Rallying, the pal and strengthening by the most in three months. There are signs that britons are warming, and it seems like the polls are heading that way. U. S. Treasuries and gold are down slightly. Lets get to the first word news with nejra cehic. Nejra thanks. Italys antiestablishment movement is poised to win elections in rome, threatening to derail as reform agenda. It would give the italian capital its first female mayor. Consideringin is selling stakes of the state oil company to china and india as he struggled to hit spending targets ahead of the next election according to two people familiar with the matter. Almost 20d raise billion. The deal would not only cover budget shortfalls but strengthen ties with asia at a time of strained relations of the u. S. And europe. Japan posted a surprise trade deficit in may as exports fell or an eighth straight month, undermining shinzo abes efforts to revive the economy. A surplus butted instead saw a deficit of over 380 million. Indias rupee weakened after the Central Bank Governor said he would be stepping down. He said on saturday he will be leaving the top position when it expires in september. After more dropped than the year of resistance, getting into the pressure that had backed its economy and choke the nation of foreign currency. Say that pentup demand for dollars may push them at least 20 weaker. Global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. You can find more stories on the bloomberg at top. Francine thank you so much. Remain pulls ahead, the pound surges, the final days ahead of thursdays eu referendum. Choose to leave, we cant leave. The lets be clear that if we do leave, thats it. We are walking out the door, and even if we leave, the organization will have a huge effect on our lives, on our children and opportunities. I dont think britain is a quitter. I think we stay and fight. We should not be governed by the rules that the European Court of justice imposes on us, which cost business and restrict freedom. Francine lets bring our guest for the first half of the program, the chief Investment Officer great to have you on the program. The market seems to be taking longer stride how certain are we of the outcome . I think there is a one in three chance. Most of the academics i inc. Probably this sort of trend is to be expected. Francine its very tight. How do you position yourself . We are on the assumption that the result is remain. We think francine i think we are having some technical problems with the microphone. This is sometimes what happens we will get back to you. As soon as a fix the microphone. I just want to show you very what has happened over the last couple months. This back in 2008 was when we had the first recession in the u. K. On the back of the lehman crisis. This is the Scottish Referendum in white you have the pound, they kind of match, and you can see is at an alltime high. Stay with us, theres plenty coming up, including the governors exit from the reserve bank of india. It leaves open room for indian investors. What it means for the countrys credibility, and with three days until the vote, how brexit worries are affecting not just europes currencies, but markets around the world. And we bring you top guests to discuss the referendum, one a former bank of england governor, coming up. Francine welcome back. Lets get straight to the Bloomberg Business flash with nejra cehic. Nejra thanks. Italys antiestablishment movement has been elected to run the city halls of rome, threatening to derail Matteo Renzis reform agenda. For theg support skeptic party gives the italian capital its first female may or. Vladimir putin is considering selling stakes in russias state oil company to china and india as he struggles to his spending targets ahead of the next election. Moscow wants to raise 11 billion from the sale of almost 20 . It would not only cover budget shortfalls, but strengthen ties with asia at a time with strained relations in the u. S. And europe. Unicredit is likely to name a former government minister as its new ceo, according to an italian newspaper. The bank is up for more than 5 on the news. Nigeria will drop its dollar peg after more than a year of resistance, finally getting into the pressures that battered its economy and choke the nation of foreign currency. That it may push weaker. 20 u. K. House prices continue to climb, with only the capital experiencing a decline ahead of the referendum. The cost of the property in london fell by. 2 last month, according to a property website operator, which also says that london is the most vulnerable in the event of a brexit. Suisse says it has placed by the employees on leave while he conducts an internal investigation. Theyss newspaper says worked on the israel deck, focusing on tech companies. They say the probe is linked to possible breaches of security. Beyondclined to comment saying that they had been placed on leave. Walt disneys longawaited sequel to finding nemo has set a record for an animated movie. It made 136 million in the u. S. And canada, topping the box office this weekend. Thats the Bloomberg Business flash. Francine and i thought it was frozen, the most popular ever cartoon. Thank you. We will get back to the india Central Bank Governor stepping down shortly. Overall, Global Equities rallying, the pound strengthening, with signs that britons are willing to stay in the eu. Lets get back to our guest, guy monson, and Simon Kennedy also joins us. Thank you for sticking around. When you look at brexit, we were talking before the break about how you position yourself ahead of that referendum. . I would position myself broadly for a remain, for three reasons. I think that markets have consistently underperformed, and europe is at a 25 year performance discount, and a 10 year valuation discount. We are tilted toward quality, high yields, and within many cap tilt. Francine the base assumption being that brexit will not happen. What happens if it does . If he gets voted through, your european and u. K. Equities are protected by weakness in the euro and in the pound. 71 of earnings come from abroad, so you will have a currency buffer. I think valuations are so low, that theres not an enormous amount to fall. Thirdly, i think all markets will fall in line, so i dont see a huge risk of underperformance. Francine how much should we trust the polls . Theres another one coming the day before, and it shows things have shifted. Pollsters say that they have no history. They dont know how to pull general elections and it showed ultimately, we wont know how they perform until friday. The socalled super forecasters have been more confident, but certainly in the last 48 hours, the remained camped does seem to have to turn ed back. Francine what happens friday . Are you coming into the office earlier . Im in the office or about 3 00. We reckon its a pretty good indication by 4 00 or 4 30. The volatility in sterling is where it will be primarily. If you want tilt, it is probably through bank halls in europe. Assuming the pearls dont reverse the game, we are going to run that program set right up to the line, unless the appreciation on thursday is so extensive that we can afford to put a little bit of property and reduce our risk profile. Francine do you trust the polls or the bookies more . The polls are the viewed public, the bookies are what will happen. One hopes that they will converge on friday that the moment we are following the bookies. Francine what is the most significant thing that will happen . It seems it has become heated again. Is it fair to say that the Brexit Campaign seems to be more organized . I wouldnt say that. Iw a defection today think they will probably go back to the core argument, immigration without interest, a switch from boris johnson, a dilution of their stance, talking about people who have been here for a certain amount of time being allowed to stay. , from the Prime Minister and the remained camped, there may be a pivot to more positive plays. Francine if the Brexit Campaign were to win, do you think there will be some coordinated centralbank action . Be five,k there will already effectively windows also at times for banks to gain unlimited liquidity. Place lots are in whether you get any currency intervention i dont know. I think its probably unlikely. Francine thank you so much. Monson. Nnedy, guy they stay with us. Next, what does the governors exit from the r. B. I. Mean for india . Francine welcome back. The indian Central Bank Governor is stepping down after his threeyear term ends, which sets the rupee plunging. We are joined by our chief economic correspondent and guy monson is still with us. Thank you so much for coming on. You look at the markets day in, day out. The Quick Reaction is pretty brutal. Yeah. There seem to be to macro tail risks buffeting Indian Markets today one is brexit, of course which have believed risk assets around the world, and that helps stocks recover, but the other risk is of course the departure of the indian Central Bank Governor after three years in office. That has had quite a pronounced impact in the currency market the rupee fell by almost a percent against the dollar it has also recovered a little bit, down about. 5 now. There is speculation that some of the state run things have come in and intervened in the currency to give it a leg up, but when you look at the rupee, you have to at least wonder about the longterm trajectory, now that he is leaving. This is a Central Bank Governor who came into office at a time when inflation was really quite high in india, the currency was very volatile, he was incredibly instrumental in stabilizing the very and he was also strong in terms of tackling some persistent and tough issues of the Indian Economy crony capitalism, the Banking Industry that is very relationship driven to put it diplomatically. That might have cost him his job. We know there was political pressure and that may be one reason hes leaving. Francine thank you so much. Tracy alloway. We have interviewed him many times he was considered the golden star, the golden child the Central Banks. What went wrong . The trade union of International Centers lost one of their big guns today, and you can see that in a reaction on twitter from the likes of catherine mann. Heres one of their own. A couple issues you can draw one is that independent Central Banks or perhaps under fire, certainly in the u. K. With mark carney and janet yellen, this idea that he might push back with too much pressure from politicians, that he felt he wasnt able to achieve it. Secondly, the other thing that forose out here, a need Central Banks a lot of Central Banks have realized the need for an International Vision within their offices. Mark carney, a canadian, janet len, Stanley Fischer throughout the world. Saidere the indians have there was one point of the weekend where they talked about the indian mentality. Francine is this something that worries you, not only when you look at the rupee, but the fact that Central Banks may become less independent . Its frustrating, really, because we all want to rerate to take andian market, place close to where china sets in global portfolios. We have the underlying gdp now, rajans trajectory of inflation will take about 5 a year in. We still have a gaping current account deficit and a lot of banking problems. This is really unfinished business, which we were hoping the next twoyear term would close. Its another example of selfinflicted will, so it is frustrating, because we need this macroeconomic stability. Francine we seem to understand that there are five candidates running to replace him as governor. The kind of profile would you be looking for . This year she have to be international, forwardlooking . Does he need to come from academia . I think we want them to restate their commitment to an mpc style of monetary decisions, transparency. And i think you will see inflation targeting remain. Thirdly, a lot of this was caught by higher than expected ranking, mostly to family firms. We want to see that followthrough. Those were the three commitments that i would look for. Francine we talk about centralbank policy day in, day out. It is something significant we have to watch out for. I was reading an editorial saying, where is china . None of the worries went away because of the feds stance. The fed had given china break , and they have helped out emerging markets. If you look at the payrolls report, which was such a reaction,the market that was a good day by not raising. Indicated,llen is she will be trying to tread carefully and will probably not return with the hike. We just went overweight modestly in emerging markets that has taken us longer than we expected. Key for us is this 40 oil price, which seems to work for everybody. For consumers, producers. Get a remain, thats quite a good backdrop. Nagging worries over government that chinese and asia didnt quite make it in. For us it prevents what should be happening, and i think we have to push that off until 2017. Francine we made this chart for you looking at currencies a new poll suggests that the campaign for the u. K. To remain in the eu was gaining momentum, but as the brexit vote moves closer, people are getting into every corner of the fx market. 16 major currencies tracked by a jump. G, 13 have seen it reflects how the u. K. Campaign is becoming increasingly internationalized with policymakers commenting on the potential consequences. Do you plan to currency market s at all . They have mainly spent commitments in their own base currencies, so we have to think carefully about how volatility. We have hedged back to benchmark and just stuck there. It almost cost us the hedge and with this volatility you could jump one way or the other. But its interesting to see sterling take this risk and i think it makes this todays very different. When we talked about a week exit, we really have no currency , we have no drachma to benchmark against. The pound took the full weight of speculative flows and that is where the numbers are where they are. Francine thank you very much. The pound sees its biggest gain since 2008. We will speak with the former bank of england Deputy Governor. Thats coming up next. Overall, the markets are a little bit of relief. A lot of havens are gaining stocks, surging. Okay, ready . Whoa [ explosion ] nothing should get in the way of the things you love. Get americas fastest internet. Only from xfinity. By switching to xfinity x1. Rio Olympic Games 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. Francine welcome to the pulse, live from london. This is some breaking news from the nigerian currency, freefloating from today, weakening to 254 per u. S. Dollar. This is the picture you can see, a couple hours ago versus going up quite, significantly. Lets get the first word with nejra cehic. Nejra italys isiestablishment movement poised to win elections in rome, threatening to derail the Prime Ministers reform agenda. The surgeon support would give the italian capital its first female mayor. Your who is considering selling stakes in the state oil he struggles to hit spending targets ahead of the next election. Moscow wants to raise 11 billion from the sale of almost that would not only cover budget shortfalls but strengthen ties with asia at a time with strained relations in the u. S. And europe. Japan posted a surprise trade deficit in may as exports fell for the eighth straight month. Economists had been expecting a 670 million surplus but instead have a deficit of over 380 million. Indias rupee weakened after Central Bank Governor said he would be stepping down. He said on saturday he would be leaving when his term expires in september and will go back to academia. Global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. You can find more stories on the bloomberg at top. Francine thank you so much. Days, bothnd a half sides of the Brexit Debate returned to the fray. Proceeding proBrexit Campaigner says they will be less risk to the u. K. If it voted to leave the eu. My view is that those challenges will be easier to me, the risks will be less. We will have control of the over our ownrs, laws, and we will be able to deal with whatever the world throws at us because the people making decisions on our behalf are people emotionally invested in our future, not people in brussels or strassburg making decisions based on other factors. That is as a billionaire investors as it would be the most expensive divorce ever but not a crisis. I dont think this is a lehman moment. I dont think the world will come to an end. But it would be a severe problem for the u. K. The average home in the u. K. Is around 250,000 pounds, and if you allow for leverage on it, the housing crisis went down 10 , wiping out Something Like half the network. Earlier, we heard from gisela stuart. Now lets get the views of the Deputy Governor and lloyd dorfman, who both support a remain vote. , whobly the biggest backer needs to make everything clear. One of the biggest. Thank you so much for joining us. First of all, it seems like every weekend the polls shift. What is it in the public that people are undecided . I think there is still a lot of dont knows. 30 know they are for exits and 30 know they want to remain, but there are still people tryi