1 00:00:03,440 --> 00:00:06,800 Speaker 1: Global business news twenty four hours a day. If Bloomberg 2 00:00:06,880 --> 00:00:09,960 Speaker 1: dot Com the radio plus mobile lap and on your radio. 3 00:00:10,240 --> 00:00:14,400 Speaker 1: This is a Bloomberg business flag from Bloomberg World Headquarters. 4 00:00:14,440 --> 00:00:17,360 Speaker 1: I'm Charlie Pellock, Britain. Vote, Vote, stock, sell off. This 5 00:00:17,480 --> 00:00:20,239 Speaker 1: update brought to you by National Realty Providers of one 6 00:00:20,320 --> 00:00:24,840 Speaker 1: hundred percent satisfaction guaranteed New York City Realty Investment see 7 00:00:24,840 --> 00:00:28,520 Speaker 1: limit n r i A dot net lows of the 8 00:00:28,600 --> 00:00:30,800 Speaker 1: session right now, Let's head right over to the first 9 00:00:30,800 --> 00:00:33,440 Speaker 1: Word breaking news desk for today's afternoon call. Here he 10 00:00:33,560 --> 00:00:38,000 Speaker 1: is Bill Maloney. Good afternoons. Shrilly stocks plunge around the 11 00:00:38,040 --> 00:00:40,840 Speaker 1: world following that Briggs and vote and like you said, 12 00:00:40,880 --> 00:00:44,479 Speaker 1: MANUS averages are on session lows. Dallas currently down six 13 00:00:44,600 --> 00:00:47,479 Speaker 1: hundred and thirty four points, Sesspes drop seventy eight and 14 00:00:47,600 --> 00:00:51,040 Speaker 1: NAZAC falls two hundred and eight points. The NAZAC colhard 15 00:00:51,120 --> 00:00:53,760 Speaker 1: dropped back below the two engine day moving average. Over 16 00:00:53,760 --> 00:00:57,080 Speaker 1: in Europe, Spain and Italy plummeted twelve percent well, the 17 00:00:57,120 --> 00:01:00,160 Speaker 1: UK dropped three point two percent and the pound fell 18 00:01:00,200 --> 00:01:02,880 Speaker 1: as much as eleven percent. Back in the US, A 19 00:01:02,920 --> 00:01:05,840 Speaker 1: small cap six hundred down twenty seven points and the 20 00:01:05,920 --> 00:01:09,200 Speaker 1: US ten yield at one point five eight percent. All 21 00:01:09,240 --> 00:01:12,880 Speaker 1: ten as B sectors are lower, led by losses and financials, Materials, 22 00:01:12,920 --> 00:01:17,440 Speaker 1: and technology. Dow Transports plunge three d and fifty seven points, 23 00:01:17,440 --> 00:01:19,199 Speaker 1: and as A five Tech sank a hundred and thirty 24 00:01:19,200 --> 00:01:22,560 Speaker 1: two points, and the vix is hired by forty four percent. 25 00:01:23,000 --> 00:01:25,479 Speaker 1: In the Dow, Goman Sacks fell seven point four percent, 26 00:01:25,560 --> 00:01:29,360 Speaker 1: Jping Morgan seven percent, and Caterpillar six point three percent. 27 00:01:29,800 --> 00:01:33,040 Speaker 1: Verizon and Walmart were a little changed. New My Mining 28 00:01:33,040 --> 00:01:35,120 Speaker 1: gained five point two percent and made a rally in 29 00:01:35,160 --> 00:01:38,160 Speaker 1: the minors, while money manager Investco plunge as much as 30 00:01:38,200 --> 00:01:42,000 Speaker 1: thirteen point two percent. That's in motions. August of eleven, 31 00:01:42,440 --> 00:01:44,520 Speaker 1: Live from the First Breaking news desk gon Bill Maloney 32 00:01:44,560 --> 00:01:46,759 Speaker 1: Charlotte allright, hey, thank you very much, Bill Maloney worth 33 00:01:46,800 --> 00:01:50,040 Speaker 1: repeating SMP five hundred index down seventy nine, a drop 34 00:01:50,080 --> 00:01:53,120 Speaker 1: there of three point eight percent of to hear live 35 00:01:53,240 --> 00:01:56,480 Speaker 1: breaking news over your Bloomberg type squawk on your terminal 36 00:01:56,600 --> 00:02:02,120 Speaker 1: vans squ a w K. I'm Charlie Pelotar Brexit coverage continues. 37 00:02:02,480 --> 00:02:06,520 Speaker 1: That's a Bloomberg business flash. You're listening to, are taking 38 00:02:06,600 --> 00:02:10,040 Speaker 1: Stuff with Kathleen Hay and Pim Fox on Bloomberg Radio, 39 00:02:10,720 --> 00:02:14,800 Speaker 1: continuing coverage of the United Kingdom's decision to leave the 40 00:02:14,880 --> 00:02:20,760 Speaker 1: European Union. Northern Ireland's Deputy First Minister, Martin McGuinness, has 41 00:02:20,760 --> 00:02:24,320 Speaker 1: called for a border pole on a United Ireland. This, 42 00:02:24,440 --> 00:02:27,000 Speaker 1: of course, after the UK voted to leave the EU. 43 00:02:27,200 --> 00:02:30,840 Speaker 1: Support for the European Union considerably higher in Northern Ireland 44 00:02:30,840 --> 00:02:33,560 Speaker 1: than in the rest of the United Kingdom. Here to 45 00:02:33,600 --> 00:02:38,000 Speaker 1: tell us more, Karen Mohaal, Chief investment Officer, Global Reach Securities, 46 00:02:38,080 --> 00:02:41,360 Speaker 1: joining us from Dublin, Ireland. Karen, thanks very much for 47 00:02:41,440 --> 00:02:43,920 Speaker 1: being with us, first of all your reaction to the 48 00:02:44,000 --> 00:02:46,640 Speaker 1: vote and tell us is there going to be a 49 00:02:46,720 --> 00:02:52,280 Speaker 1: United Ireland as a result? Um? Good evening him speaking again. 50 00:02:52,440 --> 00:02:55,400 Speaker 1: I I it's an interesting one. It's it's kind of 51 00:02:55,400 --> 00:02:56,919 Speaker 1: come out a little bit out of a left field 52 00:02:57,240 --> 00:03:00,359 Speaker 1: and in the nature of the makeup of of how 53 00:03:00,480 --> 00:03:03,840 Speaker 1: maybe last night kind of panned out in the sense 54 00:03:03,919 --> 00:03:07,600 Speaker 1: that London the kind of scent center of the kind 55 00:03:07,600 --> 00:03:10,800 Speaker 1: of financial market elements of the UK economy, and and 56 00:03:10,919 --> 00:03:13,640 Speaker 1: Scotland and Northern Ireland were the three kind of only 57 00:03:13,680 --> 00:03:17,920 Speaker 1: the only three areas that were strong Remain votes. And 58 00:03:18,120 --> 00:03:19,959 Speaker 1: so you know, in the in the last few hours 59 00:03:20,000 --> 00:03:22,040 Speaker 1: you've had a lot of pressure amongst well, you know, 60 00:03:22,160 --> 00:03:24,400 Speaker 1: certainly within Scotland and to some extent, I know I 61 00:03:24,440 --> 00:03:27,160 Speaker 1: saw Mark mcginnison's comments today. I'm not sure if they 62 00:03:27,200 --> 00:03:29,840 Speaker 1: they were a little bit tongue in cheek, but certainly 63 00:03:29,880 --> 00:03:34,520 Speaker 1: some pressure coming on what role the kind of regions 64 00:03:34,600 --> 00:03:37,880 Speaker 1: will play in in in and in a broader UK 65 00:03:37,960 --> 00:03:42,600 Speaker 1: economy that's outside of of Europe. And certainly say Northern 66 00:03:42,640 --> 00:03:47,840 Speaker 1: irdn would be a net beneficiary of inflows from from Europe. 67 00:03:47,880 --> 00:03:52,040 Speaker 1: They would get an awful lot of structural structural moneys 68 00:03:52,320 --> 00:03:55,680 Speaker 1: as well as money. Correct it's called peace money, the 69 00:03:55,800 --> 00:04:00,120 Speaker 1: financial support from the European Union. Yes, absolutely, And and 70 00:04:00,600 --> 00:04:04,480 Speaker 1: Nordon Irens is the only region within the UK and 71 00:04:04,600 --> 00:04:07,600 Speaker 1: that is actually a net beneficiary from from from Europe. 72 00:04:07,720 --> 00:04:10,200 Speaker 1: And so it's quite a big deal. And and and 73 00:04:10,360 --> 00:04:13,720 Speaker 1: the Northern while then in the Republic, our economy has 74 00:04:13,760 --> 00:04:16,120 Speaker 1: been has been going reasonably robustly over the last two 75 00:04:16,160 --> 00:04:19,640 Speaker 1: or three years. Nordon Arden it's still reasonably slow growth, 76 00:04:19,720 --> 00:04:22,479 Speaker 1: kind of dynamic and they would they would certainly not 77 00:04:22,600 --> 00:04:24,880 Speaker 1: want to lose any help that Europe would provide them 78 00:04:24,880 --> 00:04:27,320 Speaker 1: at the moment, and so and that's probably I guess 79 00:04:27,320 --> 00:04:30,159 Speaker 1: where Martin McGinnis is coming from in terms of maybe 80 00:04:30,200 --> 00:04:32,320 Speaker 1: looking for a normal IREN vote. They're trying to find 81 00:04:32,320 --> 00:04:35,440 Speaker 1: a mechanism that would keep them within within europe state. 82 00:04:35,560 --> 00:04:38,760 Speaker 1: They've obviously voted, they they voted, they were strong remain 83 00:04:39,560 --> 00:04:44,080 Speaker 1: in last night's referendum. So Karen, earlier we had on 84 00:04:44,240 --> 00:04:47,839 Speaker 1: the show of Marian Harkins, member of the EU Parliament, 85 00:04:48,320 --> 00:04:52,160 Speaker 1: a former member of Ireland's parliament, and uh, she like 86 00:04:52,320 --> 00:04:55,600 Speaker 1: our uh John Nichols Waite, our editor in chief for 87 00:04:55,600 --> 00:05:00,480 Speaker 1: Bloomberg Editorial. They've basically said, how this house this is 88 00:05:00,520 --> 00:05:03,039 Speaker 1: in a way, how kind of distressing this is? And 89 00:05:03,080 --> 00:05:04,880 Speaker 1: of course I'm wondering. Then we can see what the 90 00:05:04,920 --> 00:05:06,839 Speaker 1: mood in the markets is. We can see that. You 91 00:05:06,839 --> 00:05:10,480 Speaker 1: look at European stocks, you know, Uh, the smallest loss 92 00:05:10,680 --> 00:05:13,719 Speaker 1: ironically is in the foot See you've got the IBEX 93 00:05:13,800 --> 00:05:17,119 Speaker 1: down and the foot well, actually, excuse me, when hundred 94 00:05:17,240 --> 00:05:19,320 Speaker 1: is down three percent, the foot ce m ib is 95 00:05:19,360 --> 00:05:22,359 Speaker 1: down twelve and a half percent. You have you know 96 00:05:22,400 --> 00:05:25,719 Speaker 1: in Italy, yes, Italy, and the IBEX in in Spain, 97 00:05:25,960 --> 00:05:29,400 Speaker 1: thank you sir. And of course Uh. Anyway, the mood 98 00:05:29,520 --> 00:05:34,440 Speaker 1: is sell in Ireland, in Dublin, in your firm. What 99 00:05:34,600 --> 00:05:39,000 Speaker 1: is the mood mood among people about this moment? Well, 100 00:05:39,760 --> 00:05:42,280 Speaker 1: I don't think it. Very many people would have predicted 101 00:05:42,279 --> 00:05:45,320 Speaker 1: this cutting and I guess that's the it's it's the 102 00:05:45,480 --> 00:05:48,200 Speaker 1: kind of the broad sense of I don't. I think 103 00:05:48,200 --> 00:05:50,359 Speaker 1: shock is probably a little bit of a kind of 104 00:05:50,360 --> 00:05:53,360 Speaker 1: a strong word because you know, the referendum, the polls 105 00:05:53,400 --> 00:05:57,120 Speaker 1: were always we're always reasonably tice and I think probably 106 00:05:57,200 --> 00:06:01,440 Speaker 1: the in terms of the markets themselves, the important dynamic 107 00:06:01,440 --> 00:06:04,480 Speaker 1: to understand is SOT. At this time last week, we 108 00:06:04,480 --> 00:06:06,440 Speaker 1: were we weren't a whole lot of way from the 109 00:06:06,440 --> 00:06:09,919 Speaker 1: color levels that we are now, certainly on European equity markets, 110 00:06:10,160 --> 00:06:13,480 Speaker 1: certainly where the docks and the French cat closed, and 111 00:06:14,000 --> 00:06:15,680 Speaker 1: it was within the range that we had been in 112 00:06:15,680 --> 00:06:17,760 Speaker 1: the last couple of weeks. But what we did see 113 00:06:17,920 --> 00:06:22,359 Speaker 1: was Friday, Monday, Tuesday this week a significant rally seven 114 00:06:22,400 --> 00:06:26,240 Speaker 1: eight percent higher on the basis that remain had taken 115 00:06:26,279 --> 00:06:29,039 Speaker 1: back the lead in terms of the polls. So you know, 116 00:06:29,040 --> 00:06:31,280 Speaker 1: the sell off has been very aggressive, it has been 117 00:06:31,600 --> 00:06:35,800 Speaker 1: um in in a very short period of time. In reality, 118 00:06:35,839 --> 00:06:37,839 Speaker 1: we've kind of only moved back to the levels that 119 00:06:37,880 --> 00:06:40,760 Speaker 1: we would have seen last week. Where we go from here, though, 120 00:06:40,800 --> 00:06:43,800 Speaker 1: I think it's going to be very interesting because possibly, 121 00:06:43,880 --> 00:06:46,560 Speaker 1: unlike maybe some of the worries we've had in the 122 00:06:46,640 --> 00:06:48,919 Speaker 1: last couple of years, whether it be China or you know, 123 00:06:49,040 --> 00:06:53,560 Speaker 1: your US procession or or you know, issues around a 124 00:06:53,560 --> 00:06:56,919 Speaker 1: bowl of from from and this is going to be 125 00:06:56,920 --> 00:06:59,680 Speaker 1: a very slow moving story. And there's going to be 126 00:07:00,120 --> 00:07:01,760 Speaker 1: you know, a couple of catalysts in the next week 127 00:07:01,839 --> 00:07:04,120 Speaker 1: or so, but after that it's delightly to die into 128 00:07:04,160 --> 00:07:07,159 Speaker 1: the background for a couple of years. But kind of 129 00:07:07,200 --> 00:07:09,440 Speaker 1: that level of uncertainty is going to remain and how 130 00:07:09,560 --> 00:07:11,320 Speaker 1: and and we're going to see it sort of piecemeal 131 00:07:11,400 --> 00:07:15,000 Speaker 1: drip drip drip as the UK tries to find a 132 00:07:15,080 --> 00:07:19,200 Speaker 1: way to maneuver themselves out of Europe but also keep 133 00:07:19,240 --> 00:07:22,160 Speaker 1: their keep their trade deals, et cetera, maybe in place. 134 00:07:22,800 --> 00:07:27,480 Speaker 1: Jared Muhall is chief investment officer Dublin based Global Reach Securities. 135 00:07:27,520 --> 00:07:30,520 Speaker 1: He says this issue of the UK, which could play 136 00:07:30,520 --> 00:07:32,400 Speaker 1: out over a couple of years, will kind of fade 137 00:07:32,440 --> 00:07:35,360 Speaker 1: in the background to the markets. I'm wondering though, if 138 00:07:35,360 --> 00:07:38,320 Speaker 1: there'll be headline risk was such an important global event. 139 00:07:38,400 --> 00:07:40,880 Speaker 1: This is taking stock on Kathleen Hayes and Pim Fox 140 00:07:40,880 --> 00:07:47,440 Speaker 1: on Bloomberg Radio, Bloomberg. Taking stock is brought you by 141 00:07:47,440 --> 00:07:50,640 Speaker 1: your tri State BMW centers. Visit them online at try State, 142 00:07:50,680 --> 00:07:54,280 Speaker 1: BMW dot com. At BMW they only make one thing, 143 00:07:54,640 --> 00:08:06,840 Speaker 1: the ultimate driving machine. Broadcasting live to New York, Bloomberg 144 00:08:06,840 --> 00:08:12,120 Speaker 1: eleventh to Washington, d C, bloom to Boston, Bluemberg, well 145 00:08:12,280 --> 00:08:16,440 Speaker 1: Under to San Francisco, Bloomberg nine to the Country series 146 00:08:16,520 --> 00:08:20,440 Speaker 1: at JAM one and around the globe the Bloomberg Radio 147 00:08:20,480 --> 00:08:24,080 Speaker 1: plus DApp and Bloomberg dot Com. This is taking stock. 148 00:08:24,480 --> 00:08:27,120 Speaker 1: Coming up on taking stock, We're gonna take stock of 149 00:08:27,200 --> 00:08:31,120 Speaker 1: the pound sterling, the British currency now down more than 150 00:08:31,160 --> 00:08:34,280 Speaker 1: eight and a quarter percent at one thirty six fifty two. 151 00:08:34,840 --> 00:08:37,680 Speaker 1: Find out will Mark Karney and the Bank of England 152 00:08:37,880 --> 00:08:41,280 Speaker 1: have to intercede in order to maintain the value of 153 00:08:41,320 --> 00:08:45,040 Speaker 1: the pound. That's next, also Pim, what should you buy? 154 00:08:45,160 --> 00:08:47,320 Speaker 1: What should you keep selling? It's a very important question. 155 00:08:47,320 --> 00:08:49,840 Speaker 1: That's We're going to continue our conversation with Karen Mulhall, 156 00:08:49,880 --> 00:08:53,720 Speaker 1: chief investment officer at Dublin Blaced Global Reach Securities Charlotte 157 00:08:53,720 --> 00:08:56,960 Speaker 1: Pillets back. Charlie Pillett is in our New York newsroom 158 00:08:57,000 --> 00:08:59,800 Speaker 1: with Bloomberg Business Flash, Thank you very much. Kathleen Hayes 159 00:09:00,200 --> 00:09:05,360 Speaker 1: pim Fox fast moving markets after that historic Brexit vote 160 00:09:05,360 --> 00:09:08,040 Speaker 1: in the United Kingdom. Here's where we stand. We've got 161 00:09:08,040 --> 00:09:10,000 Speaker 1: twenty nine minutes to go ahead of the clothes on 162 00:09:10,000 --> 00:09:14,640 Speaker 1: this Friday. SMP five hundred nicks down seventy seven points. 163 00:09:14,640 --> 00:09:17,640 Speaker 1: That's a drop of three point seven percent. The SMP 164 00:09:17,760 --> 00:09:21,200 Speaker 1: now at two thousand, thirty six down. Industrials down six 165 00:09:21,280 --> 00:09:24,360 Speaker 1: hundred nineteen points to drop there of three point four percent. 166 00:09:24,640 --> 00:09:28,239 Speaker 1: That now at seventeen thousand, three hundred ninety two. Nasdaq 167 00:09:28,400 --> 00:09:32,200 Speaker 1: is down two hundred six points to forty seven oh three, 168 00:09:32,480 --> 00:09:35,680 Speaker 1: a drop there of four point two percent. Sterling right 169 00:09:35,679 --> 00:09:39,280 Speaker 1: now is at one thirty six fifty six. We've got 170 00:09:39,320 --> 00:09:43,120 Speaker 1: gold surging of fifty nine dollars the ounce to twelve 171 00:09:43,200 --> 00:09:46,440 Speaker 1: thirteen twenty two on gold. That is a game of 172 00:09:46,520 --> 00:09:50,240 Speaker 1: four point seven percent. So equity is sinking to session lows. 173 00:09:50,559 --> 00:09:54,240 Speaker 1: The victory of the lead campaign stunning many investors. Michael 174 00:09:54,320 --> 00:10:00,000 Speaker 1: Cogino is the president at the Permanent Portfolio family of funds. 175 00:10:00,040 --> 00:10:03,000 Speaker 1: And in the coming months and years, Great Britain is 176 00:10:03,000 --> 00:10:05,079 Speaker 1: gonna have to negotiate with the European Union as to 177 00:10:05,160 --> 00:10:09,120 Speaker 1: how to exit whatever deals it has currently and enter 178 00:10:09,160 --> 00:10:11,920 Speaker 1: into new deals as well as deals with other countries 179 00:10:11,960 --> 00:10:14,640 Speaker 1: outside the European Union for trade deals that could be 180 00:10:14,679 --> 00:10:18,760 Speaker 1: positive or negative. We just don't know already. Immediate impact 181 00:10:18,840 --> 00:10:23,040 Speaker 1: on corporations British airways owner i a G lowering its 182 00:10:23,080 --> 00:10:26,760 Speaker 1: two thousand sixteen profit targets, an oil tumbling along with 183 00:10:26,840 --> 00:10:29,160 Speaker 1: most commodities. West Texas is going to be the crew 184 00:10:29,280 --> 00:10:33,680 Speaker 1: down five dropping to one barrel on w T I 185 00:10:33,800 --> 00:10:38,160 Speaker 1: now at sixty brand down four point nine percent. It 186 00:10:38,280 --> 00:10:40,559 Speaker 1: is three thirty two on Wall Street. Now, let's take 187 00:10:40,559 --> 00:10:45,840 Speaker 1: a look at other news from around the world. Thank you, 188 00:10:45,920 --> 00:10:49,760 Speaker 1: Charlie from the Bloomberg Newsroom. I'm Jill Schneider. President Obama 189 00:10:49,800 --> 00:10:52,760 Speaker 1: says he has spoken to British Prime Minister David Cameron 190 00:10:52,880 --> 00:10:56,080 Speaker 1: and is confident the UK is committed to an orderly 191 00:10:56,120 --> 00:10:59,400 Speaker 1: transition out of the European Union. Mr Obama spoke this 192 00:10:59,480 --> 00:11:02,840 Speaker 1: afternoon at Stanford University. I do think that yesterday's vote 193 00:11:02,880 --> 00:11:06,400 Speaker 1: speaks to the ongoing changes and challenges that are raised 194 00:11:06,400 --> 00:11:11,280 Speaker 1: by globalization. But while the UK's relationship with the EU 195 00:11:11,320 --> 00:11:14,800 Speaker 1: will change, one thing that will not change is the 196 00:11:14,840 --> 00:11:18,840 Speaker 1: special relationship that exists between our two nations. The President 197 00:11:18,920 --> 00:11:22,280 Speaker 1: had urged Britain to remain with the European Union. Donald 198 00:11:22,280 --> 00:11:24,880 Speaker 1: Trump is hailing Britain's vote to leave the EU and 199 00:11:24,920 --> 00:11:28,679 Speaker 1: predicting that other nations will follow suit. Hillary Clinton says 200 00:11:28,679 --> 00:11:31,280 Speaker 1: we need to respect the choice the United Kingdom has made. 201 00:11:31,600 --> 00:11:34,319 Speaker 1: British Prime Minister David Cameron is resigning in the wake 202 00:11:34,360 --> 00:11:37,360 Speaker 1: of yesterday's vote. Cameron says he worked hard to stop 203 00:11:37,360 --> 00:11:40,800 Speaker 1: the vote from passing, but failed. I held nothing back. 204 00:11:41,679 --> 00:11:45,120 Speaker 1: I was absolutely clear about my belief that Britain is stronger, 205 00:11:45,720 --> 00:11:49,960 Speaker 1: safer and better off inside the European Union, and I 206 00:11:50,040 --> 00:11:53,199 Speaker 1: made clear the referendum was about this and this alone, 207 00:11:53,960 --> 00:11:58,400 Speaker 1: not the future of any single politician, including myself. Cameron 208 00:11:58,400 --> 00:12:00,839 Speaker 1: says he will leave office knowing he did what he could. 209 00:12:01,160 --> 00:12:04,160 Speaker 1: President Obama is designating the Stone Wall in Here in 210 00:12:04,200 --> 00:12:07,000 Speaker 1: New York as a national monument, the first to honor 211 00:12:07,080 --> 00:12:10,400 Speaker 1: gay rights. The tavern in Greenwich Village became the site 212 00:12:10,440 --> 00:12:13,199 Speaker 1: of an uprising after police raided it in June nine, 213 00:12:14,440 --> 00:12:16,920 Speaker 1: triggering what is widely viewed as the start of the 214 00:12:16,960 --> 00:12:20,160 Speaker 1: gay rights movement. Global News twenty four hours a day, 215 00:12:20,320 --> 00:12:24,040 Speaker 1: powered by more than hundred journalists and analysts in more 216 00:12:24,080 --> 00:12:27,200 Speaker 1: than one hundred twenty countries. From the Bloomberg News Room, 217 00:12:27,240 --> 00:12:31,360 Speaker 1: I'm Jill Schneider and this is Bloomberg Charlie, and we 218 00:12:31,440 --> 00:12:34,360 Speaker 1: thank you, and again recapping equities Laura across the board, 219 00:12:34,440 --> 00:12:37,160 Speaker 1: six hundred point drop in the down Jones Industrial Average, 220 00:12:37,200 --> 00:12:41,559 Speaker 1: down three point three tenure yield one point five seven. 221 00:12:42,400 --> 00:12:45,800 Speaker 1: Our Brexit coverage continues. I'm Charlie Pellett and that's a 222 00:12:45,800 --> 00:12:50,839 Speaker 1: Bloomberg Business flash. This he's taking stuff with Kathleen Hayes 223 00:12:50,880 --> 00:12:55,160 Speaker 1: and Pim Fox on Bloomberg Radio. A global sell off 224 00:12:55,320 --> 00:12:59,520 Speaker 1: in global assessets on speculation, the UK decision to leave 225 00:12:59,640 --> 00:13:02,600 Speaker 1: you hamper worldwide growth. We certainly con see it in 226 00:13:02,600 --> 00:13:05,840 Speaker 1: the numbers. Is Charlie Pellett just so eloquently laid it 227 00:13:05,840 --> 00:13:08,680 Speaker 1: out for us. We're continuing our conversation now with Karen 228 00:13:08,720 --> 00:13:13,800 Speaker 1: will Hall's chief investment officer at Global Reach Securities in Dublin, Ireland. 229 00:13:13,920 --> 00:13:17,600 Speaker 1: So certainly someone who is in the heart of the 230 00:13:17,640 --> 00:13:20,360 Speaker 1: impact and all the big questions about where this leads 231 00:13:20,360 --> 00:13:21,760 Speaker 1: next and of course for you here and this is 232 00:13:21,840 --> 00:13:27,000 Speaker 1: such an important investment question because in your work at 233 00:13:27,000 --> 00:13:32,000 Speaker 1: Global Reach Securities you invest mainly in stock indices or 234 00:13:32,120 --> 00:13:35,400 Speaker 1: sectors through e t f s. You mostly have an international, 235 00:13:35,480 --> 00:13:39,040 Speaker 1: a global macro focus. Let's start there. Pam was just 236 00:13:39,120 --> 00:13:41,760 Speaker 1: mentioning how much the pound has fallen at the lowest 237 00:13:41,800 --> 00:13:45,160 Speaker 1: level since is that where you start? Do you start 238 00:13:45,200 --> 00:13:48,200 Speaker 1: with currencies? Do you look at this rally in uh, 239 00:13:48,440 --> 00:13:51,560 Speaker 1: you know, government bond markets, particularly the US that seems 240 00:13:51,600 --> 00:13:55,800 Speaker 1: to be continuing. What's your first step, I think, Cavin, 241 00:13:55,920 --> 00:13:59,040 Speaker 1: when when we're still of looking at how our investment 242 00:13:59,080 --> 00:14:02,560 Speaker 1: process that involved of and and kind of takes into 243 00:14:02,600 --> 00:14:04,520 Speaker 1: account events like what we saw in the last twenty 244 00:14:04,520 --> 00:14:07,200 Speaker 1: four hours, I think for the first thing, we kind 245 00:14:07,200 --> 00:14:09,439 Speaker 1: of try and come back to what the double central 246 00:14:09,440 --> 00:14:13,360 Speaker 1: banks are doing M and the certainly for the moment 247 00:14:13,720 --> 00:14:16,679 Speaker 1: it will involve evolve over time, but for the moment, 248 00:14:16,720 --> 00:14:19,520 Speaker 1: we were very focused on Mario dragging and what the 249 00:14:19,600 --> 00:14:22,520 Speaker 1: use to be are doing. UM and we've spoken about 250 00:14:22,520 --> 00:14:24,720 Speaker 1: this before, but the kind of the natural flow of 251 00:14:24,760 --> 00:14:28,400 Speaker 1: that is that we would see the euro being on 252 00:14:28,480 --> 00:14:32,280 Speaker 1: average weak currency, so we would look to both allocay 253 00:14:32,360 --> 00:14:35,720 Speaker 1: capital away from the Europe, from the Euro to currencies 254 00:14:35,760 --> 00:14:38,080 Speaker 1: that we think with strengthened against the Euro. And then 255 00:14:38,080 --> 00:14:42,960 Speaker 1: within Europe, we've had had a recently um strong focused 256 00:14:43,000 --> 00:14:45,480 Speaker 1: on to the European corporate bonds and we have stayed 257 00:14:45,520 --> 00:14:48,560 Speaker 1: away from from European sovereign bonds valuations they're a little 258 00:14:48,560 --> 00:14:51,520 Speaker 1: bit strained, but particularly European corporate bonds, some high yield 259 00:14:51,560 --> 00:14:56,680 Speaker 1: corporate debt, and some European equities based around the German market. 260 00:14:57,120 --> 00:14:59,960 Speaker 1: We've we've had over the last six months and very 261 00:15:00,000 --> 00:15:03,160 Speaker 1: its positions in Sterling against the Euro. We have very 262 00:15:03,200 --> 00:15:06,120 Speaker 1: small exposure to Sterling at the moment with within the fund, 263 00:15:06,280 --> 00:15:09,600 Speaker 1: mostly due to the uncertainty around what we've seen in the 264 00:15:09,560 --> 00:15:11,960 Speaker 1: the last twenty four hours, and I can't I I 265 00:15:12,000 --> 00:15:14,880 Speaker 1: see probably some opportunity for Sterling to to weaken a 266 00:15:14,920 --> 00:15:17,480 Speaker 1: little bit further, and we certainly wouldn't be trying to 267 00:15:17,520 --> 00:15:20,880 Speaker 1: buy and buy the difference sterling just yet, and we'd 268 00:15:20,880 --> 00:15:22,960 Speaker 1: want to see a catalyst that turn it around, because 269 00:15:23,360 --> 00:15:25,240 Speaker 1: as I think a couple of the other guests have 270 00:15:25,320 --> 00:15:27,360 Speaker 1: already mentioned today that the UK is in a bit 271 00:15:27,400 --> 00:15:30,400 Speaker 1: of a difficult spot in the sense that Karnie probably 272 00:15:30,400 --> 00:15:32,320 Speaker 1: would quite like to cut rates and sort of give 273 00:15:32,320 --> 00:15:34,640 Speaker 1: a bit of an indication of a of a of 274 00:15:34,720 --> 00:15:38,960 Speaker 1: action into sort of, you know, improve confidence. But you know, 275 00:15:38,960 --> 00:15:41,160 Speaker 1: if the if sterling is weakened so much already, and 276 00:15:41,200 --> 00:15:43,600 Speaker 1: if it was the weaken materially more, it will lead 277 00:15:43,640 --> 00:15:46,120 Speaker 1: to a huge problem with the important inflation. And the 278 00:15:46,200 --> 00:15:49,280 Speaker 1: UK economy is very susceptible to important inflation and we 279 00:15:49,280 --> 00:15:52,800 Speaker 1: saw that in the eleven and twenty twelve periods. So 280 00:15:53,000 --> 00:15:55,360 Speaker 1: I would suspect if Cornie does decide to do anything, 281 00:15:55,400 --> 00:15:57,800 Speaker 1: it's going to be more around maybe quantity of easy 282 00:15:57,960 --> 00:16:00,360 Speaker 1: or liquidity as it measures, and at that point we 283 00:16:00,440 --> 00:16:03,080 Speaker 1: might get more interested in in in terms of maybe 284 00:16:03,320 --> 00:16:08,440 Speaker 1: taking some Sterling exposure and with within our investment process. Karen, 285 00:16:08,560 --> 00:16:10,720 Speaker 1: I just want to follow up on something you're talking 286 00:16:10,760 --> 00:16:13,800 Speaker 1: about having to do with the catalyst for a turnaround 287 00:16:14,720 --> 00:16:17,560 Speaker 1: at that point, won't everybody know that there's that catalyst? 288 00:16:17,680 --> 00:16:20,840 Speaker 1: And isn't this when real money is made, You look 289 00:16:20,920 --> 00:16:24,000 Speaker 1: at things that no one else wants to buy because 290 00:16:24,040 --> 00:16:29,080 Speaker 1: they believe that the situation will not change. Well, pin 291 00:16:29,240 --> 00:16:32,760 Speaker 1: things can get cheaper, I guess, is what I'd always 292 00:16:32,760 --> 00:16:34,520 Speaker 1: said to that, and I think even in terms of 293 00:16:34,520 --> 00:16:36,480 Speaker 1: the clodity sell off we've seen over the last couple 294 00:16:36,520 --> 00:16:39,080 Speaker 1: of years, and I've always been it's not that we 295 00:16:39,080 --> 00:16:41,480 Speaker 1: would be necessarily be waiting for the turn, but I 296 00:16:42,080 --> 00:16:45,640 Speaker 1: certainly think in terms of getting excited about about Sterling again, 297 00:16:45,920 --> 00:16:48,920 Speaker 1: and you know there's there's some chance and and certainly 298 00:16:48,920 --> 00:16:51,400 Speaker 1: some technical analysis that one of our team is Don't 299 00:16:51,440 --> 00:16:54,880 Speaker 1: has done with suggested Sterling certainly against the daughter mightn't 300 00:16:54,880 --> 00:16:57,920 Speaker 1: have a whole lot more downside to go. I think 301 00:16:58,400 --> 00:17:00,200 Speaker 1: you'd have to, you'd have to let a bull the 302 00:17:00,280 --> 00:17:03,360 Speaker 1: days go before you you decided to to really move 303 00:17:03,440 --> 00:17:06,040 Speaker 1: in there. And yeah, and as I say, you'd be 304 00:17:06,080 --> 00:17:08,080 Speaker 1: looking for something on the even on the fringes. It 305 00:17:08,160 --> 00:17:09,880 Speaker 1: might not have to be a direct catalyst, but something 306 00:17:09,880 --> 00:17:13,480 Speaker 1: on the fringes to suggest that the selling of of 307 00:17:13,480 --> 00:17:18,240 Speaker 1: of Stirling has at least debated for a period. So 308 00:17:19,880 --> 00:17:23,080 Speaker 1: over the long run, where how do you see this 309 00:17:23,160 --> 00:17:25,720 Speaker 1: working out? And does it really make that much difference 310 00:17:25,760 --> 00:17:27,440 Speaker 1: in some sense when all of a sudden and five 311 00:17:27,520 --> 00:17:30,639 Speaker 1: years down the road for investors like you people have 312 00:17:30,680 --> 00:17:33,399 Speaker 1: to manage money. Is it just is it? Is it 313 00:17:33,480 --> 00:17:36,080 Speaker 1: going to all settle down and we'll be where we were, 314 00:17:36,840 --> 00:17:39,520 Speaker 1: or does it have some lasting effect that we should 315 00:17:39,520 --> 00:17:41,240 Speaker 1: be worried about what it's going to have a lasting 316 00:17:41,240 --> 00:17:43,879 Speaker 1: effect on the growth look for the UK economy and 317 00:17:44,720 --> 00:17:47,480 Speaker 1: the Leave camp have argued that's very strongly that the 318 00:17:47,480 --> 00:17:49,960 Speaker 1: short term negative catalyst that we're sort of seeing begin 319 00:17:50,040 --> 00:17:52,000 Speaker 1: to play out now we'll be offset by a longer 320 00:17:52,119 --> 00:17:55,160 Speaker 1: term improvement in terms of trade deals, etcetera. And we'll 321 00:17:55,160 --> 00:17:56,720 Speaker 1: have to see how that kind of works out. But 322 00:17:56,880 --> 00:18:01,959 Speaker 1: for me, I guess um go in forward, it's not 323 00:18:01,960 --> 00:18:04,480 Speaker 1: whether or not it has a lasting impact, it's how 324 00:18:04,520 --> 00:18:06,560 Speaker 1: more how as I spoken maybe before the break, is 325 00:18:06,600 --> 00:18:09,159 Speaker 1: how does the houses sort of play out? Does it 326 00:18:09,280 --> 00:18:11,800 Speaker 1: kind of and it's probably not going to happen in 327 00:18:11,800 --> 00:18:13,400 Speaker 1: the next week or so, but does it fade back 328 00:18:13,400 --> 00:18:16,040 Speaker 1: into the background and then kind of re emerge as 329 00:18:16,040 --> 00:18:18,000 Speaker 1: they were kind of a risk off move and then 330 00:18:18,080 --> 00:18:20,800 Speaker 1: kind of go back and then re emerge again. And 331 00:18:20,840 --> 00:18:23,160 Speaker 1: that's why I was quite interested to see Bars Johnson's 332 00:18:23,160 --> 00:18:26,240 Speaker 1: comments and this morning, who has been the sort of 333 00:18:26,320 --> 00:18:29,320 Speaker 1: main figurehead of the Leave camp. And you know, it 334 00:18:29,320 --> 00:18:32,600 Speaker 1: occurs to me that maybe the Leave camp maybe weren't 335 00:18:32,600 --> 00:18:36,000 Speaker 1: that confidence in their own success. And I'm not sure 336 00:18:36,040 --> 00:18:37,960 Speaker 1: they have their own plan in place about how to 337 00:18:38,000 --> 00:18:41,000 Speaker 1: proceed from here. Thank you very much for spending time 338 00:18:41,000 --> 00:18:43,639 Speaker 1: with the Skier. And Mohall is chief investment officer for 339 00:18:43,720 --> 00:18:48,320 Speaker 1: Global Reach Securities. They are based in Dublin, Ireland. The 340 00:18:48,320 --> 00:18:51,760 Speaker 1: pound sterling right now down more than eight percent against 341 00:18:51,800 --> 00:18:55,280 Speaker 1: the US dollar at one thirty six seventy four. You're 342 00:18:55,320 --> 00:19:04,639 Speaker 1: listening to Bloomberg Radio. Coming up on Bloomberg Radio, Russelle 343 00:19:04,640 --> 00:19:08,080 Speaker 1: balancing could be having a Brexit LNE like effect on 344 00:19:08,320 --> 00:19:11,119 Speaker 1: US stocks too. We're going to find out why, what 345 00:19:11,200 --> 00:19:13,439 Speaker 1: it means for the market's next on Bloomberg Radio.