Down by a full percentage points. You have to say, what is happening on the continent, the pain more acute in mainland europe. David we were looking at this before, was you put this in the same and once you put this in the same currency, rebates, everything going into the dollar, and you will see why this next board is important. The town has been battered pound has been battered, down by over 8 . That does not look as dramatic. And this was have been in the market swiss have been in the market. At. 07 and we got down on the dollarthe yen, trading down by nearly 4 . Jonathan bring up the bonds. Yields on treasury grinding got to alltime lows. Points on the session. And for me, you spoke earlier, the idea that they could use lose a triple Credit Rating in the United Kingdom. This is down 33 basis points. We talked about it being more acute on the continent. I believe it is down 12 basis points, 20 basis points on a 10 year yield right now. David it is a sovereign, so the effect is much less. It is interesting to see what the ecb does. We will watch. Jonathan sally here with the Prime Minister had to say with reaction to this historic event in the United Kingdom . Take a listen. The british people have made it very clear decision to take a different path. As such, i think that the country requires french leadership to take it in this fresh leadership to take it in this direction. I will do everything i can to steady the ship over the coming weeks and months, but i do not think it would be right for me to be the captain to steer the country to its next destination. Jonathan we will bring in the global team, with reporters all around the world, westminster, berlin, and of course in brussels. We are live from westminster, anna, talk about the results. And talk about the political reaction. 52 of voters to leave the European Union. 5248, this result was not expected. It became clear early on that things were not going that many in the market had anticipated. We got early results from the northeast of english, they expected to be in the leave camp, but more than had been anticipated. That is how people knew that this would be going the way of the leave campaign. And in concert with some of the conservative mps, he is describing this as an independent day. Indepencence day. Methods todate surgeon,nicholas already talking about another independence referendum in scotland. We knew that this vote, it became to pass if it came to pass, it would put into the spotlight whether the United Kingdom could stay together. The scottish cabinet will meet tomorrow morning to discuss it. And David Cameron talking about studying steadying the ship. And Boris Johnson speaking this morning, trying to give a message, saying that we will not be pulling up the drill bits. And many have said this was largely about immigration. Will that be a message they want to hear . He says, we will see with the talks with europe will deliver. The timing of those is crucial. David cameron says he needs a new leader for the party by october, that is quick. And article 50, the terms by which the departure will be negotiated, will not be triggered until that point. So talking about speeding this up, the u. K. Side of things might want to take their time a little more. David thank you very much. I have to say, the reaction from those on the leave side was not dramatic, it was very disciplined and understanding and gave me the impression that this will be a drawn out process as we go toward the conference at the back end of the year. Jonathan we have no idea when article 50 will be coming and it will be fascinating to see when it does come and in what shape the negotiations are in at that stage. We will go from westminster to matt miller in the Aberdeen AssetTrading Floor. What a morning for those guys. Hases, for these guys it been a crazy morning. It was manic at atx. I was there early this morning and they were trading throughout the entire night. From 5 00 a. M. The day before. And they were pulling people out, margin call after margin call, stopping people, and that was where all that the action was. A huge swing, people were positioned wrong going into it and a force them forced them to hit their limits. Here at aberdeen, it is a different feeling. There is a longterm investor feeling, and they are saying it has been a calm shift. People were obviously position wrong yesterday and now they are repositioning. Has beent been it like for the exits slight for the exits. People are coming out of equities, they are coming out of long pound trades. Everybody had been short a pound, d leveraged, just because you do not know which way the vote would go. And they were already they are not having to sell those, they are giving calls getting calls from people who want to buy them from them. David i was told overnight for the liquidity providers, in the currency market, they do not time trade. Just stay away from the market. If you have to the end, you will have to have a rough ride. Thank you very much. Jonathan caroline is in berlin. Merkel speaking earlier, talking about a fastpaced negotiating with the u. K. I think this is where the split is already arising between the United Kingdom and the core of the eu, which is france and indeed germany, summoning the francef hollande from and the leader of italy coming on monday, so they want to be looking at a quick exit of the u. K. Nwhile, bores johnson Boris Johnson and those who called for the leave vote, have been talking about a slow pace. The divisions between the eu and United Kingdom are already building. And we did hear from merkel, talking about a measured response, the response body of the eu unity, this is a fear factor for her, the domino effect. We have heard of a scottish referendum, the spanish wanted to discuss referendums in the south, and the u. K. Being the third biggest export market for germany. Jonathan thank you very much. And john, getting fascinating. Jonathan this will go on for months. We had this discussion, it is not an event, it is a process. It will be a prophet for the bank of england process for the bank of england. Thank you for joining us. David talk me through. What has the bank of england already announced . Given the warnings from mark conte, did he have to roll back a little bit . Guest i think what he has done is come out with a very measured word. There is money available for liquidity. They have 130 billion pounds worth of capital. But the bank of england will not hesitate to act. They are channeling mario draghi in terms of this event. And in terms of what you have seen in the marketplace, the one thing that is interesting, we are in a political vacuum with the resignation of David Cameron. One thing you can be sure of, the man running that institution ran the bank of canada during a crisis. Governor conte, he took the bank of canada through a tough time and he stands ready. That is what will drive the decisionmaking. And Goldman Sachs already setting saying that they will cut further. When and if the governor decides to get into the market, it will be very different from 1992, it will be different. Back then, they were able to do things with interest rates. You will hear a lot of discussion on the negative rates and easy. Jonathan there were warnings from the bank of england. And you get a feeling that they will be rolling things back a little bit. David you cannot spook the market too much. These things happen, now we need to put a bit of a calming story over the whole thing. What is happening in brussels has to do with this whole thing. We have heard a little bit earlier us a sense of what is happening and how the negotiations will proceed from here. Right now i think the environment is a bit poison by the surprise from the british Prime Minister who want his successor to begin negotiations with the European Union. This is really important, when you think about it, if the negotiations do not begin until october, what we really get is a prolonged divorce proceeding where, we were talking about at least two years of negotiations, now talking about two years and some. And you can understand why David Cameron does not want to enter into the negotiations, he wanted to remain in the European Union. You can understand why the leave campaign wants to delay, because they think they will be negotiating from a position of strength. If they are negotiating the exit and the conditions they will have with the European Union in the future, they feel like that is the better way to go. From an eu perspective and from brussels, that means more uncertainty. If it is going to be messy, they want it to be quick. David thank you very much. We will take a step toward edinburgh in scotland had mr. Donald trump scotland. Mr. Donald trump speaking. These were people that were very proud germans, beyond belief. They thought the greatest that they ever was and now they are thinking about leaving germany. Andy see the problems in germany. I could see it happening. I have no opinion, and really, i could see what was happening here. I could see things happening in germany. I hope that they stray now the situation straighten out the situation, it could be very nasty. Building in syria must take the zones, good idea. But when you are taking them into the United States, by the thousands, and you do not know who they are all you need to do is look around the world. More problems. [indiscernible] politicians to use immigration to divide, how do you use it to unite people . When people come into the country and it does not work, whether because of crime jonathan coming up on this program, the global head of strategy, the pound having the worst day on record. We dropped to a 30 year low. Next, we will discuss. Shockwaves through the European Union, but i think it will be a good thing. Jonathan this is bloomberg go from the city of london, at historic decision. Here is first word news. A stunning results that has rocked the world and Financial Markets. Voters in the u k have decided it didnt the relationship decided to end their relationship with the European Union. The pound plunging to its lowest level in 30 years, according to the eu, they have two years to negotiate an exit. But they say it will not be long enough to work out complex trading agreements. It was a loss for David Cameron who spearheaded the remain campaign, he is resigning same name that saying that the country needs fresh leadership. A new leader is expected by october. And Boris Johnson, one of the leaders of the leave campaign, spoke about the upcoming talks with the eu. In voting to leave the eu, it is vital to stress that there is no need for hate. And as the Prime Minister said, nothing can change over the short term except work will have to begin on how to the people in extra kate the country from the extricate the country from the supranational system. And as Prime Minister said, there is no need to invoke article 50. He also said the u. K. Will continue to be a great european power. Global news, 24 hours a day, powered by over 2600 journalists and analysts in 120 countries. This is bloomberg. Jonathan thank you. Stunning moves in the market after this vote. Look no farther. On your screen right now, presented changes, going all the way back to the early 1990s. It is a little round dot on the far left. On the far right, that is where we are right now. The biggest drop on record. David sensational. The drop we saw over the few days, the opposite is here and true, because what we have seen is the smart money getting it wrong. And as a result, when the results came through, down we go. Jonathan and joining us, Steven Saywell. Global head of fx strategy, when you wake up this morning, walk us through what you are thinking when he saw that chart. We all thought that the remain was had last night. 2016, a dramatic turn this morning. What was surprising was less the outcome, but really the turnaround between 10 0011 p. M. Last night and this morning. Jonathan what were the conditions like . I saw a provider last night saying, do not come near the market today. Just stay away. If you have to exercise anything, you are going to get a pretty tough reception. What was on the cable this morning . Very close. To answer the question more fully, i think the key point we would make is we do not see the full response yet. David like we are we are surprised. I think that on friday, it has been a day to look at things, recalculate, and next week the market i think will take off and think what they need to do. Unfortunately for the pound, we do not think this is the worst of it just yet. David you will got, you are with the team and thought, this is the outcome. You need to make adjustments to the forecast. Looking at the pound right now, what are the forecasts and what takes us there . Changed dramatically from yesterday. Two points that make us less positive, firstly, the flows into the u. K. They start with a large deficit, between 4 5 gdp and it must respond to that abroad. And that is one reason to think bearish on the pound. And the second point, the bank of england. There we got there would be a rate hike, but now we think there will be a cut, 50 basis points. So that will reduce prospect for the pound and combined it changes thing. S 158 for the end of q3. Some pretty significant changes. Jonathan what are your target for the dollar . We were a house that was very bullish for the eurodollar. We have stepped away from that and we are now at 110. And i think that has to do with the Political Risk coming through from the eu. , on tradingephen floors globally, what stands out is the stress in europe. On the periphery, spanish, italian debt, yield after this decision. Does the ecb have a problem is yet . Just yet . It is early days with the ecb. Remember, this is not the time of the telegraph, they have time to think about these things. Remember, we do have the qe and the asset purchases. The ecb has already committed to periphery debt and that will alone limit any widening of spread to german bonds. Creative at about what next . This is tricky. The yen has traditionally been a safe haven currency. Send a surprise with the sterling and the yen. It is tricky for the japanese, because the bank of japan has eased policy in the past. We would fit is that there would be more easing coming from the bank of japan, but also we think that there will be some physical easing as well. And i think the combination may actually help limit the yen depreciation. But it will be a challenge. David you have painted a trajectory for several currencies, but we had a big gap in several of these pairs. Is this over . Talk to me about market structure, price formation in the weeks to come. It is not over. I think that is a part that makes us nervous. We talk about the dollaryean. We yen. We see a strong relationship with that and the 10 year yiel ds. It is more the fed that is driving this, rather than the bank of japan. Given what has happened, the u. S. Bond yields are heading lower, so that puts Downside Pressure on the dollaryen. I do not think we are out of the woods. Jonathan the message that came it is alltrongly was, about long ball. That is how you will make the return. Walk me through where you see the biggest volatility. I think it makes sense and is consistent with the view that we are not out of the woods. I think sterling needs to be at the top. Particularly now that David Cameron has shown his cards. As far as the u. K. Is concerned, there is uncertainty on the future, when article 50 will be triggered. That is the big one. More so than the euro, the young, or the yen, or the dollar. David thank you very much. Steven saywell, global head of fx strategy. Coming up, one question, what does the bank of england do next . We will discuss. It will send a shock wave through the European Union, but i think ultimately that will be a good thing. U. K. Decides in a historic decision to leave the European Union and we have more political news from the United States. Senator sanders saying he will vote for Hillary Clinton in november. He got some comments in there on brexit as well. In the global narrative in terms of the movements and politics we have been witnessing on both sides of the atlantic. It is now showing up in the brexit. Bernie sanderss saying the u. K. Votes shows the Global Economy is not working. The message he has been trying to deliver, a parallel between that and the u. K. Jonathan going to the markets. Action. L ftse 100 down 4. 6 percent. So many Asset Classes and security the price action the biggest it has been since the financial crisis. The dax down four percentage points. And the paying guide much more acute for European Banks. Barclays down almost 15. That is not the lows. And you have to bear in mind there is the currency factor on top of all of this. The ftse 100 may have read taken that 6000 mark retaken that 6000 mark, but it is with a currency that is significantly lower. We heard from Steven Saywell, 137 1. 3708. The spread colossal. We will see how it goes into the eurodollar. We have seen Thomas Jordan and co. In the market. Jonathan will we get information from the boj. That is a 31 basis point move on 10 year yields, down to one point 07 , an alltime low. That is a 22 basis point on 10 year treasury yields. A phenomenal session. It takes me to the morning mustread. Happens is t what matters is what happens with potentially qe. The bank of england will likely be active initially. The price stability will be maintained. Subsequently, in delivering actual monetary easing. The call from bnp paribas rate