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tv   Countdown  Bloomberg  June 27, 2016 1:00am-2:31am EDT

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anna: no end to the brexit blues. the pound slumps again. a weekend of political turmoil britain without legalists. engulfs the u.k., spain plays it safe and its general election. -- in its general election. we will have the latest from madrid. a very warm welcome, everybody.
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it has just gone 6:00 in the morning this monday. welcome to the program. it has been a very busy weekend. how will that be reflected in the markets? i can give you the early indications. brexit has been hammering the pound, a boost to some safe haven assets. the duplication we saw in markets. we saw the yen and gold moving higher. up the risk rate. seen as we speak, we have further weakening of the pound. 2% on the1.34, down british currency. the gold price 1327.
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let's roll through some other assets. this is the picture, a small bounce in equities. we are up by a quarter of a percent. the frantic selling we saw on friday. more appetite for safe haven assets, a drop in yields. that is being reflected. dollar against the norwegian krone, further falls in the oil price. the norwegian krone one of those performing particularly badly this morning. >> david cameron will address parliament today after a weekend of political turmoil. a third of the opposition
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labor party has quit. it leaves britain facing its biggest crisis in half a century. managing director christine lagarde says the on whathinges policymakers do in the coming days. as markets react, she urged calm. >> things in perspective a little bit. rush of short memories, a to a few conclusions, which is not the best thing to do at the moment. voters backed away from forces inpolitical favor of the people's party.
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china's central bank has weekend the yuan's -- weakeneded the yuan's reference rate. premier told the world economic forum that china wants to see a stable and prosperous u.k. brexit is making headlines in the presidential campaign. hillary clinton rushed out a tv ad attacking donald trump. clintont back, calling disgraceful. global news 24 hours a day powered by over 2600 journalists and analysts.
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you can find more stories on the top go.g week, last friday, many people remember it as a trading day in markets. today looks less of a standout. juliette: that is right. that is thanks to a number of markets doing quite well. the weekend has given investors a little bit of time to take stock. we have seen some buy coming through, particularly japan helped from prime minister of days comments -- prime minister abe's comments over the weekend. also from australia and new zealand and in shanghai.
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energy stocks as china said it would cut coal capacity. we have seen a lot of good work coming through from those markets. it is the emerging markets coming under pressure on this brexit uncertainty. in hong kong, that is the asian market most closely linked to britain. cathay pacific infrastructure, which has a large proportion of clients, down by 5%. if we have a look at the emerging markets index, that is in the red, down by 7/10 of 1%. i mentioned cathay pacific u has fallen. hsbc, the london-based bank,
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coming under some pressure. there is some upside. credits reese says brexit will provide some -- credits reese says brexit -- credit suisse says brexit will provide some buying opportunities in china. some pressure in hong kong and on the emerging markets today. very -- thank you very much. let's get back to the politics. it will be a busy day in berlin for the chancellor. meetingerkel will be the eu president. she holds discussions with friends for whole lot and the italian -- with francoise along hollande and the italian prime minister. good morning.
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everyone is trying to work out if they will be on the same page. caroline: and on the same timing scale. there is an area of focus for angela merkel to get them on the same page. on saturday, we heard from the foreign ministers, her own minister. luxembourg, germany, the netherlands, france all coming together. they want the u.k. to leave us swiftly as possible. france has called for referendums of their own. angela merkel is calling for calm, a calm and measured response. it took to the radio. her chief of staff saying overall, there should be time
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for the u.k. to pause and to even rethink brexit. could he be hunting a second referendum -- good he be possibly hinting a second referendum should be held? from the merkel camp, there is a desire to calm the situation and make sure they progress slowly. she is very aware she has lost a key ally. this is interesting stuff. she will be talking with italy and france. politics are rudderless here. who would negotiate a trial separation, let alone a divorce? what does john kerry expect to accomplish?
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meet the topg to foreign-policy official and then he will go to london and meet the foreign secretary. the message is just that, we simply both, we love you both, we are here to help you through this messy divorce. try to make things better in the process. he is a little bit like a marriage counselor with people going into a divorce but he is not entirely disinterested. the united states has huge interest in the european union and for years and years, it has been able to go to one place to solve those. now there is a different dynamic. he will be studying how the u.s. navigates its foreign-policy. anna: give us a sense of what is at stake. >> what is not at stake? everything from security in europe to the united states concerned about containing
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vladimir putin to the financial markets, john kerry was in rome yesterday talking about the need to stabilize markets. u.s. and thethe european union collectively add up to more than 60% of global gdp. they have been negotiating a free-trade agreement since 2013. not everybody is a fan of free trade on both sides of the atlantic. complicates the negotiation process. it really could be the final nail in the coffin. there is an awful lot for him to get his head around and begin to think about, ok, how can we maneuver through this? anna: thank you both. the leading contender to be the next prime minister force orisson has given his -- b
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given support to mark carney. carney was heavily criticized for the brexit camp on his warnings of economic consequences on a vote to leave. very good to have you on the program this morning. will hear frome george osborne this morning. we have already heard from mark carney. early commentary designed to calm markets, no doubt. people are piling into dollars. investorsindicates to is a key measure of the cost for banks to convert their cash flow into dollars. some of these moves suggest tensions in money markets. is that where we should be looking for signs of stress?
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>> that is the case. this was to be expected. on the other hand, if you , versuscurrent levels where we were during the financial crisis, the moment we knew they were available already. the moment they start to slash costs, that was underpinning the recovery. there are dollar facilities available. we should not be concerned about contagion. anna: one of the benefits of having been through such a dreadful financial crisis. give us a few wise words about what we should expect to see in trading. friday was devastating. many people caught on the wrong side of trade.
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thin.ity could still be concern.s a if you look at the volatility for sterling, even before the a very elevated level. people were anticipating volatility. as the dust settles and we have seen how markets perform, it is not people going pro risk again. we spent the weekend assessing the fallout and right now gauging, not too much more of that in terms of systemic risk. that should allow flow to come back gently. anna: i have a great chart that tells the tale of three shocks. rebound after that earthquake, european crisis, all of the
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rebounds -- you have the nikkei 225 responding to the japanese earthquake. the s&p 500 in blue. all of those recoveries taking months and months. the bank of canada identified slumps and currency. friday, you said everybody spend the weekend reevaluating. >> what is different about this mentioned, as you there seems to be a lack of leadership. ,oth major parties in the u.k. in their own turmoil. that is something that cannot be of the in the situation japanese earthquake and the u.s. situation. we do need to see that leadership coming through now.
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this time around, the u.k. will have to look at the response of europe. anna: thank you very much. the week ahead is looking pretty busy. today sees the start of a three-day ecb form with janet yellen and mario draghi. g-20 energy ministers gather in beijing on wednesday. president speaks in london. it is going to be a busy one. u.k. in with the political and turmoil -- political and economic turmoil, spain plays it safe. we are live in madrid, next. ♪
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anna: welcome back, everybody. hang seng down by half a percent, underperforming the broader picture. the prime minister has consolidated his position in spain's general election. voters backed away from insurgent political forces in favor of the security of the people's party. let's get more with elliott gotkine who was in madrid for us this morning. it forxit when it -- win him? probably too much of an exaggeration to draw a direct
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link. selection asember election asmbers well. shock from thee u.k. vote perhaps wade some of the -- suede some of the undecided. -- swayed some of the undecided. he was given a larger number of seats than last time. last night, he was in celebratory mood. >> well, friends, we have won the election and we will claim govern.t to what we have to do now is to be useful for all of the spaniards. for those who have voted for us and for those who did not. >> he has to try to form a government. anna: that was the most likely
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outcome. what kind of government will he be able to put together? alberto rivera has said he is up for talking to try to form a government. even if they get together, they will be seven seats short of a majority. they might try to reach out to regional parties. they might even try for a minority government. we could see another inconclusive outcome for all of this. it would not be something markets would relish. briefly, we saw spanish impact-- what is the likely to be?
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all, happy that spain's election took place on a sunday when markets were closed. it is still unclear if or how we will get a government, we could be in line for some more volatility before things settle down. anna: thank you very much. let's focus on what is going on in europe. eurozone, ainto the key concern. angela merkel and other voices initially were saying we need to get this done quickly, britain dragging its heels. now the conversation is a little more nuanced on timing. they do not seem to be on the same page. >> that concerns us. i think they have seen the
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market impacts. if you rush into things, there is a higher likelihood that you miss stuff. i think in that sense, they do want to take their time, but not too much time. there is this antiestablishment wave, how much do we need to discount that into the markets? votes andave so many elections to go through. anna: i heard the bank of -- warning about overreacting to the brexit situation. johnson talking about the same thing, not wanting everyone to overreact. do you have any thoughts --
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maybe we did in the short-term, but have people been overreacting? >> it is a bit nuanced. more people do not know how to react. if i take a step back and look analyzesset allocation, the situation, over the change youroes this capital market assumptions? not really at this point. having said that, this wave of populism, this is binary. if we are still underestimating the impact of the populace discount, it is going to be a different story. we have two data points over the
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last 72 hours and we will have many more to come over the next 18 months. a slightly longer story than we anticipated. will we get any action from central bankers to shore up markets? >> i think they have done what they needed to do. some reassurance. much.thank you very referendum fallout. live at the world economic forum. later, the u.k. chancellor will make a statement on the economy following the brexit result. that is at 7:00 u.k. time.
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calm going to be trying to her nerves a little bit this morning -- our nerves a little bit this morning. we will hear what he has to say at 7:00 u.k. time. ♪ get ready for the rio olympic games
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nbcuniversal's coverage of the rio olympic games. call or go online today to switch to x1. >> welcome back. this is "countdown." as you're watching in paris or berlin, let's get to some breaking news from george sew rows. he did warn that we could see the pound fall by 20%. his spokesman is giving some commentary around how it was positioned. i'm sure we'll get some news here in the u.k., and he was known for breaking the bank. peaking cloak wally. se rose did profit from other investments. anyone who said he was talking about his own birk before the
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vote that is the response from the spokesman nosm doubt that conversation will continue. here's rose chen. rose: david cameron will address particlement after a week of political turmoil after the shock to leave the european union. 1/3 of the labor union have quit putting pressure on jeremy corbin to resign. britain is facing its greatest crisis with neither a funkening government nor an opposition. the managing director christine lagarde says the fallout from britain leaving the european on european union says impact hangs on.
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>> it's the wisest thing to do at the moment. solidified afoy has his position. they backed a way from insurgent political forces. with the u.k. engulfed by political and economic uncertainty, rajoy calls no to jeopardize the country's economic recovery. china central bank has reached the u.s. daily reference rate to the lowest in more than five years. it's 0. that's after a gauge during the u.k. referendum division. he said that china wants to see a stable and prosperous u.k. rushed out alinton tv ad attacking donald trump saying a falling pound would benefit him.
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linton accused of being disgraceful. global news 24 hours a day in more than 120 countries. you can find more stories on the bloomberg on topgo. >> let's take a look at how markets are reacting to the fallout from last friday's brecks it result. take us through the details. good morning, anna. we are seeing some risk aversion, still seeing u.k. east assets being hit. the futures are down. that doesn't look like they're down. this after of course we saw it drop as much as 8.7% before retracing as exporters gained. looking at sterling extending declines after friday's record drop. it's still at its lowest level
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.34 on sterling. if we look at it against every other major currency, you can ee it gaining on the nor weian crona. crude sliding towards $47 a barrel with a move away from those risk assets. if i switched this out to see how currencies are performing against the greenback. you can see pretty much back apart from the yen. we are seeing money move into that safe haven. it's closing at $1.9 . it's around $1.01. the rally is not over for the yen some say. we could see it go to .95. what we heard out of japan is finance minister telling reporters that shsoabi has asked for various measures to
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stabilize markets. we are seeing a bit of a rally after their worse drop since 2011 that's largely what's behind the asia pacific index rebounding here. still risk aversion, look at the 10-year treasury yield. this is over two days. it's down six places down. we're at 1.5% approaching a four-year low of 1.4% on friday. we've seen japan's 38 yield fool a record low. stephen major says ultralow rates and yield are here to say. brecks it is little more than a side show. anna? anna: thank you very much. gold investors got it right when it came to talking about brexit. yusef. me about gold ben ben: gold is back in place especially after the price move,
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the largest pretty much or one of the largest of any major asset class and that continuing of 10%.ning up to .18 this has been an ongoing theme as far as capital >>ing towards safe haven e.t.f.'s with their record holdings as well. the hedge fund poured more money into net longs just two days before the united kingdom took the decision to leave the european union. let's put this on the chart to get a better sense of how this all looks like. take a look at the spike. that's a .7% increase. weekending june 21. 256,998. e of still a lot of movement the safe haven trade. a bloomberg survey suggesting a
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price increase of another 7.7%. so metal continues to be in focus. we'll see how it evolves from here. anna? na: according to chinese premier. speaking in the country he said the country should corporate both politically and demickically. >> china hopes to see a united steady european union as well as a steady and prosperous united kingdom. leave the can exit -- world economy to promote itself. >> stephen, good to see you on the program. how concerned should china be about any kind of brecks it fallout? -- brexit fallout?
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>> absolutely. china does not like those external shocks that got us to the financial prices and has got us on the fed on a tighten bias. they've been investing heavily over the last year or so. they had the high profile by the president in october where the two leaders david cameron called it a golden era of relations and ping said the two countries are becoming increasingly i and there was $30 billion of deals announced. china's been investing heavily into the u.k. turning london into a remdi act n shore center as kind of a konadu wit as a continue of europe but that's been thrown a bit into question and that's what's been on the mind of government leaders here at what they call the summer davos here at the world economic forum. and i've heard him speak so many
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times. he always does the same pattern. there are challenges which you said. there are more uncertainties with the brexi texas but he reassured that china has the tools to weather the storm and their fiscal policy tools are still in play as to whether any external shocks and that's baseedly high message. medium to high growth rate are expected. >> i was interested yesterday, i saw some comments from one advisor talking about how the big risk would be if we saw any kind of reversal in globalization. i guess that's a big picture question. brexit turmoil purring the yuan since last summer's devaluation. it does have a real in the arket implication for china. stephen: absolutely. you know, china wants or says it wants its currency and its economy to be more market based. it's going to be at the mercy at
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these kind of shocks. you mentioned globalization. who benefited the most in globalization? it's china. china has been the beneficiary. but they values to face the risk that come with this. at the same time i also spoke with eugene chen he's the u.b.s. of china head here. the markets are overreacting right now. we need to take a pause a bit. and keep in mind, yes, they reduced the fixing rate by .9 of 1% since the devaluation in august. but if the u.s. fed does not raise rates even cuts rates that's going to be down the road probably leave the dollar weak ness and that could nuclear weapon the yuan flight from china. so we have to look longer terms says eugene chen of u.b.s. . na: stephen engel joining us
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you of u.b.s. let's talk about these broader asian implications of this brexit vote. uncertainties increase in china because of this brexit. but we're hearing this from many in the moment. >> it's on globalization and being unwound and you're seeing it, is it an indication of that even though the elite camp have been saying the u.k. wants to trade even more with the rest of the world. but having said that if qu look at the political record on both sides, i might add never seems to be any hesitation towards -- pushing for new cravels and that stands to hurt asia. on the policy side especial si -- f.x. exmple side, side, they need to manage it. can't the same time they let that become a flood of leaving. anna cl within ve to see if the
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anti-globalization rhetoric plays part in it. now we have johnson writing i cannot stress too much that europe has always been part of europe. he still wants us to trade. it's impossible to know how much globalization is going to be affected by this, isn't it? >> indeed and the hope is that the u.k. can still be at the forefront in pushing for free trade. that's been the tradition because of the trading nation and many allies in that sense on the continent as well say holland, sweden, countries reich that. i think they will be willing to press for terms less onerous on the u.k. even if they face uprisings or being challenged happen to front as well. but i think the bigger challenge is these big block trade deals what happens to them if that's unwound. that's a markdown potential
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growth globally. >> many were saying even if it was going on, they were certainly saying that this wasn't about stopping trade. they were saying this is about being able to trade more with other people calling the e.u. a protectionist block. who stands to lose more? we had governor lee saying that he sees negative impact from a brexit but he said they will take steps to minimize their impact. where is it affected? >> people are looking at japan not because of they direct u.k. exposures but because of their risk aversion right. we are way off, way, way off japanese and assumptions right now based on the survey. that's going to be an earnings and as well and also some expectations. then the risk is going to be if japan starts to push on the currency will others follow? another indication, korea follows than we start to get
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rumblings of war, i think that's the bottom line there. oddly enough i think korea is the first country to mention a free trade agreement. anna: yes, they did yesterday. their agreement is turned auspices of the e.u. one would be required. >> a draft is in the pipeline as well. you see these come true. you see these emerging country. you can debate whether korea falls in that buck. they benefit the most from globalization. they are keenest in trying to avoid the impact of a deglobalization. if the u.k. can rush to find allies in emerging marks and to push for free trade deals there. may be a half decent way out of this. >> he would pick the dollar over gold as a haven at this time. what do we think in terms of picking with these haven flows, where would with be picking? >> when markets were prices
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gain, i think that sensitivity is more in the fact that they criticized gold not yielding anything. if you look at all the major safe havens, you're not getting anything from that that has taken way of up with of the paths but all the money is in e.t.f. as mentioned just now. i think the risk preference may be much higher. anna: geffry yue with us. up next, the u.s. secretary of state heads to brussls and itndon in the wake of the brex vote. the u.k. chancellor will make comments. that's at 7:00 u.k. time. we'll bring you that live here on bloomberg television.
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anna: welcome back.
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a live shot of new york this morning. 1:48 in new york. the futures suggesting it will be weaker but nothing like we saw on friday. thank goodness. the brexit continues to reverberate across the u.k. and europe. after a weekend of political turmoil, david cameron is due to address particlement. while in brussels talks will be held. brian will be speaking to an m.e.p. brian? brian: that's right, anna. i'm joined by the speaker of the green block very kindly joining me on this very rainy brussels morning. tomorrow they will vote on a resolution to demand the u.k. and invoke article 50. can you do that? >> well, we can demand the 12. they do what they want.
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it's u.k.'s sovereign decision to decide whether or not. they follow on the referendum by asking to leave. >> would you like them to invoke article 50 on tuesday? >> well, actually i thought over it -- the weekend. this is such a momentous decision that maybe they will want to consider it all aspects of it before make it. it's called the parliament and the government to make that decision. now the resignation of david cameron is creating space for reflection. i think that it will be wise to take this time reflect before putting the demand to the european union. >> a little change of heart. >> it's a change of heart. you know, i've always been in favor of keeping the united nations within the european union. i'm not part of the people who say good riddance. many battles -- i stood on the same side as the united kingdom
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much noteingly on the financial side. i don't want to thereon a german dominated europe. i very much appreciate germany but this is one way to look at hings amongst in others. the anglo-saxon bring a loss to that. david cameron has resigned. how much of -- >> not sure it creates a big vacuum. it suppresses one conflict of interest because i feel the united king dom has decided whether it stays or leaves and then it creates a conflict of interest because the city of london remains the number one center not just in the european union. but anyway to be frank, the administration will carry on, dom bross i can is take --
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dombrowski is taking over. i'm not too concerned about that. >> how would you rate the president of the european union on brexit? do you think he should step down? >> there's so many reasons on his behavior on brexit. to be honest when i say he's not acted seriously on fighting tax evasion and he's been the argument of making luxembourg a big tax haven. i would look at to ask for his resignation. the commission was sentenced for the commission for not acting on destruct ors. they're supposed to be the treaty. the commission decided to ignore european legislation which forced it to ban a number of substances. so frankly speaking on such kind of topics yonker has not been stellar. >> do you think he should go?
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are we're getting to a point where the person is not in a position to carry on. but again for many other reasons -- >> many other people would argue that we have a complex for negotiation. >> that tease moment to do it. but frankly speak i do not see the thrape we need. >> what kind of relationship should the u.k. not as you're kind of hoping remain in the european union? do you think it's possible for the u.k. between the e.u. -- >> anyway, we will need to have a good relation. you know the united nations is away from >> so how can britain keep access to the single market and not allow the free movement of labor and people? >> you condition have both. you have to choose. >> that couldn't be a custom deal? >> no, and frankly speaking this would be a part where would not
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compromise. there are rules. if they want to have full access there are rules. they need to apply for european legislation while no longer sitting a the table which is not a very good position to be in. >> so if the u.k. wants to be part of the single market, it has to do the norwegian model? >> absolutely. absolutely. >> what kind of e.u. do you any we're going to see emerge over the next weeks and months? >> to be honest, i didn't hear many signals indicating that there will be a major political course. so i guess until then we will not see major changes, to be honest what i believe we need in terms of reinvention is the institutional side rather than the political orientation of the european union. i think it's mostly the policies that may grow the skepticism grow in europe.
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it's the political choices that i made. it forces flexibility of the lay por markets and that kind of things create it that way. >> co-president of the green tpwhrock the european parliament. they meet tomorrow as well as all of the heads of state of the 28 e.u. countries right here in brussels. back to you, anna. anna: my favorite from fill leap lamb ber who said the u.k. is 45 afwray the continents and he won't move it away. even said it in inches which is interesting. the talk of the s&p and what they can do in scotland to stop brexit from taking place. let's talk about new elections and could parties stand on this e.u. issue without a ruled referendum? this is very complex stuff, isn't it, constitutionally? >> it is. >> this week what kind of
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exception is cameron going to have when he meets his pierce if they don't like this kind of uncertainty. so no matter what decision you make let's make a decision and move on because they're dragging things on like. this it hurries investment into the u.k. more. because businesses if they don't know what's going to happen up ahead they prefer to not do ything or seek new destination. anna: what are we looking for in a slowdown in the u.k. economy? >> it's hard to tell. because other things are starting to come off. this is going to be key in determinesing what the outcome is going to be. so we'll see what the inflation report holds. from p next, we'll hear george osbourne who is making a statement on financial and economic stable following the brexit result. we'll bring you it to you live.
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this is the podium where he will stand. what kind of calming words would you be giving? >> he was missing in action. we'll here from him this morning.
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anna: no tend to the brexit bluse. the pound decrease again. the aftershocks continue. a weekend of political turmoil eads britain looking leaderless. we'll hear from david cameron later and george osbourne any minute now. and there's uncertainty. the u.k. place it safe in the general election. we'll have the latest live from madrid.
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anna: welcome back here to "countdown." it's just c57. wait -- 7:00 for george to speak. as soon as he takes to the podium, hile give us his assessment to the brexit referendum. let's look at the futures -- remember we saw big losses across european equity market on friday in and we got the futures open. so many of these world markets and looks like it will be down by 1.6%. that's what the futures are suggesting. i expect it to be down by more than 1% the overall move in the euro starts to look of a move of around 1/2%. we've seen it move into gold and move away from the pound not to the same degree. and another 2% weaker for the u.k. currency.
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many going into to gold. it's a move of 9/10 of a%. let's walk through to our other risk radar and tell you why he is on system o these conferences as we look at what to wear. it goes next politically and what that means for mark. overnight, by 7%. there's a big diver+++
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maybe a little of a poor. -- waiting to see how things here u move in europe. 47-57. we've got the u.s. dollar against if nore wee cronner. in some of the higher yields in currencies and other some of the oil related currencies. which we're just trying to check where we are. we are at -- on w.t.i. one sent of a protection. and nevertheless daddy's moving things around a little bit there. we've got george osbourne, we're waiting for him the u.k. chancellor will be speaking this morning offering some soothing words perhaps to investors since that brexit result. >> he hasn't spoken over the weekend. >> twitter was alive as to when he was going to start speaking. we know he will be speaking in a few minutes' time. we've got those shots for you. getting some comments getting through from easy jet this morning at which we should get those two in case of interest. talking about the disruption in the third quarter will impact that on their business. some drop off in consumer demand. they see an increase of the traffic about 28 pounds. 1,061 cancellations in the third quarter. from easy jet. we'll see if they have a further date as we go. let's get to the bloomberg news
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now. >> you're waiting for george osborne to speak. david cameron after a weak of political turmoil. after the shock -- meanwhile around 1/3 of the parties have quit putting pressure on the leader jeremy corbin to decide. >> they're facing their greatest crisis with neither an opposing government to opposition. >> he says the fallout hiverages on what posey will do. >> to put things in perspective a little bit because there's a lot of either short memories or rushed to a few conclusions hich i think is not the wisest thing to do at the moment.
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>> prime minister mariano la ghway has consolidated his election. in favor of the relative security of the people's party. with the u.k. engulfed by political and economic uncertainty, she spoke it because of the country's rechina's central bank has the lowest in more than 50 years. the most since last august evaluation. following the u.k. decision. general ere league and that china is able to see a prossprouse campaign. they rush adds the tv attacking do new hampshire trump. trump hits back calling her diss
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graceful. on brexit with big dollar ads. global news 24 hours addai. powered by 26 journalists. you can find more stories on the bloomberg. anna? anna: thank you very much rezz we've seen the volatility. viva is saying that the recent market volatility, no secret impact on the economy will continue to monitor implications f the vote to leave. this is a housing -- a state agency business as we call it here. they're talking about challenging conditions to continue for the remainder of the year. they're taurr talking about how bricks it will prolong uncertainty in the mark mark. it's now expecting to be low. so looks like they're bringing
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down the expectation of the performance will be. they're saying first off of the margin down in the region of 20% challenging conditions to continue for the remainder of the year. they expected a second half upturn. but that's now unlikely. -- let's ope will check on the live market. juliette salary has a life update. >> it's interesting what you're saying with aviva. they're talking about how they think they're going to be positioned by the fallout from brexit. and it's been a really positive fish in japan. so on the weekend, we'll do what it can and they will provide liquidity into the market. after that more than 7% fall that we saw on friday. the worse in five years. we have said a rot lot more
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coming through. morgan stanley saying that this was just a correction what we saw on friday and investors have taken stop over the weekend. you can say similarly in australia, it's been a fellow fish and also in shanghai. i are and also the fact that china cut custody. a number of those hitting that 10% daily limit. we have seen the fallout caused by the briss it. also hearing hong kong bhaws that's the asian market most closely in sbrin. so we have to stay in downtown pacific. she will call holdings count load by 2.4%. there has bhn an on soid on this news out of china. we've seen in japan, solid games. the any ke closing just now at
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the best levels in two months since april 21st. and you can see a lot of money going into those defensive players like healthcare and also telecoms. d looking ate the -- down by 144.10 of one person. they responded to that surge by wakening its currency fixing from the lowest since we see the summer roud of 20 show. and the japanese yen if you till see a few clocks. 101 came very close to getting out out of that level. thank you. >> anna: it's going to be a busy day for berlin. holds . president also her discussion and the italian
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prime minister. caroline hyde. goods morning, again, isn't it ready to have the best things. and remaining didn't see the remaining members. growing divisions within journey. >> they will continue the rest of her partners to just slow down, the call to be measured is what theafs racing. we had of course, from other own . for martin short. not of her party but till they been talking about the need for speed to get david cameron to start hanging over the rains of tomb. to get the process going. on the flip side i want to buy time and we haven't heard from her. .n fact, he's -- the past has talking about perhaps even
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allowing you the u.k. rethink he brexit that he mentioned. a new nip. >> is he banking is na what peed of. seems as though there's a definite cause for calm and a little bit of pace to come into this and enjoy the eags. >> we've gotten 3:00 local times that's 2:00 u.k. time. mer cal meek with. the press around allowed to that. you were tired. merkel will be sitting with the head of france from italy to discuss what they can do together. let me form lay a plan before they go over to. she's going to be wanting particularly from france a conviction that they can slow down and not just drive this divorce that much quicker.
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i was worried that we will not see dock noment'ser fefpblgt what's so spresting. thraffs main event going on in germ nem today. . they're talking about having more your mean. not in is chief of stuff my first german is translates. no, your more excited than ever. anna, back to you. anna: osbourne. >> the u.k. chancellor speaking this morning. david cameron: today i want to reassure the britain people and the global community, the britain is ready to con tpwhroopt the future holds from us from a position of strength. but it's because in the last six years have worked hard to rebuild the british.
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he has the strongest major vansd economy. grow has been robust. employment rate is at a tetch. >> 10 times what they were tafpblet budgets definite has been brought down from 11% to our national income and was forecast be below 3% this year. er say said we had to fix the roof so that we were prepared for chaver the shuche held. >> and thanks goodness we did. >> as result. our economy is about as strong as it could be to come front the calling -- what country now faces? >> and that challenge is clear. on thursday, the people of the you nited kingdom voted to leigh the european union. >> that is not the outcome that i wanted or that i through everything for -- but he agreed
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there are issues. they cannot slowly be left with politician and will represent thive in a referendum. and now that the supreme spoken, we in this democracy must always expect that result and to deliver on that instructions. >> i don't resile from any of the concerns. i agreed during the campaign. bullies. y expect the i will make everything that i can do make it work. >> -- the britain's economy is going to have to adjust to the nut situations. we find ourselves in. sbfment three particular chags were identified and i want to say how we meet all three.
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first there's the volatility in financial markets. those would have been reflected. but the treasury, the bank of english elect and the financial shorts have spend the last few months putting in plapes. to the mediate financial hard walk in the result of this. we and the p.r.a. have worked with each major. to make sure they were ready to deal with the consequences if they vote to leave. swap lines were advantaged in wap leans. . as part of those plans the bank and we agreed that there will be an immediate statement on friday morning from the governor mark carney. as mark made clear the bank of england stands ready to provide $250 pull bounds of thumbs.
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to continue to support banks and the smooth funking of markets. and we asked a coordinated response with other major economies with the finance minister's central bank governors of the g-7. the gor november and i have been in regular touch. over the weekend. i can say that we have furrer well not threw con ten general see plans if they need it. >> where that droup central bank government nors the managing director of the i.m.f., the u.s. secretary secretary and the speaker of the u.s. congress as well as the c.e.o's soft some of the major financial institution so that collectively we keep a close eye on development. it will not be playing sailing in the days ahead. but let me be clear, you should not understatement our result. we were prepared and we are
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equipped for whatever happens. and we are determined that unlike eight years ago britain's financial system will help our country deal with any shocks and damn them not contribute to those shocks or make them worst. there was this uncertainty that a vote to leave would be in the common months. to create a new relationship . the prime minister has given us time as a country to decide what that relationship should be by delaying the decision to trigger e article 50 procedure until there is's a new prime minister in place. only the u.k. can trigger article 50. and in my judgment we should only do that if there's khali e clear view about which ones we're seeking with our european
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neighbors. during the negotiations that we'll follow, there will be no change to people's rights, to travel and work. it's the way all goods and services are traded. so the way our economy and financial system is regulated. however, it is already evidence that as a result of thursday's decision some firms are continuing to pause their decisions to informs or to hire people. as i said before the referendum. this will have an impact on the economy. i will need o to have tooks address that. given the delay and triggering oscar 50 to hand over to a successor. it is sensible the decisions should -- wait. and so the new frimse be in place. but no one should doubt all resolve to maintain fiscal stability. we have discovered for this country. and two, companies, large and
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small, i would say this. the bridge economy are strong and highly competitive and we are open for business. the third and final challenge i spoke of was that with insuring that britain would have a long-term economic relationship with all of europe that provide for the best possible terms of trade and goods and services. >> to me there was the concert e servity party will have to determine what those terms should be and we'll have to negotiate with our european friends and allies. i intend to play an active part in that debate for awant this great trading nation of ours. puts in place, the strongest possibly economic lengths with our european neighbors. and our employee like china and india. >> do i not want presents. to turn its back on europe or on
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the rest of the world. we must bring unity of spirit and focus and condemn hatred and division wherever we see it. >> brink britain is a patient country. and will fight the way that i had completely sewed. >> we bring stability and reassurance. there have been questions about the future of the republican party. and i will address my role in conclusion, the british people have given us a set of instructions. there's much to do to make it work. we start from a position of hard one strength. my colleagues and i have determined to do our best for britain. thank you. i think it's time for a few questions. >> chancellor, you said before the referendum that if britain
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voted to leave the european union, you would have to put in place an emergency budget within two months. are you still planning that? and also can you tell us a little bit about your position. did you consider resigning and if not, why not? david cameron, first of all, i've got a very important job to do which as chancellor i speak to my counterparts, to do what i can to stabilize the british economy. that's what people would expect of their chancellor. and that's what i'm focused on and will continue to focus on in the weekends ahead. there will be an adjustment. i respect thater decision and we're going to get on and deliver on that precision. but that impact on our economy will have an it. packet on our public finances given the delay in triggering article 50, given the decision by the prime minister to hand over to a successor, i think
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it's perfectly sensible to wait for another prime minister before we determine what that action is. another question. joel? joel: you steam be suggesting there will not be an emergency budget. let me be clear on that. >> i'm saying they will have to deal with tim packet on the public finances but it's perfectly sensible to wait to determine -- >> you said a vote would be ir verseable and would demand an immediate sponts from government. you're voting to delay the response. what you've seen is an immediate response in terms of the inancial contingency fans. liquidsc being available. working with the partners and to
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provide about the financial strength but the global financial system. of course, the economy is going adjust. and there will be an impact on the public finances. that's what i said before the referendum. i said that there would have to be action in the autumn to address that. i think it's sensual to wait until we have a new prime minister. >> let's take another question. >> thank you. you said before the referendum that there was going to be your session if we voted to leave the e.u. do you stand by that? do you think we are now at the start of that recession. and secondly would you serve in a government committed to leaving the e.u.? >> well, look, let me take the first question. i made a series of predictions or rather they made trades and predictions about the impact to
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move. if we voted to leave the e.u. and of course there was a range of impacts depending on the new relationship that we arrive at with the e.u. but all of this required an adjustment the economy. >> i made that. and he came up with another similar conclusions. as i said i don't resolve from that but i'm going to work very hard to make sure we miss the impact. remained people of the fundamental mistakes. as far as my pgsgosmse i've got some incredibly important. as the child gets sick of. let me provide some of these in your in. >> it's my country right or wrong. and i intend to fulfill my responsibilities to the country. >> let's take cree.
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>> chris johnson. >> who are thinking of delaying spending. hat would you say to this -- them. but the british people needs to know is that fundamental of the british economy are strong. we've spent the last 10 years so that britain is prepared for whatever is thrown at it. >> there will be because of the decision we've taken. but we will get on and implement that on the decision, demically arrives in our country. but we do have one of the strongest economy in the word. .ut we have repared i'm where we are of record 'em ploit. >>. we have dealt wick. not expecting trote. details the contingency fails.
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i think we are well placed to meet that adjustment and our message to businesses large and small is very simple. britain is open for business. thank you very much. anna: just finishing his speak there at the treasury. talking this morning about the preparations that have been made for financial instability. he said theave been talking in the fdbd. they've made contingency. we spoke about the volatility. only the u.k. can trigger that, of course, he says. he also went on to talk about mow he sees the u.k. economy as strong and competitive and. he wants to take e.u. he'll talk about the future coming in the london ways. they will be weaker at.
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down by 1%. down by more than 1%. er.haps on the 1,34 we'll see what they have in store for us. i'll see you later.
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>> from san francisco and silicon valley, we are following the story that is changing everything. talking to the people today, you will become about tomorrow. and tackling the tech industry's
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biggest debate. you guy's be good. i'll see you later [ bark ] [ bark ] bye. see ya pal. ever wonder what your pets do when you leave home? [ laughing ] aw you cutie pie. aw. aw. aw. aw. [ barking ] [ washing machine running ] party's on! know what your pets are up to with xfinity home. xfinity. the future of awesome. see the secret life of pets, in theaters july 8th.
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♪ >> welcome. county you down to the european equity market open. guy: i am guy johnson. george osborne has broken his silence. he says it can only be triggered when u.k. has a clear view of what it wants. the pound continues to plummet. are the markets overreacting to the brexit aftermath? spain plays it safe. was it the brit


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