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tv   Cavuto Coast to Coast  FOX Business  June 24, 2016 12:00pm-2:01pm EDT

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shall we? >> absolutely. gentlemen, thank you very much. my time is up, it's been a long time actually but it's been fun. thanks for being with us. >> here we are what 12 hours in to do day on the east coast of the united states at least and it has been 12 hours, theabsolu. we had jaws dropping and stocks dropping. both lauren simonetti are here and will be for the first hour of the show as we go through everything that has happened and what may happen next. you know by now that the british are out and also know that investors are getting out and getting out fast from stocks, down 455 points on the dow jones industrial average but there's time to go in the day and nicole petallides with some perspective on all of that before we talk about it from the new york stock
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exchange. nicole: let's bring everybody to speed. the dow jones industrial average 453 points so you're seeing heavy selling, selling across the board, certainly in those economically sensitive areas such as financials and the like, but the lowest point today we were down nearly 540 points. that was during trading. overnight over 800. so traders now are saiding what happens by the end of the day and while some projecting only 200-300 point loss, others are worried about next week. what happens next in the european union and what janet yellen says next week? here is a look at the ftse and cac quarante. they closed 8%, german dax 5%. bringing back to currencies, we saw the uk pound plummet the most ever on record, plummet
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into the lowist -- lowest levels in 31 years. a little better but a lot of worries that it could go even further to the downside. i mention the financials, which have exposure to europe and uk in particular. we are watching gold as well. gold has been a safe haven. gold is up $58. 1.56%. those are the areas that people are parking their money and some of the traders say the european money is likely to be coming here as well today because they're too nervous over there, they want to put it some where a little safer. citigroup down 8%. bank of america down 6%. so in the last thing i will note something that's a little inside but heavier volume on the close as they work on the indices. that's your fear gauge, that's up 30%. people are a little nervous. >> that's all we need, nicole,
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something extra on a time like this. let's talk a little bit more about all of this. remember, yesterday as we were working towards the vote, the markets were pricing in something completely different and that's why we are seeing in large part this selloff today, would it be this big, for example, if the expectation wasn't so much different, we do have deidre and lauren. >> one of the things that's happening is we are in this giant information revolution. we get it from different places and affects us differently because we share it with each other and we see things differently. what we have in polling mechanisms is still very straightforward. it's still very much based on previous communications era, all the silvers and 538's in the world didn't see donald trump
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coming and in the same way i don't think anyone accurately was able to measure where this brexit sent meant was -- sentiment. last time around the polls we were almost dead on right. everybody predicted barack obama would win and he did. because trump is a different dynamic -- >> i mean, what a guy. right. 2% chance of donald trump, but to your point, all bets are off and a whole new world. it's still the polling. if i call you up and ask you the question you're going to tell me you're doing something a certain way and you do the exact pop sit, there's no control for that. two things that i noticed, google trends is actually saying the number one that's being typed in today from the uk is
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what does brexit mean. >> is that right? deirdre: 70% people that got out and voted. it's tech related too. the way we communicate so much open, facebook, snapchat, whatever it is, we can all speak, that is to say the voice of the people is getting louder and it's able to organize in a different way. we are in a whole new world. >> lauren, your thoughts real quick. lauren: we are seeing exactly here in the united states. it's not the hillary clinton message today that we can fight this and be stronger and better together, great britain and the uk voted the opposite. it's this message of sovereignty and the uk and the u.s. in some ways are being inspired by one another. >> the message that's fighting back from the hillary clintons of the world and some center right republicans of the world both here in the united states
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here in the republican party and the conservative party in great britain is you're getting all this wrong and there will be consequences. i saw them on twitter and tv that you're going to pay for this. are there economic consequences over what the uk did last night? >> look, i think -- i have a profound thing for you to think about. >> good. >> there's a social and he wrote of collapse of newspapers. the new order collapses long before the new order emerges. the idea that we are not going to know for a little while but the idea that we are somehow descending into economic chaos which is the sense that you get a lot, i just don't think that's right. >> for today, just repricing. >> yes, the repricing that
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wasn't there before and didn't anticipate, i get that, is london real estate worth a little less because a fewer people able to buy it, probably. but the idea that trade will grind to a halt and the world's economies are swirling is almost kind of silly. >> right, i think a lot of people agree with you. thank you, david. thanks for starting with us today on coast to coast. hillary clinton would be talking about this as well. they have been calling for the uk to stay in so essentially their side lost. donald trump, however, who is in the middle of the whole thing in scottland today to open new golf course, his side because he supported the idea of leaving, his side won and, of course, mr. trump will not be letting them forget about it. >> president obama said that they would have to move to the back of the line. she's always misread this.
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[laughter] >> i was surprised that she was so bold. the only reason she did it is because obama wanted it. if obama wanted it the way, if he said leave, she would have said leave. >> republican congressman from new york and the chairman of trump house leadership is chris collins. congressman colins joins with us now. >> good to see you. >> big win for mr. trump. it's a good day for him? >> a good day for donald and not necessarily because of great britain did which was right for them. it just show it is mood of the world today and in the case of great britain, uk, they were saying to germany, we are sick and tired of you telling us how to live our lives, the refugees pouring into the uk and in many cases the residents saying where is our country going. they said uk first, donald trump is saying america first, time we stand up for america and i think
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the mood, if you will, in the uk very similar, frustration with the status quo, we are going to go in a different direction. america first, a lot of similarities there so if i'm hillary clinton, i have to think she's very concerned right now as she sees what's happened in the uk and it's pretending that we could have the same surge electing donald trump. >> i think you're probably right. a lot of people have been saying it this morning and makes a lot of sense because the parallels there are fairly evident. we look at it and see similar arguments. in trying to figure out a way to counter that, if you're hillary clinton what argument do you make, the only thing i can think of is markets, dow almost 500 points lower, the european 3 and 6% down. maybe if somebody looks at that and say, boy, these are the policies trump was pushing for and look what we get we get the financial selling like crazy,
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what do you say to that? >> collin, the markets overreact coming and going. brexit doesn't mean they're out of the european union today or tomorrow or the next day. we are talking about a couple of years as they -- like an ugly divorce, if you will, but protracted divorce as they deal with trade issues and immigration issues and the like. yet the markets are reacting today as though they are out of the eu tomorrow. that's what markets do. it's uncertainty because no one exactly knows. just like when we sit down after trump is elected and talk about putting tariffs in countries like china and méxico that have been stealing our jobs for all these years that would be some uncertainty but we are going to put america first. but the markets are overreacting. they always overreact. >> let me ask you about that.
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trade, free trade, talking about tariffs on companies and trying to portray or promote what would be seen as fair trade is the side that donald trump is talking about and bernie sanders is talking about. they both have a lot of traction over that and big deal over the in the uk, when you start putting tariffs on companies, you're going to get a lot of people that are going to come on shows like this one and wall street people are coming out and say that will not work, we are going to have a trade war and global recession as a result, why do you think those people are wrong? >> well, again, we are going to put america first. we lost our manufacturing jobs and when it comes right down to it, if china has a 40% manufacturing advantage because of wages, currency manipulation, the fact that they don't abide by environmental rules or normal labor laws, we are going to have set a tariff that says our manufacturers will compete and, yes, tariff on goods from china so we have a fighting chance to
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have jobs back here, we are a net importer in the united states. we bring more products from outside the country than we ship from our country. in our case we can't lose when it comes to saying we are going to start making products here. in 96, 97% of the world do not live here. companies in china, fine, make your sox and underwear and ship them to the other 97% of the world that doesn't live in the u.s., we can make those products here and provide good manufacturing jobs here and make no apologize that we are putting america first. >> that's our debate. congressman collins. >> good to be with you. >> quickly to lauren and diedre. there's two sides, i think we are going to here it all afternoon in the network. some people are going to make the argument that it's a buying opportunity and we will see us come back at the end, but the other one it's a friday and you
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don't want to have much risk on a friday? deirdre: all the polling was for remain so there's a knee-jerk reaction so whatever changes, it's like a slowly melting iceberg. even with the decision that was made, it's going to take two years. it's not as if the uk is leaving, i think, one of the guest that we had it's not like uk is leaving planet earth. the uk is leaving the european union. all change is going to happen slowly. markets are going to react. the one area that i'm watching from investment angle are the banks. if you look at uk banks, barkley is down more than 20%. but even if you look at the u.s. banks, you know jpmorgan chase, maybe we reconsider how many people we have in london. >> i saw that. you look at great american companies off the top of your
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head, apple, big starbucks or anything, why would they sell off so much today? we can understand the banks but maybe there are buying opportunities. lauren: it could be if you look at the banks and also common popular stocks like starbucks and amazon if you like companies and products before today you can get them on sale today. having said that, we were up many days this week. we were up about 18,000. so we have come up a bit. this isn't sell off, but -- >> that's what a lot of today has to be about is repricing it. how do we close because it is a friday. let's go to the uk and leader john mills who joins us on all of this and, thank you, sir, we appreciate it. one of the things we covered from a financial perspective, how much of a surprise it ended up being to the markets, polls and everybody looking at it, why do you think that happened?
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>> it was a bit of a surprise to everybody, the big surprise the extent to which working people particularly in the north of england moved over from being in favor of remain to being in favor of brexit. i think there was a lot of anker about a number of things, about the cost of the european union, about immigration, about the way the european union is going and high levels of unemployment particularly in greece and spain and italy not doing very well. and more than anything else move to a super state in europe, not what people don't want but a lot of people in the rest of europe want either. i think with brexit a very special event which triggered off changes and see quite a big alteration in the way the world runs, particularly europe in the next year or two.
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>> even here, same conversation in our own election about some of those issues, and you're right to point out that the working class people, that's what's driving here. here they are upset say that factory jobs have gone to other countries and they're unable to get the same type of position they had before. some of them are upset about immigration as well. what's driving the anger the most there, is it the same type of thing or is it a big-time story about immigration in. >> well, i think that's right, i don't think the immigration issue in the uk has been a racist one at all. i think it's been driven by two factors, one is that our population here is growing very rapidly by about 550,000 people a year, and that's putting enormous pressure on roads, schools and hospitals and housing and the second thing is that having a large number of people coming through particularly from eastern europe where wage levels are very low and competing with our people in
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lower level of employment market has been a tough call for the people. i think you see two things coming together which made immigration a key issue. >> let me ask you one more question, sir, my colleague here pointed out that this will take a lot of time, some people say it takes up to two years to work itself out as negotiations begin between the eu and the uk, what will your country look like? just a big picture view, say, three to five years from now, how would it have fundamentally change from now? >> a lot fends on the policies implemented. and i think that the uk will go down which personally i don't think is the right way to do. we need to trade with the european union, if necessary over the tariff areas that aren't that high anyway. we need to trade with the rest of the world as well and i think if we do that and bring tariffs down, maybe currency a little bit lower to compensate for
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that, then there's a very good chance that we will have higher rates of economic growth outside of the european union than we would if we had stayed in. >> interesting, the dollar would be higher. thank you, sir. john mills, the labour leave chairman from london with us. the dow is down 505 points. i think we are like about half a percent away from being down for the year, give or take. we talked about financials, jpmorgan, citigroup, they are all significantly lower today. charles payne has ventured out and we sent charles to the new york stock exchange. charles: there's not a panic mode. there's a lot of electricity in the air. there's the element of what happens at the close, you know, do we get a big wave of selling and what happens on monday morning particularly as the
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european markets continue to have an opportunity to react on all of this. >> the fact of the matter is none of us know, everybody has a theory that we will come backfiring at the close. it is a friday and if i'm thinking it through just like i would think about it, i haven't been involved actively for so many years, boy, i really don't want to have risks go into the weekend, how do you think about that on a day like this? charles: you're absolutely right. the protraders are low to go home on summer weekend longs or heavily long. you can imagine the increased anxiety. we are selling enough that if you feel the tide is turned on monday morning you can probably chase stocks. i won't be the worst thing in the world. there's a fair amount of risk, without a doubt, and again, i think because these guys are more nibble than the guys at home, they can take advantage of
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it. if we get a rally, let's say we close 200 points, people on the floor are going to make a whole lot of money. i think the lesson for the audience is you don't necessarily want to panic, you do want to review stocks in your portfolio with large exposure to europe, they probably weren't doing that great to begin with and if you were talking about the banks here, american banks are down but the european banks are getting crushed. again, i'm not sure why it was in your portfolio to begin with but it is a red flag. >> let's talk about the politics, charles, since we have you. lauren and deidre with me. either one can jump in. i want to get your point of view on this. what message did the voters send around the world and impacts for us and everything as you look at it, what's your view? charles: i think the previous guest from london was spot on with respect with sovereignty and i have to tell you something, there's two things
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that i see that happened a long time ago that had an influence today, 2004, that's when they let the ten nations in, low-wager owners from eastern europe, formerussian satellite , these folks coming to england and they work for cheap. they'll do the same job for almost nothing and then, of course, the more recent immigrant problems. that's a big issue. i have to tell you, no one has talked about this but in 2007 the hms was stopped by revolutionary guard and held sailors and humiliated them like they did ours in january and great britain had to go to brussels for help and brussels dragged their feet. this doesn't happen overnight. the euro skepticism goes back a minimum of five years or even longer.
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this has been building for a long time. lauren: charles, it's lauren, the fact is for every 10% increase in migration, you typically see a 2% decrease in wages. that's something that is frustrating people in great britain and certain the blue-collared workers particularly right here in the u.s. how do we go about changing that? >> well, the dynamics are somewhat different here in america than u.s. a lot of them -- you have two different immigrant in america, the ones who come in and take the low-skilled jobs that most americans don't want and by the way they don't have to take welfare programs and the other end, highly educated ones that by the way, silicon valley businesses started by immigrant than americans. it's a little bit of different dynamic. this is one of the problems that's going on with europe, low birthrates. you need people to keep economy going and unfortunately it's caught up to them just like it
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caught up to japan, so the tension is going to be there. it's going to be there without a doubt. it could be somewhat misguided that we are not going to go back to the old days. >> yeah. charles: think about this guys, we talked about bringing apple jobs, in germany they're opening up their first factory in germany in 20 years, guess what, it'll be robots, there's other different dynamics that we will have to focus in education as well as better trade -- better trade deals and other things, but we are not going to have the glory days of manufacturing. we can't get back there. deirdre charles, i love that you brought that up. i actually think that we do have a manufacturing boom in the u.s. guess who is writing the programs for all the robots,
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guess who is figuring out the code, it's silicon valley, a huge fight between the tech community and the obama administration on immigration, tech community, charles, you said it, they want more immigration, skilled immigrant, h1b visas which they feel have been blocked and people come here and they go to sanford, mit, they want to start businesses, they want to hire people and they get kicked out, but that's a different group of people than people who are coming here and let's say arguably qualify for blue-collared workers alone. maybe coders and programmers are the ones creating robotics and maybe we do see manufacturing come back to the u.s. charles: let's make a distinction then, we will bring back manufacturing jobs but it won't be rosie the ribitor, it'll be rosie the robot. deirdre: robots don't vote. charles you think i'm joking,
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i'm not joking, progressives are working on that. here is the bottom line, guys, here is the bottom line, we have an educational problem in this country more so than nicole. it is heartbreaking to think that we won't be able to change by voting alone. we can make things better. we can stop shooting ourselves in the foot with these crazy regulations and antibusiness rhetoric. >> all right, charles, we are going to come back to you. talking about the issues that are really at the heart of all of this, he's at the exchange for the afternoon. we will stay here in new york, give you an alert on the markets as they are dropping big time and well, big companies are falling hard. you see the -- well the irish company right at the top, all the airlines delta, jet blue all down by big amounts, those are all larger drops. dow jones under 3%. car companies same deal.
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gm, look at ford 6% lower. even worse, fiat chrysler, overseas company with the the italian fiat, and we talked about great american technology companies and discussion about where we go from here. they're all lower but not down as much as some of the others, microsoft is down by nearly 4% today. twitter at the bottom of the screen by 3%. so it is all red. we had a feeling certainly the vote of what we could see. what will we see at the close of trading, we bring in jeff flock and phil flynn on the trading floors. we were so surprised by this, we being the financial community. jeff: the active scene overnight. phil: we saw it all over. >> how did you get it so wrong? phil: you were betting against
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the machine. the big money, the big power brokers in europe and eu were betting on stay. they had all the political machinery behind them. the will of the people got it wrong. they were betting on not being able to beat the machine, not being able to beat city hall. there was so much money and power that they thought they couldn't lose. jeff: oil, look at oil, down, what do you see it doing? phil: $44 is a key number for crisis, noncrisis, if you're below $44, that means they think the world is going to fall apart. being above $44 is there's still hope that things can get better but the next 48 hours are going to be critical. how are the other dominoes in the euro zone going to be affected. jeff: you told me you would have voted to exit but as somebody involved in the oil financial markets, maybe not so much.
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phil: exactly. it creates uncertainty and instability. when there's a recession, real people get hurt and i hate to see that. jeff: it's a real possibility. phil: remember greece a year ago. that was the top of the market and we started the next year big selloff and the next year worst start of the market. i don't want to see that here. jeff: it's an extraordinary time and it still says, who knows what's to come. >> one thing i will say to you jeff and phil, phil brings a key point, we have a key member in parliament we will get to in just a moment, he says he would have voted of the exit, that does lead you to believe that longer term this may not be a negative financial group, a lot of people believe that and maybe for a while we are repricing thing and maybe overreaction.
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phil: i absolutely agree. you hit the nail on the head. this is going to be turmoil for the next six months, 12 months, maybe. how does to the the other countries react? we just talked about it. one of many referendums to come. we have italy, france, holand. are we going to go through this turmoil? it's not a good situation for everybody. >> to our next guest from the uk, mark, member of parliament and joins us right now and let me just ask, he had been from perspective i should point out that you were a remain guy so that's the side of the aisle that you were on this, maybe you heard at tend of that conversation a little bit, is this the start, the trigger of something bigger for the rest of europe in your view? >> well, i was a reluctant and never passionate about europe
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and not passionate europe now, europe needs to reform and brussels needs to get the message from the referendum results that reform has to come otherwise it could trigger the referendum across the european union. i want to say that i think the markets have got it wrong rather than the british people got it wrong. there's perhaps an overreaction today but the markets will eventually settle down. i think there's a real opportunity now. the united kingdom is a highly skilled economy. it is still a very low tax economy, it is one of the most successful economies in the g7 and still a great place to invest and do business, and i see the medium-term future for this country being a positive one from an industrial policy economy, from investment point of view and i will say to your viewers that want to invest in long-term, invest in the united kingdom because we could be the next, if you're like singapur offshore off the continent of
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europe. >> that's a positive thing on things. before the vote, before it came out you were in favor of staying in the european union. if that's true, explain to us your logic today and putting this type of a -- you know, this look at as oppose to being disappointed. my view was that when we have the referendum agreed by the prime minister, i took the view from a national security point of view and i wrote the sunday times on the 31st of january for national security point of view, britain was stronger and safer within the reformed european union. i still standby that but british people have taken a different view primarily on economic grounds and clearly as parliamentwarrian i have to respect that. eu defense structures will
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compete and not complicate nato. that's something that we will have to watch carefully with the united states and alloy -- allies across the union. i always felt that we were stronger, more secure, more prosperous within a reformed european union. the british people are taking a different view. albeit now the country is split down the middle and i need to respect that. we need now to ensure that we work with all of those employers that flirted before the referendum suggesting that it we might see capital outflows, stay with us, hang on in there, and, you know, the new prime minister, whoever it's going to be, following david cameroon will need to look very quickly to getting us in alow tax
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economy. >> it explains how people there at least in that case are able to think through this. those sold off aggressively overnight. we have plenty of time to go into trading day. we will see where we go from here. from my point of view here is david cameron. >> ly do everything i can as prime minister to steady the ship over the coming weeks and months. i will try to be the captain to steer the country to the next destination. this is not a decision i've taken lightly but i do believe it's in the national interest to have stability and then the new leadership required.
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>> what will that new leadership look like, what does it all mean, how does it relate to all of us? i will go to charles first. david cameron, i know he was -- you would say he's a conservative in the uk but a liberal -- or is liberal in a lot of issues, he's center right, maybe. there's a lot more people that are more conservative and they were against him on this and it'll be interest to go see which way that country, first of all, moves to someone like boris johnson, what do you think this all means? charles:i did see one survey, this is important for the viewers to understand. people who thought the following was ill for the uk and voted against staying in, 80% had negative opinion of immigration, 81% of multiculturalism and 80% negative of social liberalism, the green movement 70% hated it.
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globalism, 69% of the people hated it. the internet 71% say it's bad, it does more harm than good. think about that for a moment. remember, thoug this is essentially an america the same thing, urban versus rural. you think about what this election in our country is going to hint on. it's going to hint on in the middle. the suburban housewife. but that middle ground between rural and urban, that's what's going to make or lose the election. down. >> the trump supported here, >> not necessarily someone who is far left person but they feel
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the system has let them down. charles: these are apolitical people. they couldn't tell you one name on donald trapp -- donald trump's list of supreme court justices that they can say something is wrong. this is why bernie sanders resonates. they were all into socialism but i'll into the fact that maybe there is something better. connell: it is interesting, ashley, charlie gasparino, a great job covering, trump rally for the past several months, when you speak to people at the rallies it is not necessarily about individual issues, not like they say he will be better, they just want -- >> change and hope and 8 my family. connell: if you challenge the
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issue they will say politician x told me they would do this for years and never did so i would like to try this guy because he is new and different and would change the status quo. >> change an elitist system. just picking up on a few things i was interested in what mark said from london, that it was more an economic vote and not so much a social referendum on immigration. he is the first person to frame it like that. everyone i have spoken with seems like it was the opposite. people were afraid of immigration in addition to being frustrated if you are a business owner and checking in with brussels you are borderline annoyed and immigration showed you over the edge, we are out. connell: a lot of people were like that. any large vote or referendum won't be 100% across-the-board which is why his issue that you
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reference brought up national security, he thinks the uk is less safe having voted this way but thinks they will be okay on the economy. >> he knows more than i do about the flow of people but when you look at the events that happened in paris, in brussels and the fluidity of these borders, maybe it does feel safer as an island nation to just say issues for europe in general are terrorism and migration and slow growth. in march next year we have the danes go to the polls, april and may the french go to the polls, germany after that. spain has elections this weekend. we could have a spillover, the contagion effect, this nationalism going on in the uk could hit other countries, not as big but close to being as big in the uk and that is where you
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have a problem. that is where the eu has to be very delicate. >> the country's just referenced, need a referendum and see what happens. connell: we will be back in a moment, he would have -- been over there this week, perspective on all this as always, thank you for coming on. you think the united kingdom is more safe going forward or less safe because of the way the vote went down, you characterize it in those terms? >> from a security point of view britain is better off being out of the european union, the united states is far better off having britain out of the european union, not simply here talking about terrorism. it is much on our minds. on the great northern plane of europe, russian conventional warfare, how to project western
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power around the world the threats we may face as we did in afghanistan and talking about the future of western defense in an uncertain world in a rising china, looking at all these questions and thinking the european union has any capability whatever to make us safer is a big mistake. the european union on security issues is a great big mushy worm that can barely move and feed itself. and alliance that does anything to the west is nato, which is led to the united states. one important thing about nato the european union will never have is us. connell: because of the geography of this now everybody keeps talking about whether other nations will follow and you say the uk is safe going forward the way it is and does that have anything to do with it being an island nation and make it less likely or less beneficial for other countries
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within europe and continental europe to follow along? >> in part it does because in britain's enable -- naval tradition. many other countries in europe are very worried that the european union's efforts are a case of talking the talk but not walking the walk and i also think i can't forecast in specific terms britain leaving the european union will have a permanent effect as it ripples through 27 members. we talked about referendum on other countries, anti-yibbidydib forces, eurosceptic forces in east and central europe are not particularly strong. and look like anything like it does today and five years. connell: let me ask about specific countries, in the united kingdom you having, scotland, wales and northern
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ireland, scotland at session lows, 512 points lower. scotland voted to stay, northern ireland same deal. that is within the united kingdom. what do you think will happen? scotland will have another referendum. is there a chance northern ireland moves to unify with the republic of ireland and are there other countries you are thinking about going in the same direction? which countries? >> northern ireland isn't going anywhere. as far as scotland goes if they think the united kingdom, join the european union which the argument would be they better think again, spain would veto that because they fear the secession -- italy would be to them because they fear italy breaking up. i don't think it is going to happen but if you look at the reports of denmark, the
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netherlands, france possibly holding referendum, polls in sweden show a referendum held their, sweden would vote to leave the european union. that doesn't mean this is going to happen but means the european union has become unstuck as a political project and i say we are talking business, economics, the european union from its inception has been a political enterprise. connell: terrific perspective from london. the tao speaking of economics has been down at a low point by 538 points. charlie gasparino is next on what this means for donald trump. this is your daughter. and she just got this. ooh boy. but, you've got hum. so you can set this. and if she drives like this, you can tell her to drive more like this. because you'll get this. you can even set boundaries for so if she should be here, but
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connell: it is a market selloff as we bring our heat map back in which is read. only one of the tao 30s is up
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around session lows, only walmart is showing a slight gain, dow stocks are lower, many significantly lower. the tao is down by 3%, 539 points. on the politics of all this a lot to talk about. donald trump predicting what is happening over there is coming here. >> in the united states the people want their country back. in the united states people want smart decisions, not dumb decisions and we have been given dumb decisions for many years and people are tired of it and i have a feeling the same thing has happened over here which is why you have the result you have. connell: next up, now batting, charlie gasparino over there in front of big ben in london, a
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week it has been for you and the donald, to the north in scotland today. what did you make of his comments? that is the parallel as you write about that. >> you are asking me? >> you are talking to me? yes i am asking you. is your name charlie? charles: just making sure. i heard there are other people on the show. there are historical precedents here. nationalism, trade agreements, the differences this, for the last week, the campaign of the former mayor of london, he is one of the top guys on the leave side, richard tice, another guy, private businessman who is part of the leave campaign. he ran a very economically focused campaign. really hit home, trade
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imbalance, and how much it is costing, they made an economic issue as opposed to some of the stuff donald has made, some of these comments people would say were intemperate to say the least. if donald wants the power all, what they did here, an amazing feat i will point out, the entire establishment was against boris johnson, the entire leave group, the entire establishment in the political establishment, celebrities, can't walk around london without seeing a remain bumper sticker, bbc ads did an amazing thing opposing that and winning. if donald wants to do the same thing in the us, take the core message instead of filtering it through the lens of xena phobia,
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filter it through the economic argument, you can't have open borders and the welfare state. and they are really horrible and we can do better. you can make an economic argument like they did and he may prevail as they have. charles: connell: a number of the people are on the show with us, deirdre and lauren and charles payne. charles: not nice to my fellow guests. connell: if you could wrap up. 7:00 tonight. charles payne took a minute to come back. charlie's argument, you did catch the end of it, donald trump can take advantage of this but he needs to learn trump should learn from the way they ran their campaign, what do you make of that? >> reporter: this is an economic
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argument, what has made it worse, what hampers it and i find it interesting charlie brought up having an open border with the welfare state, one of the biggest problems, let's be frank about this. you don't have to pay -- take low-paying jobs with all programs out there. programs at up to $60,000 a year in hawaii. there is a lot of reforms we need to make across the board. the voter demographics are different than they are in london or in the uk and that is something that meets donald trump has to make sure he hones his message to people, not just angry white folks who may have lost a factory job but others in this society, i don't want my kids to have a job because an illegal couldn't get it, don't want my kids doing those jobs. i want my kids programming computers, running businesses. it is universal message and one
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that is easy to put out, on the anchor part of the economic part, the solution part. connell: the message could be there for the taking but could be more positive. >> this is a huge shift in the economic landscape for the world. people who compare what we are going through now to the industrial revolution. every single month in the us something like 4 million jobs go unfilled because there is a skill gap, i am with you, learn how to program, learn how to code, it is the new literacy, kids are tech savvy. connell: that is a larger discussion we have been having all along, i will come back to you in a second. give me your thoughts on the market action, we are at session
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lows down by 540 points. how do you read what is happening? a repricing of what we have seen in terms of expectations were so long or much bigger? what is your read? >> let me make one point on immigration. immigration policy is not skewed to bring in skilled workers but the opposite to family reunification which means we import unskilled laborers at greater rates. that is the key thing, bring in skilled labor and you have those jobs, entrepreneurs coming in greater numbers to begin other jobs and create other jobs. in terms of markets it was a big shot. the book is last night, 8020 was going to stay and remain, markets traded up. for the same reason, the remain vote looks like it is going to
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win. markets shock markets will decouple from this. there are bigger things to worry about than whether britain is in or out of the eu like fed policy, the slow growth economy or where the economy is picking up growth, corporate earnings in the us, more us and other events that is going on here and number 2 there will be more volatility in the uk with their currency, they haven't figured out what the next move is. is it protectionism or some combination, they will be fighting in parliament about all this. connell: currencies will be a big part of it. but as our dollar, it is not necessarily -- >> i have never seen a move like
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that. >> the safe currency, checking out the pound i'm excited to go to great britain to spend money. >> dropped down to 132. >> it could hit parity with the us dollar. in terms of stock reaction, vulnerable sectors are the airlines, if your home base is the uk, if it is london you will not only spend more money on your ticket but the eu members, along customs lines, vulnerable sectors are airplanes and cars. connell: good point and we look at those stocks to see how much they are down. let me bring a guest who was on yesterday that, business historian charles was interviewing when he was on who called the whole thing, he was on the show 24 hours ago. we like to say when someone is right why not bring it back and
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pat themselves on the back. he is with us now. what do you make of the way it turned out the way he said it would? your thoughts today? i have a feeling he is not really hearing us. >> very modest. connell: we give him a second. maybe it is a really long delay. 5:23, the low is 540 on the tao. we only give people one chance, more curious what might happen next. we were talking to john bolton, what a lot of people were thinking about and they trust me. who knows what will happen for the next three hours before it closes? it could rally. up we go and close down 100 or higher, but holding the risk over the weekend with a lot of stuff out there i don't see the logic.
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>> i like what lauren said about the stock coming down, call out opportunities where you see them but it makes fed interest rate increase extraordinarily unlikely which mean banks struggle a little longer. >> the year 2025. >> in addition to all the travel stocks, if you want to own travel and banks for some reason this is a they will be down. connell: i apologize, we tried to come to you a minute ago and you weren't able to hear us but now i can tell by the intense look in your eyes that you are hearing is okay. you were right about this. your thoughts today? >> i am always glad to be right. often i am not but i thought britain, there is a contrary spirit in britain, they never liked europe much. they love the english channel more than they like europe and they hate the bureaucracy of
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brussels which makes washington bureaucracy look absolutely lean. connell: is there a cultural issue more so than economic? >> it is certainly both but also a cultural issue. island nations tend to be seen a phobic. the japanese are the same way. the british never liked people on the other side of the channel. >> you see the other side, the logic economically for making this move and all these forces. using the term sena phobia, racism in this whole thing, really got ugly leading up to it. what are you getting at? >> economic issue, britain will do better outside the european union of the union needs britain more than britain needs the union by far. 850,000 cars to england, they
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are not going to stop sending england cars. >> that the top of the hour and reset everything. you are a historian, and a seminal moment, and how do you characterize it. >> this is a big deal. europe will never be the same. heaven only knows what europe look like an five years, doesn't look like thing like it does now. we can have a referendum too, who knows, europe might break up again. connell: we thank him for his perspective. the speaking of thinking for perspective, lauren simonetti and deirdre bolton have been with me all morning long. thanks, we will -- good job this morning and we will watch you this evening, we reset the 526
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point drop on the tao. what a crazy day or a few days it has been. chaotic markets, chaotic politics and we are covering it in our own chaotic fashion. one more hour to go on wynn which starts overseas, adam shapiro reporting from europe, i believe the ceo of the stock exchange, take it away. >> the co-ceo, we heard from the politicians, we want to talk to people who live through whatever is happening in the uk. your reaction when you found out the uk voted to leave the eu, share what your thoughts were. >> it was possible they would be brexit but in my view it would
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not happen if they come to their senses. i saw what is happening in the development. i would not have thought it was going to be for real. >> the dax was down 7%. >> had quite a dip but it was expected, and the important thing is we had an orderly market, everything going to work fine and volume tripled, but i believe the money thing will simmer down. not a reputation of the result today. >> something you shared with me a few minutes ago. you don't think the people in germany understand the severity of the decision that has been made. >> i don't think they have. how can they? nobody understands except the specialists how the different
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economies are. and it will cost as much of a threat of a recession. it will hit germany. it will hit everybody. people in germany don't understand that. >> people supported the brexit, that won't happen. this could be an orderly separation that could have an economic upside for the uk and perhaps the eu, are they absolutely wrong? >> nobody knows what will happen, but we see a different opinion, brussels once a separation, it will cause uncertainty, people don't know what will happen and it won't track out. the separation, divorce, the other thing is to establish new trading rules. new trading rules happen over 5 to 10 years. that will be a big issue.
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>> stay right there, thank you for joining us. as i throw it back to you esther fisher was explaining one of the things, potentially hundreds of thousands people in the eu face, they could go to the uk, he does twice a week to work but all that changes, taxes were paid to the uk on those two days but that will change. that is the complication nobody knows what will happen in the future as they attempt to do business and that is what they face right now. connell: i want to ask one question before we let you go because his comments brought up the key issue here, that the elites, he would be one of them take that point of view a lot, you don't know what this will mean, the repercussions of this will be huge down the line. talking to people in the streets do they see it differently in the city like berlin?
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>> i'm glad you asked that question. i spoke to a youngan from hamburg and asked what do you think will happen for you in germany and your future? he was optimistic. he said this was bad for the uk but good for germany because we like profit. how long will it take for germany. a young woman from scotland was very upset, she lived in germany, has dual citizenship, married to a german but she doesn't know what is going to happen. the uncertainty there has people on edge. connell: thank you, terrific reporting between the regular people, person on the street and so-called elites. the market selloff is something we are thing, we will continue to cover it, we are down 520 points on dow jones industrial average on the final day of the trading read. we are curious to see how this will close given what happened in the uk and for the entire hour this is how big day it is, dagan mcdowell is with us and
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her perspective will be a force throughout this hour. dagen: you are not boxing me. i have been here 5 minutes, thank you. if you talk to people in the united states i don't think they are as shocked british voters went this way, decided to separate from the european union for one reason. we have seen the undercurrent of anger and upset and rage and dissatisfaction with elitists, politicians who are condescending and dismissive of the needs of the american people and the needs of the british people. people here are energized and people here, some of them at least felt this coming despite what the polls were saying but they are definitely in touch with that notion and i think it highlights how politicians, dismissive and condescending,
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elitist, even members of the media how they are completely disconnected from regular people. connell: david asman will join us and we will provide grades at the end of the hour. what we saw last hour was very strong. dave: i have nothing but admiration, you have been doing an incredible job all morning. it is great. connell: where do you get evidence of that? dave: i do. in 1997, a year after the fox news channel started, i was asked
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parliament, then you had these european socialists who were there. luckily they didn't have much to do but you could tell they were already planning ways to do more and get more involved in the economy than they were at the time and we could see, those of us who were free market oriented who went on this trip could see there were problems brewing. it took 20 years but it boiled over and that is where we are now. dagen: it started in the late 80s where they became these bureaucrats in europe and brussels became obsessed. we see in the united states with regulation, raising taxes, pushing some green energy agenda on all the countries within the european union and antitrust enforcement. our companies have felt some of
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that. connell: big things where they demand billions of dollars in payments and little things like you can't use incandescent light bulbs. we can't hear either a lot of us but the brits didn't like the fact that bureaucrats were telling them that. you can't use certain vacuum cleaners. they have too much power, they dictate everything. dagen: according to ashley webster they dictate the curvature of a banana. i am not joking. taxes on booze in britain. connell: ashley knows a lot. i woke up this morning at 3:00 in the morning and there was ashley. did a great job. let's bring liz claman into this, she will do her program "countdown to the closing bell" where she is now on the floor of the new york stock exchange. what a day so far. liz: this was interesting. i arrived on the floor and 16 minutes ago i was talking to a traitor who said we will hold the lows of the session for the s&p which were 20/50.
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he walks away, we broke through the floor, we are at 2046, 2046. the question everybody is wondering, what happens in the final hour of trading? aside from the british exit drama, the russell 2000 is rebalancing and that tends to cause a lot of volatility so the resumes down 33/4%. it is like dr. seuss one eye character looking this way, what is going on overseas, and everything on the calendar, and the russell 2000, 2000 socks, money managers start moving things around the end of the session. if there is real action in those 9 minutes. >> at the end of the week, and we come back to liz.
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we are in scotland today, the golf course. the political end, and the current president out on something. >> president obama would come over here, so bold as to tell people what to do. people don't like him. and the result might have been different but when he said it, it was totally inappropriate. connell: joining the party such as it is is peter barnes reporting today from north lawn on the white house. we will talk about this. quite a scene with donald trump in scotland trying to store political pointed. >> so many of you on the set, up
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since 3:00 in the morning, can't keep track of everybody and i have been up since 3:00 in the morning. there are some nonpartisans in washington who agree with donald trump on this issue. the president went to london for a visit in april and at a press conference with british prime mister david cameron who was fighting to keep britain in the european union. he was asked about the possibility of brexit and he said the following, listen. >> focus is developing a part of the european union to get a trade agreement done and the uk is going to be in the back of the queue. >> trying to paint a bad economic, possibility of a bad economic outcome for british voters and some armchair quarterbacking to the effect the president did not help matters by weighing in on that.
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looked like he was meddling in british politics. today as far as statements from him he is in california, silicon valley, speaking three times today at a spaceevent, google en he goes to seattle, washington for the democratic party taking questions in all those places so we migight hear him comment, th white house says he is not planning on commenting, a piece of paper from him simply saying, people in the united kingdom have spoken, we respect the decision, united kingdom remains a strong ally in nato and so did the european union. >> to david's point the idea of not liking to be told what to do i assume people of great britain don't like to be told what to do by another country's leader. dagen: the equivalent of the american people were being told what to do and rules and regulations dictated out of montréal or toronto or mexico
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city or some organization the people did not elect and it is regulation, a concern about immigration, a concern -- i lived in england when i was in high school and i studied architecture, shakespearean british politics and one thing you come away with living in britain as they have great national pride and a great sense of their national selves. more and more the more control they ceded to brussels the more and more anger erupted and this is the result t of. how did these elitists in the remain camp talking down to them going it is going to be a catastrophe, never made the case to stay in the eu, they only state is going to be disastrous. connell: what is happening is interesting because donald trump through extraordinarily good timing just happened to be there, his press conference this morning which was a very good press conference, he acted very
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presidential, he was dated by a lot of reporters trying to get him to say something stupid, he didn't, he was out there before the president was out there, hillary clinton has been trying to play catch up all morning with these tweets that don't say anything specific. he was very specific about why britain left. he was very sympathetic to those who wanted to leave. he had problems with scotland before. this was a huge day for donald trump that cannot be discounted enough and a bad day for hillary clinton who has been trying desperately to separate herself from president obama and how he insulted the brits, even a lot of liberal brits who were inclined towards them were insulted by the way he tried to dictate terms to them so trying to separate herself from him but
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also trying to make points and she hasn't been able to make any points. connell: right in line with what trump has been talking about throughout the campaign, tried to take advantage of that and we've in politics with economics, looking forward to our next guest will stay with the dow down 500 points. mark father joins us on the telephone with a number of other programs, you know at times he can be rather pessimistic, he writes the gloom boom and doom report. there is some doom sometimes but we are getting ready for a boom, is it boom? is it doom? what is your take away on all this? a dramatic day. >> i do not think the market reaction -- it has just been the market participants believe to
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stay in the eu would be favorable and to leave would be unfavorable when in fact i am from switzerland. my mother's family is descended from the national hero in the 13th century, we both wanted to be free and not to have foreign judges, foreign laws and not to pay taxes to foreign overlords and this is precisely what the eu does with all the countries. they want to impose courts of justice, taxes, regulation, new laws most of which inhibit economic growth and this is a victory for freedom, people, the brits. by the media. connell: do you put your money where your mouth is on something like this and use it as a buying opportunity and if so what are you looking at?
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>> the markets are going down because the economic news globally is unfavorable, we are moving into recession, has nothing to do with brexit but all these economies, who intervene all the time in the free marketplace and the fed and the ecb, we are in a global recession because of brexit, brexit has nothing to do with the economy around the world. what does brexit have to do with the chinese economy? connell: you don't think this vote accelerates our move into a global recession so the effect is nothing -- almost all completely other factors. >> in my view the global economy
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is weakening and markets are coming around to smell it. the talklk has been about how t global economy will recover in 2016 about capital spending and where do you expect capital spending to increase? brexit will be the perfect excuse for banks around the world as we have seen this morning and as was announced by the fed, coordinate policies to bring more money into the favorable platinum. >> we always enjoy having you on. that is unique point of view. let's go to brent ahrens who was with us earlier in the week.
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the dow is down by 513 points. i spoke to you earlier and at the beginning we said your view on all this is if it goes the other way. if there is a surprise, it is trouble for the markets. i know that wasn't necessarily unique. we are down 500. what do you make of it? >> what is really fascinating to me i am still trying to get my head around this, two things going on that are really interesting and more interesting than the brexit vote, the first is that everybody was betting that it was all over, romain had won. i like most people thought remain was going to win but i didn't think there was no reason to think it was done and dusted, no reason to think the game had been played when it hadn't even been started. the second was the pollsters,
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everyone was wrong and in the end wasn't even that close, it was four points to leave and all the polls were saying it was going to be two or three points to remain. just when the polls closed last night, the bookmakers were offering ridiculous odds on leave winning. you could have gotten 10-1 because it is all over, nigel barrage one of the leaders of the independence movement made a concession speech. there are collectors items over here now, dewey beats truman factor, some early newspapers came out that showed nigel dabbing his eyes at 10:00 last night and the headline is independents defeated. it is a dewey beats truman. in terms of the markets a lot of
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people made foolish bets. they were all convinced this was going to happen, remain was going to win, it would be a cakewalk and they got caught. a lot of these people are playing with other people's money, playing with borrowed money, so they had to rush to cover. there has been an immediate overreaction. here is what is important going forward. there is no reason, there is no reason why this should be a disaster or a fiasco. they can make it one by screwing it up but the reality is if they want to, if the grown-ups are in charge the british and european leaders can perfectly well sit down and strike up a perfectly good deal that essentially looks a lot like remain but has face saving elements, the bigger concerns particularly, the idea that this is an economic or financial catastrophe is silly, a buying opportunity and i think this is a decent buying opportunity for stocks across europe, international stocks generally, depends on who you
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are. "cavuto coast to coast" david asman has a quick comment. dave: the biggest problem, correct me if i'm wrong because you are on the spot, the biggest problem the brits have with the whole system was not the trading aspect. they like getting swiss chocolates. it was the bureaucratic interference in their economy and their lives. is there a way to separate the two? all the free-trade but none of the interference? >> two separate things going on at the same time. the brexit vote was an odd thing, free traders, small government people who say needed to be cut down to size and interfere with every little
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aspect. the second issue was what swung it, immigration. there has been a lot of immigration and the big difference between britain and america is britain is very small and america is very big. in america we can take off because we have a lot of space. people here, it is like the state room seen in the marx brothers movie a night at the opera. everyone is climbing all over each other. famous scene probably showing my age. "cavuto coast to coast" i know what you are talking about. >> that is the problem. immigration was the big issue, a huge amount of sudden immigration particularly from poor countries. connell: terrific work from you all weekend appreciate you being here. you had us until you started getting into the marx brothers a little bit.
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dave: i wanted to make him feel better. connell: we are down, we will see how we close, down 500 on the tao. here are the tech stocks, apple, facebook, twitter, alphabet, google parent, 3% among the many losers today, "cavuto coast to coast" continues. much more, we will be right back. n't want to live with the uncertainties of hep c. or wonder whether i should seek treatment. i am ready. because today there's harvoni. a revolutionary treatment for the most common type of chronic hepatitis c. harvoni is proven to cure up to 99% of patients... ...who've had no prior treatment. it transformed treatment as the first cure that's... pill, once a day for 12 weeks. certain patients... ...can be cured with just 8 weeks of harvoni. harvoni is a simple treatment regimen that's been prescribed to more than a quarter of a million patients. tell your doctor if you've had a liver transplant, other liver or kidney problems, hiv, or any other medical conditions,
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connell: back with the market selloff.
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we're on top of it. quite a panel. maybe the most extensive panel we ever put together. don't want to tell you who is on it. down 510 points on the dow. dagen, that gives one away. no fun in the markets tell you that right now, down 514 now on the dow! the selloff continues. the close is what we're looking at. there is debate how we will close obviously. jeff flock at chicago cme. how are things looking? >> a lot of activity in u.s. treasurys. we don't come from over here but a lot of activity as traders look for some safety and security. looking at oil again. i'm looking at the board right now i still see down 2.25. we're down $48. traders say they love the entrepreneurial spirit. if they were british they would have voted the way the brits did but as traders they don't like it. they don't like insecurity they feel right now. they're looking for some sense
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what will happen and they have no sense, good sense what will happen, connell. that is why treasurys big today. connell: not many of us do. jeff, thanks. you know president obama is set to join fairly soon mark zuckerberg out on stage at this event going on the west coast. peter barnes was referencing it in his report from the white house out at stanford university. he may talk about all this, uk vote, the "brexit." that is the venue we're looking at now. obviously if he does, we'll let you know about it. speaking of politics, donald trump overseas in scotland, certainly letting president obama and hillary clinton have it. watch this. >> president obama did say, i guess, that they should move to the back of the line. that wouldn't happen with me. he is constantly dictating to the world what they should do. the world doesn't listen to him. obviously you can see that by the vote. it is not his country. it is not his part of the world. he shouldn't have done it. i actually think his recommendation perhaps caused it
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to fail. connell: we're joined before we get to the panel that promoted so much by the former governor of state of minnesota tim pawlenty. there he is in our washington bureau. good to see you, governor. big day for donald trump. do you think this is winning issue and big day for him? >> i don't know this will have direct effect on american politics but he said something very important. why would you take the uk, one of our best friends and best allies, move them to the back of the queue, if this went way it went the "brexit"? we'll help you to expedite trade relations. that is very good point. connell: that was a mistake, political mistake president obama made, right? >> i think so. you don't want to treat your best friends poorly, telling them you will move to the back of the line. that is not a good plan. connell: what is your overall take what we see today? the stock market we're showing
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on right-hand side has been selling off aggressively. a lot of people thought this would happen. it is friday trading session. who knows what monday will bring. maybe as some people said we're repricing markets after the expectation was wrong. or is this the start of something you fear bigger? uk something that start as global recession? i should point out that a guest we had few minutes ago, we're going that way anyway. the european economy is already a mess. >> your viewers will remember the famed peter drucker. he lived long enough thomas freedmen's book, premised the world is flat. he said what do you think about the premise the world is flat. drucker at end of his life and pause and reflecterred, quote, not for very long, close quote. you're seeing i think attention, i don't want to call it reverse globalism as some others are, elites, riding around in black cars and sit in towers and esconsed in resorts don't live
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same life and experience frustrations and challenges that people voted to leave. they're sick of superstates suffocating what they want to do, what their countries want to do. this is expression of frustration on their part. it could be, other eu countries follow and could be, have real ramifications for eu long term. connell: similar discussion to the one we have when we speak people own streets here and political rallies, the discussion in the united states they're having. adam shapiro, our reporter over in berlin, he is finding similar sentiments he speaks to on the streets of berlin in germany of regular people, versus some elites. he interviewed a stock market official basically making the point, governor, listen, regular people, they just don't know what they just did, they will feel it down the line. that is what makes people angry to talk to them that way but is there any truth to it. what is your take? >> i was in london last weekend. i talked to a lot of people on the street. london supported "brexit" and
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rest of the country didn't. if you're an average person where your personal income is declining or uncertain, you're worried about security, you see people who are, you know, insulated from some of your day-to-day frustrations and stress, the so-called elites arguing for why you should stay in the eu but benefits are not showing up for you, there is reason to be skeptical. that being said we need trade and come mears but the eu got to be to much. too much of a monolith and bureaucrat i can. people said we're not listening to the elites. we'll fight back. that is the "brexit" sit. connell: governor pawlenty, thank you very much for your perspective, appreciate it from washington, former governor of minnesota. look back at the markets. dow off the lows of the trading session. down 500 plus points for a good part of our broadcast here. we're down by 486. in the final hour which liz claman will cover live from the new york stock exchange,
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that is what people are watching. final half an hour final trading session wraps up after everything we've been through. here is this panel. i hope i haven't built it up. number one, steven lieb is here. he is sitting next to, poor steven, dagen mcdowell. how much is your chair much higher. >> can i caution you? you're talking to me as if i'm not within arms reach coming across the desk at you. i'm not upstairs. i will -- connell: he is back with us. >> thank you. connell: i don't know what happened there. >> two of my favorites. connell: david asman is here with us all hour. that is not it. list claim on the exchange. that is not it. charlie gasparino, is over there. over in london. still looking great. >> sun on side of his head. connell: start us off, charlie. say something that will get everybody going. you've been take everything all day long as we have been.
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what the is beg picture thought as day comes close and long day wrapping up? >> china! [laughter]. connell: you get the joke now? >> thanks, charlie. >> i know you gottlieb there. he can't wait, lieb can't wait to throw the chinese connection. listen i think there is a lot of stuff going on here. my guess is that you know, at some point the u.s. markets will decouple from what is going on here. tim pawlenty made a great point. you could see the eu break up. this could be that trigger. we're always looking for trigger last 10 years or so. whether it was greece or this or that. we finally got that trigger this is major company, excuse me, major country that has bolted, i corrected myself. bolted from eu. that could be trigger point for france, netherlands and some
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others. when you talk to people, they're all just trying to digest it. figure out what it means for the banking system, what it means for their stock market and what it means for the pound. but you know, huge story. glad i'm here. not quite the financial crisis but it is pretty big. connell: do you think anybody here in the studio on set with us, we'll go to liz in a second, this is a bigger u.s. story and we could be start of some sort of a big selloff in our markets or is it their story, not ours? >> let me say one thing. i was watching dagen this morning. you had austan goolsbee on with maria. he had it dead wrong. he was advising president obama. >> i called him out on that, stop talking about the british people like petulent children. >> exactly. what it has a lot of similarity with what is happening here. people are fed up with the bureaucratic establishment controlling our lives. whether the way we live our lives or way we start business or unable to start business.
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>> the danger here, i mean when you're talking about the break upof the eu, that is not just the euro. first of all that implies no more euro. all the turmoil that will go with that. germany could end up being broke. greece will certainly end up being broke or have massive inflation. you're talking about hyperinflation and recession. connell: right. that hurts us is your point? >> obviously if the euro goes. if eu goes, i mean obviously the euro goes. the other thing, with the eu, is that basically, one of the major reasons it was created is that these countries have been fighting wars for 3,000 years. go back to rome. there is series i'm watching, caesar was fighting gall that is how he rose to power. gal is france. >> i want to add one thing. power is in hands of european bureaucrats. to "the wall street journal" editorial page it is up to them how easy they make it, for britain to leave the eu and
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still be part of a common market. quote, high handedness, "wall street journal's" words, that alienates the people. if they want to hold together the rest of the eu and even potentially the eurozone, they better get with the program and treat these countries with some grace and -- connell: quick thought from marshall, charlie. >> what dagen said is absolutely right. the key whether this does become a global economic crisis will be the response of the eu. are they going to treat britain the way they treated greece, make an example. this is what is going to happen to you if you disobey us or don't follow the rules. or are they taking a magnanimous i am approach implied by angela merkel we'll still try to accommodate ourselves. germany has very, very large trade surplus with the uk. why would you want to cut your nose to spite your face. >> i think the key -- >> germany has more power than merkel in these negotiations we're in a lot of trouble. connell: liz claman, sorry, get
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back to charlie. a little bit of a delay issue. go back to you in one second. liz claman and then to charlie. >> i never heard a bunch much chicken littles. it is ugly day. give you perspective with the s&p 5002053 we are pretty much back in may before all of this. may wasn't a great month, certainly. guess what, we are in a position where we take a step back an some of the things are on sale, down here at the store we know as the new york stock exchange. but besides that i would worry a little more about europe. all you have to do is do look at stock market and exchangeses in france, cac is down 8%. germany down 6%. they have to wonder what happens to all the revenue and how long it takes for channels to start flowing again when it comes to trade with the european union overall and united kingdom. >> right. >> i look at numbers, the dow is down this second, 484 points. we're off the lows.
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by the way british pounds coming off the lows, connell. connell: down to 1.32 earlier. charlie, with a few second delay, do you want to get to your point? i apologize not having gotten to you earlier. >> no problem. i leave you guys with this. i think, the story is not really in the eu totally. i think the story is right here in the uk, i'll tell you why. this is the tail wagging the dog. the brits could really teach the eu something about economics. one of the reasons why the french market is down and other markets are down because they're worried about dealing with britain, whether britain's economy will slow down, britain which has a big economy does punitive measures bense them. what britain could do simply and could teach the world this and they have a golden opportunity, is teach the world about thatcherrism, lower taxes, less regulation. watch the economy grow. open markets. that would teach the rest of the world. by the way, that would be a
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great lead for europe to follow. connell: let me say good-bye for now, charlie, good job as always from london. liz claman will be back throughout the day including her own show at 3:00 p.m. eastern along at the new york stock exchange. bring in with the panel here in the studio. connell: ben stein. let me also point out that president obama may not join us but may make remarks from stanford university at some point. so as we said earlier that is something we'll dip into as well. connell: we don't have any chairs left, david. >> true. connell: ben, i guess it was steven, steven was making point all of this could hurt us, global recession, europe in trouble that in turn means the united states is in trouble. what's your take? >> well our exports to england and great britain are trivial. they're inconsequential by standards of the gross domestic product. if they fall 10 or 20% it would not be rounding error in the national income accounts. i don't think there is any problem for u.s. whatsoever.
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if the european union breaks up they will make wide, hydes and lumber whatever they import from the united states. i don't think it having impact on u.s. several things happened. there is fury in england about certain criminal acts committed by other islamic and foreign immigrants. there is gigantic fury about that. there is fury about brussels bureaucrats ordering them around. none of this has much to do with the united states. the united states economy is very strong. there is no sign we'll not continue being very strong. as ferris bueller said, i'm not european. i don't planan to be european ad i think we're all set. connell: you know a thing or two about that. >> ben, with all due respect i think you're a little bit too optimistic because if the eu goes and euro goes we do have major wordwide problems unless we have a backstop. i just want to echo what charlie said, because i thought it was very prescient. if we have model for growth --
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connell: charlie gasparino? >> yes. before he left. expanding a little bit on that. if we have a model for growth, all these issues go away. the u.s. economy is not doing so well, for one thing. even janet yellen said she doesn't know how the u.s. economy is going. if she doesn't know what the best researchers in the world no one knows. you can't say it is doing well. one thing you can say though is if europe and the united states and the west in general picks up the ball on infrastructure, i am so worried about having a grid that is circa 19th century. the chinese could turn out the lights almost anytime they want. that's scary stuff. we need to spend -- >> that has nothing to do with growth. >> europe too. >> has nothing to do with the vote. >> that has nothing to do with "brexit" whatsoever. >> it does, has everything to do, because you have more growoh in britain you wouldn't have "brexit." >> sir, but that has nothing to
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do with electromagnetic pulse. >> has everything to do with it because you need infrastructure to generate the electromagnetic pulse, i'm sorry. connell: how did we get here? >> you should be sorry. there is no sign that the "brexit" is going to cause north koreans to explode hydrogen bomb. >> every bit a sign "brexit" could hurt growth? >> no there is not a sign of that. >> yes, it could, because it could motivate europeans to start spending money on infrastructure. connell: let ben talk for a second. >> i suppose it could mean men from outer space or women come too. >> you can't make a joke out of people that can't eat, ben. that is not funny? sir, we're not having people who can't eat in the united states unless they're on diets. >> look at poverty rate. you're exactly the elite that people are complaining about. you look at poverty rates in this country. >> poverty rate is very low in this country. very low. >> i will intervene on ben's behalf.
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i guarranty you, ben stein has been to walmart more times than, in the last month than you have ever been in your life. >> you're absolutely wrong. connell: stop this for one second. we'll not turn it into an argument who has been to walmart. you have a point. >> accuse ben of being elitist is ridiculous. >> he is saying poverty rate in this country is low. it is not. >> it is extremely low. >> look at mckenzie's report. it came out this week, dagen. i'm citing the fact. >> you should be sorry the poverty rate is very low. >> no, it isn't. what it was when johnson declared war on poverty. connell: give us a second. let me bring it back a little bit. we meandered slightly off topic. it is my responsibility to bring it back on. >> you want to talk about the markets? connell: dagen, go ahead. >> dow is down about 500 points. since the middle of june more and more people were betting that britains would vote to stay
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in the eu. they just bet wrong, period. the market, the dow was -- >> it was overbought. >> it is up 371 points since june 15th. saw people selling treasurys a little bit. the pound started appreciating. that is all there is to it. people just bet wrong. i do not think that the sky is falling. connell: just original question is, is what is bad for europe, all bad for us? marshall. >> the point this is occurring against a backdrop where the u.s. seems to be decelerating. there are problems in china as charlie mentioned earlier and clearly if this "brexit" referendum does engender response from europe which does create more trade barriers, more of the same kind of contempt for democratic -- it is possible because if you look at past form, that is typical european response. they make all sorts of noise respecting will of the people and they go to the other side. maybe with a serious country like britain that will happen.
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it is not like greece. the point that is real risk. you have to be on lookout for that. >> there is, i would take a little issue with what ben said, the economy is as strong as it is. we're growing under 2% it is not a strong economy. we could be doing so much better. once again, ben, this is one recession in my lifetime and i believe your lifetime as well which rather coming out lowering tasks rates and lowering regulations to stimulate business we made cost of doing business even greater, by all huge number of regulations. >> completely agree, david. completely agree. completely agree, but, the fact that the eu may break up, the fact that britain is leaving the eu has no effect on the u.s. economy right now. >> i would go further than that, say it could have a positive effect on this economy because the kind of rejection of bureaucratic meddling in the economy that we just saw
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overnight could spread here. >> very good. >> can i raise one issue? if u.s. and next president can embrace trade with britain and step up to say, we're doing a bilateral trade deal with britain or bring you into nafta in order to keep the markets open. connell: what are odds of that actually happening? >> depends who gets elected. connell: look what both said about trade i'm not sure. >> look at today's market, okay. i want to make something positive so you don't think i'm just crazy. connell: that is what we're thinking that. >> i did that five breaths ago. i don't know if you were listening. >> you've been attacking me about walmart and never shopped there. >> you called ben elitist. you can't insult ben without angering me. >> dagen, god bless you. connell: don't even do it, stop him, he gets so easily distracted. >> what is leading markets since the beginning of the year have been commodities period. that is a good sign for worldwide growth. not necessarily for growth here, but worldwide.
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today when i left, last i looked at market, copper, the base metals were down far less than the rest of the market. good sign for economic growth. now i think that good sign unfortunately is not coming from western europe. it is coming from the east. but we'll take it wherever it comes and i don't think it's a bad deal. >> there were for bank shots in the answer. >> for what? >> the bank shots in pool. i can't quite get that, bottom line are you positive or negative? >> saying right now yes, what the driver is, growth driver, charlie was making fun of me it is china and east. where all the infrastructure is coming from and you're seeing it because commodities are trending up and even today they're holding up better than the markets. connell: gasparino was right about you. >> china is slowing down this year. >> not in terms of imports of copper, oil or silver. they are at record levels.
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you have to be careful what china tells you and what actually happens. connell: i don't want to get too far into discussion of chinese. i know it affects what everything is. >> can i make a respectful point? connell: go ahead, ben. >> the market has lost, way over $100 billion today, way over that, almost a trillion dollars and, we're talking about a change in exports to england of roughly five billion. we're talking about reaction in trillions about a change in trade of billions. so something's wrong. the market is way overreacting. connell: that is fairly strong case for overreaction. anyone want to take the other side? >> i want to say one thing, ben, i'm a little concerned about currency wars and trade wars may result. i think it is very small chance. i think people are too smart for that. but world history shown people do stupid things. is that a concern we could get trade wars and currency wars as a result of all this. >> we could, as a result of some
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people being elected president but there is no sign of that. but by the way the rules of eu are such tariffs in play now stay in place for quite a long time, months and years. there will be not any sudden change in tariffs. trade will not be affected. i don't know where the fear is coming from here except traders like to generate fear because traders make money on fear. connell: free trade rhetoric out there depending who is elected. >> can i speak to fear quickly? connell: yes. president obama i about the way is supposed to have spoken a few moments ago. if he does take the stage -- >> you will not interrupt dagen for the president. connell: hold on a second, mr. president. you will speak to fear? go ahead. >> look at the vix, it was trading about 24. it is under 24 now. 23. put that in perspective that gauge of volatility and fear if you will after the collapse of long-term capital management, after 9/11 it was at 50. at height of the financial crisis it was close to 90. so that isn't even, that is
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barely in the top 2,000 in terms of that win fear gauge. connell: that is not a knife. this is a knife. this is fear. >> action in the market today is not that bad. it is more like almost a little worse than a typical pull back after a run. >> traders being wrong footed as i said before. to the point a breakup of eu or some sort of currency impact is crazy. there are amount of financial interconnections there. where i agree with ben we're still relatively a far degree away from that so far but if it ever came down to political movement in mainstream european party within the european monetary union saying we want out of the euro, follow the british it would have much more of a significant impact. >> again, can't you have trade that separate from the bureaucratic meddling of business? >> not if you actually get into situation where you have a country that threatens to the leave the euro.
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>> marshall is totally right. connell: which one are concerned, by the president speaking in a minute. which one? >> concern me you would have a country actually within the european monetary union threatening to pull out. that france or could be italy. in italy for example, you have the far right party, there are a lot of anti-euro people in that party. >> right. >> there is lot of anti-euro sentiment there as well. >> new may of rome. >> they had a halfway house relationship with rest of europe. they retained their own currency. there is isn't kind of systemic implications from a "brexit" vote -- connell: a lot of strong arguments. >> sir, with all due respect all these people are still going to want to import from the u.s. even if they break up. >> sure. i am talking -- >> a lot of exports to europe before there was eu. >> i don't disagree with you. i was talking about potential threat. you are right today might be overreaction or traders are
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wrong footed. i'm merely pointing out there is potential threat to address seriously and think it would have impact on u.s. economy. >> if the eu breaks up, you have to bet on wars breaking out between -- you have 2500 year history of this happening, period. caesar made his name by taking over gall which was france. >> my god. i think ben is exasperated. >> look at two wars in 20th century. they weren't unusual. typically following history. you want eu or some form of that. >> we had 50 years of no war and no eu. >> britain voted to leave european union. can we tome meant unrest across the continent. >> those wars were not about trade. world war i was not about trade. they weren't about trade. >> you you have putin stationed very close to estonia and all the other little baltic states. connell: let me interrupt that
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discussion. we go to stanford university in palo alto and listen to president obama. this is live. >> hello, everybody. thank you so much. thank you. [applause] thank you very much. thank you. everybody have a seat. thank you so much. thank you. oh, thank you so much. [cheering] this is a good-looking group. thank you. wells first of all let me thank president hanafe for the introduction and entire stanford family letting us take over the campus past few days. as some of you know john is stepping down after 16 years as president of stanford. fortunately for me i can not do that, to just stick around
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longer than my term limit. john, i'm sure there are some people who want you to stick around longer but i've -- i'm confident you will do extraordinary things. we could not be prouder of john hennessey and stanford and all the great work they have done. please give him a big round of applause. [applause] now it's summer break, just so all of you know stanford is not always this quiet. this school is unique. folks ride on bicycles everywhere. and athletes are also computer engineers. this is the place that made nerd cool. so -- [applause] so we are thrilled to be here. i know that i am not the first speaker that you've heard from,
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but, many of you have traveled here from a long ways. we got more than 110 countries from every -- 170 countries from every region in the world represented. this is some of you first time you're visiting our country. let me say on behalf of american people, not only welcome to the global entrepreneur summit but welcome to the united states of america. we're glad to have you. [cheers and applause] i'm not going to give a long speech, but what i want to do is have a conversation with outstanding young people part of our panel we'll introduce in a moment. i do want to begin by offering opening thoughts about the time in which we gather here today. and i'm going to start with the british people's decision to leave the european union, the vote that took place yesterday. just few hours ago i spoke with
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prime minister david cameron. david has been an outstanding friend and partner on the global stage and, based on our conversation, i'm confident that the uk is committed to an orderly transition out of the eu. we agreed that our economic and financial teams will remain in close contact as we stay focused on insuring economic growth and financial stability. i then spoke to chancellor merkel of germany. we agreed that the united states and our european allies will work closely together in the weeks and months ahead. i do think that yesterday's vote speaks to the ongoing changes and challenges that are raised by globalization but while the uk's relationship with the eu will change, one thing that will not change is the special relationship that exists between our two nations. that will endure. the eu will remain one of our indispensable partners.
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e eu aligns which -- nato alliance will remain with our global security and we'll meet in warsaw for the nato summit and commitment to democracy and pluralism and opportunity for all people in a globalized word. that will continue to unite all of us and that is work that brings us here today. the world has shrunk. it is interconnected, all of you represent that interconnection. many of you are catalyzing it and accelerating it. it promises to bring extraordinary benefits but it also has challenges and it also evokes concerns and fears and so part of why this global entrepreneurship summit has been so close to my heart, something that i've been so committed to is because i believe all of you represent all e


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