He just continues to spout reckless ideas that will run up our debt and cause another economic crash. Mark senator Bernie Sanders is thinking about where we go from , here. His Campaign Says that is the theme of his press conference in new york. There were 11th hour appeals before the landmark vote on membership in the eu. The latest opinion polls show rival camps running neck and neck. Israeli Prime MinisterBenjamin Netanyahu and u. S. Secretary of state john kerry are scheduled to meet in rome on sunday. From bloomberg world headquarters, im mark crumpton. Bloomberg west is next. Emily im emily chang, and this is bloomberg west. Coming up, will they stay or will they go . We will examine the potential impacts of a brexit on the tech industry. And musk plays defense. The billionaire having a hard time selling his 3 billion proposal for a teslasolar city merger. We will break down why some investors are skeptical. The Global Entrepreneur conference kicks off. Ahead with our interviews are john kerry and reid hoffman, we will hear from steve case. But first, to our lead. Britain is on the brink of a monumental decision about whether to remain in the European Union. Campaigners issued 11th hour appeals in the socalled Brexit Debate with london mayor calling up the fight of our lives. His predecessor calls it the last chance to take back control. Polls waver between a dead heat and narrow lead for each camp. Joining us now to put it all into perspective for tech investors is alex webb who , recently relocated here from southwest england. And angela mclaughlin, who has backed or than a dozen u. K. Companies and is also british. Alex, i will start with you. It is amazing we are at this what does a brexit mean . Point. What could it mean for business . There are so many huge things that could happen here. Thinking about businesses and talking about Venture Capital in london, its going to be much harder for british businesses to grow and trade inside europe. And you think about the broader repercussions if the u. K. Does leave, that could set off a Chain Reaction across europe, wales and scotland leaving the united kingdom, but European Union states beginning to dislocate as well. Everything we have fought so hard for over the last 50 years could very quickly unravel. Emily obviously potential, i know the polls show very difficult to put a number on how many people want to leave, but there are a lot of people who want to leave. What are the benefits of that . The argument made by the lead campaigners is the famous red tape argument. On the right of the equation, they talk about it in the u. S. As well. Namely that theres a lot of legislation coming out of europe and largely to do with finicky things like the size of the lightbulb or health and safety regulations, and that makes it harder for Small Businesses to grow because they have a lot of really tory hoops through which they need to grow. If that is correct, it could have implications for startups and tech businesses, but the arts the odds are the brits would have to come up with its own legislation anyway. Emily there would be huge implications for the global markets. Impact on the pound, confidence in investing in europe. Tech is a big sector in the u. K. How is the tech sector be impacted in particular . You have to look if it can remain separate, or is everything will move over to new york . London does a few things really well. We saw the acquisition of magic pony, and ai company, for 150 million, and we know that there are Great Companies that will be coming up with acquisitions in the future. But the question is will they stay in london or will they move somewhere else where they have access to a larger market . Emily a big issue is of course, immigration on both sides and it echoes some of , the arguments around immigration here in the United States. Talk to us about the potential impact on immigration. In the u. K. , unlike the United States, immigrants can move even more freely between borders and it certainly has impact on skilled workers and talent. I would not classify myself as a skilled worker, but i have been a beneficiary of this. I lived in germany without a visa or anything. A lot of people say it aloud perhaps lower cost labor to be shipped in from Eastern Europe and therefore undercut labor costs. For people who are already in the u. K. The flipside is if you think about the Golden Triangle oxford, cambridge, london, where growth,is a lot of tech ceo do have a hugely diverse workforce. A lot of these people are coming from the eu. It makes it hard to bring talent in on short notice, 20 months or so if you are not a European Union member. Londonrevious company in we have a huge number of people , from all over europe in our engineering team. The fact that we can move quickly and easily as always was always hugely attractive. Emily i benefited from it as well when they had the highly skilled migrant program, i was able to move their fred able to move their for a bit of time. With this impact your decision to back u. K. Startups . You have certainly invested in the past. One of the reasons i like investing in u. K. Companies is because they have a Big International view from day one. They can trade in european borders and look to the u. S. And take advantage of that special relationship made it very appealing. The question now is what it is leaning on, will it continue to have a u. K. Europe Good Relationship . Something obama spoke about yesterday was that may not be the case. Would it be something i would do in the future but it definitely makes it harder. Emily alex, good the polls could the vote drag out in any , way . There are instances, where in the general election, the last constituencies take longer to report their results. That results in general elections, a race where some report first. It depends on how quite close it is. Polls tend to indicate that it is very close, but there is always this on tangible element of people who are undecided and what they do alone with the Balance Sheet is hard to tell. Emily thank you both. We are going to follow this very closely all day on Bloomberg Television all day tomorrow. Thank you both. We continue our countdown to the uks brexit at this hour as well, but first a roundup of , where u. S. Tech companies have cited in the debate. Microsoft is one of the Largest Companies to come out against the referendum. The Software Giant employs more than 5000 in the u. K. And have been there since microsoft says 1982. The u. K. Being part of the eu is one of several important criteria that make it one of the most attractive places in europe for investors. Ac enterprises, the u. K. Chief mentioned it. If we were to leave the u. K. The leaders of cisco, ge, and airbus and others in the Business Community voiced support of a stay vote in the referendum. Still to come, brexit fever and the price of bitcoin. Explanation this hour. Emily there are more than a billion cars on the road worldwide today, and only 0. 1 of them have a plug. Opec contends even in the year 2040, electric vehicles will make up just 1 . But dont be so sure. What if people just stopped buying oil . This episode of the animated series sooner than you think congo, we have sooner than you think, we have that. The world is running out of oil. At least that was the ideal behind the peak oil hypothesis that dominated economic thinking for decades. But it turns out that with fracking, deepwater drilling, oilsands, there is a lot more oil than we thought. The Peak Oil Theory isnt happening. But what if instead of running out of oil, we just stopped buying the stuff . Most of us scoff at that idea. There are more than one billion gas guzzling cars on the road today, and only 0. 1 has a plug. Opec intends that even in 2040, electric vehicles will make up just 1 . But dont be so sure. Consider the s curve. S curve is used to describe new technology overtime like early refrigerators and color tvs. Growth starts slow and when the product will start to connect with everyday people, they left off. Eventually the market gets saturated at the top. For electriccurves cars is extremely difficult because we are making assumptions about demand for a type of vehicle that doesnt even exist yet. Fast, affordable, and spacious cars that have an electric range of at least 200 or 300 miles. Here is we know. In the next few years, tesla, nissan, and chevy plan on selling longrange electric cars in the 30,000 range. And other carmakers and Tech Companies are investing billions on dozens of new models due out in the next four years. By 2020, some of these will be faster, safer, cheaper, and more convenient than their gasoline counterparts. To start an oil crash, you dont need to replace all the cars on the road. You just need to reduce demand enough to cause a glut of unwanted oil. Consider the oil crash that started in 2014. That was caused by too much supply, when producers started pumping out an extra 2 Million Barrels a day. When electric vehicles are able to displace that much on the demand side, it could also cause a crash. When might that happen . Tesla is building factories to go from about 50,000 sales last year to 500,000 and 2020. Lets assume tesla can meet its own forecast and lets assume other carmakers can retain their market share for plugins. If each vehicle displaces 15 barrels a year, heres the impact on oil from all the evs worldwide. At this rate, we get the benchmark of 2 Million Barrels of oil a day displaced as early as 2023. That is an oil crisis, and the thing is, its just the beginning. Its not at all unreasonable to assume that by 2040, nearly half the worlds new cars will have a plug. Sure you are skeptical. , the price of electric cars still needs to come down, and there are not enough fast charging stations for longdistance trips. Many drivers in developing countries like china and india are still going to choose gasoline and diesel, but imagine a future where the rumbling streets of new york and new deli suddenly fall silent with electric engines. What if Global Demand for oil service to fall, at first by a trickle, and then by a rush . Trillions invested in oil will be lost while trillions in new energy will be wn. Won. The power of nations will be shuffled. Thats the promise of the new peak oil, and it may be coming sooner than you think. Emily that was bloombergs tom randall reporting. Meantime tesla shares closing , more than 10 lower a day after elon musk put forward a city foruy out solar 3 billion where he is also chairman. He said it was a nobrainer, but investors are skeptical. Does it make strategic sense for tesla to buy solar city, and what does it mean for the wider solar power sector . I am joined by the editor at large cory johnson and liam jenning. Liam, you open your piece on the post merger with elon musk talking about this being part of the nonweird future, yet you allude it is weird that he is letting on. Explain. Liam very heavy on longterm vision. This vision of of a future powered by Renewable Energy where tesla was not only going to sell you your nice electric vehicle, but also solar panels to go on your house and so forth. What wasnt there was really a clear explanation of what the benefits of this deal would actually be to investors and what the savings would be. Really, why this in idea that a onestop shop is needed in Renewable Energy. That was not clear either. Emily tori what are investors , saying now that they had 24 hours to digest this . Cory it was interesting to watch the trade in solar city. The stock actually came down a little bit. First of all, it never reached near the bid price is expected in the acquisition that looks not even friendly, familyfriendly acquisition. But the shares fell off a little bit today as people start to realize this deal might not even happen. It is so illogical. I was shocked to see so many analysts agree with me that this does seem illogical. It did not have a lot of common sense. One of the concerns here is that solar city, looking at other estimates, a lot of them are lowering their numbers on the strategic stock. As well. Of sells but there is a suggestion that solar city has really serious as a heart attack concerns about its ability to raise cash over the course of this year. Maybe merging it with a Balance Sheet might make tesla able to more easily borrow than solar city can. Maybe that is in trouble now because solar city is seen as being so toxic that could hurt teslas ability to borrow. Tesla does not have the money to hold the factories and cars it set out to build. Adding the billions of dollars in expected losses, that will make it even more difficult for tesla to achieve its goals which one of the analysts called unachievable, and that was a list analysts. Emily elon musk is a guy best known for taking on impossible tasks. Even though investors night might not believe in this merger,ar in verdure why now . Why is proposing this now . Liam if you go back, both these stocks were flying high. Both companies were burning cash , but shareholders did not seem to care. In teslas case, the stock is still rated high. Same city cannot say the since october when it pivoted on its strategy. It has been dropping quite radically. It just doesnt look like they can raise the capital they need. Musk in the call today was in pains to point out that everything was fine at solar city they could raise money if , they needed to. The question you have to ask yourself is, this is a very low priced bid compared to solar citys history. And so if they really were fine, why would they go for this deal . It will be telling if they do actually recommend this deal because it would be a sign they have sort of lost faith in their own future. Cory the Free Cash Flow burns are so disconcerting for solar city because it would suggest maybe the company wouldnt even survive or would at least have a lot of risk if the markets are not open for them. Emily we will keep watching. Cory johnson, liam denning, thank you so much. Coming up, the ipo market gets a test after a very slow start to 2016. We will break down twilio and why the company is choosing to go public now. Emily the lackluster check mark for 2015 is getting its first ipo. Twilio, the Communications Software provider, is pricing of ipo as investors it on this guidelines in an uncertain market. The announcement makes the San Franciscobased company just the sixth tech company to go public in 2016. Compare that to the 24 companies that went public by time last year. Does it signal the end of the ipo drought . Joining us from the university of florida is jay ritter. What a day to go public, the same day as the referendum and u. K. That could have wideranging implications on the market. What do you make of twilios decision to do this now . Guest i think they are counting on the fact that the tech market and being based in San Francisco is going to be shrugging off what happens in london. Emily this will be the first Silicon Valley, Silicon Valleybacked ipo. For the year. What does it mean for the Broader Market . Guest i dont think it means a lot. There have been a limited number of tech ipos, but other Industries Including biotechnology have had a very limited number of ipos this year. Emily twilio has not been profitable in the last eight years, the eight years it has been in existence. Is that a red flag . Guest yes. But the vast majority of tech stock ipos have not been profitable when they have gone public. Investors have cared much more about growth and rationally so. A lot of Companies Including twilio if they wanted to focus , on shortterm profitability, could become profitable by Cutting Research and Development Expense and not hiring as many people to cut their short term costs. But investors instead would much rather have a company with utter better growth aspects. Emily twilio is heavily dependent on Facebooks Whatsapp for revenue. 15 comes from that part of their business. How big a risk factor is that . Guest it is a risk factor when youve got one big client, however facebook, whatsapp is a really important, big player, so it is not surprising that its having such a big market share. Emily if this goes well, would that open the door for other Silicon Valley companies or not . Guest i dont think theres going to be a big effect one way or the other. What is a little unique about twilio is that it is a b2b company, unlike facebook or it over. Or uber. Consumers are not the customers and the vast majority of b2b , successful startups for the last 15 years have not gone public and remained as an independent company. Instead, they have sold out in trade sales, and rather than growing organically, they become part of a Larger Organization , and i dont think that longterm pattern is going to be changing. Emily what your expectation for the number of ipos that will happen this year, and will we see a big pickup next year . Guest well the first part of , this year has definitely been slow, and i think there will be higher activity for the rest of the year unless the stock market takes a dive. But i dont think we are getting to really high levels of ipo activity. Biotech prices are not as high as they were a year ago, and the last couple of years bio