London over the weekend, but we have a full eight days of brexit. But tom, the country still under shock because of the killing of this m. P. , and for the first time, we are expecting the tone of the campaign to change. Tom well, i would say it would change, and, of course, the mystery is when it ramps up as we go to next thursday. Certainly, francine, a somber tone that really resonates across america that has seen assassination too many times. It really puts a change to our discussion, at least as we go through the weekend. Francine it certainly does. Lets get straight to news, and we have more on the Brexit Campaigning being on hold. In britain, the campaign over whether the country should leave the European Union is still on hold after the murder of a labour party leader. Police have arrested a man in the shooting of jo cox. Cox was shot while talking to constituents in northern england. Prime minister David Cameron spoke not long after her death. Weve lost a great star. She was an m. P. , great campaigning m. P. With huge compassion, with a big heart, and people are going to be very, very sad. One witness says he heard the man who attacked cox yell britain first. Russias president Vladimir Putin is about to go on a borrowing spree. The government plans to boost sales of ruble bonds over the next three years to cover the budget deficit. It will also help preserve russias reserve fund, a Rainy Day Fund of foreign currency assets. Dozens of u. S. State Department Officials have criticized the obama administrations policy in syria and called for military action. Their criticism comes in an internal document. It says that u. S. Policy has been overwhelmed by the civil war in syria, and it argues that military action is needed to pressure syria into engaging in peace talks. President obama is pleading for congress to consider new gun control laws in the wake of the orlando massacre. The president spoke at a makeshift memorial to victims of the nightclub attack. He wants congress to limit access to militarystyle weapons. On monday, the senate will vote whether to ban gun sales to people on the governments terrorist watch list. Global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. Tom thanks so much. On a friday, a quieter data check. It has been something this week. Futures churn, the yield churns, but, of course, this is a reset lower. Oil, couldnt get a bid yesterday. A bit of a bid this morning. Lets get through this quickly. Weve approximate got a lot to talk about. The v. I. X. Back under the longterm average. Sterling gets a bid this morning, and euro a little bit better off the Thomas Jordan interview yesterday that guy johnson had. Francine . Francine tom, this is my data board. Youre right, stocks are gaining. I also put pound 142, maybe a little bit of a respite because the campaigns were suspended, but i also want to show you the polish currency. Dont look at it very often, but actually its been declining a touch after strengthening yesterday afternoon on this suspension of the Brexit Campaign. So again, there are ramifications for these Eastern European currencies. Tom we purposely dont do this. Francine and i dont know what were going to show in the data check before we do it, because its fun to see where we overlay. Lets do that right now with the queen of london. We go over to swiss, which i came up with a while ago. Ive never done this before. Switzerland is compared to Eastern Europe. Heres strong, the financial crisis, ugly, and you sort would have thought that Eastern Europe would do ok and get better. No. Much weaker paired up with the swiss franc. So its good to see. Were channeling as we get together on monday. Francine i know, maybe change. This is what i am looking at. I actually did it for you, because i looked at something that we watch often on the show, a haven in times of turmoil. Gold jumped to the most expensive relative to copper since 2009 this week. So this is my chart, kind of en lapse late all the angst we saw in the market. So you can see this i brought it back to 2008, and this is the level we saw this week. Again, i dont know if its in the coal mine, but certainly the level of fear brings us back to recessionera ages. Now lets get to demrobal strategist and our guest host for the hour. Kit, great to have you on the program. When you look at this, when you look at Central Banks, currencies, theres nervousness out there. Kit yeah, theres nervousness. I look at your goldcopper chart and i think copper correlates very well with Industrial Metals overall, and therefore, with copper like that, the chinese economy, we can park that bit on one side, and then we can see the polish, which indeed, you know, is going to spend the next week wondering what happens if the u. K. Were to leave the European Union and the knockon that would have in terms of impact, and poland is the most liquid of the Eastern European cancer as. Francine on a friday, what is the most significant piece of news we found out this week . If we go back to the fed, janet yellen Still Believes theres strength in the u. S. , or is it now theyre expecting one rate hike . Kit i thought the biggest move was in the downgrading of the 2018 dot and the 2018 deprothe forecast. So 3 rate gone as an idea. 3 growth gone as an idea. This is the fed accepting new normal. Were in a world where 2 growth is as good as it gets. Tom there is a polarity of debate before the assassination yesterday, and that is that all of this market move is about brexit remain, and another group of people saying, yeah, its really, really important, but theres more going on. Which camp are you in . Kit theres a lot of brexit remaining. Ive been traveling around and asked by any number of people. Innocent terms of the impact here, but in terms of the uncertainty that it cause insist places like poland. I was in spain, what it means to spain, what it means for italy. But id have to say, you know, the biggest story, which i would describe as the fed running out of tools, running out of influence, the fact that the fed was very dovish and the equity market didnt get much of a bid. Emerging market currencies didnt get a bid for more than half an hour before it went south again. I thought that was going to last with me longer, or at least if the u. K. Votes to remain in the European Union, thats going to be the big thing for me for the rest of the year. Tom set up the yen for us. Were going to dash to japan here in a moment and give us a briefing kit before we go to brian fowler, on the idea of how japan responds to janet yellen, to her presumed dovishness. How do they how does japan respond to that, or are they so independent they dont have to ook at it . Kit they will look if dollaryen goes under 100, and i suspect theres going to be pressure for that to happen. In this super low yield environment, the success of the japanese driving their currency down is being eroded on pace, and today is a day off, and i dont think thats gone away. Eventually i think that theyre going to be forced to consider what they can do to stop their currency appreciating and giving up all of the losses that it had. I dont think theyre so concerned about the currency piece in doing that, but i do think they have to respond. Theyre called out by whats going on. Francine is everyone caught up . Yeah, tom. Tom its global, and i know were going to go to brian fowler in japan in a bit here, but to me its a remarkably global brexit story. Francine it is, and actually, tom, what i was trying to get from kit, i guess lets say that brexit happens. I know well talk more about brexit, but will the World Central Bank come together to provide some kind of liquidity, and will we not see a shock . Kit i would be very surprised. If the European Central bank, they may need to make sure this system, the bank of england obviously makes it willing to do some of that. I do think that, you know, either way on this vote, the single most liquid currency to put in various pairs in the middle of the night on next ek will be the yen, so trading one way or the other in the euroyen, threes Currency Pairs you will see traded in the middle of the night on the back of this event. Francine kit, thank you so much. Kit stays with us for the whole hour. Next week, live brexit coverage from london. Stick with us for the latest insight and perspective from Global Leaders and thinkers. Francine this is surveillance. Lets get straight to the bloomberg chase. Hsbc will take a 585 million pretax charge for settling a 14yearold shareholder lawsuit in the u. S. The suit was over allegations that a business acquired by hsbc in 2003 misled investors. The bank agreed to pay 1. 6 billion to resolve the lawsuit. In spain, authorities are investigating b. N. P. Paribas with a case. Nity they may have helped shield customers transfer from officials. Santander isnt commenting. Theres another noncore asset. Tesco has agreed to sell a chain for 309 million. The buy sear group led by mid leavian capital. Tesco has been trying to revive its main supermarket business. Thats the Bloomberg Business flash. Francine thank you so much. This is what we heard from japan, the d. O. J. Not doing much. I know we heard earlier on. He tried to verbally intervene in yen. That weakening of the yen is shortlived. Brian fowler is the managing editor for bloomberg news, and he johns us now from tokyo. Brian, was it a mistake from d. O. J. Not to do much . We saw yen strengthening overall. Yeah, i think it was more a case where the b. O. J. Realized there wasnt a lot it could do. With the brexit hanging over the market, i think they realized that any sort of yen weakening would have disappeared very quick al mid all the safe haven flows that are going into yen assets. Francine brian, he was basically saying he wanted coordination with his counter part. Will that come, or is the best they can hope is that if they intervene, they wont be scolded for it . Brian he and his counter part, the Common Thread today is we are concerned about excessive volatility. The big question is what is excessive . He said in a statement, said they dont to want see excessive volatility and currencies, but i think right now the u. S. Would say whats happening in japan is not excessive at this point, that theres a bit of a disagreement there. Tom weve spent a lot of time on the europian bank, and then we missed on this. What is the state of the apanese banks . Brian japanese banks are very upset about negative Interest Rates. Ouve got tokyo mitts birg threatening to stop being a primary dealer out of protest over negative rates. Theyre hurting. And one of the questions is, why are they hurting so badly when banks in denmark seem to be doing better . Tom to me, fabulous to see this bank walk away from the primary market. I guess i can imagine j. P. Morgan saying no, were not going to play every day in the sand box. What will be the knocks knockon effect of that to the public . Brian well, i dont think theyre actually going to follow it through. I think theyre just threatening, trying to keep the b. O. J. From doing it. But the knockon effect, the public is worried about negative Interest Rates, and i think youre going to see mr. Abe is going to pull slowly away from the b. O. J. Hes going to be relying on fiscal policy from here on in s desperate effort to revive abenomics. Tom brian fowler, thank you so much, with coverage on the knockon effect of what weve seen this week. We talk about a global economy, and i talk about poland earlier. South korea to me is almost the switzerland of asia. How does south korea as an adjacent country to japan and china, how do they adapt and adjust to the new low rate regime . Kit theyll end up with very low rates as well. Theyve got a relatively expensive currency. Theyre very affected by the slowdown in the chinese economy. Theyre very exposed to any capital controls from china. And theyre exposed to they were exposed to a stronger yen. It goes down like a house afire in seoul. The economy, its the most changed place i visited for the last 25 years or so. Seoul is a developed economy city with a fantastic education system, fantastic work place. But the economy is slowing, population is aging. They have very low savings. They have a lot in common with japan, increasingly in common with japan. Francine japan, kit, what kind of levels . Theres the third arrow, and are we focusing too much on the yen instead of actually for the third arrow from abe . Kit we need more time for it to work, because the third arrow in terms of structural reform, were still not getting that. What were going to get instead is, if you like, abenomics 2. 0, which is with we go back to fiscal policy to support demand because the bank of japan owns so much of the debt that now its safe to ease fiscal policy yet again. The line between this and helicopter money, if you like, gets blurred and blurred. Well see where this goes in terms of conference. Francine i dont know if youre looking at technical levels. Yesterday we talked yen. Can they intervene at 100 or should they just hold off . Kit they can intervene. Part of the problem to me is, if you intervene, the yen is a safe haven currency. If you intervene to try to weaken it at a time when its strengthening when the world is a scary place, youre really leaning against the tide and the flow of the market. You do better to act on days when, you know, the equity markets are going up, the sun is shining, we havent got anything to talk about. On those days, action intervening in dollaryen. If i were a central bank and someone said a move this quickly from 125 to 104 doesnt count as excessive volatility, im sorry, i wouldnt i would just get on with it and intervene. Tom lots to talk about here. Recalibrating into the weekend, and, of course, into a busy week next week. In our next hour, Stephen Roach of yale university, yes on china, but much more, Stephen Roach on how we move ourselves and distance ourselves from our old economic orthodox. Good morning. Working towards a common future. Tom she stats a case for europe. Christine l. A. Gad in vienna, u. S. A. Re a. She says progress is never linear, and, of course, she goes on to make comments on brexit. No surprise, madam lagarde talking about economic brecksity and talking about a case for the benefits of the United Kingdom to stay within the European Union. I like that idea, progress is never linear. That sounds like a good idea, francine. Francine well, yeah, everyone would rather it be linear, but we know things dont usually go according to plan. Its time for the morning messages. Erik schatzker sat down with bill gates to talk about the companys acquisition of inkedin. Bill i think the value of the two companies combined is greater than the two by themselves, but i love the idea that the market wants us to show that. I mean, the company is expert in software and managing those audiences, and its great that they have an opportunity to surprise the world and say, oh, my god, look, this speed, this professional speed and linkedin, that is how i want to learn about my career, my company, my industry, and im going back there. We can make that as, say, valuable as the facebook feed is in the social world, thats huge value creation, and that will happen over, you know, a period of years. Francine tom, well hear much more from bill gates throughout the day. He talked about genetically modified mosquitos, and he also talked about gun membership or the fact that there are a lot of guns going around like the ar15 rifle in the United States. Tom a lot of different themes here for mr. Gates, whos in some shades of retirement, but moving on to his other things. But i would say, francine, really front and center this morning is an analysis of twitter, is the follow on linkedin. Im not trying to get any speculation or rumors going here, but certainly percolating off of microsoftlinkedin is an analysis of what is everybody going to do with twitter . Francine youre absolutely right. What happens to twitter, is it a takeover target . Is it not . I would also go a step further and actually say, if you look at what microsoft has been doing, its largely missed out of all of this social media, dominated by the likes of google and facebook. For them to acquire linkedin, i dont know if theyre just too late to the game or whether, as bill gates was saying, they can really prove to the markets that what they did will make sense. Tom yeah, and im not going to give my opinion here. Nobody cares what i think. But certainly theres a polarity of debate over the future of linkedin and how it bolts in as a small bolton to whatever the new microsoft is. I would suggest, with the reading ive done, francine, that this is a huge debate about where linkedin microsoft will be 36 months from now. Francine scommuge important debate. Up next we will go live to the st. Petersburg nternational economic forum. Well talk about that Goldman Sachs report saying that the old markets are still fragile. That pits it against what the i. A. Thinks. They see it balancing in a stronger market. Where does bob dudley stand on this . Tom good morning, everyone. Francine lacqua in london. Im tom keene in new york. A more subdued friday, which, frankly, is a relief after what we saw on wednesday and thursday. Right now, lets get to our important bloomberg first word news. Thanks, tom. For a second day, the campaign over whether the u. K. Should leave the European Union is on hold. Campaigning was suspended after the murder of Labour Party Lawmaker jo cox. Police arrested a man accused of shooting her. Cox was a strong advocate of staying in the e. U. One witness said he heard the man who attacked cox yell britain first. Its the closest Bernie Sanders has come yet to hinting that Clinton Clinton will be the democratic president ial nominee.