Vote. Se we are basically seeing this global flight to safety. Look at the japanese yen surging to a twoyear high against the u. S. Dollar. Brexit worries, rising pressure on the bank of japan to respond with a bigger stimulus package in july. The british pound continues to hover around a sevenyear low, coming off the lows. The bank of england warning of further weakness. A pick up in risk aversion helping gold shine, up 23 year to date. And pushing bond yields lower, not just in europe but here at home. The u. S. Tenyear dropping to a fouryear low. The fed statement also part of this story. In terms of stocks, its the european banks that remain under pressure. Active discussion on which banks would be hit the hardest, especially when you consider relocation costs. Shares of deutsche bank. An alltime low. Hsbc among others down about 18 over the past three months. If youre looking for price reaction in the equity market, its those european banks. I think well see more of it as we head to thursday. Every time theres a new poll, every time something happens its political and economical. The ecb and lack of a turnaround, the european economy what this bleak european landscape means, thats a big part of the story. Whenever you have a defined moment in time, up and down decision, markets build up the pressure leading up to that. A lot of these trades are crowded, so therefore will there be a violent reversal . Earnings could be the next catalyst, too. Thanks. Used to be oil moved stocks, now its the dollar. Look at the dollar index. Volatile throughout the session here. Bob pisani is at the nyse. Whats moving and why . Youre right. Used to be oil, now largely the dollar and the tenyear yield moving things around. Why is that . These brexit concerns will dramatically impact the currency markets. When they move, you have effects in the stock market. Europe has been affecting us dramatically this week. Look at the s p 500, europe closes, once again the market lifts. This was a point in time when the dollar started to weaken. The euro rose over there and you could see a knockdown effect. Dollar weakening tens to help out things like commodity stocks. Oil came off of its low. Around 11 30, oil stocks started moving up, not dramatically, but its clearly related to moving in the currencies here. Same with industrials. This is the s p industrials. Were not getting a move in bank stocks because we didnt have a move in the tenyear yield. Not a big move there. The only thing i would point out, guys, were not seeing large volume. Thats interesting because it would indicate that people are making big bets one way or another. I dont see that. Theres not huge intraday swings. About 20 points on the s p. A bit more than normal. The s p will typically move about 15 points from its high to a low. A little more than normal but not dramatically so. Interesting moves in the dollar. Watch the currency. Guys . Thank you very much. In the midst of this tension, a british lawmaker has been shot and killed. Still unclear why labour mp jo cox was attacked. Jo cox has died from her injuries following a shooting in west yorkshire. Police confirmed they arrested a 5 2yearold man in connection with the shooting and have the weapon. As yet were unsure of the motives behind the shooting. David cameron tweeting the death of jo cox is a tragedy. Show was a committed and caring mp, my thoughts are with her husband, brendan, and two Young Children. Ms. Cox was a member of the labour party. She died doing her public duty at the heart of our democracy. And her husband said we all fight to unite against the hatred that killed her. She was 41 and a mother of two. Do we have indication that this is related to the vote that happens a week from today . We dont. Chance of her being in the wrong place at the right time . What was her position on the vote . She was member of parliament for labour. She had done some humanitarian things in the past. She was carrying out her regular meetings, called a parliamentary surgery. Carrying out a weekly meeting which anybody is allowed to attend. This is when this event particularly happened. Some people have cited the fact that sterling rallied up briefly. Lets bring up that chart. The wires made a point of saying sterling turned positive on the announcement of her death. Is there something here as a result of that that may lead to stronger support for her position . We go back to the police stati statement. No comment on what the motives are yet. The brexit votes really have not moved in the last hour or so. Its fed into treasuries here, fed into the stock market here. Theres so much focus on that. It may be a complete and total overreaction by traders. Its been a market risk off day. Were having a risk on moment. Thank you very much. We have to get to a news alert out of orlando. Lets get to eamon javers. In washington, d. C. Here here, but the president s plane, air force one, did land in orlando, florida. He will be meeting with families of the People Killed in that nightclub shooting over the weekend. Heres a shot of the president arriving in orlando, florida. You can see marco rubio also there accompanying him. A number of other dignitaries on air force one for this trip to florida. Were not given details about where the meetings will take place, if he will go to the pulse nightclub, if he will stop at the hospital to thank the doctors and the first responders. All of those locations, i was in orlando for a good period of time, all of those locations are close to each other. The president could go to the nightclub, could go to the makeshift memorial, to the hospital. Well have to wait and see how the day unfolds. The white house has been saying they want the president to go there to pay respects and do this trip in a way that doesnt tax local Law Enforcement which has been pushed to the limit this week. Back over to you. Thank you very much, eamon. Lets get back to the markets and bring in ron insana and steve liesman. The other big overhang on the markets is the Federal Reserve. 24 hours later, steve, intense criticism of the fed about lack of clarity. A lot of anger, frustration. It has to do with the idea that theyre moving very widely on little pieces of data. Drew matus this morning said the fed wasnt data dependent it was data point dependent. And this morning the fed was compared to a reed blowing in a wind. One day this, one day that. Theres an awful lot of volatility around the fed. I would like to take a step back, take a breath, come up with a broader framework that lasts through swings in the data. Right now i will say i think the market swings as wildly as the fed. I think that you look for some grownups in the room and theyre not behaving as such. I would ask, is this not just the nature of this moment were in, this cycle. Gross 2 , its been 2 for a while. A lot of people hawk or dove say another 25 basis points wont matter much. Becomes almost a judgment call or semantics. I think the two points that you make are good ones. Number one, with respect to 25 basis points not making a difference, people misunderstand the difference we find ourselves in. The world is awash in negative Interest Rates. So a. 25 move could have a Significant Impact on the Global Economy. The environment we find ourselves people forget from 1971 to 1981 we fought inflation, rates went to 20 . People have lost that history. Were fighting the mirror image of that problem today. Whether the fed moves or doesnt move, this is the environment in which we live. They are not normal times. They do not require normalal behavior. Can we declare the end of the rate cycle . I did that in december. We have waited seven months. I think theyre in another phase now. You cant wall it the same rate hike cycle. In december i said one and done. The economy has decelerated through a sing the quarter point hike. Theyre not in the position to do anything that would approach normalization. I want to show you guys the probabilities of the next several minutes. Its hard for the nothing gets above 17 . Next year. That would be next year. 2017. This is the change in just a week. If i showed you a chart of these changes overtime, you would see incredible volatility around this. This goes into volatility into the broader Interest Rate and broader stock market. These numbers could be relied upon at what distance . A month . Two months . Theyre a perfect reflection of the sense right now. What will happen. Ten minutes. Thats all a prediction is good for. What i think now of the future. It does reflect that nobody thinks now there will be a hike. The flattening of the yield curve here, two, strageis brought up the flattening of the yield curve, and expectations. Should we be talking about stimulus . In the absence of qe5 . Qe something. You dont need qe, but i think the fed will take short rates back. They will need i think well have a transition. Yeah. What happened yesterday is the beginning of the transition with the lowering of the forecast for future rates. Lets talk more about what the bond market thinks. Foreign investors selling 75 billion in treasuries in april. The u. S. Tenyear yield did hit a fouryear low, not far above 1. 5 . The twoyear down to 0. 689. The fiveyear also really plummeting. Multiyear lows touched these levels in february. That 30year yield down to 0. 24 . To talk more about this market is bruce dodi from s. I. T. Investment and gene tanuzio. Thank you very much. Talk to us about what the treasury market is positioned now. You have seen almost a buying panic in treasuries. Is there truly relative value here compared to the rest of the world or is this a reversal in the making . This is the first time weve had a rally in treasuries plummet fueled by the fed is dead mentality. Its only june. Each of the other times rates rebounded significantly. This time might be different. You have brexit weighing on the market. The possible divorce of britain from the European Union is an emotionally charged situation. Until that potentially explosive situation is defused, you could see yields staying low for a while. Is there a value right now in treasury years . Not in the two to fiveyear part of the curve. We think its a loselose situation right now. You mentioned how low the fiveyear is, getting close to 1 . Core inflation is going between 1. 5 and 2. 5 . Buyin at current yields you would lose versus inflation. If rates rise to inflation write rates, you lose versus the bond falling. I dont think inflation will accelerate sharply, if it did i believe the fed would finally have the courage to do something. Gene, where does that leave you as a fixed Income Investor . You have this global scarcity of safe income. It seems to be driving so many of these markets. Where would you like for something that looks like attractive value here . Look. The global scarcity is still there. We have a liquidity squeeze going on. Safe u. S. Assets will be in high demand. Thats going to continue for the reasons that bryce talked about. Steve was talking about the normalization cycle. I dont think were in a cycle. You look at this dance that the market and fed are doing, i would say the market is leading the fed to lower rates in this environment, the fed has created a number of hurdles for themselves to continue to increase Interest Rates. We need to see an improvement in the labor market data and an acceleration of growth. Its possible you see all three and ultimately the fed will follow through with rate increases, for now theyre not doing that. You look globally, and you say, okay, tenyear treasuries might be lower than they were during the temper tantrum experience three years ago, but they have a greater spread to European Assets back in that time. Now youre looking at an environment in which 50year swiss Government Bond yields are at nearly 0 . Even though yields are low, its likely they will go materially higher in the near future. Thats right. We have to redefine what low means. Thank you very much gene and bryce. Tragedy and triumph for disney this week. Shares are fractionally lower. Well take you to the new disney park in china next. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Man 1 i came as fast as i man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Welcome back to power lunch. Macys announcing a tentative agreement with workers averting what could be a strike at its flagship store. And kroger reporting a 9. 8 increase on higher sales as it expands Product Offerings and online ordering. Kroger off its early highs but still up 1 . Microsoft acquiring messaging app developer wand labs. Microsoft up 1 on the day. Disney world in orlando is still dealing with the tragedy of that 2yearold toddler being killed by an alligator, half a world away Shanghai Disneyland opened its doors today. Its the companys biggest theme park yet. Eunice yoon got a sneak peek. Reporter this was a big day for disney. Tens of thousands of visitors came here to Shanghai Disneyland today and just to give you a sense of the crowds, the average wait time outside the park just to get in was two hours. This is on a important day for the company. The ceo told me last week that he sees this park as a booster rocket for the business here. Hes hoping as more people come to the park and get more exposure to the disney brand and character ors, eventually theyll go home and want to buy more tickets to movies and more products in disney stores. Theres reason to believe that this big bet by disney is going to pay off. The company believe theres are 330 Million People who live within a threehour radius of the park and can travel here by car or by train. And also who can afford to take a vacation here. If you believe, as many economists do, that the chinese economy is going to continue to grow and expand especially in the longterm, that incomes will rise, and that Household Spending will take up a larger and larger role within the economy, then disney is well placed. Analysts estimate that there are going to be 15 million visitors here in the first year alone. That would mean, if it were to happen, this park would be one of disneys most visited. What are people coming here to see . They want to see the very many attractions. 80 of the attractions are unique to china. Including the updated version of the pirates of the caribbean ride which is now based on the movie. Also, of course, featuring jack sparrow and packed with lots of different visual technology. Also theyre coming here to see the largest Disney Castle in the world, which just matches the size of the population. Yep. Huge. Lets talk more about disney. Barton crocket is a Senior Analyst at fbr capital markets. It seems for months now we have talked about disney as a stock exclusively related to espn, cord cutting, et cetera. How important are the parks to disney . And Shanghai Disney in particular. The theme park segment is close to onefifth of disneys earnings. Thats a great business. Investors love the theme parks, you dont have the secular issues that you have with tv. You have a good growth story generally worldwide. Disney is getting a jolt from its movies which inject great new brands into their parks. Now you have a china growth story which could take it up another notch. Its reasonable to believe that the shanghai park was over a number of years on a track to become very profitable to fizdiy and great success. You mentioned how the people parks under bob iger have become intertwined with the movie franchises. Theyre trying to build on one another. To what degree do the Chinese People need to be introduced to the franchises . Is that all incremental potential audience there or largely so . Disney movies have done well in china. They loved zootopia, the marvel movies. What they dont know as well are the classics like peter pan. They had some mickey exposure. I think this park has helped make them aware of the more classic disney brands, which is good as they reboot these things into movies in the future and expand license sales in the market. I think it will be helpful for that. The real opportunity in the park is making money in the park. Its brilliantly set up. So close to the largest city in the world with a subway line going straight to the middle of shanghai. Eunice brought that up. 300 Million People live near it. A tougher subject, the alligator attack in orlando. Impact on the company. Its been an awful tragedy. Do you see any impact there . Its hard to talk that. As a dad myself, its terrible. I do think that disneys made some statements which are important. Well have to see what theyre doing to make people comfortable that theres no chance this happens again. Thats certainly the hope. Absolutely. Thank you very much. Well be right back on power lunch. This is a game of yards and inches, fairways and greens, drivers and irons. Its also a game of big data and servers. Just as pga tour pros need modern analytics to improve their scores, businesses need customized Data Center Solutions implemented by cdw, using hpe proliant gen9 servers with intel xeon processors to improve their bottom line. Mary buys a little lamb. 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