Hasnt been as strong as we had thought. Getting obviously a little bit of relief after the announcements of all the buy backs and dividend increases. It doesnt seem as though anybody changed his or her opinion about the businesses themselves, whether they can earn a proper return in this environment. It seems still kind of a call on fed policy, but at least youre going to get paid a little bit along the way if youre a bank shareholder. Were seeing, this is the last day of the first half, last day of the Second Quarter. Coming off some pretty strong gains. I believe the best two day gain of the year on monday and tuesday but we are getting some of those headlines from the bank of england. Wets get out to wilbur frost outside of the boe in london with those headlines. Reporter thanks very much. Mike carney speaking right now. Hes due to say that there is need for summer stimulus after the brexit shock. This next line is a direct quote. He said in my view and im not prejudging the views of other members the Economic Outlook has deteriorated and some Monetary Policy easing will be required over the summer. Hes saying in august well discuss further the range of instruments at our disposal. This following that historic brexit vote last week. He says as weve seen elsewhere Interest Rates are too, low the hit to Bank Profitability could perversely reduce Credit Availability or increase its overall price. Hes saying some stimulus could be used. He said a host of other measures and policies are available and so far he does say following the referendum things are quote working well when he refers to the contingency plans that were in place before the result he said they are working well but a host of other measures available. Implying in the summer meetings to come for the bank ofngland there may well be easing needed. Well keep monitoring that speech and bring the rest of the headlines as they come out. Its interesting to hear him say more stimulus could be needed and that there are a host of other policies because of course on friday they did pledge basically to be a backstop to the market but for parkt participants they are not seeing any intervention so far that the boe was needed with that money to come in and rescue a certain institution or any portfolio or even to provide liquidity that the banks were actually able to do that. So do we have any information about what type of policies these could be and whether they would be a compliment to what they laid out or whether this is a reinforcement or affirmation of what they already said . I dont think we got all those specific details quite yet. We might get them in the q and a. Interesting as you said the policy announcement we got last friday more focus odd immediate market turmoil something thats eased since last friday. I think the focus at the moment is on the economic shock likely to materialize in the coming months from a brexit, some easing may be needed to offset that. He said the uncomfortable truth is that the boe cant fully offset large economic shock of leaving the eu. So hes saying that theres going a hit to Economic Growth and thats really what hes referring to now in terms of future measures expected over this summer. I know youll be monitoring those headlines and listening in to the governor of the bank of england. Youre taking a look now at the pounddollar chart. The pound took a dive down by. 8 of 1 on the back of bank of england saying more stimulus could be needed in the wake of the brexit vote. The governor of the bank of england saying theres deterioration in the market hes seen. Bob pisani has more on the floor of the New York Stock Exchange with how the market is reacting to this. Very modest moves. Remember we had a very subdued open, kay larks take a look at the s p 500. Were moving up here slowly but surely. Remember before mr. Carney came on markets had started moving on the upside. Remember this is the final day of the quarter. Theres some upward momentum recently. Theres some pension rebalancing going on. I think theres a natural p proclivity to move to the upside. Tech has been leading. Energy stocks are a bit on the down side recently. You see how defensive the market has been throughout the morning. Instead of, for example, financials, or industrials or materials leading you have Consumer Staples and utilities and telecom. More defensive tone to the market than weve seen in the prior two days. People ask if theres any impact on the brexit issues. Kayla, i want to note this morning around 7 00 a. M. As we got news that Boris Johnson was leaving the tori race there seemed to be some impact on our u. S. Markets. Dollar pushed a little higher. There you see what happened to the u. S. Dollar index, moved a little higher as he announced he was leaving the tori race. Other moves as well. Interest rates here in the United States moved slightly to the down side as well. Im wondering perhaps there may have been some belief mr. Johnson may have been able to negotiate better terms for the move out of the uk from the European Union or at least the market imply somehow he removing himself would be a potential negative for negotiations down the road. At any rate were sitting near the highs for the day, s p up ten points right now. Back to you. Generally size up the Second Quarter of the year for us. What are the most notable moves weve seen, what do you think we should be watching into the close today which is the last day of the quarter. A notable quarter for some commodity names. Energy was very strong. On the other hand, retail names continue to perform poorly. Airlines fell apart in the last few weeks over concerns on slow down in Global Travel overall. The big issue on the Third Quarter and Fourth Quarter is very simple. Whats the impact in brexit on the earnings situation in the United States. The two areas we just talked about is where there could be problems. That is the impact of a stronger dollar, potentially stronger dollar and number two lower Interest Rates for longer, stronger dollar will have a bigger impact, very notable impact on energy stocks, material stocks, on industrials and technology. Thats a significant part of their earnings overseas and rates lower for longer, well have a potential impact on financials, not just banks, but even Just Companies that provide Financial Services in general. Remember, kayla, five consecutive quarters of negative Earnings Growth for the s p 500. We anticipate that to change, to get better, positive in the second half of the year. These macro issues around brexit could throw a monkey wreench in that whole scenario. Thank you so much. Mike, were seeing headlines from governor carney, the Economic Outlook has deteriorated the pound just fell 1 against the dollar, the boe will reassess this on july 14th. Were at session highs on the dow. It really has a loose linkage to multinationals in the United States. Whatever you want to say about the valuation of the u. S. Stock market, which doesnt seem all that attractive, it is sort of along the spectrum of stuff you buy when youre nervous about other things. I do think thats whats going on here. Bob mentioned Consumer Staples. Everyone says how expensive they are. Well you have a potential bid for hersheys in there and the Food Companies are flying today because m and a will make them more expensive. The concern last week seemed to be based on the Market Reaction this vote had global implications. You saw all kinds of stocks reacting to it. Today basically the message is no, not so much. Based on the stocks were seeing higher and im looking at tech stocks, the strong ipo last week. Yelp up 2. 5 . Arm which is a different beast of course because its based in the uk one of those companies you might expect with a weaker pound would see an uptick. These companies are the ones you would expect to see higher if its just a local impact for brexit. Or if the International Exact is playing out over a long period of time and its through the financial linkages. Its not about necessarily collapsing all global growth. The market has an attention span. Two year process. The market will move on long before that process ends. As long as it says nothing is broken, nobody is trapped, nobody is forced to sell stuff at crazy price the market will look for those names. The ftse 350 has lost 50 billion. Euro stock bank has lost more than 170 billion of value. Were certainly feeling the effects of that overseas. To that end lets get back to wilbur frost with more from the governor of the bank of england. What can you tell us . Reporter weve seen the pound move 1 down off the back of these comments which are still being made behind me in the bank of england. That focus is on the fact that hes implied there will need be some Monetary Policy stimulus, not taken today but taken in the months ahead the meeting in july or august to come. Lets bring you some more of his comments. He says i want to reemphasize the bank has taken all the necessary steps to prepare for these events. Will not hesitate to take any additional measures that might be needed. In terms of banks, he says the Capital Requirements of our larger banks are ten times higher than before the crisis. Moreover the bank of england he says has stress tested our major banks against scenarios far more severe than they currently face. So of course hes trying to say things arent so bad after all but does say all this uncertainty has contributed to a form of economic posttraumatic stress disorder among households and businesses as well as financial markets. That stress might lead to people delaying consumption. Thats why he comes to the conclusion there might be need for further stimulus. Ten minutes ago he said in my view the Economic Outlook has deteriorated and Monetary Policy easing will likely be required. Thank you. I know well see you again soon. Mike, to hear the governor of the bank of england talk about the strength of the uk banks, the capital they built up on a day when the Federal Reserve has dismissed the capital plans of deutsche bank. Soon after the British Government was looking to sell its own stakes in its own banks. Which they put on hold for now. Exactly because it doesnt seem the right market for that. Obviously the u. S. Banks and european banks and british ones are operating on different timelines. As our Monetary Policy. All these things i think causes a lot of confusion and really one of the reasons for better or worse the u. S. Market has been a haven. A lot of attention at least from where i sit, wilbur has a better perspective has turned back to the process, deliberative process within the uk. Boris johnson will not run for Prime Minister. Rest of eu is not interested in negotiating directly with scotland at this point which in a sense seems to me takes some pressure off spain, france, germany saying not exactly the right thing to do. You guys deal with your internal politics yourselves and then well see where these things fall. I mean were looking more at the fall before we have more finality to how this working out. For more, were joined now from london by former british finance minister, former uk shadow chancellor who is now at Harvard Kennedy school of governor. Thank you for joining us this morning. Good afternoon. Do you share the view of mark carney that the Economic Outlook of the uk has deteriorated . I think undoubtedly thats the case. I was somebody who while believing that europe needs to reform and to change and to do better, thought that we were better staying in europe and fighting for reform. So i voted to remain. I was on the losing side. And although there was a lot of criticism of George Osborne the chancellor and mike carneys warnings that things would deteriorate its clearly been a turbulent time in the markets since that decision and whats happened to sterling, there will be a spike inflation. More generally, decisions about investment and big consumption decisions are on hold for many consumers and businesses. So in the short term were definitely going see a slow down in the economy. What we dont know is where this will be for the medium term. As mike carney was saying its a regime change but we dont know to what regime. We dont know what the immediate term is for britain. We have big choices ahead. Politics are in turmoil here. But the economy will wait to see the outcome of those Big Decisions about the future. Now people are saying maybe this was just a scare tactic to get the eu to restructure itself, to show that theres so much discontent within its members rather than to actually initiate an exit of the uk from the European Union. Which view do you agree with . Well, i think that is a very naive view. It was a view that Boris Johnson talked about a few months ago. He was outside. His political career today has taken a very big knock as a consequence. The reality is britain has got to make a big decision in the next few months. Well choose a new Prime Minister to lead the conservative party. Are we going to stay engaged with europe, a major market even though were outside the formal eu, still our biggest trading relationship, are we going to be there around the table sorting things out or are we going to pull away from being an open internationalist trading nation which would be terrible for the city, for companies, for jobs. Europe has a choice as well. They got to decide do they want to say as the president of the commission was saying this week almost good riddance, you go, you rejected us. Do they realize that actually well all lose if that happens. We work in the single currency. That was the right decision for britain. We need to make sure we stay engaged with europe. Whether or not europe takes the right approach to britain is also in the balance in the next few weeks and months. Isnt there a conversation that has to happen internally within the uk first . I mean your labor party, the conservative party as well, the leadership of both parties has been challenged. Clearly there was some disconnect with a majority of voters, people who came out to the polls anyway and there is, it seems a broad sense that there are some Common Ground that could be found with changes that need to happen in immigration, seeking priorities based on some of the strong voices that we heard based on this vote. How do you expect those types of conversations to go over the next few months . I think its important to understand what weve seen here a uk decision in a referendum and a uk political event which is impacting on the markets is actually part of a wider pattern. You have an america, the rise of donald trump, attacking establishment, complaining about immigration. You see similar things happening in france, in denmark, in italy, in germany. Here in britain what happened was the government said to people that this relationship with europe is good, we should carry on with it as it is. It was like the status quo. They also said we cant do more to control immigration. Im afraid the country has said that by a majority we dont like the status quo, we want change. If you think were happy with this were not and voted out. And the Biggest Issue by far was a desire to have more control over immigration. Its because gloibe globalizati led to more turbulence and unstabilization in peoples lives. Unless we address that issue, well see more of these kind of events and well look back and say the uk vote wasnt just in isolation it was part of a bigger and more dangerous trend in the world. The irony, though, is that if, in fact, the uk loses access to the Single Market if companies have to move, if costs companies have to move, if costs go up, if the great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. The composition of said bid half cash, half stock. So 107 which is far below where the current stock price is. In fact there have been talks going on for mornts between modelez and hersheys for a deal. The key here is the Hershey Trust which controls 30 of the economics but even more importantly has an 80 voting control. And so therefore is the deciding vote about whether or not hershey were ever to be sold. And in fact has figured prom neptly in the history of the company when it considered doing deals. Whether it was potentially doing a deal back in the day when cadbury was doing a deal. Weve seen the attorney general of the state of pennsylvania step forward and insert some will there. And so very importantly people familiar with the situation tell me that mondelez has made the following offer to hershey to see if it can get support of the Hershey Trust. Those include a willingness to call the entire company, combin