tv Countdown to the Closing Bell With Liz Claman FOX Business June 27, 2016 3:00pm-4:01pm EDT
tuning in every day, and you are making the difference. we crushed the competition. so thank you, again, for watching and for giving us the best year ever. up 200% here on intel. oh, by the way, big interview, i'll be interviewing nigel 4:00 on fox news channel. hope to see you there. liz: live from the floor o of the new york stock exchange, aftershock. yes, around the world and here on the floor, and of course ground zero of the most important trading floor on the planet, what do we see? markets continuing to real, they are shaking and shivering at this hour, and we cannot seem to punch above an important couple of feelings here on the dow, nasdaq, and s&p. right now the dow jones industrial average lower by 303. we're standing at 17,098. okay. so it is a rough session already, and we can't seem to big ourselves out of it. markets are remaining negative for the year. that is what has happened in
the past couple of days of trading. following the uk surprise vote to shake free of the european union. european markets hammered once again. absolutely pounded. the footsie 100 down 200% and that was the worst of it. that was before the s&p ratings downgraded britain's credit generating from aaa to aa. outlook negative. the print, the dacks in germany down about 3% as goldman sachs says britain is likely to enter a recession this year. this year. today's losses adding to friday's historic total. the biggest daily loss, the biggest daily loss in global equities ever. you're talking about more than $2 trillion slashed off the entire market. surpassing 2008 leem an brothers moment. do you remember that? the bankruptcy of leem an brothers. as well as 1987 black monday mark the crash. market uncertainty talked only
by the political fallout in european. we have the european leadership now in the unknown. britain of course and prime minister david cameron addressed parliament for the very first time since announcing his intention to step beside last friday saying the government, yes, it will begin the process of exiting the european union. it is going to happen. david cameron says. left in the eu now pushing for a quick and orderly exit, we'll see if that happens, along with italian premier in berlin just hours already coordinating a plan. on how to boot the uk from the european union. they're all meeting tomorrow. the british exit is standing the rhetoric on the campaign trail. hillary clinton today in ohio campaigning on her economic message with senator elizabeth warren bashing donald trump and america's big banks in the process. we've got it all covered right here, and you can tell with
our fox business reporters across the globe. they are at the ready for you in this all important final hour of trade. and the member of parliament. she wanted to leave the eu. she get it. we will ask what's her plan? was there ever even a plan to proceed? john burton is the former eu ambassador, also the former prime minister of ireland. will northern ireland recoop and never sit on the sidelines, what he's buying now? we're live from the floor of the new york stock exchange. sorry to tell you if you're a bull, the selloff is still in full swing. let's start the countdown. ♪ ♪ liz: breaking news. s&p ratings agency the first to go down the rabbit hole. the first to downgrade the unite kingdom's credit generating from aaa, which is
of course is the stellar level that ever company would like to see. it is the hangover that just won't quit and u.s. markets are still stumbling along in a decision that they're not even involved in. the uk exiting the european union. getting pretty beaten up. trade not only in the uk but what's called an american disposetory reseat. you can buy them here on the new york stock exchange. park place, hsbc, all trading down, and we can see as a pretty much of a pretty ugly picture at the moment. it's a very tough day for them and especially in the aggregate when you combine what they had to on friday and what they had to endure, it's been worse. the u.s. financials not doing better at all. dropped since 2011. let's get names on your screen right now. everything from bank of america, citigroup, goldman sachs, jp morgan, and morgan stanley all are moving lower at the moment. i just want to reach over here for a second and, yes, we do have a bank of america down about 6% getting really hurt
here. same with jp morgan. morgan stanley down anywhere from 4 to 6% here. take a look at some of the united kingdom names. the trade here in new york. you may own these in your portfolio. you guys have to be checking your portfolios because sometimes when you own your own mutual funds, some of these names might get in there. a foods maker, along with insurance giant aviva. all down. but i should tell you too when you get to a name like aviva, anything that has to do with financials in any way, shape, or form, even an insurance giant is going to get smacked, at least at the moment. here in the u.s., materials, real estate, but let's look at materials for the moment. they are lagging, one of the worst performing sectors in the s&p 500 for s&p names, dow chemical, are those some of the biggest losers at this very moment. with the dow down 297 points, s&p getting clobbered down about 40, team fox business has the british exit aftermath covered for you. the aftershock continues. ashley webster and adam shapiro are in london and
berlin respectively. we've got our market experts lined up to get you focused on what you should do. peter, john, our trader here at nyse, scott, all will join us in just a moment. i'm going to keep you updated every second of the way. 55 minutes before the closing bell rings and now we've had a full weekend to digest the news. but the fallout from the eu is still dominating headlines across the globe and just as we did friday, we want to show you some of those headlines. and this is of course european union and uk leaders trying to figure out their way to pick through the economic destruction. now, it could be a temporary destruction. that is pretty rubble and rock infested wrote at the moment. secretary carry was speaking at the moment. we want to get that to you. some might change, but here's what kerry had to say. >> so, yes, the uk and eu relationship will now change.
but what will never change is that we are strongest when we stay united as a transatlantic community and find the common ground. rootist in freedom, open markets, equality, and tolerance. liz: ashley webster is on the grounds in london. ashley, to you first, and you've got to give us the sense because the uk markets had a chance to digest all of this but more important the people of the united kingdom. what are you seeing at this very hour? >> you know, it's interesting, liz. obviously we talked to a lot of people here. people working in stores, working in hotels, they're nervous. there's obviously a lot of eu citizens living and working in the uk. they've done so for many years. and now they're very concerned. what do i do? do i have to go back home? it's an unknown question, although boris johnson today said if you've been in that situation, you can stay.
for british people living in europe, they can stay. i'm not sure this details are worked out. in fact, the leave campaign has been really raked over the coal today by other people saying, look, not only down the have a plan b, you don't even have a plan a. now, george osborne came out an hour before the open markets today, and he said, look, we're fine. we've prepared for the worst-case scenario, which in his opinion was the fact that the uk had left the eu. and he said that the bank of england too had done everything to make sure that the uk was prepared for this. so when david cameron, the british prime minister went before parliament today, he made that point very clear. that no matter what, the uk banks, capitalized and they are prepared for what they lay ahead. take a listen. >> the markets may not have been expecting the referendum results but as a chance set out this morning, the treasury, bank of england, and other financial authorities have spent the last few months
putting in place robust contingency plans. as the governor of bank of england, stress tests show that uk institutions have enough capital and liquidity reserves to stand a ratio more severe than the country currently faces. >> not sure if that really calms the markets, but a mantra that we're hearing. and, liz, there's a lot of talk about a second referendum. i don't think there's any chance of that happening. i've got to be honest with you and david cameron today didn't even back and forth to mention it. the vote has happened, the decision was made and now the job begins and now they're trying to put it in place. liz: well, he was measured, calm, and clear. this is the will of the people. he will start unwinding this relationship. but what is the european union saying? in fact, we're looking at that angle at the very moment. thank you very much, ashley. as we look at how the european union side of this is handling it, we see that the remaining members, the 27 left that are in this important trading
block and how are ey dealing with this first nation to scurry away to chop itself off from this group? well, angela merkel, the chancellor of germany calling for a union. a lot of traders on the floor listening to what she said. adam shapiro was on the ground in berlin. he has the very latest and what struck us here on the floor was that she emphasized is that there would be n informal exit talks until the uk takes that first step. the so-called article 50 moment. but they can't be happy. they want them out now. >> right. in fact, it's the uncertainty that everyone agrees is a problem. the german stock index, the dax closed down about 3% today because of this uncertainty and even merkel and president hollande from france acknowledged that while this decision has been made by the uk, it's the uncertainty everyone has to deal with and yet there would be no quick solution because as merkel
said, there would be no informal discussions. that was a slap to the brexit supporters in the uk who want to begin talking with the eu about exiting. they will not have those discussions according to angela merkel in france and italy until the uk submits and invokes article 50. that's the divorce proceeding. it's like going to court with a divorce in the united states. your wife or husband threatens you with divorce. they might threaten you but until they file the paper, you're still married. eu will begin meeting through the council. they will not be including a member of the uk. they set a timetable of which they would like according to mr. hollande to have some kind of framework in place by september to begin the negotiations for the uk to exit. liz. liz: adam shapiro, thank you very much. and we have this breaking news right now. hillary clinton has just taken the stage in chicago, illinois. giving a keynote on the international women luncheon
circuit at the 50th ran bow bush core litigation. talk about women's rights, gun control so far, we are monitoring it. we're we're listening and we will bring you things as soon as there's any news information. we promise you. we're about 49 minutes from the closing bell, dow down 287, watching the s&p level, right now at 1998. 1990 is the floor, 2005 is the ceiling. hold your horses. that's what ubs bank of london says what it comes to buying anything here. to buying equities. they do not see a down day like this as a buying opportunity. let's bring in the experts, do they agree? i've got john here, here with me on the floor of the new york stock exchange, peter shift, you're a pacific capital president and the cme and the imex. we have the bankers not backing up the truck yet and
we don't see people backing up the truck to buy cheaper stocks. >> not yet. we're seeing a file through from friday's activity. and talking to clients and friends business, no one is convinced to get into this market right now. liz: why not? >> because it's so uncertain how the next days, weeks, and months are going to play out. so why get in there now? yeah, stocks that were 20% higher on thursday are so much cheaper now. but considering the fact that we had very light volume today, this market doesn't have enough liquidity to support itself. there should be more follow through coming in and also it's going to get lighter as we head into the holiday weekend. liz: let me get to peter shift. you're always watching the beat of the different drum. gold has been one of the best trades along with tobacco and utilities right now. because you're seeing the minors move higher? >> well, they're not expensive at all. i think they're still cheap despite the fact many of these gold stocks are at multiyear highs at gold hits another
52-week high today. i think relative to where they've been in the past and where they're going, you can still buy these stocks. i think they have a long way to run. you know, as far as the financials, we don't own any of those. i haven't own them in years. i wouldn't try to pick a bottom there, but i would be moving the money into the mining stocks. very few people in wall street have me of. we've been having a fantastic year this year.sion in the. we have 50 states that have trapped in a much worse union than the eu. and, unfortunately, we're stuck. we can't get out. britain's able to extricate itself from the mess in europe, but we're stuck with a bigger mess here in the united states. liz: well, you know, s&p just downgraded, and i'm sure -- peter's laughing but scott, the here and now is this.
anybody with a 401(k) that has u.s. stocks -- we're not even part of this fight, and we're getting dragged down by it. did you see any bargain hunting at all down at the cme? >> no. not really. number one and number two is that, you know, we've seen the center banks push people into this reach for return and equity market where they probably should be in the first place. so i think a lot of that sell i just don't of is because of that. and number two. just imagine this. the markets around the world are telling you if you want to leave a bad club of 28 people, we're going to punish you by -- within this massive calamity happening all around the world. i can't believe that all the uk wanted to do was rule themselves. and now these have been so miss priced that one country decides with 65 million people wants to rule itself, and it's causing this much market calamity? shame on the market. liz: well, isn't it interesting too that the entire market is getting pulled out, luke, especially
when it comes to oil. and, by the way, britain usage of oil is d de minimis when you look at which market is using the most oil. down getting clobbered below $47 a barrel. what is going on? go ahead, luke. >> yeah. oil like any risk asset is down. but on a relative basis how much stronger is the dollar? it hasn't performed that badly. and i want to point something out. you can't prove reserves to how easily you can pump that stuff out to the market. nigeria isn't raiding, oil is holding here well compared to other risk assets and then we've got the fourth of july driving season, et cetera, et cetera. so i would rather have oil than stocks right now. and i can tell you that. liz: okay. listen, as we have about 46 minutes before the closing bell rings, i want to thank you, guys.
peter, i want you to stay in the share because i want to ask you another question on the other end. thanks to all of our traders, we appreciate it. when we come back with the closing bell ringing 45, 45 minutes away, up next the leave campaign. notching a surprising victory of course. but we're over the surprise. that of course is last week. now a new prime minister, who? do we have a new government? new trade deals? what is it all going to look like? coming up a fox business exclusive with kate. she is a member of parliament who led the labor leave movement and she's going to tell us what she expects to see and, by the way, are any of her people who are for it having any kind of buyers remorse? she's up next on countdown. you guy's be good. i'll see you later
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leave the european union is now squarely in the laps of those who said let's go. let's leave. kate is a member of the uk parliament, and she of course is the cochair of labor leave, one of the biggest peroters of the leave campaign. let's bring her in for a fox business exclusive. thank you for joining us. what is plan b? can you let us know here on the floor of the new york stock exchange and awe of our viewers how is this going to proceed as best you can figure it out? >> well, the leave campaign was a very clear campaign to get back control of our country. we're clear to have trading relationships with the eu and the rest of the world. what we didn't was the continued move toward taking part away from our own democratic parliament to brussels. and of course the leave campaign isn't government. so the government has known for some time that with a very good chance of a leave vote, we warned that on the ground we were hearing that there were going to be massive votes
to come out and it's up of course to them to have the plans. and of course now that we have voted to leave both the prime minister and our chancellor have come out with very different attitudes than they had before the votes when they were warning of all sorts of dire predictions. and now of course very keen to settle the markets. i mean obviously the markets don't like change, and we've seen that in the way they've rehabbing. but, you know, that will change. and it will go back to being a situation where it is the fifth strongest economy in the world. we are not going to be in a long-term situation where it's going to affect our economy in a detrimental way. there will be some short-term things that will happen that we can't really affect because the market is the market. but as long as our treasury and our bank and all of our government machinery is working towards making sure that the rest of the world
knows that we are going to do this at a very sensible way, we're going to work to negotiate trade deals and our country's got a really bright, hopeful future. liz: well, the future also is still held bright but you may say that looks very cloudy to us. at least a political fog over who might be the next prime minister. who will labor back? jeremy corbin is actually being really hammered for having supported the stay campaign, and he's the head of your party. >> but there's not likely to be a general election officially. doesn't need to be another general election for four years because we have a fixed term parliament. so a lot of times for the labor party, my party to get itself sorted out. i mean i think they took the wrong decision to be back when it was very clear that the average supporter in the country was very eu skeptic. and of course, you know, i think it's important that the american public really
understands what this is about. it's not about markets and about business. it's actually about a democratic country being able to control its own borders like the united states does. being able to control its own trade deals like the united states does. being able to control its own course. i mean you would not allow mexico to overrule your course. we were in a situation with the european union where it wasn't just an arrangement, which is what people voted for way back in 1975. but had evolved into a trading arrangement with the political structure. liz: well, let me jump in here -- >> interfering with our democracy. so i think the american public, i'm sure many people are concerned with what's happening need to know that we are only doing what the rest of the world does democratically outside the european union. and somebody mentioned earlier citizens eu, citizens living in this country were worried, it's have he very clear. nothing is retrospective and
they will never be asked to leave, anyone who is here legally at this moment. similarly we have no reason to believe that the spanish will want to send back british holiday makers or british people who bought homes because we bring a lot of money into their country. and the european union actually needs us more than we need them in the sense that they sell more to us than we sell to them. so i don't think the german car manufacturers are going to be going along to angela merkel and saying "please put tariffs on our cars we're selling" so, you know, this will settle down. but ultimately it is about democracy, and i'm delighted that the british public have voted to say that we want to get control of our own country back just like any other democratic country and certainly like the united states. liz: yeah, and it is a very personal decision and clearly, prime minister cameron says, he will stick with it, and he will follow the will of the people. kate, thank you very much. she comes out a winner here. >> thank you. liz: as part of the labor leave. she's the cochair.
we appreciate you coming on a fox business exclusive. markets just a second ago hit session lows. bounced up off that floor. but new session low here. so as we watch all of this, we're seeing a situation where the new low is down 338 points and then suddenly we were down 304 points for the dow jones industrials. investors have been hiding out in treasuries as you know. a classic sign that the fear of people are piling into u.s. treasuries because they seem to be the safest bet. the ten-year, reaching a near four-year low on friday. and when i say the ten-year, i mean the ten-year yield. so how is the bond king of all kings betting? we are bringing in bill gross. thank you so much for coming hear. you're never one to acid on the sidelines. can you narrow down the focus a bit and tell us exactly what looks good to you at the moment? what's the safest? and what has the best yields?
>> well, almost all developed market bonds have no yields. that's the problem, liz. we have $10 trillion of bonds. germany, et cetera. you know, our yielding in negative space. and u.s. treasuries. yes, they're relatively attractive compared to the others. but risk now not just in stocks and equity and risk assets but there's risk in high quality bonds because yields are simply too -- i would suggest, you know, a temporary vacation as opposed to a russia buying treasury bonds hoping they go up in price because that i think is limited. liz: well, look, we already have the s&p downgrade the aaa from to aa. i'm sorry that's a market event. we were down this many before that happened. but the federal reserve are any tightening? any rate hikes all but erased for 2016, bill? >> yes. i think, you know,
certainly for 2016. i mean this from 30,000 feet, liz, this is the end of globalization as we've known it. not the end of globalization. but as we've known it. what does that mean? it means trade policies, it means immigration policies, it means, you know, growth, which is reflected positively by those three policies and has been for the past 20, 30 years is at risk. and that's why markets are going down. they're going down because growth is being threatened. and what does that mean? does that mean potentially a recession in the united states? no, i think perhaps. i don't know what the odds would be now. but 30, 40, 50% chance of recession but only because the dollar is so strong and our ability to manufacturer goods and exports are at risk and profits as well. so, you know, it's fair to say that this is a microevent on our small island the size of wisconsin. but it's really a global phenomenon that reflects the
future of free trade and immigration, which in turn are reflective of slower economic growth. liz: listen, you're the second person in the last about 30 minutes to say, look, it is a small island and we love the perspective. but cypress was a small island and, you know, any kind of baking crisis certainly roiled the markets. i really do appreciate that calming perspective, bill, but do you see any kind of derivative-like event or long-term management disaster from 1998 where you had the rubble boiling the world? anything related to this? because i would like to believe we're through this black san juan moment, i just want to hear it from you. >> well, i think we also for the most part. and let's be fair. banks are better capitalized. the world that in terms of interest rates and interest cover, you know, it's much better shape than it was prelaymen. so the potential for a moment, a laymen moment is certainly
lessened. but it's fair to say that the markets are globalized now and something that happens in china or something happens in japan. it's going to affect markets on a global basis as hedge funds and traders and other institutions try to rebalance their portfolios and that's to some extent what's happening on growth itself on a global basis is coming down. liz: yeah, but we have the financial stops which tend to better the markets. they seem to be having trouble here. as we look ahead, how far as people pile away from stocks into the ten-year treasury, how far does this ten-year yield go? how low does it go? >> i think it is a chance to go to one and a quarter percent. is that a big deal? it's probably -- it's probably two or three percent in terms of capital gain, so it's not much. not really a normal market in the united states but an abnormal market in the rest of
the world in the extent that the ten-year are at minus ten or minus 15 basis points. then these investors will look at the u.s. and say, well, that's attractive. and so it has the potential to go lower. i think ultimately these low yields are destructive for economic growth. but it is what it is. and it is the function of the federal reserve and central bank policies that have been in place for five, six, seven years. liz: great to see you. thank you so much, bill. one and a quarter is his call. thank you very much. appreciate it. the closing bell 28 minutes away. guys, the russell is getting clobbered. especially in comparison to the other indexes. down 3.5%. coming up we're going to look at a bunch of other stocks, in particular consumer discretionary. names like michael kors are getting killed today. tiffany's too. be sure to tune into special report tonight, i'm going to be joining 6:00 p.m. eastern. please join me on bret baier
and special report. and former prime minister of ireland, also the former eu ambassador to the united states. john, what does he have to say about the fractures? how soon they might heal between the uk and the rest of the world and what it means for our economy? more countdown on the way. don't go away. the dow is down 285
. liz: 23 minutes before the closing bell rings, duck in the mud. take a look at airlines, airlines are grounded, at least some of them here e in the united states that have exposure to the united kingdom. what would that be? well, on your screen united continental, american airlines, delta, all moving lower. united down about 8%, and as
you know easy jet out of england, the reason the british air and easy jet just got crushed and downgraded and price targets lowering is because everybody wants to know will they just have open skies? which is what they've had in the past to any country in the united kingdom. now maybe not as these negotiations have have to at least begin on extricating themselves from the european union. everybody keeps talking about the financials. i need to real estate. one of our traders said liz, nobody is talking about real estate. real estate is getting rocked at the moment. they're getting crushed in the group together, they're getting really hurt. i can't believe it but 26% down for the year. but adding another 6 to 8% as you see it has been a very tough time and, in fact, you have cbre groups down 10% at the moment. are you a believer in the euro that it will go down? if you believe that the euro
will go down, there's something called drr. double euro short. every time it goes down, you've kind of got a double move on the upside. that he is moving higher by 2 and a third%. etf, short currency, and, again, when you see the currency falls, crr impose up, and we do have the euro falling. bank stocks falling off a cliff. that's been a two-day story friday and today we've got the biggest two-day drop in five years for the sector. wells fargo, goldman sachs, we can't show you these enough that investco is looked upon as a proxy for the brexit. why? fell they really morning below 1.32. so you've got investco down nearly 10%. let's bring back in all of our traders and market experts. spirit back with us from euro pacific, brad is the former lehman brothers and of course
scott and larry as well. i want to get to scott first right off the bat. you and i were talking just a second ago. you said traders are looking for one thing and that is what? >> well, they're looking to what can they buy? because on friday the trade changed when the brexit happened, all the momentum of the market. we were talking about how we break above 21.30 now talking about where can you find the thoroughly buy? and i think 1990ish area, there's one level that people are looking at. but i think they would actually like to keep more of a flush and fear 1950, 1975 area. in fact, happens fast, maybe we get a little bit of release. liz: you can tell he's a technician, a technical guy. at 2002 high for s&p. 2005 today. >> yeah. and we had a short side, i think it is minus 60, that's a spot hard to short because that's how oversold we are. but there might be a trade here, though. liz: when he says oscillator,
you guys out there who know what it is get nervous too. brad at the banks. you looked at the financials. it's hard to have any kind of rally are the financials are this hard hit. what is it behind the pull back two days in a row that's pretty significant? i get the first day but the second day? >> sure. what you have is the market is saying we have the risk that we're going to have an economic downturn. we have the risk that rates are not going to rise. so if rates are are not going to rise, that's going to hurt the banks too; right? their deposit base is worth less. you have -- you already see that the investment banking business has slowed down. so the highest margin about i say in investment banking are down in a disruption like this is also scaring the marketplace, and we for an history that when the market drops, retail investors run for the hills. so -- and, unfortunately, the retail investors don't come back quickly. they tend to come back with a lag. so, unfortunately, this is not good news for wealth management businesses. they'll do good for a while.
but this will scare the retail investors into being too cautious. and we've seen that again and again. is this the end of the world? no, not at all. this is a readjustment. liz: yeah, in fact, adjust is the word that i use. very first tip this morning when i think i went on cavuto coast to coast. and as scott came up with me and said, oh, peter is with us, he's been bearish for ten years. he said i've known him since high school, he has been bearish since 16. there is a time where gold does well but what's your next trade as you look ahead, peter? >> it's not about being bearish, it's about being correct. and, first of all, this is not. [laughter] about brexit. let me finish here. liz: go ahead. >> this is not about brexit. brexit is all the media. brexit is a catalyst. it's like the match that lights the tinderbox. the markets are artificially propped up by central banks, by cheap money, by qe, and it's all hype and hope.
the markets never should have been where they were. and what this is doing, what brexit is doing is challenging the belief that the markets have the confidence in central bankers to keep all of thesese bubbles in the air. and this is what is going on. so don't get caught up andio you're overreacting to what's happening in britain. that is not it. this is like a day of reckoning. there's a lot of dominoes coming down and, yes, the fed is going to use this to cut rates and qe4. it was looking for an excuse for a long time, but we have some real serious problems that go way beyond what's happening in britain. >> and that's what's playing out. liz: hold on, peter. we have to go. but i hear what peter is saying and we do is conspiracy problems. but it isn't smoke in mirrors to say a starbucks has a billion-dollar business when it comes to frappuccinos or apple's have sold millions of iphones. there are names out there. are you seeing anything on the floor of the cme where people are saying okay. now i'm going to get in. i'm not recommending anything.
i'm just saying barkly at 6 or $7. that bank is not going away. it may be just a little too hot to handle now but maybe a play later. >> there are cheaper things, that's for sure. but i agree with peter. this brexit thing, it's the lighter that started the fire and showed us really what the deal is. i totally agree with what he said. the central banks have been propping these markets up for years, they'll do it even more now that this is happening. and that's the situation you've got to keep an eye on. retail investors out there, they need to be smart, they need to put stop losses and protect themselves. there are some good things to buy, but we need to be careful. >> and the thing to be careful not to get out of the market fully because if they did that before the financial crisis, they never get back in. this will help the average cost if you're a trader like me, you definitely have to be careful. >> if you're in the wrong stocks, you've got to get out and get in the right ones and get out of the u.s. liz: then there's the only
don't catch a falling knife. thank you to all of you. scott, peter, brad. we do appreciate it. backlash across the united kingdom. you've seen that. is it short-term? we don't know yet. but of course at the european union and last week's stunning vote to exit the eu, let us bring in on the phone, we've got former irish prime minister and eu ambassador to the united states, mr. john bruton. ambassador, thank you very much. what is the priority number one for the next step of the united kingdom? i phrase it like this because we're looking -- s&p downgrading the united kingdom, people want to know how soon will we see the so-called article 50 kick in and the tent cals cut off? >> it's not the decision that the english people took to take the whole united kingdom out of the european union. it's also the fact that prior to this decision the united
kingdom had a very large -- 7% of gdp, i think almost in their history. and then you have a complete vacuum, a political vacuum. nobody is in position to make any decisions. and we're going to spend the entire summer with people campaigning in the various political parties for the -- for the leadership position when you have much bigger priorities in the world economy to be dealt with you have a political vacuum in a major economy like the uk. and those political factors are what's causing the difficulty. liz: ambassador, northern ireland is making some noises. although it's very slight, but noises about reunification with ireland. apparently northern ireland feels much more strongly about staying with the european union. do you ever see that happening again? >> it may some remote time in the future, but i don't think
it's a factor at the present time. what is -- the truth is that the significant section of the population in northern ireland do not want and wouldn't consent to it. and it wouldn't be practical for the republic of ireland to take over the policing and control of northern ireland, with a significant opposition like that. it will be simply reversing the problem we had with the ira campaign. when the british were exclusively allowing one party to run the show in northern ireland. more likely to be a difficulty is scotland. liz: yeah, i think scotland is something we have to watch as well. they too would like to stay in the european union. listen, we appreciate you getting on the phone with us. former eu ambassador to the u.s. and of course former prime minister of ireland the team when he finally brought them up to being the celtic
siring. how will britain's decision affect mergers and acquisitions? specifically one whopper of an acquisition, one ceo told investors to remain calm and that a deal will still be on the table, regardless of the british decision. charlie gasparino is joining us on that massive deal. of course fire. >> right. and the ceo is warner balman, met with investors last week and what was described to fox business as a road show meeting, i believe they met in toronto, san francisco, mostly before the brexit vote and here's what he said. he said despite the fact that analysts are worrying that this brexit deal, the britain leaving the uk also known as brexit would hurt any sort of cross border international deal, especially a company like bear, which has a lot of assets in england, which have been devalued. he told investors that brexit won't impact the deal. that's what he said. that's a quote.
and he said that at several meetings last week. he also said this. he said he promised to give more numbers as one analyst put it, who's in the meeting. he promised quote to figure out the worries over the uk currency decline that -- and whether that will impact the deal. and these uk currency declines continue not today as you know still losing ground, pound is getting pounded as you know, liz. following the brexit vote. liz: can we put that up? can we put up the currency board? >> and also made a point that he believes the deal that is being negotiated in private as he put it is still making progress. now, i need to put this out. analysts are dubious of this. they think brexit is maybe not a threat to the bear deal but a big threat. it's going to obviously both are multinational company, they have assets all over the
world, including in england obviously. and when you do that, you know, when a big part of your asset base declines because those assets in there and the pound is going down in value. liz: yeah, it is right now, charlie, it is actually going down right this second. >> so then you have to recalibrate the deal and while mr. balman is essentially putting his career on this deal just as much as david cameron and the uk prime minister put his prime ministership on brexit failing, and it passed, brexit did pass, and he's resigning. you know, he's -- he's putting a lot of his future on this deal working out in some ways. liz: okay. >> that's where we are right now. he's giving it the thumb's up still. analysts are still dubious. liz: i like your term. recalibrate the deal. if we could, the board once again. specifically the pound sterling. it looked like it was just about to go below a buck 32. can we get our single pound sterling board up.
let me grab lori rothman. come in as we're putting the board up. we were at session lows, we've come back up off that. but what are you traders, what do you think? >> the have to tilt index right now, liz, it's coming in. looking at the big board, coming in more than 2.5 points right now. down about 8% when the trading day started and basically this is -- so much out of the money priced into this. in other words, people are shorting it, thinking that all of the chaos and confusion and concern resulting from the brexit will be behind this in a matter of time. and you can see someone else pointed out to me on the s&p we bounced off 1991 three times. so we're looking at a level of 2001 and that's important that we keep bouncing off that support level because it means the market -- liz: something very weird happened earlier today on this floor and one of the traders pulled me aside and said highly unusual to see the markets hit session lows earlier because we since hit deeper lows. and have the vix also dropping, meaning fear coming out of the market.
that got these guys swirling. they've got history books in their heads about, well, that's never happened or only happened two times before. but that did flash people for a moment. >> i was doing a little research. you pointed out a level of 25 or 26 on the vix is double the 2015 low on that volatility index. and there are -- there's a trend in moves on the vix when it hits 100%, those even numbers. it's a very technical move right now in the vix. liz: eight minutes. we're at eight minutes right now before the market closes. and, again, with the s&p and the 2000 level, you've got to watch for either 1990 or 91 or 2005. that's what these traders, you're going to start to feel the electricity start to ramp up in the next couple of minutes here as we have just a few minutes left before the end of trade. dow is down 249 points. again, to remind you, not that you want reminding. but this is the worst two-day sell off since last august. and of course the biggest off
of money of wealth of the markets globally ever. more than $2 trillion. but what do you do now? is now the time to jump in? and we've been asking that question. you don't see it in meaningful numbers but you might turn around, and it might be too late. remember march of 2009 in retrospect was the best time to buy. you may have made a lot of money. joining us now wells fargo chief economist john sylvia and capitol president jim. jim, first to you. have you been gingerly waiting in jumping in with elbows or sitting back and waiting? >> well, look, i'm glad that you mentioned the global equity market loss is going back over 2 trillion, which, again, is the biggest of all time. and all the comparisons to lehman, we don't see this being the same financial crisis. this is a crisis of leadership, a crisisf confidence. this is not an overlevered bad toxic asset crisis. so to your point, we do think there are opportunities and actually some of the things we're looking at are a little bit more domestic centric
right now. i woke up today, all the things i spend money on and all the people my company, we continue to spend. so as far as we're concerned, if the baby is going to be thrown out with the bathwater, which is this extreme volatility and downturn just showed us, we do think there are opportunities that pick up very good companies. so i'm not trying to be a hero. but do not think that this is the is same as the on set of the crisis. liz: okay. and we don't have capitulation yet. >> the market is coming back. liz: yes, the market is coming back. charlie, i'll get to you in a second. is business confidence temporarily starts to get shaky in the uk and then companies stop hiring and that tends to reverberate across the pond? do you see going into a recession even for one quarter or two? >> no. not in the u.s. i certainly agree with the comments earlier. that the u.s. domestic economy is actually doing pretty well. the consumer and housing are doing pretty solid growth
numbers. the challenge of course is business investment. when businesses are uncertain about the future, they'll pull back a little bit from business investment with structures, equipment spending, software spending. that i think is probably a little bit more of the weakness. but the u.s. economy, still doing 2% or so economic growth. liz: charlie gasparino has written a book on rates and how wrong they've gotten it over the years. s&p today the first to go down the rabbit hole, cut from a triple a to double a, they've got it on credit watch negative. markets were already down. they didn't seem to take any gap down further on that news. >> yeah, i would just say this, liz. you know, the mood in the s&p, have made going to have some impact on the markets but broadly they've been wrong about so much when it comes to, you know, predicting the future, even being -- even like -- even magnitude right. to getting
we should point out that the famine crisis where a really wrote about them how i missed that in ways. we don't have to remit gate but they did. it looks like it's coming back a little bit. finishing stronger than the other day when it was a complete and massive bloodbath. but the other thing is this. what i don't know. the brexit in and of itself should not really be impacting u.s. corporate earnings or u.s. economy in a major way because britain, even if they do have a slow down before they get their act together and figure out what kind of fiscal policy, it's not that big of a trading -- we're not totally tied to them. that said, the u.s. economy is growing pretty slow. and ther there is a theory just this little bit could push the u.s. economy even to, even slower growth which has a whole lot of ramifications including in this presidential election.
liz: jim frischling i was trying to look on the screens across the floor to find something in the green outside of the u.s. and in the united kingdom. telecoms in japan, ntt docomo, they seem to be okay. do you start to look in far regions of the world to see if there are other opportunities or do you stay domestically here? >> i would love to mix up with charlie and john but i'm in agreement with them. john talked about the consumer here at home and housing. i'm looking domestically. i like both those sectors. i talked about regional airlines just as southwest and luv and what they're doing to be consumer friendly. i know financial sector are things no one wants to talk about. i've already been a fan of wells fargo. i'm u.s. bancorp. their housing portfolio, 43% of the loans they make. we think they have a very strong portfolio and good management with dividends and expect more
buybacks. we're going domestic centric and using this as opportunity to pick things up. liz: three minutes to go before the closing bell rings. we have two names. we'll look at johnson & johnson, up a tiny bit a fraction, and verizon moving higher. everything else in the red. john silvia, what do you think the fed does now? peter schiff said forget stopping rate hikes. we may see a rate cut. do you think the fed takes back the quarter point they instituted back in december? >> no, i don't think they take it back but clearly they will be on caution watch, probably at this point in time, not even moving in september or perhaps in december. we'll look at the data but economic growth going forward should be okay. the inflation numbers stay low. there really isn't incentive for fed toking a agressively pursue anything like the federal funds rate path they have put up in
the dot plot diagram. liz: i'm looking at dow, charlie, we have been down 338. we're down 261, a little bit after come back. 20 seconds. >> fed has another reason to wait and than raise rates. this is presidential election. now they have the reason. peter schiff was not talking about the fed funds rate, qe4, buying bonds, that is much more dramatic thing. liz: already a bunch of traders yelling one minute. like dominoes. one minute. one minute. less than a minute to trade. thank everybody very. as we look through the dow, cycle through some of these. russell 2000, which is very interesting least exposure to global machinations. these are small and mid-cap names. they're not doing well. down 3 1/3%. s&p standing even at 2,000, down 36 points. here we go, closing bell
starting to ring behind me on new york stock exchange. [closing bell rings] dow loses another 257 points on back of a 600 point loss on friday. david, melissa, over to you. melissa: stocks getting slammed for the second straight session. the dow dropping another 259 points. it was a lot worse than that. i'm melissa francis. david: a lot worse overseas. this is david asman. this is "after the bell." we have you covered on big market movers. here is else we have for you. aftershocks reverberating all over the world after the historic uk vote to leave the european union. we're live in london and britain for an update. will there be chaos in republican convention in cleveland. anti-trump movement sending an advance team to the convention. polls showing donald trump slipping further behind hillary