To that vote. They have turn into small losses for the industrials. Down ten points. Nasdaq holding ton a very slim gain of about 4 at 4847 and the nasdaq is higher by 1. 6 . Lets kick it off with the first of those bs and that is the brexit vote countdown. We are just 12 hours, 59 minutes, 11 seconds away from the vote opening up in the uk. The polls do seem to show rather even split for stay or go. Perhaps the market and the wisdom of crowds is selling more of a stay story. The uk stock market having a great run lately. We pointed it out yesterday. Were up again today. Four days in a row of gains for the uk. The banks doing especially well. Barclays, for example, up 10 over the past week. Some of the other ones, lloyd banking group, prudential have also done very well. Lets look at the british pound. Its been on fire lately. In fact, a few days ago the pound had one of the best days in a decade. As you might imagine, were going to have lots more coverage of this brexit vote you might have heard about coming up. But first, some breaking news in the auto sector. A new study on Vehicle Quality just crossing. And there is a new champion in quality phil lebeau. Who is it . It is kia. You may be saying yourself, kia has the least problems of all the new vehicles launched by automakers. Yes, according to jd power, they surveyed 80,000 new vehicle buyers, kia is the number one in terms of fewest problems of new vehicles in the first 90 days people own them followed by porsche, hyundai, toyota and bmw. Kia sales up 4. 3 this year. There is a brand that sales have been outpacing the overall industry average here in the United States. In part because the reliability has steadily improved over the years. Fewer glitches have been reported, especially with the entertainment system. That is a tribute to the planning done in advance when designing the vehicles. So the new vehicles that are coming out are really coming out. Theyre launched very well. Very well thought out in the design phases of the vehicle. Now aside from kia, there are good news for the big three. They all improved their reliability according to the jd power survey. That is just the second time that has happened for all of them in the same year in the last 30 years standing out among that list, jeep and chrysler. They posted the biggest gains of any auto brand when it comes to reliability. Take a look at gm, ford, Fiat Chrysler and i get this question all the time, what about tesla . Tesla did not have enough new vehicles surveyed by jd power to be included in this release for this year. So well see if that changes next year and in the future as we start to see the model 3 and more teslas on the road. Is there anything lebron james is not winning at . He is kias spokesman. People say lebron maybe another win for lebron. Maybe another win. You know what think back ten years ago. They were at the bottom of the list when it came to reliability. Were kind of dismiss bid people, you know, a maker of lower priced vehicles. Thats not the case anymore. They really vim proved their quality and their standings. Somebody on this set drives a kia. I own a year old kia. Very, very happy with it. Its been a very nicely appointed car. As you say, phil, the reputation of kia ten years ago was that they were Bargain Basement cars. Now not premium priced but you still get a lot for your money on the kia. And, man, youre so right. There are a lot more kias on the road now than there were. They have out they outsell volkswagen which isnt saying a lot given the problems that voek k voekz wagon has had. They have grown along with hyundai. Focus on the quality. Yeah, we may not have the sexiest vehicles on the road. They may not be head turners across the board. But they are reliable. And that is showing up in all of the surveys certainly in this latest one from jd power. Where did latta come in . Just kidding. We have a new blush in the bond market. S seven year notes up for auction. Lets get reaction from rick santelli. The last seemed to have been pretty good. Seven year note auction straight up 1 00 eastern. Dutch auction that, is. I rated it b as if boy for demand. As can you see as i give you the internals, it wasnt a bad auction, especially compared to some of late. We look at the yield for the 28 billion, 1. 497. 1. Au 1. 50 is the offer side. The high yield of the day of 1. 505. Just a little bit above the ten year auction. 65. 6 on indirect. Foreign Central Banks and large institutions, of course. That is the best level since, well, going back to when they first started issuing seven years, best way to describe it is a third best indirect number in the whole run. And if we look at direct at 9. 1 that, is weakest since september of 2015. So 28 billion, graded a b. The auctions are done. Now all we have to worry about is brexit. No minor detail. Rick, thank you. All right. So the countdown is on to tomorrow. Lets now agree to call this the big uk vote. Shall we . Our next guest has suggestions on how to big uk vote proof your investments. Joining us from london is international ceio of Global Fixed Income for jp morgan asset management. Thank you for joining us. Bond, its an inflation story. Its an Interest Rate story. Where does the big uk vote fall into the global bond Market Scenario right now . Well, when you look at it right now, the risks are very a systemrick. Sterling had a tremendous rally this week. Its up 7 . When you look at that and the results from friday, its now real really real really asymetric. If you look at the ropes that, goes to 152, Something Like that. On a leave vote, youre down into the low 130s. When you look at bonds more generally, what youre likely to see is a relief rally on remain. And what is already baked into the market. Its around 18 price. But, of course, if it leaves, credit spreads go a fair bit wider from where we are now. So basically, youre saying the most likely outcome which will be a remain vote is fully priced into the market. Is that correct, nick . It is. I mean, when you look at polls, its 50 50. Translate athat to the betting market, youre around 80 20. Financial markets are really priced that in already. And that means tomorrow actual sli going to be a very quiet day. So there is really no positioning per se to be done. The only perhaps way to position yourself will be to position yourself for a bet to the down side on equities to the upside on bonds and to the down side in pound. The only way to do that given your theory that this is an asymetric risk is to do it through options . It is. That is exactly right. A lot of the positioning is already done. When we get this big uk vote out of the way, well get back to the fundamentals for bonds which are hugely bond supportive. There is no growth, there is no inflation in the world. So my notes say you like higher duration, higher yield and higher quality. The first one i get. The last two seem to be a little bit at war with one another. Can you explain . Yeah. So when you have higher duration, it stuns an american. But one of the highest yields in the world is u. S. Treasuries. Ranked every Government Bond in the world from high yield to low yield, 85 yield less than a ten year u. S. Treasury. So International Investors will be getting those. That is what we mean by high quality and in that environment, you buy the longest treasuries, the longest u. S. Corporate bonds, you can find. All right. And then where does the higher yield come in . Well, theres a twist there. When you look at the higher yield, the standout place will sound off in europe. And again, think of what is going none europe right now. There is a race this year in terms of Economic Growth and its likely europe for the first time in years beat the u. S. It will come do you remember to a couple of tenths of a percent. When you look at european high yields, great credit metrics behind it and improving company health. Do you think theyll stay or go . Do you think the betters are right or the polls are right . Bookies are always right. There you go. Look at every election. The bookies are right. All right. All right. European commissioner john cone yofrpger saying today if the uk votes to stay, there will be no more reforms for the united kingdom. Weakening Prime Minister camerons argument for changes in the relationship arguing that they are possible. Cnbcs wilford frost sont ground for us. Indeed. Live on the ground. And im will go joined outside parliament by kate oleo. Good afternoon you to. Good afternoon. Lets talk about the comments. Weve been talking about them from the studio. Many have thought that regardless now of the results of this vote that europe would wake up. The eu would wake up for the need for reform. Theyre slamming that door shut today. What do you make of that . It looks like we have an interruption in our signal there. So he famously in favor of a leave vote. We have the signal restored . Yes, we do. Lets go back to wilford. We have the signal back. Sorry about that. Start again. Well, i do think that this unelected president , lets not forget, he said Something Like. That none of us ever wanted to have another negotiation about us staying in. We have a vote to leave. And weve been negotiating about various things to do with trades with the eu. All of those things. Its not really, you know, so what if he said that . We knew that would be the view because he thinks that David Cameron got a good deal. Of course, he didnt get a good deal. He didnt ask for very much. You said the word unelected there. Is that your main argument for why you want to leave . I think democratic arguments are crucial. Its underlying all of this is that the European Union is basically a project. Its about moving more and more away if National Parliament to brussels and to the European Union on elected commissioners. We dont want to see. That but also, there are growing numbers of people in the rest of the eu who dont want to do that. So we are a little ahead of the other countries. And i think the democratic arm is important. Im elected as a member of parliament here. We want to know what effect theyre going to have. They can carry them out without being affected by six or seven other countries. Thats an argument of the heart, of the gut. For the people that might be voting with the head a little bit more, perhaps more on the economic argument, do you feel that your side rightly or wrongly lost that argument, the argument on the economy . No. Because the argument on the economy is based on experts, leaders of big institutions, all basically saying if you leave, its going to be disastrous economically. The very same people, most of the American People said exactly the same thing to us when we decided not to join the single currency. It will be the end of the country. We would lose our engagement for Financial Services, all of that. You know, were the fifth largest economy. There are a lot of other countries not in the European Union doing very well not being part of this shrinking market. So, no, i dont believe we lost the argument. I think we have a very hopeful argument about looking and trade wrefgt of the world, not giving up priority to the european undown. In terms of momentum, the last week hasnt been great for you. The last day or two come back in term of the policies. Are you feeling confident . We did have a setback because obviously the death of my colleague was devastating. And there were some people in the area that tried to [ inaudible ] and, of course, very sensible senior people said that is nonsense. I think in the last couple day whats weve seen now is a realism that, you know, tomorrow is crunch day. Sure. And there is a mood out there, i think it revived politics a little bit in the country. This is our chance to get this opportunity which would never happen before. Thank you so much for joining us with just one day left of the vote. Back to you. All right. Thank you. Meantime, we want to point out that stocks right now are just about at session lows. All three indexes are in the red. The Dow Jones Industrial average down by 44 points. The nasdaq down by seven. The s p 500 is down by two. Were watching this very closely. Financials, seems like were losing that group on the s p 500. And were also seeing the tlc, it attracts the bond market. The flight to safety if, you will, at session highs right now. Th should be an interesting session to watch. Janet yellen wrapping up testimony before the house of representatives. Steve liesman has the latest. She was done before the market hit session lows. I dont think so. Just to follow up on the brexit stuff, the fed chair said the fed has not scheduled a special post brexit meeting but theyre watching it. Watching the impact on the u. S. Economy. They said the fed would do what needs to be done if there is an economic impact. Also said the fed is not targeting equity prices but does see it as an important aspect of the economy and Economic Growth. The rate hike will not be bad for stocks if it goes along with rates going up. Now, also, we just want to reflect on the economy. There are higher wages and the new york fed slooking at enhanced monitoring of certain transactions after that particular that fraud of 81 million from the bank of bangladesh. There was one bit of heat there. Representative from new jersey scott garret republican representative grilled yellen on whether or not fed policy was in fact good for just the rich. Your actions are benefiting the rich over the poor because of your monetary policy. Is that correct . It is not correct. Which part is not . Is it not the fact is it gallop wrong when he says the rich are more likely to invest in the stock market than the poor. That is true. It is not true that your quantitative easing according to bernanke also benefits asset purchases and 14 million jobs. Wait s that fact or fiction . 14 million jobs excuse me. Excuse me. I have the floor. It wasnt all like that. It was a little bit of that back and forth. They tried to also get her to comment on whether or not regulations and government were holding back the economy. Always a little more inclined to buy stocks. And the big holders of it. There say legitimate debate about this, whether or not the fed by doing quaun take theive easing, helping stock prices and the quality. On the other hand, the fed would come back and say they kept Interest Rates down. They got people access to mortgages and loans and other things. And also help the job market quite a bit. That would be the feds response. I do think a lot of the economists think that on net its probably benefited the wealthy more than the poor. That seems to be out there as conventional wisdom. All right. Thank you, steve. All right. The other big story today in the corporate world, shares of tesla getting whacked on its propose will buyout of musks other Company Solar city. Well talk about what the deal means from both companies and their shareholders as well as musks expanding empire next on power lunch. Its here, but its going by fast. The opportunity of the year is back the mercedesbenz summer event. 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Joe dennis is a Portfolio Manager and they own 600,000 shares of tesla which they bought at the ipo. Great to you have with us. Thank you. Ill start off with you, joe. Do you get this deal . Do you approve of this deal . I think if you look long term. What is long term . Im curious, what is long term in order for us to see what the synergies of this deal is besides putting tesla cars into a solar city showroom . Sure. If you think that energy and transportation are moving towards a sustainable basis, why wouldnt you want to own all the different parts of the ecosystem . Make it as easy as possible and simple as possible for customers to adopt that under one brand that people already trust. You dont think that its taking on too much risk . I mean solar city has 6 billion in liabilities and debt here and already the questions about tesla being able to bring model 3 fully up to production and build the factory without another sort of Capital Raise. This doesnt change our stance on the model three launch. I think thats still hits in terms of timing. In terms of list from solar city coming in, i think that many analysts and elan and the company themselves expect them to be cash flow positive by the end of the year. I think that elan has a lot on his plate. But nobody asks if the ceo of ge has too much on his plate. A lot of stuff going on. A lot of excitement. All right. Michael, i turn it over you to. Is solar city better off being owned by tesla . I guess thats another way of saying is this essentially a bailout for solar city which had a tough time accessing the Capital Market at a time when i mentioned they have 6 billion in liability on the balance sheet. Yeah. I disagree with the argument this say bailout of solar city f they are well positioned to be break even by the end of the year, i think taking a step back, there is a deal that e lan wanted to do for years, i think. And in many respects, he is channeling his inner Warren Buffett by buying solar city at a time when sentiment is pretty negative. And i think hes buying an attractive asset. When the deal first crossed, i was looking at the reaction of the other solar players as well as sunrun,