-- mark: hillary clinton is holding her first big rallies of the day and jeb bush will finally make his candidacy official. when the trial, but no money. we will tell you about hank hank berg's lawsuit -- greenberg's lawsuit over the aig bailout. a gun maker is in bankruptcy. cold says the government is not buying enough and 16th. says the government is m-16's.ing enough ♪ betty: good afternoon. i'm betty liu. crumpton.i'm mark we been hearing wealth of talk about what is going on in greece. it seems a stalemate come down -- may come down to a meeting in the next couple of days with

european finance ministers as to whether or not resort at the debt repayment extension. the s&p 500 is down more than one third of 1% at 2086. the dow industrial is down over half of 1%, 105 point drop for , 17,790 three. the nasdaq is down almost half a percent at 5027. let's take a quick look at gold and the strength of the dollar. the strength of the dollar causing problems for the gold, not the safe haven that it was. right now gold futures are at $1188. nymex crude is also down, sharply trading at 59 .47 per barrel. a stalemate over the greek debt talks putting pressure on yields. the 10 year yield down to 2.35%. mark mention the strength of the dollar. it was as much about the rising

dollar as it was about the declining euro, which was falling because of the concerns about greece and whether they could get any deal done. let's get a look at some of the top stories at this hour. the ecb president mario draghi says it's up to the government to take the next step to break the deadlock with creditors. draghi spoke at a hearing of the european parliament. draghi: such a strong agreement is needed, and not only in the interest of greece, but the euro area as a whole. why all the actors need to go the extra mile, the ball is squarely in the camp of the greek government to take the necessary steps. will: officials said they discuss aid and collateral lending the street before the euro region finance ministers meet on thursday. a win in court for hank greenberg, but no damages. the federal court has ruled the u.s. set a legal terms in an aig stock exchange for a billion

dollar bailout. at that does not mean shareholders deserve any compensation. the eight week trial included testimony by four -- former federal reserve chairman ben bernanke, hank paulson, and also tim geithner. we want to get straight to washington for an update from peter cook, wes cover the trial for us. we know aig shares popped on the back of this news, which is quite interesting, that move. how do you think shareholders of much ofause hank had his wealth in aig stock, how will they react to a decision like this? peter: i'm sure those who join in the lawsuit with hank greenberg will be disappointed, because as you point out, they were seeking $25 billion, perhaps as much as $40 billion could have been the payout if the judge had decided they were entitled to damages. the conclusions here are a blow to the government as well. judge thomas wheeler said they

exceed the authority can specifically the federal reserve exceeded its authority with this collateral loan of $85 billion. but at the end of the day he said if the government had not stepped in, these shares would have been worthless. the court must examine what would have happened to aig had the government not intervene and the inescapable conclusion is that aig would have filed for bankruptcy, most likely during the week of september 15, 2008. they are entitled to zero damages, because the only other ,lternative was bankruptcy which would have wiped the shares out completely. such a thing as an apparent victory in a lawsuit of this size? this is the case of a lot of money and if you do not get money at the end of the day, shareholders will undoubtedly be disappointed. and they will possibly take it to the next level, which would

be the u.s. supreme court. almost everyone i talked to in the trial said that however this ended up, there would likely be appealed from one side or the other. we are waiting to hear specifically from the justice department, and their federal government and the treasury are all involved in this case. hank greenberg himself is waiting to hear from his attorney and others involved in this lawsuit as to what takes place next. betty: thank you so much, peter cook. mark: one of the nation's biggest drugstore chains is buying up targets, pharmacies, and cbs will pay $1.9 billion for more than 1600 target pharmacies, which it will operate as a store within a store and brand as a cvs pharmacy. they will also have other locations that will be rebranded as minute clinics. southern california home edly team upl report

. it will also establish a corporate presence on the east coast. standard pacific stockholders will own about 59% of the combined company after a shares swap. confidence among u.s. homebuilders regarded in june to a nine-month high. -- rebounded in june to a nine-month high. the national association of homebuilders, wells fargo builders sentiment gauge rose to 59 this month, the strongest september. betty: and there was in an expected drop in factory production last month. induction fell 2/10 of 1% may. the data signals that the stronger dollar and decrease in fuel prices is holding back american factories. that is a look at the top stories is our. mark: coming up, jeb bush is ready to make it official. the former florida governor will formally announce his candidacy

for president this afternoon. we will get a preview of what is going to say. betty: generations of american soldiers have taken this companies weapon into combat, and now colt is filing for bankruptcy. mark: and one of the most restrictive stock market has open to foreigners for the first time and labor television is there. betty: the oldest airshow took to the skies today in paris. for airplane makers, it's an opportunity to showcase their planes to potential customers. sell they are hoping to hundreds of planes of all sizes to reinvigorate balance sheet and grow demand. seen increased demand , but can it keep up? decided morelready 42017, and we are studying

whether we can go higher. i believe the market can sustain higher production rates. a we are talking to our suppliers, because we can produce, but we need the parts. >> you bring up the issue of the supply chain. from what we understand, you are struggling to get all kinds of things, including seat. how will you solve that problem? enoughce i cannot get plate -- enough seats for the planes your building. >> yes, it is improving. many manufacturers got into .rouble and were too optimistic they have to grow. but ultimately, the supply chain is doing a good job. we just want to be sure they can deliver, including the new components, like the new engines , which just started production now. neo, do you

think there will be more pressure to get their aircraft, their engine a little bit cleaner? >> the pressure is on both. we want good engines and we want good engines anyone been to ramp up as much as possible. issues, they small have understood the issues and found a fix. this is part of a flight test. our goal tohange certify a craft this year and deliver the first aircraft in 2015. abouteing is talking producing a replacement for the 757. for the moment, the long-range aircraft is to a certain extent filling a gap. if they do decide to pull the trigger on the plane, how will you respond? >> i'm not sure they will, because the market is not too narrow, but not huge. and you need to invest more than $10 billion to launch a new

aircraft. there is a large spectrum for the margaret. -- for the market. it is leavingat because it is a better aircraft. but this is up to them. -- it is leaving in the market because it is a better aircraft. but this is up to them. let's see. certainly we are talking about a little stretch of the big airplane behind you. do you have any update on what that would mean, and do you think that would satisfy tim clark over at emirates question mark -- over at emirates? >> the first thing we need is to get him on board. it is clear we need to invest in a revolution in the family and

in a market that doubles in size every 15 years, we also need to stretch. it all depends on market conditions. >> when do you think you will make a decision on either a new engine or a little stretch? year,rhaps not this perhaps not see her. it will be sometime. betty: bloombergs guy johnson joins us now from the paris air show. theeat interview with airbus ceo, but you also got a chance to talk to the boeing ceo. mark, i don't know if you seen this. here we go. a vertical take on the dreamliner. that is incredible. it is also pretty scary. the does this say about dreamliner's? guy: they were really happy about going live with that.

they were showing it off here at the paris air show as well. thate did the engine for aircraft and they were excited as well. with all of these things, you take a bunch of orders and then you've got to figure out how to make money on the airplane. they need to take costs of production and that is what i was talking to jim and learning mcnerney about earlier. mark: what is the sense you are hearing from carriers? normally, the big fight here at the paris air show is between airbus and boeing. that is how these things traditionally play out, but we've got a new fight on the block, and that is between the gulf carriers, emirates, caps on, and american, united, etc. qatar was saying they may

withdraw from the oneworld alliance if the problems with american carry-on, that is a big deal. we will be talking to the boss of that carrier. he will be leading the charge and it will be interesting to see what he has to say. , butnormally about boeing this time around it is gulf carriers versus american carriers. that is heating up. back to you. guy johnsonerg's reporting from the airshow. betty: my stomach hurt from watching that. mark: still ahead on the bloomberg market day, mark "with all due of respect" is in miami, florida, with jen bush, who will not be outgunned by hillary clinton. betty: we are waiting for inspiration. stay with us. ♪

betty: welcome back. i'm betty liu here with mark crumpton. mark: that was pretty fast. we're turning to politics. we are close to seeing a second political rivalry. hillary clinton announced her candidacy officially here in new york on saturday. turn. and now it is jeb's i call him that because it is his official campaign slogan "call me jeb." .hat is smart for him mark halperin will be doing his show live from miami. give us a taste of what it's like on the ground there right

now ahead of jeb's appearance. mark: miami has been his home for a while and there is a lot of enthusiasm for him in this community, even other is another guy from florida, marco rubio, in the race. are running, whether you are governor or something else, you want a lot of home state enthusiasm. and within miami, they raise. this is a community college where jeb bush has chosen to of thee, in part because message of his campaign, that it will be pluralistic and inclusive. and he is seeking to engage with minority communities, lower income canaries, the types that do not typically vote in republican primaries or caucuses. be ansh is saying he will inclusive candidate to try to change the image of the party. mark: do we get a sense that the

former governor will have a whatist message similar to mrs. clinton had in new york on saturday? he is -- if his mother had not already use the phrase, -- if his brother have not already used the phrase, you might call it compassionate conservatism. he is talking about educational opportunities for everybody. this is the kind of governor he was. and what jeb bush has to convince people is not so much populist, but this notion of empowerment. even though he has been out of public office for a long time, he understands how to take his philosophy, his governing record currentopt it to the one. this is kind of phase two of the race for the white house.

initially, you have the ted cruz's of the world, marco rubio, bernie sanders. and now, you've got the big guns. hillary clinton, jeb bush. what will face to look like? mark h: jeb bush has been spending-- has been time raising money and he still will, but you will see him in new hampshire and north can line and elsewhere. you will see and be more aggressive about creating contrast to some of the other con -- other candidate. has the expectation that he would be seen at the clear favorite in this race right now. there are many republicans that do not -- that not only do not andhim as the favorite, some analysts are saying that he cannot be nominated because of his relation to bush.

compared to marco rubio, who without a doubt is seen as a freshfaced, and has basically change the image of the party just by virtue of the fact that he is younger and latino. jeb bush now needs to start telling people why he would be a better choice. mark: bloomberg politics, mark halperin, and also the cohost of "with all due respect" live from miami set at 3:00 p.m. florida time. you can watch live streaming of the event at bloomberg.com. a big day for the bush family. i understand it was one of the things that he had to convince his mom. -- gete to get through the blessing of barbara bush, because he has been through this a number of times. is in gun maker colt chapter 11 bankruptcy. mark: we will tell you what is

next for the iconic maker of colt 45 pistols. ♪

mark: welcome back. yes, pay attention, mark. i mark crumpton here with betty liu. the iconic colt is filing for chapter 11 bankruptcy. demand for theg sporting weapons and delayed government sales have heard business. betty: what does this say about the health of the government -- of the gun making industry question mark -- the gun making industry? colt really has a checkered past.

: going all the way back to the mid-19th century when samuel company,t started this it has had it up and downs. downs. up and cold has a very distinctive set of problems, related mostly to the ownership, to the fact that they have been owned by private equity firms. and they have put it through the private equity leverage squeeze, which means piling up dead, taking cash out, and that has made colt very vulnerable. they tookin november, out $70 million from morgan just to make a debt payment. guest: co and an upswing when the wars in iraq and

had an upswing. colt has a special place in american history. most popular weapons, the cold 45 and the and 16 -- paul: it goes back even further to the revolver and the peacemaker, which was carried by everyone from u.s. soldiers cap what famous outlaws as well. there is no name in the u.s. government -- u.s. gun industry is more storied than colt. mark: does that make it more see how this has happened? isl: it does, and it

theynable to wonder how could have bungled such a brand name throughout the world. mark: this is something you will no doubt continue to follow. note, i'm signing off. what do you have coming up? mark: i will try to stay awake. $590 arabia has opened its billion stock market to foreign investors. bloomberg spoke with the governor, saudi arabia general investment authority. willem marx is there and he will join us for the return will stop -- when we return. ♪

back.welcome i mark crumpton in new york. thank you for staying with us. let's go straight to the top headlines at this hour. the dog fight in boeing and

airbus resumes this week at the paris air show. the companies are expected to announce at least $23 billion in orders for narrowbody jets. plus, boeing ceo is enthusiastic about the production of the 737. mcnerney spoke to bloomberg at the air show. jim: this plane was really worth everything we went through to get it done. you are right we do have a challenge to get down the learning curve. but volume is our friend here. we are going to go up to 14 per month, and no wide-body has ever gone that far. mark: mcnerney told the french newspaper that the 737 will break even the rest of the year. the u.s. -- a senior u.s. congressman wants to spin off the faa into a nonprofit. he says it would protect it from

political interference and budget uncertainty. john schuster says that would find it with user fees. will beed auto workers nextgotiations with ford month. talks of gm and chrysler begin july 13. forgets its term on july 24. u.s. gasoline prices are up again, but rising out of lowercase host of the average price of regular jumped three cents per gallon in the last two weeks to $2.87 per gallon. it is the smallest height in nine weeks. the highest price in the continental united states was $3.62 in san diego. the lowest was $2.45 in tucson, arizona. an unexpected decrease in factory activity in new york state this month. the new york fed said the manufacturing next fell below

zero in june, which surprised economists who forecasted expansion. it may be a sign that manufacturers are being hurt by the strong dollar. oil and gas trailers are still cutting back in investment. coming up next half hour, greece is running out of time. but prime minister alexis tsipras says he will not cut pensions to get bailout funds. we will look at what happens now. and in the world's best job, how would you like to get paid to black"ange is the new and other netflix shows? and it looks like jeb bush will formally declare he is running for president later this afternoon. we'll will get a preview of what he might say. arabia is open for business. the largest stock market in the middle east is now open to foreign investors. but while saudi arabia is dominating the oil market, the

withry is also in conflict neighboring countries. we sat down with the general financial authority there. aret: i would say there misconceptions about started rabia -- about saudi arabia. that is the challenge. foreign investors who have come to saudi arabia and seeing how efficient it is to get established, how effective it is to get business of and running, how really unique the investment opportunities are and how you can take your investment in saudi arabia and position it to help you expand and use saudi arabia as a launchpad to serve to become a regional

player. when you talk to the foreign investors, they will tell you that you have undersold saudi arabia. it is much better-than-expected in terms of ease of doing business and the quality of the institutions, and the sophistication of the private sector. : you cannot ignore the fact that saudi arabia is currently involved in conflicts in yemen and syria. how difficult does that make it to encourage new investors here? guest: you need to look at the history, and when you look at the history of saudi arabia, you will see that one of our strongest after visa -- strongest attribute has been that saudi arabia has always been a secure and stable country in a region that is known for challenges. by beingve maintained moderate, by being focused on the betterment of the country and the region.

we have always been a very constructive player in bringing peace and stability to the region. mark: that was the governor of saudi arabian general investment authority speaking with willem marx. will foreign investors flocked to saudi arabia question mark i'm joined on the phone by the regional director of ash for director the regional of saudi finance. we just heard from the saudi financial authority talk about possible investment. his quotation was "we will need to look at history." ? john: -- is he right? john: he is absolutely right, us thathistory tells saudi requires more recognition

and stability to do quite well and manage the country both economically and politically. what is the opening of the market going to mean not only for foreign investors, but for savvy in general? generalsaudi's in question mark will we see more financial export because of this? john: we've already seen job growth over the years, especially since 2009. more than one million saudi's have been actively engaged in the private sector, which means there is a greater proportion of a rising middle class coming to the for in saudi arabia. fore in saudihe arabia. the stock market is going to see low in thew -- an inf

next three years of $20 billion. we will not see it today or tomorrow, but in the coming years. and especially when saudi arabia joins hopefully by 2017, the index. that will be a big step. and that means a lot of institutions pension funds will come into saudi arabia because they will have a 3% to 4% way into the index. mark: does this mean that we a broadertially see liberation in terms of the overall saudi economy? , but let metely the marketyone that today is not really because all prices have been going down. this has been going on for the last 10 years. this is the last measure of the

measures that have been taking place in saudi arabia. in 2005, saudi arabia became a member of the wto. a very open country to doing business. it is highly competitive because it is a competitive environment. i do believe that this opening parcel with the king and the opening up through prince mohammed. it will continue to be a competitive environment for doing business. minute have less than a left. i have to ask, as it became apparent that the market was going to open, a lot of the local investors bid of some of the prices. do the fund managers now believe they are overvalued? isn: i think always there the threat of that, but over time it will be repricing that

takes place, because saudi arabia becomes a new stock market that becomes a part of the informed view that we have. they will correct and we will see a repricing taking place. and always there is a premium for a country that opens up. mark: regional director of ashmore group, former economic adviser to the setting ministry of finance. thank you so much for your time today. and former florida governor jeb bush just announcing his candidacy to the white house. plans to highlight job growth during his term and will get back on the side of free enterprise. we will bring you more from miami-dade college with mark halperin with live coverage in the next hour. you can watch bloomberg politics live stream of the event at .loomberg.com

still ahead, we will tell you how great close are impacting european markets. stay with us. ♪

mark: welcome back. i'm mark crumpton in new york. let's get straight to the check of the markets. matt miller is standing by with details. good afternoon. we saw a real losses this morning that we recovered from a little bit of two about lunchtime, and now headed back down again. the dow jones is down about 130 points. almost 200 down points at the open and then came

back to a double-digit loss. downsidee seeing more in this market. 2082 over concerns europe andns in whether anyone is taking the lead with greece, driving these market down and creating a rally in bonds creating a lawfully yield there. let's take a look at the market as far as the sectors that are moving. the losers in this market across , the biggest are industrials, tech companies, and telecom. sectors that are losing the most. industrials down about 1% right now. aboutch about a 10th -- 0.8, and telecom as well. at healthe a look care, especially the insurance providers, you will see gains. the and and him are the big --

cigna and anthem are the big gainers today. thatbig gains with cigna they had to be caused for a bit. anthem, according to wall street journal, had made an offer for cigna. about $25 shy of the $50 billion offer. humana had made a deal, but now has backed down. even with these big gains, still down in all 10 industry groups on the s&p 500. the fix is where you see gains. more volatility coming into this market as indices drop. x was up about vi 11%. matt miller, thank you so

much. now let's take a look at today's close of market action in europe. classic riskeing aversion in the european markets today. if we start with the equity markets, you can see it is read. this is about greece. the meeting that greece had with its creditors yesterday, the 45ks broke down after just minutes. i've had phone conversations with friends that have been longer. theattention now turns to finance ministers meeting in luxembourg. they will be looking for resolution by the end of this month when the current bailout for greece runs out. the athens stock exchange was the worst index in the world. greek banks leading the losses on the european equity benchmark . if we look at the bond markets, greek borrowing costs have been moving higher.

greece is the worst performing sovereign debt market this year, according to bloomberg indexes. you can see a flight to fit -- to safety as investors are buying german debt. and moving on to the euro, that has not only been declining against the dollar today, but also against most other major currencies. it is fears of a greek exit, of a contagion driving that down. jumped to aty has 3.5 year high. mark: amid a record running chinese stocks, beijing laid out new rules to limit brokerages abilities to dole out easy cash to individual investors. as zeb eckert reports from hong kong, this is beijing's latest on apt to crack down bubble.

the zen: chinese investors have driven shares to a world leading rally, and they've done it thanks to a form of risky lending that has ballooned to $350 billion in debt. compositeai surged 150% in the past year. now at a record, more than 10 chile and dollars. what is worrisome to investors is that the gain is not supported by fundamentals. beijing has moved to temper the rally, to ensure that the market boom avoids a spectacular implosion. jeb bush formally enters the race for the republican presidential nomination today. the former florida governor holding a rally at miami-dade university. a. bush has probably raised record amount of money already, but conservatives in his own party question some of his own policies.

we will have live coverage set for 3:00 p.m. overtime. we will live stream the event at bloomberg.com. the first space probe to ever land on a comet last fall has finally woken up after seven months of hibernation. the european space agency pro has begun sending back data. it -- the battery died last november, but in a relatively close pass to the sun, the batteries were charged by sunlight. jurassic world top global box offices in its debut. it had the most worldwide sales ever in an opening weekend. jurassic world generated $511.8 in its global opening. potter and the deathly hallows part two, which took in $483.2 million in 2011. that is a look at the top stories. from the big screen to the little screen, lots of people

watch hours upon hours of netflix, but a lucky few actually get paid for it. they are called taggers and they help netflix categorized its vast catalog that -- by entering words or phrases describing the television shows into the company database. what a great way to make the money. betty: we could totally do this in our spare -- scarlet: we could totally do this in our spare one or two hours in the evening. there are only 40 official taggers available, and apparently when they have this listing on netflix's website to make goes down pretty quickly, because there are people who want to take up this job right away. happily give up paying for netflix and be able to watch it for free and be able to watch everything am watching anyway. mark: do they want people to do this because they do not want nielsen service or something

telling them what is going on? -- scarlet:have the they have those complex engineers telling them how to come up with this. this is a human element were they are reliant on computers. a fan could actually input record is a comedy or drama, and therefore make are accurate recommendations. that is what i watch over the weekend instead of jurassic world. i saw episode one. mark: i was watching the nhl final and the nba finals. scarlet: that's not to say i did not watch the nhl finals. mark: multitasking. what is coming up? scarlet: we want to get josh birdsein's take on angry -- hank greenberg's legal victory, but maybe not financial victory. mark: peter cook been following

this. the next step could be the supreme court. mr. greenberg has been feisty. that is probably an understatement. scarlet: we will see how it goes. shapesoming up, fitbit up for its initial public offering this week, but is wall street ready for the wearables revolution? ♪

mark: welcome back to the bloomberg market day. the wearables revolution hits wall street this week. fitbit starts trading in just a few days time, seeking evaluation of more than $3 billion. bloombergs leslie picker spoke with my colleagues erik schatzker and alex who earlier today. -- and scarlet fu earlier today. leslie: people see fitbit as the market leader and they see it as a value proposition due to the place it holds in the market right now. it has already gotten widespread adoption among users. obviously, there are a few risks we can discuss. bestet: that is always the part of any ipo filing, looking at the risk. and what we are referring to is the job own patent infringement lawsuit.

leslie: actually, to lawsuits in the past month. this comes up when a company is about to be cash-rich and they do not want any publicity blemishes, so they are more likely to settle, so it is no surprise that job own time that right before the ipo stop however, it could be a next visit settlement and one that could potentially be -- a could be a setback and it could be one that could essentially affect the ipl. provide, at least on a price point come a much better value to consumers. is 200t expensive fitbit $50. whereas the cheapest apple watched is $350. and it goes up to $17,000, as we know. it's a much cheaper proposition, and that could attract more from the corporate side.

erik: fitbit is looking for evaluation of what? a 4.4 times price to earnings. this is a company that is profitable. and it is a tech company that is going public. on a price-to-earnings basis, it is looking at something like 25 times. ebitda basis, 75 times. it is more expensive than garment -- garmin and apple, but cheaper than the latest company that has been taken public. coming up next, we will take you to miami-dade college where jeb bush just announced he is running for president next year. ♪

11:00 in san francisco, 2:00 p.m. in new york, and 2:00 a.m. in hong kong. scarlet: this is the bloomberg is the was doing

enough to contain vladimir putin? we have exclusive interview with the prime minister of ukraine. mark: we will hear from the ceos of airbus and boeing on their plans to dominate the skies. a good afternoon from bloomberg world headquarters in new york, i'm mark crumpton with scarlet fu. scarlet: we have breaking news right now. i believe we are going to the breaking news desk. tt: the fed disagrees with the decision and hank greenberg's suit against aig. in judge said the bailout response to the 2008 financial crisi