Remy stocks are up, and the pound is also up. U. K. Bans as from talking further about the referendum, that this is a snapshot of what the markets look like. 9 of for the dow, as well as the s p 500. The nasdaq up the most, 1. 1 . Lets look at what is happening with the s p over the course of the day so far. We are basically trading within a fairly narrow band, about 20 points or so. 2103 right here, about 27 points away from a record high, basically flying high. Lets look in my bloomberg with the s p 10 sectors. Again, a very broad rally across the board some from utilities, which are down. 3 . Up 1. 6 . S are materials up by 1. 4 . Energy up 1 because of oil and natural gas wells rising. A deeper dive into what is happening with the financials. Names arell, the big up. Citibank up by 3. 8 , its highest in about the past two weeks or so. Jpmorgan at its highest in about the past 10 days, up 2 . Wells fargo of more than 1. 5 . Materials are gaining, the top percent gainers right here. Mosaic is up by 4. 6 , company dealing in fertilizer. It is rising on the news that india is nearing a deal with the Eastern European country of ulurus on of belarus on potash. Freeportmcmoran up about 3. 2 because of the price of copper. Ppg is up, approaching 3 , the maker of protective and decorative coatings. Longbow is upgrading its stock from buy to neutral. Green across the board. Theyve end materials david materials gaining an energy gaining. Ramy wti up for two days in a row. Data set stockpiles fell less than expected. Nymex crude up a 1. 2 . Natural gas up by about. 8 . In this risk have an on environment, this is where things will be heading. Gold futures down. 5 . And the u. S. 10year yield is up by five races points. In two. Its highest david thank you. Vonnie first word news from mark crumpton. The u. K. Citizens are voting today in a referendum on the countrys membership in the european union. Or David Cameron was among those casting ballots. Fromlaw prevents us reporting of voting or analysis of referendum issues while the polls are open to your dweeb will be following the action as the results come. Special coverage starts at 5 00 p. M. New york time, 10 00 p. M. In london. The u. S. Supreme court blocked president obamas plan that would protect millions living in the u. S. Illegally from being deported. Justices deadlocked 44, leaving a place a Lower Court Ruling that the president overstepped his authority and effectively killed of the planned for the rest of his presidency. I the ability to reach a decision in this case is a clear reminder of why it is so important for the Supreme Court to have a full batch. I nominated judge Merrick Garland to the Supreme Court or the three month ago, but most republicans, so far, refuse to even meet with him. They are allowing partisan politics to jeopardize summing as fundamental as the something as fundamental as the impartiality of our justice system. America should not let it stand. Mark Hillary Clinton called the deadlock and acceptable, and she said she believed president obama acted well within his constitutional and legal authority. Ordered sixdge has people detained for another month and the investigation of last novembers terror attacks in paris. One of the detainees is mohamed abrinik, who is being investigated for suspected links to the suicide bombings that killed 32 people in brussels. There is a milestone in the flint, michigan, water crisis. Regulators with the epa have given the all clear for everyone to during filtered tap water. The agency is lifting a recommendation that pregnant women, nursing mothers, and children under six only drink bottled water to avoid lead exposure. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Vonnie thanks. With a cautious and uncertain of view of the economy. How much are investors weighing that guidance . Michael aurora from jones trading joins us. Floor perhaps the 2 is a and the fed may not be willing to go beneath it. Michael orourke joins us. Michael going forward, they are converged on 2 now, something relatively new. Basically, the fed wants to see the gdp continue to grow in this country, but i think they are hesitant to actually post a gdp forecast a low 2 . It will show that the Monetary Policy for the past seven or eight years has not worked. So we see these estimates converge on 2 on the longer run , and the only time we will see the fed predict gdp lower than that number is when they are already tracking there. To thing is, it is important recognize because when we look at these fed forecast, and they are not really real forecasts. They are biased to the upside. Vonnie do you think certain members might see lower michael thehat . Language they use when discussing forecast and willies, they believe it change policy to get us back to 2 . Same thing with the inflation rate. It will say the longer run forecast is this level because we believe we can manipulate policy to get us there. But the problem is all the forecasts are converging on that level. Thed than me pull up bloomberg. Jim bullard said fees pulling out said he is pulling out of forecasting model. How useful is this . Michael it is critical in gdp forecast. If you look at the path of forecast projections over time, they have converged from fourpoint play 5 and 25 to where itn 2012 is in the last year. The fed does not want to say the fed funds rate will go below 3 , because that is when the economy is normal and healthy. But they have already moved to that level, nothing jim bullard and the st. Louis fed are saying, maybe we are at potential gdp and are at that longer run capacity, and this is a new normal type of economy. Hence, he dropped his longer and andcast out and 2016, 2017, 2018th forecast and forecast are extremely low. This has been changing a lot. At least one fed increase, and that would be in december. And you see in the amount of moving around markets have done in terms of expectations. Do you see a fed hike this year . Michael i believe they do want to hike rates. But the problem is that they are afraid to because the economy is decelerating. And now there is this neutral zone where the economy needs to really ramp up for them to tighten our really needs to drop for them to reverse and start using again. I think we are pretty far from either of those levels of this current point in time. At this moment, obviously, data can change. Even if we get a strong jobs number for june, i do not think they will hike in july. It is not just the jobs numbers that have weekend. That have weakened. Sub 2 gdplooking at for the first half of the year, so i think the fed will probably wait. , 20,00059,000 last week less than what was forecast for the jobs report. It seemed that janet yellen was coming around to the notion that we might the in this time of stagnation. Are you sympathetic to that . Michael that is exactly it. As bad asure it is sector stagnation, but it does look like the fed is turning around. Showsd switching his dot us some of that or the path of the fed funds forecast, i believe, shows with the fed is thinking about longer run. They brought that down from 3 longer run, which is something i would not expect it to go below, and that shows that there is concern out there. , thankmichael orourke you very much for joining us. Jared huffmanman will join us. He is among the house immigrants who participated in a sitin over gun control. This is a live look in the senate, where voting has begun on a bipartisan guncontrol bill. Vonnie and u. K. Citizens are voting and a referendum on the countrys membership in the european union. We will be following all of the action as the results come in across a day of special coverage. After voting ends, watch coverage starting at 5 00 p. M. Eastern. And a special report at 6 00 p. M. New york time. Is is bloomberg markets. Earlier this afternoon, House Democrat wrapped of a twoday long sitin. House Speaker Paul Ryan addressed the event earlier today, calling it a publicity stunt. Say,er ryan other than to we are not going to allow stunts like this to stop us from carrying out the peoples business. Huffmanongressman jared was part of the sitin an joins us now. Talk about the motivations behind this sitin. Paul ryan they are calling it a publicity stunt. Congressman huffman a lot of segregation calling it john lewis sitins. This was a very spontaneous thing when it started yesterday morning. It has grown into a historic Inflection Point for this congress and for our country. Vonnie what did it achieve . Congressman huffman first of all, it got is moving into action finally, which for so many of us is a great relief and since of pride and purpose we do not often feel here in the house of representatives. I think it also focused the attention of the world on some very modest steps we can take to at least provide a little Better Safety to the American People from the gun violence epidemic, and it highlighted the fact that the problem is squarely in the republican majority of congress. They will not let things come to a vote. David speaking more broadly about this, a few months ago with paul ryan was named speaker of the house, i noted there was a lot of optimism about the fact that Congress Might go in a different direction here. How would you characterize the level of engagement that you and fellow democrats have had with your republican colleagues in the house . I think we huffman had high hopes, as well, when speaker ryan took over and told us the new congress was going to take on tough issues hadon, not hide behind this disgraceful rule. We thought many of our issues would get hearings and votes. That has not happened. That is part of why we did what we did. Vonnie we not used to seeing these kinds of scenes in the u. S. Legislature at all. It is more like what you might see in ukraine or other countries. Do you anticipate this will be necessary in the future to get things done . Congressman huffman it was almost unprecedented. It was very principled and peaceful and dignified, with the possible exception of some moments when a couple of passionate republicans came to the well of the floor, and it did begin to feel a little bit like the ukraine or the taiwanese legislature. Thankfully, it did not get too far out of hand. Cooler heads prevailed, and we stayed on message. I am very proud of my democratic colleagues. We were engaging in a very respectful and appropriate act of civil disobedience, you might call it, but it was for one of those historic clauses that, frankly, demands that to not do what we did would be inexcusable. David on the other side of capitol hill, senators are doing on legislationte advanced by republican senator Susan Collins, a lot regarding it is compromised to legislation on gun control. How does that look question or does it satisfy the concerns you have about restrictions on guns in this country today . Canressman huffman if it move forward, that would be great news. We would love to see votes and the vase on her compromise for basel and on any other bipartisan proposal out there we would love to see votes and debates. We just asking for a vote. Vonnie would you comment on the Supreme Court decision today to rule that the executive order taken by president obama was unconstitutional basically . Congressman huffman on immigration . Vonnie yes. Congressman huffman i think it underscores the highstakes of this years election. If you care about gun violence, about immigration reform, about climate change, any number of these highstakes, consequential challenges and opportunities facing the American People, this president ial choice really matters. Were remarks from nancy pelosi, and she is scheduled to deliver remarks any moment now. Can you get back to talking about the way this sitin can about . John lewis leading it. Tore was a real viralness this. Cspan cameras were not rolling. Republicans asked for them to be shut off. It was broadcast through periscope and other social media , despite rules in the house making that illegal. How quickly did it grow, and how did you get involved . Congressman huffman very quickly. It was very spontaneous. I went to the floor about 11 45. We heard that john lewis and Katherine Clark and a few others gathered and were trying to make some statements. So we went down to show our support. When the microphones and cameras were cut, the decision was made to remain and to move this into more of a sitin protest mode, and member after member started streaming to the floor. Thankfully, some of our younger members who are very tech savvy figured out there were applications that could continue broadcasting these statements, even after the microphones were cut. The sergeant at arms normally shut down cell phone camera use on the floor. That had to become, unfortunately, another part of this civil disobedience, because we thought the world needed to see and hear what was happening. Vonnie congressman jared huffman, democrat of california, thank you. David steve brown with American Century tells us whether he things commercial real estate is headed for a longterm downturn. David this is bloomberg markets. Policy,now to china where policymakers are grappling with the debt problem. A snapshot shows the growing debt pile is growing, and they are worried about risks associated with rapid deleveraging. In there is the recent revelation that Wealth Management products are investing each other and could cause a default chain reaction. Debtrant painted a dire picture earlier today. Jim china is a financial dystopia, immensely leveraged. It is very dangerous, very low quality debt. First quarter, they say gdp grew 7 . Say that it did, evidently, banking assets grew at Something Like 17 . During the first quarter, china materials about materialized about 1 trillion of new debt. We will wake up one morning and here that there has been overnight combustion in the socalled Wealth Management product there. It is really quite worrying. Yet, the world is clamoring for china to keep growing. What is the calamity you see . That then say Bloomberg News department, from may 29, write a fabulous piece on this. There are 3. 6 trillion worth of these things that are closed end funds, credit instruments, that have tripled in volume in the past three years. Method ofincipal refunding these things is to issue more of them. This is one of the great unexamined the digital calamities of the world. Goodness knows we journalists spend a lot of time analyzing things, and disneys more attention still. We we need to Pay Attention to this still. In the 1980s in latin america, we saw this, but they grew their way out of it. Is it possible for china to grow its way out of the problem . Jim yes. But i live in work on, but you must cover my answer with that fact. No, it is not possible. That is the theory, correct . Is approximately twice as big as gdp and growing twice as fast as gdp. That is not a formula for happiness. What would your prescription be for china . Jim be short. What if you are running the country . Jim capitalism and freedom. I mean, china is dedicating to suppression of free information and to the proliferation of debt. No, wrong way forward. What we need is freedom and less debt. Vonnie that was jim grant of grants Interest Rate observer. Still had, markets will be closing in new york. And Marshall Real Estate prices commercial real estate prices. Okay, ready . Whoa [ explosion ] nothing should get in the way of the things you love. Get americas fastest internet. Only from xfinity. By switching to xfinity x1. Rio Olympic Games show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. David this is a live shot of the capitol building, nephew pelosi giving her weekly news conference. The house officially in recess until after the july 4 holiday. Reportersressing after houston mcgrath staged a sit in that lasted two days, pushing for action on gun control. You can watch the full event on live go. Onnie lets check in Commodity Markets in new york as they close. Ramy i am looking at what is happening in terms of oil. I want to point out the fact oil is rising is because of what is happening with the u. S. Dollar. I want to go quickly to my bloomberg and so what is happening with the dollar spot index. What i want to show you is over the past two days, the dollar has fallen in tandem, commodities and prices have risen. If we can bring back the wti crude, that has been rising over the past two days. It is now the highest two weeks, up 2 just today. U. S. Crude production fell for 14 of the past 15 weeks as well. According to the eia also factoring into this. Oil is up 30 today. That is what is happening with nymex crude. A single look at gold. Because of the risk on environment, equities are near session highs, gold futures are down by about 0. 5 . They are heading towards session lows. This is the slowest in the past two weeks. I want to take a look at industrial metals, specifically copper. Copper is rising near session highs up by 1. 2 , rising for a sixth straight day. This is the longest rally in the past two months. Copper, with it rising, is helping material stock in particular. David Ramy Inocencio at the markets desk. Vonnie are we heading for a downturn in commercial real estate . Pimco predicts that u. S. Prices may fall as much as 5 to two titans regulations, debt insecurities, and publicly traded companies. But do our reporters share the same view odor thank you for joining us. You have done pretty well. In . E top in or almost reporter rates are up 9 , investors had a good ride. And the one push back i got was that thought rates were going to rise, and here we are in june, 0. 16 . We have had a strong environment for commercial real estate. Low demand and supply characteristics. If they continue at 1. 6 where it is, if we have 2 growth in the u. S. , they should return in 2016 and bey