The i o income, rick rider rick rieder. Cuban in aup, Mark Bloomberg exclusive. It is an attribute you dont want to miss. Three words are my favorite for today, dead cat bounce. Jonathan futures firmer up by one full percentage point if you looking at the s p 500. In london, a firm session, up high 2. 4 . Stoxx 600 got pounded friday, monday, we are up by 2. 7 at the moment. I will get to the other Asset Classes for you. The first post brexit day of gains for sterling. 8 after the biggest twoday drop on record for the pound. Looking at yields creeping higher, reflecting sentiment today. Up for basis points on a 10 year yields that is low, down 1. 47 on the u. S. Tenure. Alix never would have thought you would have seen that in march. Lets go around the world and check in on the Bloomberg Team for indepth coverage of the top stories. We have complete coverage on the latest brexit and market developments with live reports in london, brussels, berlin, and portugal. Jonathan lets bring in guy johnson in the city of london. Some stability. Should we call it that for now . Guy yes, were coming back. If you look at the fiveday chart, you can see these are very small bounces after very big selling. Lets talk about sterling and the gilt market. Excats. Ing about it is bouncing up a little bit, but only a little bit. The story is doing the rounds in the market, we have been taking this theory around. The market may start to get comfortable with the idea that there is something more going on here than the u. K. Leaving the eu. Lets take a look at the gilt market as well, it is being sold up a little bit. I was looking at global advisories early on, the indication is there is so much priced in in terms of policy response, the market is going to get nervous. Maybe we dont get such a good policy response story, and then you take a look at stocks on the move. The banks are being hammered. Barclays credit back a little bit. Unicredit down 22. 2 , the miners are selling off a little bit, but gold is down. Jonathan the conversation we are going to have is whether bond vigilantes, they can no longer be because of Central Banks with a structural shift globally. His bank vigilante the new bond vigilante . Is that will get the politicians together to get to some kind of conclusion . A point you can squeeze, the eu relies so much on the bank channel. Mario draghi has tried to fix it, and he hasnt. Maybe this is where the market puts the pressure on some sort of resolution. Jonathan guy johnson in london. Much more throughout the program. , want to bring in anna edwards you been camping down westminster, and the city right here in london, the focus, the uncertainty around the banks is striking. Where are we . Anna we talk about politics in europe, and it often matters little to market action. Now the politics matters. Its an amazing turn of events. The key concern for the Banking Sector in london the big focus it is on past boarding rights. Rights. Orting i caught up with the mayor of london and asked him about that, must take backou control. He wants more control for london to set its own rules. Camp, wantsremain to go along with the results of the referendum. He is very key for london to have a seat at the table. London does well, the country does well. That is why is it important for a seat around the negotiating table. London, to give upon the pun, to take back control. Wanted toleave camp take back control. But it is early days. Jonathan thank you. David, so much uncertainty in the banks. Dont think there is going to be a resolution for a long time. David i am afraid that uncertainty may transfer right across the channel. Todayders begin a summit following the brexit vote, Ryan Chilcote joins us live from brussels. As is the first opportunity for mr. Cameron to confront facetoface his counterparts. They may be awkward, but realistically, what can expect to a cobbler and these two days . Ryan what they can expect to accomplish what can they expect to accomplish in these two days . Ryan they can expect to accomplish the airing of their views, but not much more. Friday, in this divorce situation, they may the phone call to the European Union saying we intend to move out and file for divorce. They have not done either. The eu says were going to get together on tuesday anyways, lets sit down over dinner and discuss this. That is whats going to happen in brussels. David cameron across the table from the other 27 eu leaders, who were all going to want to know what is next. Answer, heve that has already said he is not going to invoke article 50 and begin the official negotiations. He is not going to do it ever, it is going to be his successor. From the other side of the table, the leader will be angela she made clear earlier today when speaking to the German Parliament that she intends to play hardball. She will give the brits some time to make up their mind exactly how they want to move forward. She will wait with the rest of the eu for the next Prime Minister. One thing is clear, she told parliamentarians in germany today that britain should not delude itself, it is going to have to make some serious concessions if he wants to do business with the rest of the European Union in the future. There wont be any official negotiations before the next Prime Minister shows up. David that is Ryan Chilcote reporting live from brussels. Alix online merkel talking about Angela Merkel talking about the shock in brussels, that seems to be ahead of her meeting with David Cameron. Caroline hyde joins us. Its fascinating. She is talking tough. For the first time, she has been the voice of calm and reasoned, but speaking to her own German Parliamentarians, she is saying u. K. , do not delude yourself about the necessary decisions youre going to have to make. Article 50, it is up to the United Kingdom to start the firing gun. If you want to start negotiating on the new relationship, if you want to breed calm into the vigilantes that john was just talking about, you will have to sit down at the negotiating table. To do that, you need to trigger article 50. Nothing will be discussed informally, she said. When you get down to the negotiation, that isnt going to be easy. She talks of cherry picking, not being a principal they will abide by. Whoever wants to leave this family, this family of europe, cannot expect to move away from the obligations that keep all the privileges. That is talking to the leave campaigners. They cant keep the same trade perks, you cannot have business as usual if you then put up barriers to the eu citizens that are going to come within your country. Clearly, talking tough. You cannot, britain, have your cake and eat it is the message coming from Angela Merkel. She is trying to rally the 27 other countries behind her, talking of the divergence that has been brewing. France and italy have been speed inhe need for these negotiations, worried about the domino other affect the domino effect. She wants to raise the unity. Alix thank you, caroline hyde, from berlin. David we heard from Central Bank President mario draghi, speaking in portugal. Elliott, he doesnt have his counterparts from europe or the eu. What he had to say . Elliott what he said was less interesting than what he did say. He didnt want to mention what he didnt say. He didnt mention brexit even wants. Everyone was expecting him to do so. All we know for mario draghi is that he was sad about the u. K. Vote and that the European Central bank stands ready to reduce liquidity if necessary. Perhaps he was waiting for the ecb leaders meeting, sorry, the European Union leaders meeting to take place in brussels, which is where he has left and is heading towards right now. The factd to focus on that from his perspective, he feels that policymakers should be working better together. Draghi we may not need formal coordination of policies, but we can benefit from alignment to policies. What i mean by alignment is a shared diagnosis of the root causes of the challenges that affect us all. To a shared commitment founder domestic policies on that diagnosis. This printable challenges were low productivity and a high output gap. He is also seeing not so sad, because he won last night. David certainly, jonathan is excited about that. Elliott gotkine, reporting from portugal. Jonathan i was on air when the second goal went in. I had to stay calm. Coming up, brexit aftershocks. 4 trillion from global equities, can we finally be finding a little stability . More , is next. David this is bloomberg , im david weston. We turned a julie hyman for a look at whats going on in the markets. Want to talk about news that was just breaking in the last 15 minutes or so, job cuts at dow chemical. The company is cutting about 2500 jobs, and it sees high charges as a result. This is a result of its takeover of dow corning, which is a joint venture between it and corning. It announced in december it will be requiring that, just about 4 of the companys global workforce. Dow is in the process of merging with dupont. Both of these stocks were downgraded this morning at jpmorgan, both trading a little bit higher. Late breaking news this morning, lending club is now getting a permanent ceo, scott sanborn. He has been acting ceo since last month. And he has been there since about six years. Lending club is also going to be cutting 179 employees to cope with the decline in loan volume it has been seeing following the departure. And vw, according to people ,amiliar with the situation said the cost to settle lawsuits tied to its reading of emissions test has jumped to more than 15 billion. The prior estimate with 10 billion. Well be hearing from the epa and other federal officials at 9 30 a. M. They will be giving a press conference. Jonathan julie, thank you. Great work on the markets. Joining us is howard ward, great to have you with us on the program. We are going to begin with brexit. When i want to explore with you is what many people to consider a bit of a paradigm shift after friday, where class get classic risk on risk off symbols are not there. Exclusion of saying the u. K. Parliament would overrule the vote to leave, what would be the risk on signal that really turns this market around . Mr. Ward i dont think parliament is going to go against the wishes of the people of the u. K. I think this is a done deal. Secondly, i think we have had a lot of jumping to conclusions and can testify as an izing in the community. I dont think that is a good way to be investor. When one takes an analytical look at this, saying as the u. S. Investor, the United States exports to the United Kingdom represent a whopping 0. 3 of gdp. The United States exports to the eurozone represent 1. 4 of our gdp, which is amazing, considering the economic unit of the eurozone is comparable to the United States in size. Concerned,he u. S. Is i hate to say it, but it is a sort of nonevent, economically. We are still at 2 growth gdp economy, perhaps next year with rising profits and a strong consumer, good Balance Sheets and probably continued rising stock prices. This would be an opportunity. We lost about half a multiple point, thats a reset, and uncertainty premium that the market has now demanded. So be it. There is a lot of uncertainty. That brings me to the next point, which is this is uncharted territory. If anybody tells you they know exactly how this is going to play out, they dont know what they dont know. We have been through this before. I do think when the dust settles, were going to be just fine. I think the u. K. Will have a rest a rough adjustment per iod, but it may be a good thing for the u. K. I dont think that case has been made enough in the press, that this is not necessarily all gloom and doom for the u. K. Look at the decline in the pound, that hurts the purchasing power of the u. K. Right now. However, u. K. Exports should be very strong. Should all be poking booking trips to london for vacation. Jonathan i hope that is what happens, a lot of people are skeptical of exports, given the decline in the pound and responsive exports before. We are in a political vacuum, theres a lot of uncertainty. Where its playing quite clearly is the fx market. They are having the best two days since 2011, that may not matter to the economic figures you describe it. To the s p 500, that does matter. Do you expect that to continue . Good point, you have 30 to 40 of s p earnings that are generated abroad. The foreign profits of u. S. Multinationals could get clipped here. The change in the dollar has not been all that dramatic in the last few days, relative to the 20 rise in the dollar that we had over the previous two years. We are still below the peak in the dollar of a few months ago. The dollar could strengthen a little further, but i would be hesitant to jump to that confute that conclusion right now. , as we bit of a headwind surface, that is the strong dollar. Domestically Oriented Companies should be somewhat sheltered from that. I dont think the earnings that will appear will change dramatically, and i think we are still looking towards a 10 increase in operating profits for next year. It is critical for the market ends this year. To illustrate howards point, take a look at the bloomberg. This is the u. S. Corporate profit index. You can see the stronger dollar damage, right there, corporate profits continuing to fall. David that raises the broader point that it may not be a material part of the u. S. Economy, the u. K. Or even europe, but we are in a Global Economy that was growing at 3 or sub 3 , flirting with technical recession. We did not eat anything shifting at all, and Something Like this can affect u. S. Exports and s p. Are you worried about what this does to overall growth . Mr. Ward no, because we are going to have even more centralbank accommodation at. Accommodationk than before. Central banks are on hold, more inclined to tease it tighten. The fed is probably not going to tighten at all this year. Lower ranks, more centralbank accommodation. I think the consumer is allimportant, and i think the economy it has been a slow growth economy for a long time. In fact, shifting gears for just a minute, if you look at the report card of the European Union and the growth in europe for the past 20 years is that the best we can do . Is that the optimal risk, sub 2 . David coming up next, you will give us the top extra opportunities in the wake of brexit. More , is coming up next. Alix this is bloomberg , im alix steel. Its time to balm fish bottom fish. Howard ward is still with us. You brought three stock picks. Swap got hit very hard over the past three days, Charles Schwab got hit very hard over the past three days. What is your case for buying . Its the best largecap growth play and financial service, as the stock has been hammered in the last couple of days. It has to do with expectations for lower rates for a longer period of time. They are growing nonetheless, comparisons are against the low rate environment. 30 vacuuming up about billion, 35 billion of assets every quarter. You have to by schwab when he gets hammered. It doesnt stay down. David we just got to notice the whirlpool came out and said only 5 of business is tied up in the u. K. Why do you like whirlpool . Mr. Ward like housing. , we continuing to recover benefit from even lower rates today. Whirlpool is selling a less than 10 times earning. Alix whirlpool has had a big run since february, not counting the selloff they got sucked into. Housing play has been out there for a while. Mr. Ward its come down quite a bit from the peak, is under 10 times forward earnings, nearly 20 growth. A good place to be. David allergan, tell us what you like elegant health care . Allergan health care . For botox,est known became wellknown after the Treasury Department scuttled their deal with pfizer. Youre looking at 20 less growth, 2017, 2018. 14 times forward earnings for that, 34 billion in cash in the next month or so in their deal to sell their generic business to teva. They are buying some growth with that money, a goodbye. David are you concerned with risk . . Ory mr. Ward its an ongoing headwind for pharma, the political talk about drug pricing. Alix howard, thank you. Dan coats chief investment officer. He mentioned allergan, this week bloomberg is present in what we call focused on pharma, going deep on the Global Business of pharmaceuticals and biotechnology. They have a range of stories and analysis across everyone of bloombergs platforms. More on pharma as well as bloomberg. Com pharma. Coming up, we have more. We are talking energy and paying attention to the markets. Jonathan all attention on the markets, a little bit of stability and a rebound in market with the ftse 100 fire a little higher. Points,futures up by 19 the ftse up by 2. 4 , and the banks index of by two. The euro stoxx 600 bank index up by 2. 64 . From london and new york, this is bloomberg. Get ready for the rio Olympic Games by switching to xfinity x1. Show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. Jonathan this is bloomberg , George Osborne is speaking to Business Leaders at the times of london ceo summit. Lets take a listen in. Given muchrne ive of my adult life to public service, this is the biggest political challenge the country has faced in my lifetime. It would not be right for me to just walk away. How i can serve the conservative party is for the next leader to decide. So. Weve heard from array of Business Leaders this morning a