Run the world may be ready to to ease andgger calm the markets. Up by one and a quarter percent. The nasdaq is up by more than 1 . We are inching closer and closer to most of the losses. Down by about 100 points. The s p 500 is down and the nasdaq is down the most, the biggest fall in the two days after the brexit happened. It is green across the board with energy being the least of the winners. Commodities leaving that rally. Consumers stay for up. Umer staples another function here, for the most part, you are generally seeing moderate against the 20 day moving average. Consumer staples, also the most by them up by 80 against the moving average. My next chart, we have been talking about it the entire day. It has to do with her shes in the table bit. Lets show that to everyone. Up 15. 7 . In the last the flatline right here, shares resuming 16 , onand by 15 or track for a record close. Lets talk about some other deals at risk today. Cigna in the health care space. Down by 100 quarter percent. Threatens competition and probably cannot be fixed by selling parts of its assets there. I also want to show you what is happening in the medias days particularly the movie space. Amc is up here. The bid for cinemas valued at one point billion dollars now under threat because it says it is prepared to walk away because of opposition from stockholders. They say that share offer is too low. Looking for energy at the bottom with the rally the last couple of days. What has happened . Energy is coming off by little bit. Oil right now is off by 3 here. Gains rebalancing that happened. Past two days. The eia came out saying it is still out six weeks in a row. Up helping to push this right now. Lets look at what is happening with natural gas. On the up and up. On track for the best Second Quarter gain. In the past 16 years. Asller than expected gain well. Lets take a look at what is happening. Gold is down. Down 28ce brexit, it is aces points still. Lets get a check of the headlines. Mark crumpton has more. Says the bank of england will probably have to ease policy in the near future to counter the fallout from last weeks it vote. In london, he warned there was only so much that can be done to protect the economy. Uncertainty could be elevated for a long time. Moreover, its effects will likely be reinforced by tighter financial conditions and possible negative spillover growth for trading partners. Mark he said the central bank will not hesitate to act when it comes to safeguarding the economy on the financial system. Three u. S. Senators say a similar crisis could spiral into meddling andourage destabilize an important u. S. Ally in the persian gulf. In a letter sent to by john kerry, chris murphy of connecticut and marco rubio of they are deeply alarmed by the iranian governments crackdown of free speech. Hillary clinton picked up an endorsement from europe. The french president is backing up he says Donald Trumps president puts them on the same level as europes extreme right and says it would hurt europes ties with the u. S. Americans are more worried about , thatthan the zika virus is the finding of a New Washington post abc news poll. Two thirds of americans say they are not at all worried about zika affecting them or a family member. Dayal news 24 hours a powered by more than 120 countries. Back to you. How well were investors prepared for the brexit vote . Very well according to one investor. Explain ks following. For more, lets ring in jack, ceo and chief investment strategist. What has been the most surprising thing . The most surprising thing and maybe it should not have in a surprise, that johnson had no clue as to what to do. Having withdrawn from the Prime Minister race is an indication , whichy has no clue means most of britain has no clue how to really deal with this problem and theyre having to depend on mark carney, much as the rest of the world is, to soften the blow here. He do well by Financial Markets . I think he did well by speaking the truth. It probably was not enough for the Financial Markets on one level, and he may find himself having to do more, but there is only so much Central Banks can do. This is really going to be a problem for the united kingdom. I am not sure it will be in as much of a problem for the rest of the world. The big winner is the matter what happens, germany. David talking about political volatility in the united kingdom, what is your forecast for it . How much longer do you inc. We will have it . Think were in for a long time of what we calls as of volatility. Everybody knows when Central Banks ease, theyre pulling forward future growth. Growth Going Forward is likely to be disappointing here. You get into a low growth by country and buy stocks, but you will also see spikes in volatility because we are too close to accidents. Vonnie we actually got a central bank that made a move today. Moving Interest Rates higher, will we see more of this from emerging markets and what turmoil will that was the markets into . Again, it will cause a significant amount of dispersion. I look at what max co is doing the u. S. , canada, and mexico, i think the countries are in relatively good shape versus the rest of the world. The world looking and at investment opportunities, one does not have to go to the rest of the world in any sense here, and any confusion in the world are not as confused with Boris Johnson but certainly confused. Britain or anything can to do with it, but youre looking at the countries . It is stock buy stock and country by country as we look at the americas. Is stockn, i think it buy stock. Certain sectors, one might want to avoid. There are decent companies and with the pound down, some dopanies will actually better, with the euro down, you will see certain countries and Certain Companies to better with the rest of europe. David oil continue to be here Going Forward in light of the end turnkey designated to the u. K. And europe. Will it always play as big a role . I think oil has played a in what is part going on up until now with a big benefit, that has been a big plus and we have to understand it has in a part of the earnings picture away from the oil industry. I suspect we see Oil Prices Rise and we will see disappointments in much of the rest of the economy. With oilno sense to me going up. I suspect they will raise once this year and maybe twice. I think the second half will be very different from the first half. We will have to wait until july to see the numbers. The u. S. Economy is moving along here ok. We have to watch what is really but the with women, theers, 38,000 people, adjusted numbers look pretty good right now. It will be a problem for companies in the u. S. Because wages and labor cost will go up, they are going up. Friday the eighth and not tomorrow. Jack, ceo and chief investment strategist, you for joining us. David following the markets near the session highs here this is bloomberg. David this is Bloomberg Markets. It is time now for the bloomberg is this flash, a look at the biggest business stories in the news right now. The victims of the deadly shooting rampage, nearly 700,000 in legal fees after they are excessively sued the movie chain, the attacks killed 12 people and left more than seven others injured. Vonnie the settlement came after trait groups sued the charging the00 stores for handling credit card payments. Volkswagen told a federal judge they needed months 85,000 more vehicles. Reached this week for volkswagens cheating scandal. That is your update. Vonnie take a listen. If investors are really saying there is on weak spot him i would contest that. I do not think that british banks are weak in the sense of them fully capitalized. The fact that we has had a tough regulator over the past few years, it is probablys something rather good instead. If i look at the Capital Position include my own, i am not anxious about it. The key thing is we are heavily influenced the u. K. Economy. Goes down, then it will go up. Not so much you can do about it. I hope you make good decisions, manager rate of actively through what will be a slightly turbulent time. I think the downgrading of all u. K. Banks has an overdone. I am not sure the recession is likely, if there is one, that it is likely to be that dad, and the rest of the stock market is not really telling you that. You asked questions about what the city of london might he come, banks, shares in general. Began terms of regulators and politicians that would help you fear what rbs may cut maybe come in the next few years good at leveraging to the markets. In the case of rbs, we made the decision that we would essentially be u. K. Vocus. Some of the issues about the status of Capital Markets in are of less importance. Significantly less importance to banks like us. They continue to be able to use the passport and the rest . It is bigger for them is for us. Tom i want to cut to the chase. Economics with a regulatory background. What will italy do about banks. Nothing nothing compared to the italian banks. I know you will not badmouth the time they. Foresee as the process of the Italian Government to bail out the industry . It is clear they need more capital in there. Europe, if youn have that resolution, it is rather awkward because it means the market is not really open to banks were they think there is a possibility of a resolution. Foundl will have to be through some state entity of one sort of another and brussels about thea hard implications of that and whether they will that. If it is essential, it will eventually get done. Tom would you please explain to the audience the rationalization that the equity share price does not matter. I understand from m. I. T. A million years ago, but you cannot tell me a lower equity share price does not matter to solvency and liquidity. That clicks into confidence, doesnt it . At some point but you have to ask yourself what situation youre in and whether you are on the edge of meeting capital. This is where the italian problem that you raise rightly is closer to the wire because if you are in a situation where it more equityyou need capital and the share price falls, that is different from where you do not have any plans to issue the capital anyway so you can afford to wait a while. Will not be serious because perhaps it will come back. David chairman of the royal bank of scotland. An update to the story. Did include a guarantee for italy banks but it is separate from the potential recapitalization for banks. Around what is happening midday. Still ahead on markets, todays options inside which takes a look at emerging markets. Did here is the index today. David time now for options insight with ramy inocencio. Ramy dan is manager at kkm financial. Good to see you. I know we will be speaking about emerging markets. That, letst to talk about the markets here in the united states. Signify to you . Do you think this is all overdone and we are in the clear . That is a good question. There is more headshaking going on here today. This is an impressive run up. The fallout from here as far as how the market will move forward, now, what is the economic ramifications. You have got a for yield going on. A positive, reinforced loop Going Forward. It did at this time as well. Right back uptor this time. Today underility pressure. Down at about 16 and below that now. Usually a time slower volatility. The futures are higher right now. I expect it will change the landscape for the short term. See a lot of Central Banks command in the fed chairman does not see a list. A risk. 11. 5 join dollars of negative yield bonds, you see money flowing toward any chance. I think that will play out longer but ultimately, the pendulum keeps pushing toward the risk front where we will see at some point, it will be a little more severe. Action. Erging market what is your trade . It was better than a lot of the other markets around the globe. Money further east, looking atope, i am a call spread, its a caps off 35. And the ratio of 35. Bility looking at emerging markets, if you had to single out one company that you say, that is the one to keep an eye on, where would it take . Class of think you would look at india as one. Ultimately, china will sway the whole region as a whole. It will influence a lot of these other countries. India right now. We have to leave it there. For Bloomberg Markets next. More Bloomberg Markets next. From bloomberg World Headquarters in midtown manhattan, you are watching Bloomberg Markets. Matt lets start off with a check of the headlines. Here is mark crimson from the newsroom. Mark paul ryan says lawmakers will act next week on a terrorism package that includes a provision to prevent suspected terrorist from buying guns. Sit inws last week by democrats demanding guncontrol measures. Speaker ryan is also getting recommendations from houses koreans on how to respond to future demonstrations. Likely says he cannot endorse donald trump. He says he accused my best friends father of conspiring to kill jfk. He is referring to the father of texas senator ted cruz. He says he is concerned that trumps plan to restrict muslim immigration in the u. S. Amounts to religious intolerance. Journal and can chancellor Anglo American anglo Merkel Angela merkel is not commenting exit clause should not be invoked by the end of the merkelancellor moke spoke to import reporters. You will understand if i do not want to comment on every statement. Lets wait to see how a new government acts and then we can evaluate it. I am following the discussion like many others but do not want to comment here. Mark she will not support a second referendum on the u. K. Membership. Forced labor is still widespread in the nations lucrative seafood industry. The state Department Data assessment in the annual report released today by john kerry. The report examines the efforts of 188 governments fighting modernday slavery. A quarterback has been suspended for the first four games of the upcoming nfl season for violating the Substance Abuse policy. Subject to the suspension if he signs with another team. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Back to you. Scarlet the stock market closes in just under 30 minutes. Gains near session highs. To abigailve doolittle. Abigail we have the nasdaq in rally mode. The best rally since the middle of february. The amazing. Less than 1 on the quarter. Where the quarterly nasdaq is on pace for the Second Quarterly decline in a letter in a row, the longest since september of 2011. Helping the nasdaq the most this color is not technology with the exception of amazon. Up a whopping 20 . Think about the fact it is Pretty Amazing it gained more than 20 in the Second Quarter. Names they did put in an offer for hersheys, rejected by the hersheys lord. Plus monster beverage. The winners from a point standpoint are really a mixed standpoint. As for technology, this is the reason the nasdaq is down just slightly. The biggest this quarter came from the big tex names including apple, microsoft, and share classes of apple net. You mentioned it was a volatile quarter. That was a case in the last couple of trading days. Amazing. It is from a technical perspective, last thursday we had the nasdaq trading above 200 averages. Friday, monday, or tuesday below those averages. Today, back above. A big data between the bulls and the bears. A big question of whether or not this valley after the breck it selloff is for real. If you technical experts to find out what they thought. Believes the nasdaq 100 is handcuffed in the near term. Analysis says another down graft. S life likely a bit of a wait and see their from technical experts. Joe thank you for joining us. Matt the governor, the bank of england said it would continue its liquidity and continue a host of other measures. Will relentlessly pursue monetary facility and facilitate the adjustments needed. Consistent with those plans and for the economy to reach a full potential. Now is theus professor of economics from the university of birmingham. Thank you for joining us. What do you think about the moves to stabilize the economy but we also heard from the ecb that they would we willing to broaden the measures determined to buy bonds. Not that surprising. For a membernusual to signal their own future votes. That is something to be encouraged. I was a little surprised they did not consider an immediate Interest Rate cut. Nevertheless, the response to it is welcome. Joe one of the striking charts in the announcement he had was three arrows of uncertainty and you talk about geopolitical, financial uncertainty, and now you can policy uncertainty. From the central bank perspective, how does this u. K. Policy uncertainty makes the job harder . Policy uncertainty means anyone thinking of spending or investing will be less sure about the returns on that or whether they can afford it. The uncertainty will depress demand and push down on there is anobably argument that uncertainty also inhibits supply but my guess is those effects are slower moving. Scarlet one of the Big Questions is inflation. The u. K. , europe, and the u. S. Have been looking in search of inflation anywhere they can wind it here it it was like we will get some in the weakening pound. That is starting to shop a little bit but not the extent. Ou might and his weight when do we start to see these move higher . Expect the rate to come in in the next few months. That kind of welcome and inflation will move back to target for a little bit to show it is not permanently stuck away from the target. That effect will be shortlived. Of increased uncertainty will weigh heavily. I think it will only be a short response. Prior to the vote, you organized a group of economists who wrote an open letter advocating for a remain vote. I want to read a specific line you said. The uncertainty over precisely what relationship u. K. Refinance often with the eu and the rest of the world would als