Minutes or so. Lets get to the markets desk. Session highs hit in the last 15 minutes or so. Coming off that a bit. This is where we stand now. The nasdaq is the biggest gainer. The s p up by 1. 5 percent. I did some calculations right before this. We recouped about 360 billion dollars or so after the losses we saw from brexit. Those total about 1. 7 trillion dollars. We are still about 1 5 of the way back from where we started prebrexit. Lets take a look at my bloomberg. I will show you the imf function with the 10 sectors in the last hour. Seven were in the green. Right now, firmly in the green sectors. L telecommunications just barely above the flat line. But energy has been the biggest leader all day, up 2. 5 right now. This is in large part because of oil. ,atural gas also hitting highs up about 7. 5 percent. Financials recouping some losses here, and Information Technology up. Lets take a look at some of the biggest equity concerns right now. Facebook, exxon mobil, microsoft are the top three to speak of. Biggest has had the jump. Exxon mobil is in the number one spot on the s p, up 2 . To session highs. Microsoft up by nearly 2 . In addition to technology stocks, i want to take a look at with the Semi Conductor space. Across the board, we are seeing nice, green bumps. This is in part because of the nikkei reporting that apple, while being more conservative with its chip orders earlier this year is now being more aggressive. David i have to ask you about punsports and issue a alert. Are we getting a lift in the transportation sector . Yes, a lift, a rise, a sore. It. after falling post this is the biggest jump in three weeks. After three days of losses. After steve for saying lessdelta airlines has exposure to brexit pan american. Board, see across the. S. Airlines are all up these are all on pace to close of the highest since brexit. Just want to show viewers the incredible move in stocks over the last 30 minutes. We were up all day. We are looking at rallies across the board in the u. S. We are looking a big, big rallies in europe. Up 2. 6e closed percenttwo. 7 , making back more today than we lost 2. 7 . Rday 2. 6 two stocks really rising. Its the biggest game we have seen since march 11. We have had a couple of rough days, a couple of down days, and we have been waiting for this kind of volatility. We are really seeing it on the upside as well as what we saw on the downside. Energy Companies Leading the s p. Crude oil up. Mark crumpton has more from the news desk. Callsdonald trump president obama a member of the global elite. Obama says that trump is trying to tap the same sentiment the drove britain out of the European Union. Mr. Obama there is a xenophobia cropping up in Great Britain in europe that has parallels with what mr. Trump is trying to stir up her. Mark here. President says trump is appealing to fear of newcomers and outsiders in the same strategy has been used by far right leaders in europe. Has lost ayn confidence most. It wasnt close. 17240. Caused a masse exit of his team. He has no plans to step down. Election to the Un Security Council in the first round of voting. The netherlands and italy must now fight for a second open seat. The Security Council includes five per in a members with veto power, the united states, russia, china, britain, and france, and 10 nonpermanent members elected for twoyear terms. Texts reveal that one of the exits at pulse nightclub was inoperable. The records released today also suggest the nightclub had twice the number of exits needed to accommodate its maximum occupancy of 300 patrons. News 24 hours a day powered by more than 2600 journalists and analysts in more than 120 company countries. U. S. Stocks are recovering. One of the factors boosting optimism are reports is a report showing the economy expanding more than expected. You first ofsk all, in light of that, in light of the Consumer Confidence news we got today that it has increased for the first time in three month, i am curious how you think the brexit vote will weigh on the u. S. Going forward . I dont think it will have to much of an effect. We saw an immediate reaction. We saw the selloff. But when you look at the reality of it, the u. S. Is just not that exposed to europe. Its not that exposed to Great Britain in particular. There is not much there there. About the currency impact . Will we see a further impact on the u. S. Dollar as people look to a safe haven . See a littleobably bit of that. But it is still at the lower end of the range. Its not as good as it was, but we are better off than we were three months ago. So, is a good . No. Toit going to be something be afraid of . No. The poundave seen stripped down. We are now looking at 1. 30 three and change. Traders were spooked. They were kind of hyperventilating. But we could go down to 1. 20 over the next couple of weeks. George soros has also said that we could go down that low. Do you think we could see the pound drift any further . I think the pound has probably stabilized. What we are seeing in all of the markets is people sold off out of fear and then we are starting to reassess the reality. The reality is even though hing has changed everything has changed, nothing has changed yet. There is a reaction and then we will go back to something approaching normal. Bonnie we talk about this constantly. What is the one question they are asking you . What is the fear of the moment . Is this the big one . Is this what tips us into another 2008 . And it isnt. If you look at 2011, the situation in many respects was worse, and we got through that. This is just one more thing were going to look at data and say, what was that . Its a big deal, but its a limited big deal. You got into the Office Monday morning after the weekend in time to digest, did you do any readjusting to the portfolio . The time to adjust, if we were going to, was before the vote. We didnt think it was necessary. We still dont think its necessary. A lot of attention has been paid to the potential downside. Seeing, fordy example, the British Government revoke are not going to article 50. Angela merkel has said we have to be patient about this. Patient has to be everyone has to be patient about how to work this out. David cameron doesnt exit until september or october. It will take two years to negotiate their way out of the European Union. But what if we see others follow . What if this union slowly falls apart . Then are you concerned . That is the real risk. It is not the immediate risk that could emerge. We have already seen le pen say we are going for a french referendum. Weis very important that deal with this immediately to prevent that kind of contagion. And we have already seen a statement from the eu that says we recognize that a united europe is not always the answer. I think there could be a door opened to britain not leaving. Thats an underappreciated possibility. Are the providers in your network anticipating a Federal Reserve increase in the near future . I think there was some expectation that rates were going up from commonwealth advisers. But what we at the commonwealth headquarters were saying was that after the most recent terrible jobs report, thats something thats probably off the table. Despite the good news, the fed clearly seems to be a little bit rattled. So no, i dont think that was something that was really in peoples heads before the vote, and certainly, it is not now. Bonnie still ahead, puerto ricos debt deadline is july 1. What happens if the island doesnt pay up . David this is Bloomberg Markets. Now to puerto rico. Jack lew is pleading with congress to act on the financial crisis. The island is about 2 billion in debt with bond payments due friday. The governor of the island says it will default. Whore joined by john miller is at the been Asset Management which oversees bonds. Ask you about the bipartisan piece of legislation that the white house has backed. Likely to get through . How devastating will it be for puerto rico if it doesnt. We think it is highly likely that it will pass as soon as thursday. Technical and has been developed in the house of representatives the a a significant number of compromises to work out a lot of these details. If you rio open this can of worms in the senate, that could substantial delays and destabilize things for the second half of the year. Bonnie lets assume it gets done. What happens the next day . Where does puerto rico stand. They have cash revenues on tod, but they will need that get through the next year. , they will probably save money by defaulting on principle. Maybe they make some interest payments. Maybe they make partial payments. They will have cash on hand for government services. The has been a criticism of this legislation, that it does nothing to jumpstart growth. Should this get past, what is the next step, do you think . I agree that this legislation is really focused on debt restructuring and due diligence. It does not have Growth Initiatives and it. Part of what the Oversight Board is charged to do is come up with ideas to restart growth. Let tax incentives for manufacturing expire and that has produced 10 years of recession. There is not an obvious turnaround agenda in terms of the economy itself. That is one thing people need to work on. Bonnie what is your position on puerto rico at the moment . You do hold debt but it is all hedged . Our bones are all insured bonds are all injured by various companies. We are relying on the Insurance Companies in that case. Bonnie so you will win either way. We should be ok. David looking at the market ahead of this vote, what have you been seeing . The bulk of the market has traded exceptionally well over the last six months. Consistent returns, solid returns. And actually benefiting from lower interest rates. I think now we will probably benefit from the Federal Reserve backing away from their hike stance, pushing that out to 2017. That actually has created stronger inflow, stronger demand for security broadly. Supply has flattened yearoveryear, but demand has increased. Returns have been consistent but positive across the markets. You make of the u. K. Downgrades . Are you waiting to see whether things get worse . Things we aree of looking at is what the fallout might be on u. S. Growth, u. S. Inflation, and the u. S. Dollar. So far, the initial reaction has been dollar strengthening. It probably places downward pressure on inflation here in the u. S. This is generally positive for u. S. Income. Does the outcome of the referendum change her outlook on where we are in the credit cycle . Not yet. Follow forseen the the u. S. I think the slowdown we have seen week unemployment reports at the beginning of the month. Thats followed by further weakness in the labor market if thats followed by further weakness in the labor market, that would be a bit more of a concern. Waiting to see the outcome of this event. What is your position at the moment . We tend to be longer duration overall. We tend to be skewed more of to assets are skewed taxfree. Longer on the yield curve, longer duration has translated to more yield, and yield has been a driver of returns. You go short . At some point, but the yield curve is still too steep to go short. We sacrifice too much income. Bonnie thank you. Still ahead, todays options insight, investing and Consumer Staples may be boring, but they pay a high dividend. This is bloomberg. David this is Bloomberg Markets live from new york and london. I am david gura along with bonnie and matt miller. Matt i want to welcome Mark Sebastian over at options. David always good to speak with you. I want to ask you a little bit about the markets right now, hovering near session highs. Trillion,e about 1. 7 what is your noteworthy take away from this . At the ballook smash over the last couple of days. We did see a little bit of a weird close in the complex yesterday, but over the last couple of days, the vix has come back below 20. Still 90 points lower from where we started. While we have reset were the s p 500 is going to be trading around, we have also reset volatility. Reasons. Of we have the long weekend coming up. Traders are looking to go on vacation. Take away is that now that we have the jolt out of the system, traders are looking around and saying, unless another big shoe drops, which i dont think is going to happen in the next month or so, it may be hard to hold a 2530 vix because there is not a cataclysmic, immediate risk in front of the markets face. Thats my they take away of what we are seeing in the Options Market right now. It was going to ask you about the volatility of volatility. You dont think this will increase because of what happening with brexit . I think in the fall, once we get to who is going to be the next prime minister, that is when things could heat up. Are they going to bring in somebody centrist from the conservative party or forest johnson from the far right . That is when we could see activity heat up again. We are probably heading back to below 100. Still really elevated from where we normally are. Normally, this is around 90. But off the panic levels. With the market still down 90 points, i think there is more behind this relief rally and i think we could run higher from here. Looking at Consumer Staples, a little bit of a defensive play. Why are you looking at it and what is your play . I think its a smart defensive play because interestrate policy has changed. If you think rates are going to be stable or even lower from xl he a really nice dividend. Is a really nice dividend. Premium. Llecting that if xlp gets thrown out, baby with the bathwater, i will take the stock below 52 a share. Thats a decent level for an etf with a high dividend. We believe it there. Mark sebastian, thank you so much. More Bloomberg Markets coming up. This is bloomberg. You guys be good. Ill see you later [ bark ] [ bark ] bye. See ya pal. Ever wonder what your pets do when you leave home . [ laughing ] aw you cutie pie. Aw. Aw. Aw. Aw. [ barking ] [ washing machine running ] partys on know what your pets are up to with xfinity home. Xfinity. The future of awesome. See the secret life of pets, in theaters july 8th. Scarlet from bloomberg world headquarters, you are watching Bloomberg Markets. Joe im joe weisenthal. Matt Mark Crumpton has a check on the first word headlines. Mark a pair of explosions rocked is stumbleupons airport. The Associated Press sites turkeys interior minister he says the blast resulted in multiple injuries. The cause of the explosions was not immediately clear but an eyewitness told cnn turkey up a blast took place shortly after gunfire between Police Officers and unidentified individuals near the carpark. We will have more on this story as soon as it becomes available. Hillary clinton says the nation should move on a republicans on House Benghazi Committee released a report critical of the response in libya. The report concluded as secretary of state, miss clinton should have recognize that extremist opposed a risk in the embassy at the time. The u. S. And three others died in the violence. Donald trump talking trade today at a Campaign Event in pennsylvania. He highlighted his opposition to u. S. Trade deals and painted Hillary Clinton as a champion of the kind of globalization that sent u. S. Manufacturing jobs elsewhere. Mr. Trump as Bernie Sanders said, Hillary Clinton loaded for her voted for virtually every trade agreement that costed voters in this country millions of jobs. Trade reform and the negotiation of great trade deal is the quickest way to bring our jobs back to our country. Mark trump called for a renegotiation of nafta, the north the area north American Free trade agreement. He says he opposes the transpacific partnership. Thousands of protesters marched in paris as the Senate Approved a hotly debated bill approving labor laws. The reforms must be debated again in july in frances lower house of parliament, which is led by a socialist majority. The march was mostly peaceful, but police used your gas to counter demonstrators throwing projectiles. A minnesota judge presiding over the estate of prince set a july 8 deadline for attorneys to weigh in on particles for genetic testing. The music icon died without a known will or children. The judge is working on ground rules to determine potential heirs. A sister and five half siblings are in line to inherit the estate. Global news 24 hours day powered by more than 2600 journalists and analysts in more than 120 countries. I Mark Crumpton. This is bloomberg. Carol markets closing in under 30 minutes. Lets head to the nasdaq to see how tech stocks are trading. Abigail today is all about recovery after the nasdaq had its worst today slumped since august of last year. Were now looking at a nice dayy, on pace for its best in more than a month. First taking a look at tech microsoft and amazon and not far behind, apple. Iphone sevening cycle could set up a huge. Pgrade cycle for the iphone they are advising investors to hold on for the longterm. Tech, theook at a nasdaq biotech surging, up and on pace for its best move since early april. Its led by Gilead Sciences coming Gilead Science of having his best day since february. Thessible Sticking Point is somewhat shocking price tag of 75,000 for a 12 week course of the medication. With we will be talking the head of Carnival Cruise later on. What has caught your attention . Abigail American Airlines is having its west day