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tv   Bloomberg Markets  Bloomberg  June 27, 2016 2:00pm-3:01pm EDT

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markets." >> let's continue our special coverage of the briggs -- brexit vote. matt: i am matt miller live from london and we have breaking news at this hour. the u.k. 's debt rating has just been cut from aaa to aa. >> that's by standard and poor's, and it's very interesting. some comments saying perhaps gilts would rally if something like this were to happen. david: here's what we are following at this hour. markets falling after the shocking vote. we look at potential buying opportunities after the dust settles. vonnie: the s&p has cut the u.k. bond rating from aaa to aa after the brexit vote.
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fromveraging 1% a year 2016 to 2019, a drop from the april forecast. map: david cameron parliament rejecting calls for a do over referendum, saying britain is ready to confront the future from a position of strength. all this as the pound sinks to its lowest level in more than 30 years. markets closing in about two hours, and let's go to the markets desk were ramy inocencio has a look at the latest. ramy: we are heading to session lows just a couple points off the lows we saw a earlier. take a look at the snapshot, the board. the nasdaq is the biggest laggard, down 2.4%, but the dow and s&p 500 also compounding the in we saw on brexit day one, the aftermath on friday. not just today, but in the past two days, we are on track for
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the biggest two day fall since the flash crash in august 2015. in terms of sector laggards, these three here are the biggest by sector. the s&p material sector, down 3.7% here. so far, it has lost $10 billion to us today, and on track for its lowest close in the past four and a half months. s&p energy sector down 3% as well, and the s&p 500 down 2.5%, all seeing their biggest drop in the past two to four months. specifically with materials, it is down the most in the last two days since september 2011, when operation twist was started. taking a look at what's happening in other sectors. dow jones transportation average down 3% year. s&p 400 mid-caps and small caps accelerating losses.
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the mid-caps lost $35 billion today, and the small caps lost $15 billion today, with the mid capstan 2.7%. genworth financial's is the biggest loser, down 14%. with the small-cap, ever core down 12% right now. chemicals also falling on the day. not so much%, because of brexit, but because of one rbc analyst downgrading the stock to perform from outperform, saying there's a lack of near term catalysts and a large wave of ethylene coming on. dow chemical and dupont also fallen on the order of 3% to 4%. and the red does not stop there. oil is down near or at session lows last time i checked. off the back of that, murphy oil is down 9%. marathon oil 10%. 8.3%.eake energy,
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i just did some calculations. these three companies alone have lost $3 billion. vonnie: today, the, still financials making big news. ramy: the large-cap banks. bank of america 10 6% here just today, a loss of $8 billion. jpmorgan, 3.3% down, a $7 billion loss. citigroup down 4%, a loss of $5 billion. in the last six hours of trading, they lost a total of $20 billion. let's look at money managers, how they are performing. lost in the last several hours. invesco down 9%. david, vonnie, back to you. david: let's get a check of the bloomberg first word news. mark crumpton has that --
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mark: the first supreme court decision on abortion in almost a decade, striking down a texas law that threaten to close three quarters of the state's abortion facilities, 5-3. texas lawyers said that the laws were designed to protect patients, and the court said they were designed to limit abortion. a ruling makes it harder to prosecute elected officials accused of bribery -- bob mcdonnell was found guilty in 2014 of accepting more than $500,000 of gifts and loans from a wealthy businessman in exchange for promoting a dietary supplement. democrats in the house criticized the republican-led panel investigating the obama administration 's response to the 2012 attacks in benghazi.
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they said the military could not have done anything differently on the night of the attacks to save the lives of fortune -- four americans killed that night, including, ambassador chris stevens. donald trump said then-secretary of state hillary clinton holds blame for those attacks. former secretary of state madeleine albright says she's not sure the british people understood what they were voting for when they voted to exit the european union, but she told bloomberg television at least one world leader is happy with the outcome, russian president vladimir putin. putin is very pleased with what happened with brexit. one of his agenda items has been to cause disruption in the european union, to make sure it splits apart, so the important part is how nato will continue to function together and also what signals there are for the eu generally. mark: secretary albright called
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the current wave of nationalism in europe "dangerous," and says the same trend brought about world wars one and two. global news 24 hours a day, in more than 120 countries. this is bloomberg. back to you. matt: a dramatic say in the u.k. parliament as david cameron addressed and debated lawmakers, rejecting calls for another brexit vote despite the dramatic market reaction around the globe. mr. cameron: turning to our economy, it's clear markets are volatile, some companies are considering their investments, and we know this will be far wem plain sailing, but should take confidence from the fact britain is ready to confront what the future holds for us from a position of strength. matt: mark joins us now from westminster. let me ask you about the
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breaking news we got, on the long-term credit rating of, sovereign credit rating of the u.k., cut by standard & poor's from aaa to aa. how do you expect lawmakers to react? , it's not a surprise, to be honest. we spoke to a guest from s&p on friday, and he put the u.k. on notice, pretty much warning we would get this cut. put it in perspective. the s&p rating is now aa, in line with moody's. the outlook is negative. moody's is negative. it's not a surprise. moritz kramer told us on friday, it was a binary decision. vote in, the rating stays, vote out, the rating gets cut. that's what we were told. interesting, that from david cameron. enterered harris -- this period of economic uncertainty from a point of strength. we record unemployment, and the
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budget deficit has shrunk as well, to 3% this year. banks every capitalized themselves, and inflation has come down, and there's contingency plans. david cameron, the prime minister, who has not been seen since friday, said the u.k. is entering this uncertainty from a position of strength, but that is not strong enough to persuade s&p global ratings from cutting the rating. yield the 10-year fell below 1% to a record low. we did hear something from top levels of the executive in london, all about damage limitation. did it limit any damage? look at didn't, because
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the markets. sterling down 11% in a couple days, a record two-day decline. good to see george osborne this morning, speaking before the markets. but the chancellor had been mia since thursday. people worried there was no government. we had not seen cameron, had not seen osborne as well, but he gave a speech to reassure markets, telling us about strong fundamentals and said, you should not underestimate our resolve to limit adjustments in the economy, and he pledged, to do everything i can to make the new order work, and said contingency plans are in place to smooth the transition if needed, and said they are working closely with the bank of england and financial ministers in europe and the u.s. treasury financial soothe markets. sterling plunged, bond yields plunged, and stocks plunged around the world. matt: coming up on bloomberg
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market, the -- from the markets, the brexit impact on stocks. analyst paul christopher joins us, and he says he sees several opportunities amid the downgrade. ♪
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♪ matt: this is "bloomberg markets." i'm matt miller. david: the aftershocks of the european referendum vote continue to recap across -- wreak havoc--- across markets. paul joseph joins us from st.
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louis. you said in your note you got this one wrong. so many people did. how did everyone get this wrong? paul: we assumed everyone would get into the voting booths and decide they know the -- they like the devil they know better than the devil they don't know. there's a history of that in exit referenda, going back to quebec in 1980, so we got this one wrong, and so did the markets. vonnie: do we look at a recession over the next couple quarters in the u.k.? paul: there's a good chance of that over the next year to 18 months. you heard the minister of finance and the prime minister talking about a position of strength. i'm not sure there is a position of strength. cyclically, for the u.k., the rating agencies tend to agree with that. matt: which stocks do you think, or which industries, could benefit from this? because surely there are some things that, for example,, the fishing industries on the
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coastal areas of the u.k. has been hampered by eu regulations for decades, and they will bounce back. anything else like that, that an international investor could take advantage of? paul: eventually, and it's not going to be right now, because there's just too much uncertainty about how the british government will deal with this going forward. who will negotiate for them, and how will they manage the economy ? those are two very big uncertainties, but eventually, industries affected by regulation, including possibly finance, could do well in a new order in britain as we get clear of some of the regulations. fishing, some more domestic industries, would be included in that. matt: when do we get more clarity on what this means in terms of monetary policy? we will see the yield curve flattened further. difficult to call it a curve anymore. intowe get more insight what monitor policy will be going forward? paul: this is a key question. we have yet to hear from the fed, or from the bank of england
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. we have yet to hear from the ecb. we will hear from them in the coming days. of course, the government of japan is sounding more like it is inclined to intervention. what we need to see in the markets, what the markets need to see from central banks around the world is additional liquidity2 support and moves to help or eliminate divergence between monetary policies. in other words, the markets don't want to see one country tightening and the other countries easing at the same time. that will create an imbalance in the currencies and drive one as opposed to the other. vonnie: what happens to the global banking? system i'm looking at -- the global banking system? i'm looking at cris in the bloomberg terminal. with banks, what happens to the banking industry globally? paul: the banking industry has to deal with two different hits from this referendum result.
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tes andterest ra yields will be very low. yield curves don't even look like curves anymore, which will hurt net interest margins at a lot of global banks. that's one problem. another problem, will banks move from london and head to frankfurt? right now in the markets, there is a tendency to believe that is the case. are not necessarily sure we will see that over the longer term. britain has a much more business-favorable regulatory environment and on the continent. just think about labor laws, for instance. is a bank in london going to force everyone to move to or fire those people and rehire them on the continent? that's going to be a difficult cost question or problem for those banks to deal with, so i'm not convinced we get a lot of banks leaving great britain at this particular point in time, but those are the two issues that global banks will struggle with in the coming days and
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weeks until we get a little more clarity on how the negotiations will proceed. matt: how much of banking really is global these days, paul? if i am an investor in paris, can i not use wells fargo to manage my funds? cannot borrow from a bank based in the u.s. or the u.k. or france? how much of a difference as a manic -- how much of a difference does it make? paul: you can, of course. people field tied -- feel tied to banks that are close to them. so if you have the prospect of some banks moving to get over the regulatory wall, or the regular tour channel, if you like -- regulatory channel, if you like, that has to be settled by negotiations. david: in the wake of all this, where do you see opportunities in currencies? paul: you will see the pound
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continue to decline, we think, until we get more clarity out of the british government on those two key questions. who and how will they deal with the europeans going forward, and secondly how will the british government sustain and support the british economy going forward? those of the key questions for the pound. as long as those remain open questions, you could see the pound continuing to fall and the euro down a little with it and the yen continue to rally, so there will be opportunities to buy in some perceived risk havens like swissie and yen. vonnie: coming up, more on the s&p rating cut for the u.k..
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matt: you are watching bloomberg. vonnie: this is your global business report. david: here's what we are
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watching. medtronic agrees to buy heartw ear international for $50 a share. vonnie: the european union taking steps that could lead to a third antitrust complaint against google, this time over lucrative advertising services. david: starbucks planning to expand in india. the world's largest coffee chain currently has fewer than 100 cafes in the world's second-most populous country. formal federal reserve chairman alan crees an -- alan greenspans speaking out about the brexit vote at a forum in washington, d c >> they made a terrible mistake. they presumed, if they had the referendum, it would be a closed issue very quickly, and the political problems they had internally as a consequence, of the minority, they thought, would be pushed aside.
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they were mistaken. the prime minister has lost his job. the cabinet will lose their job. outcome, in all respects. vonnie: greenspan also says he things fundamentally the european union is a good idea. medical device maker medtronic is buying hardware international -- heartware international. medtronic will get technology to treat heart failure patients. the european union may be on the verge of launching a third antitrust complaint against google. at latest probe focuses on google's targeted advertising purpose -- service, adwords. starbucks is looking to grow in india. the coffee chain plans a major expansion there as the u.s. becomes increasingly saturated with starbucks cafes. they will also start selling
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indian coffee at seattle locations, the first single origin coffee out of india. india has been starbucks's fastest-growing market since they opened there in 2012. david:, a bloomberg quick take providing context on issues of interest. subsidized oil has long propped up venezuela's influence abroad and government at home. the latest corruption and widespread violent crime has put the late hugo chavez's legacy at risk. lawmakers and president nicolas maduro are in a struggle for power. onetition to force a vote recalling maduro has faced challenges from the electoral council. the economy, expected to, shrink a third-year has fueled opposition. accounts foroil 97% of foreign-currency earnings. with the country short on cash,
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citizens wait in long lines to find scarce household items like deodorant and toilet paper. the imf predicts prices will surge 484.5% this year, and economists question whether venezuela will be able to pay the $13 billion due this year on foreign debt. shove as was elected president in 1998 and revolutionized -- elected president in 1998 and revolutionized politics with fiery anti-u.s. rhetoric, nationalizing companies and reducing capacity to produce anything but oil. he frequently pulled about 50% and won reelection three times. maduro has struggled for popularity. his critics argue he is so thoroughly bumbling management of the country, it's time for him to leave office. though skeptical of the opposition point that it is made up of a dozen parties that ran from marxist to center-right, with nose in the plan or leader, nor do they have a mandate to chavismo revolution.
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for more, visit vonnie: still ahead, we speak with former u.s. ambassador to turkey marc trestman about the -- marc grossman about the negotiations that lie ahead. and, s&p has cut the u.k.'s credit rating from aaa to aa following the brexit vote. and commodity markets will be closing. here are crude oil prices today.
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matt: live from london and new york, this is "bloomberg markets ," with continuing coverage of the u.k.'s vote to leave the
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european union. vonnie: i am vonnie quinn. david: i am david gura. vonnie: we will speak about the biggest story of the day, the s&p cutting the u.k.'s top credit writing -- rating by two notches. david: from aaa to aa. matt, you are in london. talk about the ramifications of how that ripples out in the united kingdom. matt: as mark barton told us from westminster, it was not unexpected, but the ramifications of course could be large. managers onlyund allowed to own aaa debt forced to sell because of that. let's talk right now to s&p's chief sovereign ratings officer, mauritz cramer in frankfurt. he joins us first on boomer television following the downgrade. thank you for your time. let me ask you why you decided to go two notches here, not just
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one. is this, in your view, such a serious matter that it could go further? mauritz: good evening. yes, indeed. we think this is a major event that has just occurred, and if -- havefollowed what followed what we have been saying over the last months and quarters, you will know that we and other people expected the vote to go the other way, to remain. but we have been quite clear, if the bridge population were to vote for brexit, this would -- british population were to vote for brexit, this could hurt the rating, and we said it could go down more than one notch depending on the circumstances. the rating used to be aaa, the highest possible rating we can assign. it is our view that we have observed now, in the context of this referendum and the brexit vote, it is such that we no longer think that the institutional strength of the
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u.k. is what we were used to before. so this regards the predict ability, stability, and effectiveness of policymaking, which we think has been weakened. we also think the funding risk for u.k. entities has increased, which is important because the u.k. is extremely dependent on capital flows, which is a global reach the of the city of london. risks are larger than they used to be. matt: first of all, apologies for my mistake. you are in london, of course, not frankfurt. the name mauritz cramer may have thrown me off. mauritz: i am based in frankfurt, but i am now in london. matt: you are the chief ratings officer at standard & poor's. to remind our viewers, you talk about funding risk for the u.k. ,f i look at a chart of gilts
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i see the yield has come down to less than 1%, so investors are willing to lend their money to the u.k. government for 10 years and get less than 1% in return. doesn't it look like they have some pretty strong funding? mauritz: i was half expecting this would come. but this is not actually what i'm saying. this is unsurprising. we have seen similar patterns in the past, in these situations as well. what you see, in a situation of great uncertainty, as certainly prevails now surrounding the u.k., is you see a flight to this has been describing exactly that. you talk about a aa rated sovereign with a lot of monetary flexibility, with potential
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expectations of further qe from the bank of england, so this is not what investors would first run away from. i describe something else. not the government bonds, but the economy overall. let me tell you this. if you look at any of the 131 sovereigns rated by s&p global, there is no other sovereign with such a high funding requirement as a share of its own exports and current account receipts in the u k. in the past, this has been a sign of strength, because people want to do business here, in the financial sector has chosen london as its hub, but we know the financial sector is very dependent on trust and productive ability. vonnie: it sounds like you are taking precautionary actions, and you don't yet know what the outcome will be, how this will play out. were you too soon in cutting the rating? moritz: not at all. i have been telling you what the reason is. the main reason is our reassessment of the institutions
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and the protect ability of governments of the in -- predictability of governance in the united kingdom. we have a negative outlook, because the risks continue beyond what we have seen. we are still closely watching the further implications, including further constitutional stress, in particular if you saw threats to the territorial integrity of the country, assuming, for example, another resurgence of the scottish nationalist movement and others. so you see a very divided society, regionally, by age groups, by levels of social background. this will be putting continuous stress on government. vonnie: did you give officials 24 hours notice, like you promised, at s&p, and was there any attempt to change your mind? moritz: of course we comply with
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regulations. one part is that we give the issuer 24 hours notice. that's what we did. vonnie: was there an a time to change your mind? moritz: by whom? vonnie: by the officials? moritz: you might want to ask the officials about that. matt: i think you would have to ask 52% of the voters. moritz: we comply with the regulation, as we should. matt: i wonder. the criticism that came when you downgraded the u.s. from aaa was that it was a political downgrade, and i wonder if you worry that you are in line for the same criticism here, because you mentioned the possibility of the scottish, the possibility of northern irish not being on the same page. how much does politics play into your ratings? moritz: if you want to get a grasp on sovereign risk, you will know that policymaking is key. policymaking is very significant. it's like the management of the
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company. no one would say the quality of the management of the company plays no role. the same is true for sovereigns. so we have to analyze, and our criteria are very explicit about how we do that. we have to analyze the institutional framework under which policymaking happens, and it is our assessment that this has changed in the u.k. through the experience of the referendum. others might disagree, but we think this is a real change to the way the u.k. political system is operating, with probable reverberations for quite some time. david: you raised the specter of a potential constitutional crisis, and said you will be monitoring this. what will you look at specifically as you evaluate the new rating? moritz: well, on the constitutional side, what is most discussed currently in the united kingdom is the reaction
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of the scottish parliament, and whether the scottish national party, which is forming the government in edinburgh, would another scottish independence referendum, which is very much on the table. so we would have two challenges tothe same time, 12 try manage -- one to try to manage a very convex process never tried before -- complex process never tried before, leaving the european union, and managing at the same time another very complex process never tried before, leaving -- scotland leaving the union. this is in an environment where we think the medical institutions are debilitated by this referendum. vonnie: i have to ask you if you anticipate a similar type of outcome when the u.s. got downgraded, and it did not
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particularly matter to markets? moritz: we are not trying to influence the market. we had this conversation at the time, and i have been trying to explain to you, the fact the gilt is rising in price is explicable and unsurprising. you should also not forget, the united states has a aa plus rating and the united kingdom has a aa rating. these are very strong ratings, number two and number three on a scale of 23, so we need to keep things a little bit in perspective here. -- moritzre kraemer, thank you for coming on to bloomberg. let's check in on first word headlines. mark crumpton has more. mark: british prime minister david cameron is rejected calls for another brexit vote. in an address to parliament, the prime minister acknowledged the
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economic uncertainty. mr. cameron: turning to our economy, it is clear that volatile,,, some companies are considering their investments and we know it will be far from plain sailing, but we should take confidence from the fact britain is ready to confront what the future holds from a position of strength. mark: a new cabinet office unit will start laying the groundwork but the u.k.he eu, will not trigger formal exit talks at this stage. turkey and israel have ended six years of diplomatic estrangement. relations broke down after an severalnavy unit killed people on an aid ship trying to reach the hamas-controlled gaza strip. in west virginia, two men presumed dead when floodwaters swept away their camper were found alive, lowering the death toll to 23. meanwhile, the heavy rain
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battering the state the past week is expected to continue today. the nation remains deeply divided over gun control, that's the finding of a wall street journal poll taken after the orlando florida mass shooting. more than half of americans fear the government may "go too far" with gun control, but 47% believe that the government would not do enough to enforce stricter gun laws. the survey found 51% of americans favor a ban on semi automatic firearms, but 31% oppose it. that's global news 24 hours a day, powered by 2600 journalists . this is bloombe up nextrg. vonnie: more on the -- up next, more on the brexit vote and the fallout. is vladimir putin the real winner in this situation? ♪
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♪ ♪ matt: live from london, this is "bloomberg markets." david: am david gura along with funny quinn. the eu and the rest of the world can feel the aftershocks from the brexit vote. madeleine albright said that exit -- brexit is a win for russia. is very pleased with what happened. this works to his advantage, because one of his agenda items has been to cause disruption in the european union, to make sure it splits apart, so i think the important part is how nato will function together, and what signals there are for what the
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eu generally is going to be doing. matt: joining us from washington is marc grossman, former ambassador to turkey. he is now vice-chairman at the cowen group. thanks for being here. i want to ask you about what we hollande,m francois angela merkel, matteo renzi today, it seems there is unity. marc: i'm not so sure. i saw the press conference, but if you combine that with the speech david cameron gave, which you have just shown on your program, i'm not so sure there's any consensus about timing here. keeps theat uncertainty going. mr. cameron said, we will not move forward on article 50 anytime soon, and the leaders seemed insistent they start getting going. one thing that will have to happen, people will have to
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follow the advice that came in your editorial in bloomberg today, to keep calm, take time, figure out what this all means, and i think as angela merkel said, there's no reason to be nasty here, no reason to be quick. if people can hold those thoughts in their minds, we may be able to go forward here without the confusion we have seen today, which has continued to roil markets and politics. matt: mr. ambassador, the concern is if they treat britain otherid gloves here, countries will see the opportunity and exit as well, so if britain doesn't have to deal with the problems that come with being an eu a member but still gets great access to the open market, that will be sort of an invitation for other countries to leave, isn't it? amb. grossman: two things. one, what seems to have gone on over the past couple of days
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hardly qualifies as kid gloves, the way sterling has gone down, the way stocks have gone down, the way not just the conservative party is now struggling, but look what happened in the labour party. it seems to me, people trying to make a judgment about what they would like to do have to take lessons over the the last couple days. second, i don't think the terms of the negotiation will drive others to make the decision. what will drive others to make the decision is whether leadership in europe, and in the united states as well, but focus on europe, whether leadership in europe is able to start to speak to people's anxieties, start to speak to people's fears, and start to say to people, there's a future here that is better than what you have today. to.'s what voters talk people at bloomberg will know better than me, but to focus in again on global growth. it seems to me, anyway, if the
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world had been growing at 3% or 4% over the last five or six years, they would not be a brexit vote. be careful what you negotiate here, but it seems focusing on the negotiation is not answering the larger question. vonnie: the kremlin finally made a statement this morning, professionals they finally, but made a statement before some u.k. leaders, saying the brexit vote is reminiscent of the collapse of the european union. is that going too far? what does that report and want to achieve? amb. grossman: i thought the statement secretary albright gave just before i came on here, i agree with her in both instances. effort tonk putin's undo the european union, to put doubt into european minds about their future, that is what he has been all about, and when people talked over the past few days about the brexit vote as manna from heaven, putin is rubbing his hands with glee.
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you can't really be on the right side of this. really important was the other thing secretary albright said. remarkably enough, was the focus now? it has to come back to nato as a way to hold the transatlantic community together, and i can imagine, last week as people were working on briefing papers and advice for leaders about the warsaw summit the nace -- nato warsaw summit on july 7 and july 8, they were thinking about all the important things nato had to do. you can imagine what the conversation will be in warsaw, about how we save this european ideal, how we start talking about institutions which work and yet allow people to make choices about their own lives, get global growth going, and keep this transatlantic relationship going, so that nato stays strong, and in fact becomes the glue to hold the transatlantic relationship together and maybe hold europe together, too. matt: i spoke with ambassador susan rice last week, who told
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me the security implications of the vote need not be significant, and said they do not see this impacting nato. you mentioned the warsaw summit. when will we know whether this will take a toll on the alliance? amb. grossman: i don't think it will take they tol -- a toll on the alliance in short-term, because people will look at the alliance as some glue for europe and the transit like relationship. the question is whether people in leadership positions in warsaw start to talk in big, strategic values terms, and remind the populations not just of nato countries but really around the world, about what this fight is all about, and that there is a reason this alliance has been so successful. it's about values, and defending people's way of life. in a way, we have sort of stopped talking about those things, and i hope that in warsaw people can do so again, because that's what the struggle is about. glue seems to be the
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theme of warsaw. matt: ambassador marc grossman, ambassador to turkey and former undersecretary of state for political affairs. coming up, call it a casualty of brexit. isanese messaging app line delaying its ipo due to market turmoil. more "bloomberg markets" coming up.
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vonnie: live from new york, this is "bloomberg." i am vonnie quinn with david gura. matt: and live from londonmatt:, i am matt miller. japanese messaging app line is delaying pricing of its ipo until tuesday, lending market voteility after britain's
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to leave the eu. bloomberg west anchor emily chang joins us from san francisco with mark. what does the delay mean for the entire ipo market? is it on hold? financial and the economic insecurity is good for the ipo market, which has already been incredible he tepid. line is on track to be the biggest tech ipo of the year, aiming to raise $1 billion in the ipo, and they have now delayed the pricing, the terms which they were supposed to set today. it's now going to happen tomorrow, when they will set the actual price on the 11th of july. this is a company competing with facebook and whatsapp and wechat and facebook messenger. they had significantly fewer users, mostly concentrated in asian markets, and they are trying to expand beyond asian unusually large proportion of shares listed in the u.s., two thirds of shares. of to this point, we talk so much -- up to this point, we
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talk some much about the delay in ipo's happening through the tech community. until braggs it happened -- brexit happened, people like mark andreessen told us they thought the window would open at some point this year and a country like line could be the first. listen to what he had to say to me a week and a half ago at the bloomberg tech conference. >> it's harder to go public. there are fewer ipos than there used to be. the number of public companies in the u.s. continues to fall, so that's true. on the other hand, we believe the pendulum has swung probably too far, and that's where we are with our companies, so we created a team inside our firm, a team in our corporate developing group focused on literally ipo preparedness. amalie: so, andreessen horowitz -- emily: so andreessen horowitz counseling companies around ipo readiness. do everything you need to do to get those plans in place, but certainly the brexit issue is definitely going to i think
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cause further delays, and we have to wait and see how it plays out. vonnie: how thanks to "bloomberg west" anchor emily chang. watch "bloomberg west" tonight at 6:00 p.m. eastern. pincusoming up, a former managing director joins us in new york. ♪
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david: it is 8:00 p.m. in london , 3:00 in new york, and 3:00 a.m. in hong kong. vonnie: this is bloomberg markets. david: fallout from the brexit
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vote both politically and financially. ♪ i'm matt miller. vonnie: i'm vonnie quinn. david: i'm david gura. here is what we are following this hour. stocks continuing to slide after the brexit code -- vote. vonnie: we hear from william janeway on the consequences and the wake of the vote. thinking has the fed's changed? we dive into that question at the bottom of the hour. but first u.s. markets will close in one hour and we are at session lows. let's head to the markets desk. >> we are indeed just about at session lows. these are the numbers with the


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