Let us get to the state of the overall markets right now. Despite the dreadful attack in turkey, the markets are focusing elsewhere it seems. It seems amoment, relief rally we saw yesterday seems to be broadly intact. Let us have a look at that. We will have more on turkey later in the show. In terms with the market is doing right now, volatility has pulled back as the clock continues to tick on the brexit story. This is the s p 500 and the nikkei volatility indices, both taking down. Yesterday, slightly more risk entre in the market. Are we expecting too much, for a little bit too much in terms of what they can deliver in the wake of the brexit result . We will have a look at that as the weeks and months unfold. Looking at the risk radar, underlying we are in markets right now, the msci asiapacific bouncing very strongly, 1. 7 higher. It has now recovered almost half of what lost in friday, which is interesting. The gold price is also up. Do not be under the impression that everything is riskon, reduce the gold going higher, money going into the yen, the downterm yen now see that by the end of this year. As the gold price going higher, let us have a look at the pound. Fairly fat this morning. 1. 3337. Wti now above 40 a barrel. Let us to the bloomberg first word news. Here is Rosalind Chin. Rosalind coordinate attacks at the istanbul airport have killed at least 36 people. The countries Prime Minister has said the Islamic State is like to be responsible for the killing. The attacks, which also injured about 150 people, went in rapid succession at the airport around 10 p. M. Local time. European Union Leaders have told britain there is no turning back after the country voted to leave the the bloc. Angela merkel says there is no time for Wishful Thinking, but rather to grasp reality. Our comments came as David Cameron used his last eu summit to express disappointment over his failure to win the referendum that he call. Prime minister cameron it was one of regret. Our partners in the European Union are genuinely sad that we are turning to leave this organization, and that was very much the tone of the discussions at the dinner tonight. Rosalind in the runup to the eu referendum, bank of England Governor Mark carney warned that a vote for brexit would trigger a recession. Now it is on its way. Almost three quarters of respondents to a Bloomberg Survey conducted after the vote to leave the European Union say the economy will slip into a recession for the First Time Since 2009. A majority also think the bank of england will add more stimulus, including cutting Interest Rates in the third quarter. January 30 1, 2018 on your calendar, that is the soonest the Federal Reserve will hike rates next. If the narratives are to be believed, traders have been consistently been better at predicting the economy and the fed itself, now fighting a growing probability that policymakers will cut rates and upcoming meetings, rather than raise them. For the third time in as many days, japans top decisionmakers have met to discuss the impact of the u. K. Decision to leave the eu. After this mornings meeting, told minister abe reporters that he would mobilize all possible measures following the vote. At the same time, the bank of said governors juroda they can add money to the markets as needed. Global news 24 hours a day powered by more than 26 journalists and analysts. You can find more on the bloomberg top. Anan na. Anna let us stick with what is going on in asia right now. Get uptodate with the asian market session. Details,saly has the a fairly strong rebound. Juliette relief rally is the order of the day. If you look at the regional index, it is now back to the same level it was on thursday. Reaction to the brexit though. The best gain on the regional index since monday, june 20. This is all really due to the fact that investors are betting on the fact that we will see centralbanks targeted intervention. Japanminister abe in saying he will mobilize all deflect thesures to negative effects of the brexit. You are seeing the nikkei 225, that were also seeing the yen strengthened against the dollar. A good rebound in australia, Commodity Prices helping ther, e, and picking up on the Hong Kong Market, the most following the reaction to the british referendum. Of course the Hong Kong Market the most closely linked are exposed to britain. But we are seeing a number of the stocks that have been heavily beaten down over the lasttwo sessions getting a rebound. Moving there, up by 2. 7 . And the shanghai stronger come up half of 1 . The currency market is the other reaction we are seeing. Were actually seeing the yuan strengthen and hong kongs offshore market. This is the first gain in a week. This is very much on speculation that chinese authorities are intervening in the currency market. We are also seeing the highyielding d10 currency, the aussie and kiwi dollar, getting against the use u u. S. Dollar. The u. S. Finance minister saying the country is the most of it stand any shocks from brexit, and we see the kiwi up by one half of 1 . Both countries across the board ending higher. We are still sing the pound against the dollar. Anna thank you very much. Juliette in hong kong. Prime minister David Cameron used his last eu summit to express regret over the brexit. He said there was no turning back. There was also renewed pressure to trigger article 50 of the lisbon treaty, so the articles can begin. Mr. Cameron said that is a job for his successor. Prime minister cameron britain should seek and europe should seek the closest possible relation over trade, over cooperation, over security. While britain is leading the European Union, it will not and should not, and my view it will not, anna turn its back on europe. Ryan chilcote is in brussels this morning. Good morning to you. By all accounts, a fairly emotional last supper. Probably his last visit. Did anything substantial come out of this . We heard a lot about article 50 before of course . Ryan you know, ann, i think something did come out. David cameron also said he thought he lost the referendum, and lost his job effectively. On immigration, he said that he should have yielded more, when it comes to restriction on migration to the u. K. And he said that if the u. K. Was to have a close economic relationship with the future, normally people think about it the other way around, that it will have the yield on the subject. Obviously David Cameron has been very clear that it is all going to be down to the next Prime Minister to negotiate the deal. But nonetheless, he staked out the u. K. Position. This is a big idea. And in the eu people need time to think about big ideas. I think it was important. It is purely going to be one of us contentious issues, as the u. K. Negotiates the relationship with the eu. We heard the french president say the idea of Free Movement of labor, freedom of movement of labor is key, absolutely essential to the European Union. And the u. K. Will have to agree to that. I. E. No caps on migration if it is part of the eu. Knows what hollande will be. Anna give us a sense of the mood of the dinner, ryan . Cameron saidavid that it was kind of a sad dinner, right . You heard a lot of expressions of regret from the other eu leaders. Let us not forget, you know David Cameron was campaigning to keep the u. K. In the European Union. He did not want this. It has cost him his job. I think maybe some people in the room felt like he should never have had the referendum to begin with, why did he do such a bad job of the campaign . Jeanclaude not provide more in terms of concessions, and why the sort of antiu. K. , proeuropean rhetoric . But at the end of the day, you know all the heads of state that i spoke with, they recognize that is all in the past now. They need to move forward. And they recognize that David Cameron is also a historical figure. He will not be the guy theyre going to deal with when they get down to negotiating the real issues. Anna ryan, thank you very much. David cameron defending his decision to call a referendum, sing the pressure at home was just too great. Ryan chilcote joining us from brussels. Let us picked up the conversation with peter scha ffrik, very good morning to you. To had a few days now consider the broader implications of what we saw on thursday and into friday morning. How do you see this playing out at the broad european context . Is this an existential threat to the eu and the eurozone . Peter the first thing i was in before we go into politics, what we said before, in the case of the leave boat and has to be hedged on the economy. We not only mean the u. K. Economy, we mean the european economy as a whole. And that is pretty much what we think is going to play out. And that will have implications on the bank of england rates, implications on what might or ecb, not happen with the and what happens with market spirit and that is the first thing to say. How it plays out on the political side, that really remains to be seen. All this depends these things take time. And your collect the senate. You know, if i may roll out one of the old sayings, big events are typically overestimated in the short run, and i think this is one of them. Anna fascinating as well that this political story, you know politics often does not really impact on the market actually. It is interesting that is not all that relevant, but this one has been dominating because the markets were expecting something so different. Im interested in your expectations around when the u. K. Actually leaves, or at least what you think the market is assuming . Over the last couple of days we have seen lots of talk about whether this really comes to pass. There is a 30 chance that britain does not leave the eu. Angela merkel seems to be taking a hard line. At the same time she says need to give britain time to think. Is there any expectation in the markets that it does not happen . The reason i ask is that this is important in terms of explaining why we are seeing riskon appetite. Peter let me address the last point first. What i think is riskon, because what you said earlier, people are now realizing this is a long and drawn out process. Frankly, we do not know what is one to be at the end of the road. But we do know is that in the shortterm it is not going to be where008 and 2009, everything just collapses. And after the initial spike, positions adjusted and what have you, a more realistic a session. Going into the politics question, frankly i cannot go in say this will happen. The only thing i can say is that currently, there are huge amounts of uncertainty. It will not go away. I think that is the most genuine thing i can say. This is another reason why the evil we have the riskon, there will be implications for markets, risky assets in particular. And it will be in locations how Central Banks will react. And i think that is the most likely thing that is going to happen. Therefore, we should focus on this initially rather than speculating on three years. Anna in terms of what the markets are doing at the moment, we had a situation that actually we saw earlier, a rally going on in the msci pacific, but also money going into goal. People are buying back into the equity story, thinking things are oversold, but they are also buying into gold and safe haven assets. Readjustment going on all over the place. Not only in goal. Let me tackle the question differently. Before the referendum, i think the number one question of we received was what is going to happen with the gild market . This is where all the contradiction is expressed the most. Typically a riskfree asset, but the epicenter of what is going on. We said at the time, look if all this is playing out, yes there will be an increase in the risk premium that is embedded in assets. But on the other hand, the bank will cut rates, and it will perform. This plays out on a larger scale as well. Risk premiums to go up. Take a look at the bank stocks. They are severely impacted. But overall, you know it is ok. People can still buy some form of risky assets. If you go to the asian markets, i can sort of see why they might do that. Anna where you see the gilt story going . Mark,down below the 1 the ecb bond is surging, gilt surging for the first time. You are pointing out one persons safe haven can be a risky asset. Do you think the nature of those investing has changed . How does the gilt story develop . Peter looking at the chart now, expectations for the central bank, and when you sort of take a closer look at what is really driving it, when you dissect what the drivers are, the gild quite really falling sharply. That of course makes sense. We. Have now changed our forecast for the bank of england and we do think they are going to cut rat and a decent chance they might roll out another qe program. But what i think however, when you look at the components, the risky parts, which is the u. K. Spread, that is going up, not as much as some may have fear. But it is going up. And this is probably the most interesting bit. Inflation expectations have been going up on the back of the lower count. Friendly i think if we are seeing and indeed to michigan slowdown, whether or not it is a slowdown recession is irrelevant. That would probably slow down as well. In other words, i think there is further downside for the year. Anna we will return about the u. K. Economy. One of retailers in the u. K. Said some inflation in food would be a good thing. We were returned to the conversation. Peter, chief european macro strategist at rbc count markets. We get an economic snapshot from the run up to the referendum today. To what extent will the state to be a little old . We will see at 7 a. M. U. K. Time. British house price data from june nationwide. Of hours later, the month may, often our after that we get Eurozone Consumer Confidence data. In a 1 00 p. M. U. K. Time, german inflation data. At 9 30 u. K. Time, the fed is set to announce the results of the second part of its annual bank stress tests. We get realtime coverage of that on the top live blog. Program, central bankers speak out after brexit. Why one ecb member says that some market moves were overdone. Plus, terror in turkey. We get the latest on the deadly airport attacks that happened late in the evening last night. We are live in istanbul, with the latest. Anna welcome back. Time in london is 6 20 this morning. Let us get the latest on what is happening in turkey overnight. Terror attacks killed at least 36 people at Istanbul International airport, and injured around 150. Suicide bombers blew themselves up after they were spotted by police last night. Producerour executive in turkey, joining us from istanbul. Good to have you on the program. Give us the latest. And how do authorities know who is responsible here . Simin no one has claimed responsibility as of yet. However, the turkish Prime Minister said that early indications point to the Islamic State. Now turkey has been dealing with terror on two fronts. The Islamic State and the other with kurdish militant groups, the pkk. The attack happened late last night at turkeys largest airport, the thirdlargest in europe. And we are hearing that 36 people are dead, up to 150 are injured. That there were three terrorist attacks at the took placeere it outside of the security checks of the arrivals hall. Now, according to stateowned news agency aa, flights have now resumed back at the airport. You themin, thank airport update. We will monitor. Let us in the Bloomberg Business flash now. Rosalind chin joins us. Rosalind well, nike shares dropped in late trading, after missing estimates. The companys closely watched future orders act as a benchmark, missed the azimuth. Nike sales are hurting overseas with increased competition. Vodafone is weighing options after the u. K. Voted to leave the eu. The company says it will consider moving headquarters elsewhere, left the country negotiate continues access to the Single Market. Vodafone is already beefing up outside the u. K. , including brussels. Allergans says it is in the final stages, and the ceo says it will invest 20 billion on the deal. Also weighing in on the deal to leave the decision, and what it means for business. We are very committed to both marlowe, the u. K. , and to our people there. So no plans to change anything hopefullyoperate, and we can remain committed to our operation in the longterm. Rosalind and that is your Bloomberg Business flash. Anna . Anna how should the Central Banks respond to the brexit vote . The stock selloff is probably an overreaction, he told bloomberg. Things are kind of getting a bit more quiet and more balanced, of course markets have been taken by surprise, so there was a very strong reaction. I would say especially with regard to shares and banking shares, probably an overreaction i would say. Anna meanwhile, south africas Central Bank Governor said brexit will slow that economy. I would not venture into a decision, but no doubt that it will slow down our particular economy from already weak growth that we already have. Anna still with us in the studio is peter, chief macro strategist at rbc capital markets. Step away from the european, consider the more global picture, and this is the u. S. This shows the way the bets on fed rate changes is changing in the wake of the brexit story. In the purple you the line coming down. Ast is on the fed rate hike, implied by money market derivatives of course. The best coming down, things are all over the place. Moving really quickly in terms of the story. What are your expectations . Peter if i can come back to the fed, literally one second when you think we just heard, i think this is a very important picture. Because we just had a clip fr