french economy. foot

vonnie: what about the euro? a lot of money has been leaving the euros. we are looking at the euro at 113 and change right now. regardless of the brexit vote, where does the euro trade in the next month or two? valentin: we remain long-term bearish just because the euro will be increasingly used in funding currency. that is given the overall global outlook, which we still expect to show signs of slowing down. there is potential tightening and the global monetary conditions and that means that risk aversion cannot be excluded. the euro will continue to do well during those bouts. those conflicting drivers make us fairly balanced to somewhat bearish for the euro-dollar. on the whole, euro sterling mayfair somewhat different we believe the brexit will be avoided and that makes us fairly bullish on the second half of the. year. it is a balanced to bearish outlook for the euro-dollar. mark: where else do we witness a relief rally? on which currencies? valentin: clearly the european currencies. the scandinavian currencies were selling off quite sharply. we do n

it would cost the country a little over 20 21 5 billion euros -- over 22.5 billion euros. the controversial proposals have been criticized by almost all political parties, with some calling it "a marxist dream." the think tank behind your idea says it is necessary in the modern world -- behind the idea says it is necessary in the modern world. >> we produce more value with less labor. there are not enough people paying to the social system. we need to find another redistribution system. mark: switzerland is not alone in considering the move. finland is aiming to try out a universal basic income, albeit with a lower wage, next year. the netherlands and canada are planning similar teams -- schemes. markus: a well needed overhaul of welfare or just too good to be true? swiss voters will be deciding this weekend whether or not they actually like this kind of system. nancy: i like that system. i wish they would have that system here. it's a great idea. thank you for all of that. and thank you for watching. more news coming up after the break.

for the euro might be a little more worrying because there may be questions about that but if the euro comes under doubts we will undoubtedly get a reaction from mr. draghi who is demonstrated that he will do whatever it takes to keep the euro together. that is the currency side. on the stock market side i have to tell you many of our -- in the uk are getting rather bullish about uk stocks. many of the domestic stocks have been marked well down and they quite like them as a buy. that is on the equity floor. and fixed income floor and it is completely different. because they are glass half empty fellas and they any there is gloom and doom. by own view is it is not a disaster if for equity markets or the currency if brexit happens. >> even if a brexit takes place given the valuations at uk equity markets at this moment they think this is an opportunity to buy. >> that is the way equity fund managers are leaning. >> hedged or unhedged. >> well. i think -- what i've just said about sterling. i don't ca i don't think you augment to be selling sterling here. my own view. >> bold call at this

certainly the pound weaker versus the euro. euro weaker. but the dollar has not been surging and has not been a safe haven. the yen's been the safe haven. gold has been. and with that the multi nationals actually benefit over time and to that perspective bring it back to where we're talking about the federal reserve, that caution, that sense that u.s. rates are going to move more slowly than you would have thought and with that the u.s. dollar doesn't move higher. translation gains wound up being more beneficial to u.s. multi nationals going forward. >> clearly u.s. equities have been less effective than euro equities. do you sit on the side lines for the week? >> i don't think so. markets over react positively and negatively. and there certainly have been chances to put money to work within the markets over the last several days. we've been trying to do that within portfolios and doing that within portfolios and i think you are looking at where the trends go not only the next week but over six month, 12 months, and 24 months and trying to

>> really, the euro, what are we at 111 right now? we really haven't done a whole heck of a lot in the euro. i'm not worried about a spike in the dollar. we're more neutral on that. i don't think you'll see the dollar move too much. but we want to be in there, technology, consumer discretionary, industrials, which have continued to outperform the s&p since last july. and also, health care, which is a little more defensive. but we're definitely leaning si cyclicly. it hasn't been that huge yet. i think we're going to have an opportunity to buy them a few percentage points lower. >> hey, scott, brian kelly. you've got to explain this to me. we just had overnight one of the largest currency moves in the history of currency trading. okay? we have an ecb that was probably going to be more lenient. we have a bank of japan that is most likely going to have to print some more money. how in good conscience can you tell anybody we're not going to have a dollar spike when you just said oh, is the pound going to be crazy? sure. what's the other s

this is denmark having to defend its currency tag against the euro -- currency peg against the euro. it has to do it because of the risk around brexit. people piling and saying the krone is a way from the pound. fearing brexit in the euro. do you stay away? what is the best way to play in this brexit story for you? are you looking at eastern european currency? didier: the currency market is rather calm. the emerging-market currencies have regained ground so this is something to keep an eye on. in order to invest into this emerging-market or even in china. the fact that we had a little slow down is an opportunity to get back in china. control.tion is in we have the best policy mix in the world in china. we have the fiscal policy, as a strong tailwind it we have monetary policy. this is something -- tailwind. we have monetary policy. this is something -- that is the big story in terms of policy action. more balanced policy mix. it will drive. anna: didier, thank you very much. that is it for countdown it on the move is up next. the preachers market -- the futures market a little bit of

trending upward, this is euro trade. also, corporate bonds, it has been a popular trade for hedge funds, as your recent study shows, is it overcrowded now? are: not as yet, what we looking for with the corporate bonds is not only is the ecb purchasing to consider -- planning to consider, but thanks to the ecb the meaningful trade underway, or an opportunity to --e br be finaned, that is financed, that is potentially significant of up to 5.6% of net income, and a chance of leveraging trade. over time, we think that could double the size of the european corporate bond market. there is potentially more supply to satisfy all this demand coming our way. caroline: i want to bring us to some breaking news. we can see the oil trade seems to be in vogue. is spiking right now. we had been completely flat when it came to wti and brents today. how much, ralf, do we pay attention to oil correlation, has been a big factor in the beginning of the year? where do you stand in terms of the credit push and pull? where are we seeing oil dri

and have currency from euro. and banks and back-like companies convertibles and hybrids and bonds with less than 1 1/2 years will be excluded. the first list will be released on july 18th and then once a week after that. head of corporate research at s&p global joins us now. paul, great to have you on the show. we were just discovering that there was concern about scarety of bonds here. if i had a issuance this year, the amount available, comes to 700 billion euros. you estimate 5 billion euros. >> 5 billion is on a net basis but on a grade basis, it's much large than that, probably about 50 billion uros, recently. they've lost in the last few months. but that will help the ecb to get the bonds they need. >> i'm seen the comments that they've actually made it up to 15 billion euros. how important is that difference? >> we don't think that difference is too important because really this is trying to really set the price level if you like to reduce yields and reduce the cost of funds to encourage corporates to borr

the company signed a 400 million-euro joint venture with an iranian company. the aim of the 50-50 venture is to reduce 200,000 vehicles per year in iran by 2018. they pulled out of the country in 2012 when westinghouse powers imposed sanctions on the islamic republic. boeing,can playmaker, has agreed to sell aircraft to iran air. boeing is not offering any further details from including the potential value of the deal, but in official in iran says the flag carrier of the islamic republic could be in the market for 100 aircraft could western sanctions have previously blocked similar deals and boeing says the deal is contingent on the approval of u.s. government. let's finish with this story. french authorities are threatening legal action against amazon. servicet has offered a with deliveries in the french capital within an hour of ordering, but it is meeting resistance from authorities and local businesses, who fear it will be yet another as was unfair competition. kate moody has the details. kate: electric appliances, furniture, and even food, and your doorst

they are flocking to exchange pounds for euros and dollars. the post office says that sales are 74% higher this week in comparison to the same time last year. it is seen as a precaution and most forecasters expect the pound to fall sharply in the case of a brexit vote. as we talk about financial matters, london's financial district is getting ready for the following of the referendum. banks and traders will be working throughout the night between thursday and friday. there are warnings of steep drops in the case of the league victory. the countdown is on ahead of a crucial vote on britain's eu membership. in the city, london's business investors are increasingly optimistic that the remain camp will win. >> there is a level of confidence that remain is going to win but no one wants to admit it because what we don't want to do is find yourself in a position where people do not go out and vote. lastter: falling sharply week, rising again on monday and tuesday, experts say it is a sign confidence has been building. investors remain very cautious.

and that includes the euro. so, yeah, the euro going forward to my way of thinking shouldn't be strengthening. if anything because of draghi and if anything because of the dysfunctional nature of the eu family before brexit. and now even worse afterwards the euro is not a strong currency. >> bill, real quickly, what is your overall outlook for rates in the u.s.? and are you concerned at all sbr separately about the state of the european banking system and credit? >> no, i think the banks are covered. i know draghi has made it obvious he will be buying corporate bonds and he hasn't extended that to corporate banks, but if italian banks are in trouble, then that would be the next step. so i don't think there's a solvency question there. but i do think risk assets and spreads in europe, corporate bonds despite the buying of the ecb are definitely a risk because as growth slows down as you have uncertainty and dysfunction within an economic unit, then corporate spreads, nonsovereign spreads should widen to some exte

the euro sold off a bit, but then rally. their point is you may see some short-term weakness in the euro but you could see some kind of pop out of that longer-term there's the more bearish but it is not a given that the euro is all of a sudden want to sell. >> markets acted we're way sometimes. i want to take a look at the new bloomberg pound index. it is just the pound against its various trading partners. we talk about pound dollar or pound frank. brown -- broad index. we are well off the lows from june. the close of the highest level since the referendum date was specified. we're not quite there on the trade weighted inversion. it is yet another way of talking about the only story that matters. to take a little bit of a detour from the only store the matters and give you a sneak preview for what we might see when the banks begin reporting the results. it is not too early to look ahead. we have an early rain -- read from jeffries. fixed income rose for the first time in two years. that was equal to about a 55% increase. ov

i between 20000 and 25,000 euros a year. reporter: she talked of banning credit cards among city counselors as well as vowing to invest in rome's crumpling infrastructure. voters returned to the ballot box for a second round on june 19. anchor: the pound has plunged against the dollar after this service shows rising support for that u.k. leaving the european union. britain will vote in the in or out referendum on june 23. 48% of the voters are currently in favor of leaving the eu with 43% preferring to stay in. there is 43% with the invoke at 41% -- bad weather is being blamed for train crashes in eastern belgium. three people were killed and nine others are still in the hospital after a passenger train land into a freight train. the king of belgium and the prime minister had been visiting the scene. as the morning fog subsides, the extent of the damage is made all the more clear. to train cars turned on their side after a late-night crash in belgium. >> i heard a big boom like a truck coming off the road. i came to see what

what do we need when the euro causes problems? we need a higher level of financial tax integration into brussels. what happens when immigration and migration become a problem? the european union needs to take full control of everyone's borders to solve the problem. the answer is always more and more europe. now reached a point where this process has become self-perpetuating and self destroying. the more europe demands to solve problems, the more problems it creates. the more problems it creates, the more it demands more problem -- it demands more power to solve problems it has failed to address in the past. the united states has lost sight of our goals in europe. what are the goals? i don't think there have changed since 1945. we have the same basic interests in europe. above all, peace. we want the european continent to be peaceful. our instrument for that has always been nato. since the late 1940's, the american security instrument to a short piece in europe, both to defend it against external threats and to shore up europe poli

we are up to 12 euros today, up by 5%. i just want to show you a chart which shows you the spread between the u.s. two-year yield and the u.k. two-year yield. points, theas at 50 u.s. was 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 bri

to 12.7e target cut euros. worsening investment bank revenue, just getting back to interest rates, no change in negative interest rates today. the is the euro against smb. then, it rising and since the euro has been strengthening, except for the last month where the swiss franc has hit its highest level this year. the big question is what will the smb do if brexit materializes next thursday? minutes into the trading day, let's get to the markets desk. how is it looking there? not looking great if you are able in these markets. the nasdaq is the worst of the three, down 1%. whisk -- aat has a whisk of being economic sensitive. the s&p 500, if you focus there and what we have seen over the past six sessions, down by about have seen this latest selloff, the longest losing streak going back to last august when we had the enormous market selloff. we are not down to the lows of where we weren't there or even the february lows, but the selloff is notable for its duration. higher.s and telecoms they tend to move invers

i am not sure which teams will play the euro cap next week on wednesday. i believe we can watch football and do not have to be too concerned about the federal reserve, especially after the weak employment data from last friday. janet yellen did say those numbers came in disappointing so there will be no change in monetary policy next week. july is still on the table. we will get more news from the labor markets by then. overall, janet yellen did sound quite upbeat overall on the u.s. economy. but an increase of interest rates next week is off the table. reporter: many thanks for that update. it is a top-level sporting acquisition. italy's iconic football club has been brought by the chinese appliance retailer. the company is a household name in china and secured a 69% stake in the traditional soccer club for around 200 -- 270 million euros. they hope it will net them success on the pitch and in the balance books. >> it is the first -- was the first soccer club to visit china 38 years ago. many chinese watched them play. it seems one of them was the new own

the euro looks like it's very close to -- the euro could fall significantly. we've got lots of things at a key level. the biggest level of all is probably the pound, at about 140 against the dollar. if that level were to break, that's a huge sea change. a 30-year low in the pound. there's lots to keep an eye on. it's not time to go to the beach and not look at the markets. >> is it time to put on positions? the last time you were on the short, you said you were short the s&p 500. and the bond market is reaching a critical level. do you put on new trades? >> the bond trade is really well. it continues to do well. it's about where it was where we started that. i'm really keen short the euro again. i'll wait for the brexit vote, see what happens after that. maybe use some of the volatility to express that view. and i think that potentially i'll be interested in shorting the european stock market. i want to see how they trade post-votes to get a good entry level. >> raoul, thanks for phoning in. good to hear from you. so interesting. it's more important what happe

after, we have the euro, we have to stop blackmail with the euro, and blackmail with that terrorist attacks. the labor law is destroying the social model. i have to wait quietly, because i can't strike with my organization because of the euro, and other things. this is not my job. my job is to protect the social model. this is my job. security is the job of the government. laura: the government is clear they will not back down. why will you and this -- and this? >> we require the withdrawal of this label. laura: they will not do that. you will continue indefinitely? >> we won't stop demonstrations. laura: is that responsible? >> the behavior of the government is responsible. the majority of the french population does not want these labor laws. majority of the population still support you after they have seen people smashing up children's hospitals? .> you can see organizers they are very clear about that. laura: we will have to leave it there, thank you very much for joining us. there's also been more street violence in france. this time, football fans. they are here for the 2016-year-old t

tom: is it about the euro for dollar dynamics? inflation.n or the united states has a comfortable inflation environment and overtime that fights against all the interest rate trends and keeps the environment going, what the dollar should the value relative to everybody else, that is one of the problems struggling for japan, they have difficulty evaluating its currency because it is locked in deflation. once people realize that europe is locked in deflation, look for the europe to start going up dramatically. week inig talk all this , please call to arms governments help us out, we need fiscal policy, are we going to start seeing that from japan, from germany? to get the rest of the g7 to agree to the idea that there is a global crisis potentially in the pipeline. the others did not sign off on that, it did not make the final draft, japan will go it alone to this point. you see the 2017 sales tax hike, delayed to 2019. there is talk of another fiscal move. scale we ares the talking about does not seem sufficient to create attractio

how does this whole trade circle up in terms of the euro? the euro is no longer his target. i was looking at consensus forecast here, across the rest of this year, this is the bloomberg consensus forecast on euro-dollar. bund yield is on the knees. how do you make sense of this? jane: if you go back to maybe 2014, june i think it was, we saw negative rates from the ecb initially. that created a huge amount of people taking short positions in the euro. that accelerated, just before the quantitative easing program, earlier in the previous year. but i think over the last year or so, people have reduced those massive euro shorts. and i don't think the market really wants to rebuild them. it is not in that frame of mind. i think you are right. i don't think mario draghi can really push these euro significantly lower. but that is a good thing. if you go back to the g-20 in february, i think since then we have seen a lot of u.s. pressure pushing against currency wars. and against central bank action, which could lead the dollar pushing higher. anna: how much do you think they would

we're now backing the euro, which is bad economics. bad economics, thelessen we learned in world war ii, bad economics don't make good politics. bad economics make bad politics. what are we backing in europe now. we are backing a currency which can only be maintained by creating extremely high levels of unemployment and extremely low levels of economic activity in most of the mediterranean countries. we are deliberately adopting a, we need a bad economic strategy. are we following the lessons that we learned in the great depression and world war ii. no, we're not. we're adopting exactly the opposite lesson. we're delivering empowering bad economics. you know what, we're getting bad politics as a result, not a surprise. our interest in europe, of course, is democracy. i will echo everything that victoria said. the eu is hostile to national level politics and to national level politicians. it intrudes extremely deeply into all of europe's nation states. it generates hostility, in some ways that i find completely understandable, and other

together that is what the gold standard does when you over use your debt with the tax system and the euro is the gold standard so a lot of economists by the way argue that one of the reasons they note to the countries that went off first during the great depression recovered more quickly is an interesting argument that is worth looking at that is what greases thinking we can go off the euro and recover more quickly. that is the basis of that argument. >> by the way thinking that the yen's steady many works ask brazil how will that works, argentina zimbabwe zimbabwe, countries that have steady currencies do better over time than those that don't. not to get into a discussion of the depression but those you cheapened their money all that did was get the big brother neighbor policy were they all went off and then the 30's overall was the miserable decade you can cheat to get a little leap forward and others follow then you're back to where you were. >> it is a mistake here anyway to think that the key function of money is to register inflation or deflation but to give signals of information

enzema spoke about france's decision not to include him in the euro 2016 squad. said he madrid striker is partly to blame. >> he has bowed to pressure from racist part of france. i don't understand why i haven't been selected. reporter: the french football federation decided not to select in april after he was accused of trying to blackmail former teammate with a sex tape. ma, who is of algerian dissent from denies any wrongdoing. his action comes after comments made by a former football star earlier this week suggesting and anothernzema were left out because of their ethnicity. >> the only one in france with a truly french name. has declinedchamps to respond but said he would take legal action. several french politicians have spoken in support of the coach. >> what is this racist part of france that benzema talks about? i condemn these sweeping statements. france is not a racist country. reporter: many say current debates are a far cry from the glory days of 1998, when the french won the world cup with players that came from all corners of the world. despite the

the euro now of as much as 5.7%. euro swiss franc down by 1%. euro down against the u.s. dollar today. some astonishing moves. i could take you through board after board but i have no time. i want to get into the nasdaq. abigail doolittle has the latest live from there in midtown manhattan. avenue: -- it's outpacing the losses on both the dow in the s&p 500. the nasdaq did release a statement around the volatility. "we are monitoring the global market's reaction to the result of the u.k. referendum vote. we will act accordingly to fluctuations in volatility as necessary, maintaining resiliency is at the absolute forefront for us." lots of volatility for the nasdaq. the biggest drags from technology, including apple, microsoft and amazon. asked for the worst percentage performers and the nasdaq we're looking at priceline and american airlines. raymond james says american airlines is most exposed to the uncertainty of the brexit vote. also saying there will be a likely decrease demand in transatlantic travel. as for the nasdaq, today has moved down. it was on pace for its w

near the low of the day with a 1.9% to climb for the euro stoxx 600. anxiety ahead of the upcoming referendum here in 10 days time. investors also sitting on their hands i had of the big from theank meeting federal reserve -- the boj, the bank of japan, the bank of england, and the swiss national bank your it every single fallen today. has the four-day drop, four consecutive days of decline, the biggest since february 11, and those who know their history will remember that february 11 was the day the euro stoxx 600 fell to its two and a half year low. in the currency markets, we see the pound rebound, rising against the dollar for the first day in four. the closes next. ♪ ?c+sv mark: stocks finishing the monday session by 6% down, fourth consecutive day of declines, of course the longest losing stretch of magnitude the biggest with four-day drop since february the 11th, which is when the index fell to its lowest level. you can see very clearly every single industry group fell today, led by banks. investors are anxious ahead of the referendum here in

think the euro sees a lot of upside. the sterling, on a relative value basis, they have their own concerns going forward with an election just a matter of a few weeks away. there could bet, opportunity to pick up volatility-adjusted returns, that 185 market will return. the pound-aussie, that will be an interesting pair. and, the benefit from a leave it thaty is it, why is the japanese yen is a safe haven of choice? why would it not be better to go into the swiss? ken: calling it a safe haven is fair enough, that is a obvious narrative. calling anything japanese is probably a misnomer, that that is why the market is given a run. leave,he u.k. votes to into an of the boj action zone. that may be sterling-driven, it gives them a chance to intervene. and we will get rumors of price checking by the boj. zone, belowto 105 that on a sustained move, you will get serious rumblings, not actual action from the bank of japan. that liquidity in the market will cause problems. alix: and how is pound liquidity right now? ken: nonexist

we have been watching the euro in the wake of that -- the euro versus the u.s. dollar, also taking a leg lower at that point and then bouncing around, down about .5%. we have been looking at the ecb balance sheet as we have been tracking central bank balance sheets and their expansion over the past several years. here you have the ecb -- it looks like we are at record levels with this latest round of quantitative easing. i finally went to get back here to the u.s. and look at the 10-year note as well today. they're -- ashley not just the 10 year-note in the u.s. -- actually, not just the 10-year note in the u.s.. across the board, the exception is the german 10-year, which is unchanged, though the yield is still negative. the swiss 10-year going lower him a further into a negative yield. scarlet: you have bond -- oliver: you have bonds currencies -- what is going on with stocks? julie: cannot forget about stocks. any hint of further central stimulus here in the u.s., or this time in europe, we have seen people come into risk, come into stock. that is the playboo

lauren: the british referendum, will the uk stay in the euro zone or leave the euro zone? the polls close at 5:00 pm eastern time today. we are seeing stocks moving higher which means some people believe they are likely to remain. london footsie up 1.5%, the dax up 2%, the cac quarante in france up to% as well. >> checking how this is affecting stocks at home, the premarket, dow futures higher by 1% at 164 points, the s&p up 20 points and nasdaq futures gaining 48. >> we are watching oil, not quite $50 a barrel but it is up $49.72 a barrel. gold pulling back to dollars at $12.57 of troy ounce. >> us stocks and the pound, the british currency trading and doing so again today, the uk pound ahead of the voting results at 148. a high for the year. the euro is higher against the us dollar. >> today something special, a rare technology, initial public offering at the stock exchange today. developers build applications that can interact with customers through messaging, video or voice. this lets uber passengers call or text their driver by connecting the mobile apps with the mobi