tusk, d raghi, lagard, finally dijsselbloem. cigna says no to anthem. investor and difference this is bloomberg "surveillance," live from new york. i'm tom keene. with me, vonnie quinn and brendan greeley. what matters to brendan greeley? brendan: there's possibilities there may be debt restructuring. the first time we've heard from the eu side the fact that they may, in exchange for the new concessions tsipras seems willing to make, do what they have been asking for. tom: there were tests in athens. brendan: how much money is leaving athens banks. tom: $1.85 billion friday. top headlines.

vonnie: european leaders holding a summit on greece today. a new proposal from prime minister tsipras is getting rare positive feedback. it includes higher taxes and a plan to eliminate early retirement options. the european economic affairs commissioner says the proposals go in the right direction. greece is trying to work out a new aid deal after negotiations have gone nowhere. the taliban taking responsibility for an attack on afghanistan's parliament. authorities say gunmen raced into the building after a car bomb exploded at the entrance. 18 people were wounded. 6 gunmen were killed by police. lawmakers were meeting to confirm a new defense minister. in charleston, south carolina, a historic black church held services 4 days after a gunman killed nine people there. [singing hymns]

vonnie: a preacher told the congregation, "no evildoer can close the doors of the church." no backpacks were allowed in. cigna has rejected what would be the biggest takeover in the u.s. health insurance industry. cigna called a $47 billion offer from anthem inadequate and not in the best interest of shareholders. anthem has made 4 proposals to cigna this month. in golf jordan spieth is halfway to a grand slam. speiieth won the tournament outside seattle after dustin johnson missed two putts on the final hole. the youngest champion since 1923 and bobby jones. tom: what a great accompaniment. if he dropped the trophy, it would have broken in. three pieces. brendan: the best comparison i

read someone said it was like putting over broccoli. tom: scathing comments. we go to golf analyst. >> you know the golf course where you have a loop that is what it felt like. brendan: windmills? >> exactly. vonnie: rory mcilroy said he would like to come back in 20 years. tom: we will talk about this later. let's give you a data check. markets are moving today. futures up dow futures up 148. euro, fractionally stronger. that gets my attention could crude oil churns. good vix. dow at 18,000. two year yield up. the greek bond is way lower, 28% down to 25%.

let's take some time on your question. i got a wonderful e-mail, is greece a a depression? no definition of depression. here's greek gdp in 2007. let's overlay the u.s. in the 1930's. 2007 for greece and i overlay 1929. here is the recovery to 1936 and world war ii. greece has outdone the u.s. in the decline, the depths of the depression. brendan: there's always one parliament that has a final say. the greek parliament, where tsipras has a mandate. they showed up and said we are dissatisfied. the europeans could not believe it. things are truly miserable. tom: this is the moving target era, the last two years of

decline. brendan: this is an experiment on the imf idea of what austerity should look like. did not work out. tom: they are in a depression. carl weinberg is out front. hans nichols as well. a wild we can. a tone of compromise. guy johnson is in athens, hans nichols is in brussels. leaders meet in search of a mutually beneficial agreement. no idea what that means. is going to the accomplished today in brussels? hans: clarity. you're not going to have some long-term deal. it could go one of two ways. we could know whether this is going to go very south or if we are going to have more meetings and more delays. we could get a sense, especially after the eurogroup meeting if they are close to a deal.

if not, start to listen to the words capital controls. tom: i mention of words on capital controls and on greece. which person will tsipras most want to speak to? hans: probably lagarde. at least on getting a deal, he needs lagarde and merkel. those are the ones holding out the most. this is not all merkel. you have to have -- the spaniards are not all that excited about a soft deal. the question for tsipras is who are his allies. maybe you could say juncker but their relationship is not great. brendan: the shot clock is when capital flight out of greece reaches catastrophic levels. 1.8 5 billion euros came out of banks friday alone. what evidence do you have now as to whether that is continuing today? guy: i have taken a look at

banks closed to me. there are not many people in them. there are no queues at the atm. over the weekend we did see huge numbers of orders to withdraw money. you place your order and 24 hours later they give you your money. we do not have a good indication. pretty much what we have at this stage. the ecb has been forced to come in and raise the ela. money continues to flow out. people are saying that tomorrow may be the capital flight stops. people are expecting a deal tonight. brendan: seems like there is a list of emily: tsipras -- a list of concessions tsipras is

holding. does he have a mandate to do that? guy: he does. the majority of people in greece want to maintain in the euro. he walks a fine line between trying to maintain the membership and trying to keep his party on board. people are talking about him taking syriza to the center. it is despite the fact that these guys are communists, they are going to push the greek economy. you could see a sharp bounce back. one thing they talk about you guys might be interested in they give a lot of credibility for the prospect of a deal being done to president obama. they say the pressure he has put on angela merkel on the geopolitics side is significant. a big part is down to him. brendan: great to hear that barack obama has a mandate in somebody's parliament.

guy johnson in athens and hans nichols in brussels. if we ever get this fixed, i don't know what we're going to talk to you about. tom: let's continue our conversation. u.s. equity and derivatives strategist at ubs. you have read the work on greece . how does greece fold into greater global markets? >> it is the irritant to a backdrop that is quite positive. clearly, there are other geopolitical issues. the european economy is slowly turning. what we have seen the u.s. economy is slowly -- tom: we will feature an essay on restructuring in greece. if we were to restructure institutions in europe would take losses. are those of enough size to be an issue? julian: no. trading in greek debt has

essentially come to a standstill simply because the risk is not held by anyone sides government for the most part. tom: we look at the greece- germany spread. a couple looks at this comparison. i hate the word "hope," i put it here. things improve with the relationship of greece. brendan: what i'm trying to figure out, julian, you said world markets are hostage to greece. if you had to catch somebody up over the last year, is the bigger story in europe mario draghi or alexis tsipras? julian: draghi. this is short-term brinksmanship. what has changed over the last couple days is that we now know that syriza is serious about doing a deal. there was a question in people's mind until the weekend. draghi's doing again, what it takes, and turning the european

economy. vonnie: you mentioned how debt holders are for the most part the official sector. in terms of equities, there's a great story showing that americans hold about the amount of the market cap of dunkin groups in greek stocks. why is it so important to the world economy? julian: it is the notion of keeping the eurozone together. this experiment began in 1929. no one really wants to see it friday at the edges. tom: george magnus has been good about the constraint -- money going out of greece. within your study, has there been any halt to the money going out of greece? fifa julian: i do not see that. tom: 1.85 billion was reported. julian: friday alone. and 5 billion last week alone.

brendan: euros. and something like 30 billion overall since tsipras was elected. i think i have the numbers right. the pace is increasing. we do not have good data on capital flight because the bank of greece reports every month. vonnie: we do not have capital controls. julian: and we do not have the greater visuals of runs on the bank. as they were in cyprus. not yet. tom: we have lots more on this. gideon will join us from the council on foreign relations. how about a twitter question. has apple caved to taylor swift? no wrong. has tsipras caved? we are on bloomberg "surveillance." ♪

tom: good morning. surveillance this monday morning. futures up 17. from the german news agency merkel makes it clear she needs greek creditors' backing. that is the decisive factor according to angela merkel. vonnie: om -- in iran, lawmakers putting pressure on president rouhani on the nuclear deal. they have approved the outlines of a deal that would ban inspection of military sites. the obama administration will not agree to a deal unless inspectors are able to assess the nuclear program. rouhani wants a deal so the u.s. will lift sanctions.

williams cos. has rejected a $48 billion takeover from kelsey warren. williams says the offer undervalues the company, a statement did not identify the bidder, but bloomberg is reporting it was warren's energy transfer equity. a wall street firm reportedly treated tickets to high priced football games and concerts in return for confidential information about shareholders. "usa today" says the case involves georgeson. another wall street firm reportedly got $1200 tickets to a new england patriots game in exchange for shareholder information. george's and says it is cooperating with the investigation. tom: the prospectus was deflated. vonnie: ticket prices were not. tom: there was other news. did you know? brendan: whatever. it was father's day. and then made a -- anthem made

an offer for cigna cina said no. is this about governance or about who gets to run a new company? egos colliding. >> both. each party is blaming the other. thi iss -- this is rare. what looks like what is going on, and anthem trying to snatch a hostile from the jaws of a friendly. cigna saying we thought everything was going well. the next income they are saying we are going to do this. brendan: what is going on in the market that anthem is desperate to close this so quickly? >> everyone is in play except

united. 5 players, everyone else is a potential target. because this is already consolidated, there's not much opportunity. once the deal has been agreed unless regulators block the deal, it will be hard to follow. tom: one of them has $43 billion market cap, one is $40 billion market cap, who is the dominant company? >> in a way, neither. cigna initiated the discussion. cigna goes to anthem and says there is going to be consolidation, why don't we get together? now anthem it looks like, is turning around and saying we want to buy you. tom: the airlines merge seat tickets go up. does this mean the summer camp physical is going to go up? cut to the chase. >> eventually that will happen.

what they are doing at the moment, they are looking at one another and saying what is a deal we can get done? sell ourselves buy someone else an moe, it looks like the original^-% cigna-anthem plan would be more like an moe. brendan: which is more important? >> who gets to run the company seems to be a sticking point. the blue cross blue shield association will be the issue. in this case it is not that significant. the current chief executive of anthem has said if we are going to do this, i want to be chairman head of the integration committee. and cigna says why, you only have one you have a split chairman-ceo. brendan: and you are not that

much bigger than we are. >> a third of the deal would be stock. tom: thank you. do you have an opinion on greece ? everyone else does. you don't? >> i probably have lots of opinions none of which are sensible enough to stand up on the show. tom: we greatly appreciate it. we will speak about anthem and cigna as well. chilean emmanuel with us. next hour -- julian emanuel with us. next hour, gideon rose on the technology that will destroy your children's jobs. in our next hour of bloomberg "surveillance." on a monday, good morning. ♪

tom: here is what you need to know. greece better, markets better. the discussion on greece. here is brendan. brendan: do you know what the eu does best? they make pdfs. [laughter] tom: make a powerpoint. brendan: a pdf produced by the european commission. juncker mario draghi, they released it yesterday. they are new plan for europe's monetary and economic union for stop price adjustment will never occur as quickly as exchange rate adjustment. market pressures can deprive countries of fiscal stabilizers. for all economies to be better off, they need to be able to share the impact of shocks through risksharing. tom: we knew that a month ago. brendan: we knew that six years ago. we know these to be true.

what is amazing about this, they actually say it in a document. these are extraordinary concessions for the establishment to make. julian: i'm happy they did not put it out in a word document. that is more difficult to open. i guess it is one of those things where we need constant reminders. there has been so many episodes of brinksmanship post financial crisis that all of this takes some degree of compromise. vonnie: is that a letter to germany? julian: in a way, no doubt. brendan: smart question. julian: germany holds the keys. if merkel wants a deal done, a deal is going to get done. brendan: do you have confidence the eurozone can get restructured? forget greece. can they fixed europe? julian: eventually. but it is going to take a sustainable growth. does not need to be 3% growth. ubs is looking for 2%$ growth.

you need growth to give people breathing room the same way you had breathing room in the u.s. brendan: vonnie, you are right. it is a letter to germany. fiscal stabilizers across the eu, that is revolutionary. it would be a huge fix. it is impossible to imagine. our twitter question of the day. does tsipras -- is that what happened? did he vacave? a list of things he is willing to do in exchange for a deal. let us know what you think. . good morning ♪

h to tell you accept a focus on the greek creditors.

our top headlines. vonnie: hours before the emergency summit meeting. greece came up with a new plan to break the impasse. the proposals from prime minister tsipras are getting guarded praise from officials. tsipras calling for higher taxes and ann end to early retirement options. greece is running out of time and money. the current a deal ends june 30 and greece runs the risk of default if there's not a new agreement. in houston, south carolina, four days after a deadly shooting preachers preached a message of healing. president obama says the u.s. has not overcome its history of racial. he expressed frustration over gun control laws and blamed the national rifle association. president obama: there is a big

gap between who we are as a people and how our politics expresses itself. part of that has to do with gerrymandering and super pac's and lobbyists and media that is so splintered that we are not in a conversation. vonnie: president made remarks and a podcast with marc maron. rulings due soon from the supreme court. decisions have not been revealed on cases involving obamacare, same-sex marriage, lethal injections and fair housing. justices could announce whether they will hear cases on abortion and affirmative action. the supreme court will adjourn at the end of this month. taylor swift versus sony and the singer cannot on top.

apple reversed a decision to not pay royalties during a free trial for its music service. swift said she would withhold her album from apple music. swift wrote, "we do not ask you for free iphones. do not ask you to provide -- do not ask us to provide you with music with no compensation." "jurassic world" taking in $102 million. second time a movie has posted more than $100 million in its second weekend. "inside out" smashed expectations by taking and 91 million dollars. the biggest debut for an original film. tom: it captured the imagination. brendan: the reviews are extraordinary. they worked with a development of psychologist. tom: 6 of my 4 children are in the movie. vonnie: i'm a little scared. brendan: what jumped out at me,

the presidents comments came in a conversation with marc maron. he started this podcast in his garage. has written off the back of success in podcasts. vonnie: absolutely. tom: a look at the u.s. stock market. greece is front and center. you know what it has done to foreign exchange. better this morning. the u.s. stock market, like a rock. julian emanuel with ubs. he knows brazilian equities amid the most unloved bull market since time began. you quote thomas petty, the market strategist from 1981. "the waiting is the hardest part." julian: waiting for clarity. there's the international situation that greece is helping us with. the issue is is the economy

going to be as good as the fed believes it to be? as good as rising interest rates with project it to be? as good as rising wage trends would predict projected to be? the answer is likely to be yes. tom: bring up the s&p chart. we are waiting for a correction. if you did not know anything moving from the lower left to the upper right. there is nothing wrong with the stock market. why is there so much angst? julian: you are over six years into a ball run. people have been programmed to believe recessions happen every six-seven years. a recent poll of cfos indicates only a 60% probability of recession and the next year. there is angst, particularly when you are seeing china -- tom: are we setting ourselves up

-- earnings are terrible we are going to get killed? brendan: range bound and moving up. despite everything you are talking about. what i wonder about, with the bull market, the assumption is it is too good to be true. nobody can figure out why it is not true. julian: basically because you are looking at a 10 year yield of 2.3%. you are looking at oil having come down to $60. you are looking at a degree of confidence that is rock when you turn to corporate's you have got tons of cash to do deals. brendan: is there a piece of news you are waiting for? anything that would allow you to say this is going to continue? julian: china is always going to be opaque. in our view, the correction we are seeing in china is probably overdue.

is it the popping of a bubble? not likely. tom: go back to what your team says about earnings and revenues. the second half beckons. we got earnings wrong in the first half. are we going to do the same thing next time? julian: consensus is expecting another miserable quarter. tom: exactly. julian: 4.5 percent would be abysmal. we think it is more likely to be flat. the difference is the sentiment is really poor enough, if you beat expectations it is going to be sufficient to move stocks higher. vonnie: you talk about meeting projections -- fed projections. is that enough to drive earnings higher? julian: it will be, given the fact that you have had the euro and oil stabilized. those headwinds are being

alleviated. if we get to that number, 2.5%-3%, what we have seen this post crisis environment, it will not be enough. tom: i want to know if i am in a 401(k) is ubs saying stay with it or adjust it? julian: stay with it. tom: stay with equities, thank you. is this the most bizarre set of headlines? trichet says leaving euro would be drama for greek people. what does that mean? brendan: we are so desperate for headlines because it is a deal that we will listen to trichet no longer the head of the ecb. tom: what is the finance minister of finland saying? vonnie: saying expectations are too high. brendan: he is pointing to a

real problem. tsipras can come up with concessions. the commission has been friendly to greece throughout the process. they've got to get by in from the countries that have lent to greece and the imf. tom: why are we not in santorini giving coverage? brendan: is that where we would be? not brussels? coming up tom will dream of sun. next, the single best chart charts progress of cities since the end of the recession. san jose is on the list. this is bloomberg "surveillance" on bloomberg television. not live from santorini, good morning. ♪

tom: good morning, bloomberg "surveillance." futures up 17. we have a single best chart. dijsselbloem -- brendan: six years since the end of the recession. long enough for a gifted child to learn to play an easy

beethoven sonata. the cities that have done the best and worst. julie with us. you wrote the story. your basic take is who did well question marks silicon and shale . julie: 5 cities were from texas. san jose, a tech hub has done well. tom: what is a starter home in san jose? $800,000? brendan: we've been relying on shale in a bunch of states. we do not yet know whether that is over. julian: for us the most reassuring aspect when we look at equity markets is the fact that oil has gone sideways. things are adjusting. we will see where it goes.

what do you learn about the gloom? >> least performing was ocean city, new jersey. they have seen unemployment rise since 2009. brendan: perhaps more indicative is decatur, illinois. vonnie: why? brendan: it is not a city where the outlier is explained. texas, shale, new jersey casinos. decatur is not as clear. vonnie: could we see this reverse a little now that shale and silicon -- >> it will be interesting to see how the next 5-6 years do. it could be a reverse trend. tom: the polarity of america what is different in your reporting versus the last time we saw best and worst cities? julie: i found the interesting

part that some cities have higher unemployment rates, lower wages than 2009 when the country was in the depths of the crisis. brendan: what i find depressing is that we are unsurprised at san jose. it is right there in the top three. that is the basic story of america. in the newspaper in san jose there is a section where they print who has become a millionaire that day. that is just part of what happens. tom: thank you, julie, with bloomberg markets. photos. are we golf free? vonnie: you cannot have too many photographs of golf courses. number three, charleston, s.c.. 10,000 people joined hands in a unity chain on a bridge at dusk to mourn the nine victims of the emanuel ame church shooting and show solidarity. people crossed the bridge to

join hands. brendan: extraordinary. vonnie: wonderful scene. number two new delhi, india, prime minister modi performed yoga on the first international day of yoga. 40,000 people participated in the celebration. 2 billion people taking part across the world. brendan: you know what i see? vonnie: i saw you stretching. tom: i don't do this. this isn't phony. brendan: there we go. i see, though the infamous new delhi haze. so much worse than beijing. people are reconsidering whether or not they raise their children as ex-pats there. tom: this brings india together. vonnie: 2 billion worldwide.

including times square. brendan: paris and new york, too. vonnie: number 1 -- huntington beach, california, 66 surfers ride the world's largest surfboard to break the guinness world record. they waxed the 42-foot-long board and enjoyed 12 seconds of time. the previous record was set a decade ago. brendan: did they ride a wave? what swell was big enough -- that looks like surfing. vonnie: if one falls would it have been like dominoes? pretty stunning. brendan: where did the surfboard come from? vonnie: the guinness book of world records is insane. brendan: there is a dearth of blanks to make surfboards.

question of the day, we returned to greece not surfing. has tsipras caved?list of concessions. this is bloomberg "surveillance," good morning. ♪

tom: since 1934 the greek parliament. the 19th century royal palace. some significant protests pro- europe protests over the weekend. any number of headlines. we heard from merkel trichet former ecb head. an irish leader out with headlines as well. brendan: everybody is saying we do not have a deal yet. foreign ministers in brussels. noonan says ecb continues to play a central role on greece. mike ullman and has done an amazing job for ireland of

negotiating and getting things out of the eu without making a huge deal. getting debt extensions and various things that ireland needs. that is the opposite of what jan yanis varoufakis did. tom: almost the anti-greece. what are the ramifications on spain, portugal and even italy? other troubled -- vonnie: ireland did something clever, they got the first mover advantage. different negotiating style. tom: gideon rose with us in the next hour from "foreign affairs" magazine. top headlines. vonnie: police in new york state have shifted their search for two prison escapees. over the weekend, an unconfirmed report that the escaped murderers had been cited 350 miles from the prison in western new york.

police have joined behind. not known where they were sent. patrick draw heat making a bid for a french wireless provider. he made the bid for weak telecom -- bouyguestelecom. it comes from a unit of drahi's company. the company would have more than 30 million mobile subscribers. starbucks is more than doubling the size of its loan program for coffee farmers. aimed at helping starbucks maintain its supply of ethically sourced coffee. the company will commit $30 million to the program. those are your top headlines. tom: a hans nichols tweaked. this is important. and then an important schaeuble headline as we keep you up to great on -- up to date on greece . "despite a earlyll a.m.

optimism, brussels is starting to look like luxembourg." what schaeuble has been through. brendan: we are getting live headlines from wolfgang schaeuble the finance minister of germany. germany cannot prepare without substantial proposals. greece says we have a new idea. everybody looks at it and there is nothing there. vonnie: define it -- tom: the finance minister of germany speaking. what i would point out is the headlines are beginning to reverse the feel-good markets. brendan: the greek papers last night actually had very specific proposals. raising value added tax, getting rid of early retirement. these are substantial, they do not seem to be reflected by what schaeuble and noonan are saying. tom: we will continue coverage

with gideon rose. how about a better and bigger view about where markets are within the european experience. julian emanuel l with ubs. if you are paul donovan and others that are big thinkers about europe, how nervous are they about liquidity issues within europe? and when we look at china, global liquidity issues. julian: it has been holding the u.s. market back. the fed concentrates on it as well. we need to see some sort of positive revolution. tom: we do not have libor. we used to live on libor. how does julian emanuel measure the oil in the engine called liquidity? julian: it is much more complicated. given the fact that essentially central bankers have distorted the meaning of interest rates to

the extent that they have over the last six or seven years. brendan: when we talk about liquidity, it varies from country to country. which sovereign debt most concerned you about liquidity? julian: besides greece, the issue is -- and i think this is part of the idea that we are as far along as we are -- none of the other peripheral countries have really had interest rates rise to the point where it alarm dels are going off. we have to monitor that. vonnie: you say is meek the new bullish or is neutral the new bullish? julian: meek is definitely the case. when we see earnings are going to come in better than expected and the news continues to get better from this point in the economy where people have almost written off the consumer -- tom: i understand the separation

of greece from the success of the recovery of the netherlands. the weekend essay was lawrence summers in the "ft" with caution about the knock on effects of this political ballet. what is the knock on effect that has your attention on greece? julian: if it goes on long enough and you get some sort of move towards a greek exit it will damage confidence. we saw it happen in 2012. basically, in a world where everyone is interpreting headlines, things actually start slowing down. tom: thank you so much for getting us started this week. the weekend was wild. brendan: we are looking at headlines. a little bit more on what michael noonan said. we will meet again thursday to figure greece tom: out. tom:tom: we will have to do a

forex report thursday. the euro churning, 1.341345. euro-swiss shows stability as well. stay with us, gideon rose another hour of bloomberg "surveillance." good morning. ♪

announcer: this is bloomberg "surveillance."

tom: europe in search for a " basis for progress." hope springs eternal. it is greece, greece greece. talks with tehran. lawmakers do not like what the west has offered. fear of technology. will robots have your kids' jobs? this is bloomberg "surveillance," live in new york. monday, june 22. i'm tom keene. joining me is brendan greeley. great optimism. just starting to come back a little. brendan: headlines from the ecb-ela rules. emergency liquidity assistance. the ecb has been put in the decision of being a political organization. tom: this is a lunchtime adjustment. what is the goal? brendan: we had the optimism

about this offer and what has come back is all the finance ministers are waiting for specifics. this is a song we've heard before. tom: top headlines. vonnie: finance ministers are speaking about the new debt crisis plan from greece. they are not pleased. waiting for more specifics at the ministers meeting ongoing today. an emergency summit of leaders. looking at a new proposal from the greek prime minister alexis tsipras. it would raise taxes and eliminate early retirement. the european economic affairs commissioner says the proposal goes in the right direction. both sides hope they are close to a deal. >> we are not yet there. i don't know if we are going to have an agreement today. vonnie: greece needs aid after

months of fruitless talks. the taliban taking responsibility for an attack on afghanistan's parliament. gunmen raced into the building after a car bomb exploded at the entrance. 18 people were wounded. six gunmen were killed by police. lawmakers were meeting to confirm a new defense minister. solemn services held in the historic south carolina church where nine worshipers were killed. the charleston church is nearly two centuries old. a minister told the congregation that no evildoer could close its doors. the pastor and eight church members were killed. all victims were black. security was tight. cigna as rejecting what would be the biggest takeover in the u.s. health insurance industry. cigna called the $47 billion offer from anthem inadequate.

anthem says it has made 4 proposals to cigna. talks hit a snag over who would run the company. jordan spieth taking his place among the greatest golfers ever. dustin johnson -- he beat johnson to win. the youngest to win since bobby jones. going for the grand slam this year. tom: a great article on this on "usa today." the reason they are there is so it can be late on east coast tv. put it on the west coast so it is on later here. vonnie: there are lots of courses there. tom: vicious criticisms of the course. a data check. we will go to hans nichols, guy johnson and gideon rose. futures up 14 now.

the treatment is to give back the risk off the risk off feel, celebratory feel. not disappeared ebbed. a wild weekend but the tone is of compromise and constructive resolution. guy johnson is in athens and hans nichols is in brussels. what are they doing in brussels? five leaders have come out, "yeah but." hans: they have not seen the proposal. they are almost uniformly negative. their pessimism is matched by their confusion. not sure what they are going to be discussing. wolfgang schaeuble said it is hard to have a successful summit if you have not done preparation. the finnish finance minister said "i fear a lot of air miles

have been wasted." brendan: you are in athens. i am looking, the greek papers said there were specifics on the deal. changes to the value added tax and pensions. in brussels, not enough specifics. what has come out of greece? guy: an eight hour meeting yesterday. mr. tsipras got his advisors. there does seem to be confusion about what has been put forward. changes may be to the pension system. we have a vat increase. does not seem as if that is gaining traction in brussels. everybody is incredibly optimistic here you saw the stock market rally. the greek banks were up strongly. people are still taking money out of the banks. maybe that is where we should be looking. forget what we are hearing from the ministers. the greek people are still nervous. tom: one more question, how does

madame lagarde fit into the calculus? hans: if there is not an agreement at the finance minister level, she will have to bless it. there will have to be a political agreement. you can see some ways where you have an eu-ecb agreement and lagarde does not sign off, that is tough to see. the germans have been consistent that you need the imf. tom: guy johnson in athens and hans nichols in brussels, thank you. we need perspective and we get that from gideon rose. europe is fixated on the moment, the greek people want to stay in the eu, no doubt. there's a different view, the experiment of europe. we will talk about your robotics effort in a bit. how fragile is the european political experiment away from finance and creditors and debtors?

gideon: i would have said not that fragile. all these leaders aren't playing games. it is almost like the israelis and palestinians. everyone can see what the deal should be by the parties have a hard time getting there. tom: what do we need to see from the germans? the history, there seems to be a new germany. gideon: germans have to understand that they lose big if this goes down the tubes. they have to be willing to give the greeks something in return for their aid. tom: let's look at the larry summers quote. "the new york times" brothers to my attention. lawrence summers, "when greece fails as a state, europe will collect less debt than it would with an orderly debt restructuring. a migration will stray national budgets, not to mention

challenges from russia." brendan: the possibility of greece leaving the euro is not what anybody wanted. it is hard to understand how much data will has been generated. we had a new proposal not from tsipras but from the eu commission of the european parliament on how to restructure the financial union. that came out yesterday. is there any hope? can restructuring happen if they cannot get greece right? gideon: the greece thing is a necessary prerequisite. the markets can remain irrational longer than you can remain solvent. can leaders remain irrational on all sides longer than europe can actually remain? brendan: is this about pride? gideon: there is a motion on both sides. both sides have to compromise. the game of chicken as to who is

going to compromise first and more. tom: i look at the moment that we are and, i hear the fear or concern in smart people. the idea of contagion or debt markdown. how do you look at the ramifications of this for portugal, spain, and even italy? gideon: this is one of the things the europeans are looking at. if the greeks get a really good deal from the greek perspective, the europeans are worried everybody else is going to demand at least as much. most-favored-nation status. they want to hold the line on greece. you have to give the greeks something otherwise they do not have the desire to stomach austerity. how can you give them enough to stay in but not so much that it makes everybody else get their backs out. vonnie: hard to overstate how much of an ideal this was. if a country were to leave, how

big a deal would it be? gideon: would not be that big a deal economically but politically. the european union is a project out on faith. you take a step forward, we're not sure where it ends. we know we are going for. if you start going backward, that's a huge thing. tom: gideon rose from "foreign affairs" magazine. much to talk about here. to summarize, a move in markets early this morning. we had given back a little bit in the last 20 minutes. our twitter questions of the day, has mr. tsipras caved? this is bloomberg "surveillance." ♪

tom: good morning. bloomberg "surveillance." we welcome you worldwide. without question, the morning must read, summers over the weekend. an analyst from citigroup in the "financial times," a scathing indictment of eu leaders, much like we saw a number of days ago. eurozone taxpayers would end up holding the heavy -- via the esm a number of greek bonds that

will never be repaid. time to stop the insanity. read buiter in the "financial times." a superb essay on restructuring. brendan: this has been clear for five years. this debt load is unsustainable. what does europe extract in return for eventually committing to restructuring? tom: gideon rose with "foreign affairs" magazine. a five step program of adulthood . where is the adult moment for eu leaders? gideon: it is like raising kids. tom: really? gideon: you have to train them to be independent but you cannot throw them into deep end of the pool. you cannot expect greece to stomach full responsibility for true maturity in their political economy right off the bat. you have to gradually ease them in. you encourage them to take

greater steps. brendan: gideon rose hip and now on the head. it is like what we see between israel and palestine. everybody knows what the deal ultimately will have to look like. nobody is willing to commit to it because there's no trust. we can say that there are adults, what is missing is you build trust through negotiation. they have failed to do that. tom: do you assume, at the council on foreign relations that there has to be some currency adjustments out greece -- so greece is not linked at the hip to germany and others? gideon: the council does not take positions. tom: i'm trying to make news. gideon: the greeks have to have a way beyond austerity. you cannot just offer pain and responsibility forever. you have to you cannot just have been being irresponsible in their taxes and everything else. can you craft some kind of deal that puts them on the road to a better future?

it should be possible. the danger of israel-palestine, we all thought it is going to work for stop 20 years on, we still do not have it. tom: getting rose with "foreign affairs." coming up. your pentagon michael turner of the 10th district in ohio. with us, next. stay with us, bloomberg "surveillance." ♪

tom: good morning. bloomberg "surveillance" from new york city. futures up 18. they have given back a little bit on greece headlines. vonnie: thank you. iran's parliaments might be putting a roadblock in the path to a nuclear deal. they voted to keep inspectors away from military sites and scientists. it would complicate talks with

the u.s. and other world powers. negotiators want iran to promise not to build nuclear weapons. under their self-imposed deadline, they have eight days to make a deal. no takeover in the pipeline. the word from williams company. the company is rejecting a 48 early dollar offer from chelsea warren. the statement did not identify the bidder bloomberg news is learning it is warren's energy transfer equity. a wall street firm traded football tickets for information about shareholders. "usa today" says the case involves georgeson a former employee of another firm is accused of getting $1200 tickets to a new england patriots game in return for information. the employee is facing federal charges. the tickets are going back. tom: that is a lot of money. i guess i am not shocked.

brendan: you are not shocked. the senate wants to fund the pentagon, $569 billion. ten less billion than in the house holdup. representative mike turner of ohio joins us. serving on the air and land forces subcommittee. should we pay for the pentagon through war appropriations? rep. turner: this is an issue of looking at the president's request of how we might meet the needs of war fighters. we have a budget that fully funds the department of defense in the aggregate. it makes certain that we can't rise to the challenges we are seeing and looking to how we can strengthen presence in europe. this is a budget that the president should support. certainly, both the senate and the house are approaching. brendan: one thing i have

learned is that amateurs talk tactics, the professionals talk contracting. how is the house going to fix the insane way the pentagon buys things? rep. turner: in the bill that the house has passed, there is a number of provisions. they look both at how we can speed up the process we can get ingenuity to the war fighter. also how we can provide greater accountability to the system to ensure we are getting value. tom: that is what the audit process at the early part of the iraq war we were worried about soldiers. the phrase military-industrial complex, may i suggest it is more military than it used to be? rep. turner: you have to look at what are the needs we have, how we can reach forward into our economy and find ingenuity and cutting edge technology.

also, how we can look to balance the needs we currently have. tom: does congress have a grasp of the pentagon. rep. turner: absolutely. we have an enormity of shifting needs. if you look at what is happening in europe and with isis we have to be able to respond. brendan: one of the main conflicts when you talk about being nimble is the difference between what the pentagon asks for and what the house and senate gives it. the pentagon is saying we are done with the a-10 this is the warthog that the troops love. who's in charge? rep. turner: you have to look to what the pentagon is saying. they are saying we do not have the funding to maintain the a-10, they want the a-10. every time congress finds it the pentagon uses it. it is being actively used. gideon: in some ways it is like the greece thing. the white house administration needs to give funds that the

pentagon needs. it should demand structural reform in return. brendan: we will see how that goes. tom: we love to talk about technology. peter cook is joining the pentagon. peter cook will become a spokesman for the secretary at the pentagon. is it lima, ohio you have a tank plant. what do they do -- they are making tanks, that's all technology right? -- old technology, right? rep. turner: absolutely not. you can see what is happening here at having heavy equipment is important. for the safety and also to advance. what the plant does is not only creates tanks, it also upgrades then. the upgrades is important. tom: that is old technology. brendan: we are running out of

time. can your house and senate reach an agreement? do you think there is an agreement possible? rep. turner: the president needs to accept yes. if you have the house and senate providing spending, he should accept yes. he believes that the epa and irs are not being funded sufficiently. brendan: mike turner of ohio is staying with us. lawmakers in iran are threatening the potential nuclear deal. live in tehran when we come back. this is bloomberg "surveillance," streaming live on bloomberg.com. for our twitter question, we return to brussels, where we are so often. alexis tsipras arrived in brussels. a list of proposals he has offered to change the way pensions are paid out. does this, is he caving? tom: improving a little bit. the risk on is ebbing away.

brendan: looking at the headlines, it is a dance we have seen before. finance ministers saying we have not seen the details and we do not trust they will be there. did tsipras cave? ♪

♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes footage all of taylor swift's music videos interviews, and more.

xfinity is the destination for all things taylor swift. tom: good morning, everyone. bloomberg "surveillance." vonnnie: the taliban and taking responsibility for an attack on afghanistan's parliament. lawmakers were in session at the time to confirm a new defense

minister. gunmen raced into the building after a car bomb exploded at the entrance. at least 40 people were wounded. all six attackers were killed by police. worshipers filled a historic south carolina church where the pastor and eight members were fatally shot last week. it was the first service since the killings during a bible study on wednesday. they preached a message of forgiveness and healing. the church was searched before the service and security was tight. people expressed -- p resident obama -- some momentous rulings are due from the supreme court and we may hear some of them this morning. they still have not been revealed on milestone cases involving obama care, same-sex marriage, lethal injection, and fair housing. they will announce whether they

will hear new cases on abortion and affirmative action. apple has learned a lesson. do not get into a fight with taylor swift. reversing a previous decision it will pay royalties to artists during a free trial. she said he would withhold her new outlook from apple music. she wrote "we do not ask you for free iphones. please do not ask us to provide you with our music for no compensation." universal's "drastic world is quote -- "jurassic world" dominated the box offices followed by pixar's "inside out." tom, i know that is going to be on your list. tom: it is. brendan: there was a great

business week cover story from a few months ago saying that taylor swift is the music industry. what she wants, she gets here it what she says, goes. tom: i just want to know when the artist get paid. vonnie: they are getting paid less during the trial. tom: gideon rose, here is greece gdp. it rolls over inflation. . here's 2007, and i overlaid 1929 in the united states. the u.s. depression up to 1936 on 29041. it is unambiguous, greece is in depression. brendan: a lot of the help that is gone has gone toward helping bankers, not helping ordinary greeks. you have to give them a sense their future can be better. their anger is driving a lot of things. tom: i have never seen an

article that shows one currency can work given the differences of greece and what we see in depression, ursus germany with unemployment going from 7% down to 4%. gideon: if they leave, there will be so much volatility you may as well rename the currency the gyro. brendan: how long have you been waiting on that one? gideon: the last break. tom: does a partial depreciation or full depreciation, is that the only path? gideon: we have to find some way of loosening it up so the greek cabinet -- greek can go forward. brendan: we always talk about how economists do not get controlled experiments but we got one, we get to watch this happen. the imf had this model, impose them on greece, and it did not work. despite how haphazardly greece seems to have been negotiating, there is generated and earned anger. tom: this is the end of 2014.

where is this now? this is 1933. gideon: i was struck by something our correspondent in athens said, which is they gave great credit to barack obama for pushing a deal forward. gideon: every leader is usually taken a little more seriously outside than they are at home. what tom said about the depression is important is the key thing about the depression, that is when western leaders recognized in order to save capitalism you had to give democratic populations some sense of security and stability, and you cannot let markets run rampant. tom: where is the new deal today? let me do a day to check right now. it is an improving take. -17, we are now -15. that is with bond market and currency adjusting, really moving set of headlines i set of headlines out of europe here it

crude oil, just under $60 a barrel. 18,000 on the dow and the greek pond just under. the greek does go year under 24%. brendan: this is bloomberg surveillance. tom: we turn to iran. an important new slope this weekend, their parliament may be putting a roadblock in the path to a nuclear deal. they voted overwhelmingly to keep inspectors away from military sites. going our joins us from tape -- tehran. what has changed among the politicians in tehran? gonar: nothing has changed that much and we have to remember that this will at the moment is not law. what remains very important is that it has to go through a number of expected checks.

one of those is whether the supreme leader would give it approval. the moment, it is difficult to say the effect this bill will have. lawmakers voted in favor but it is a week version of what it was last week. crucially, it is not law. it has to go through a number of executive chambers first before it ratifies. brendan: gold are, you are in tehran. what is the difference between what you hear on the street and what is in this bill? is there a difference? golnar: it is an interesting question. i think most people are very -- most people i speak to, they want to see -- they want greater

prosperity in the lives. they want to see the currency get -- strength and to what was over does go years ago. -- doesthere are concerns among some parts of the population but i think those again. talks about the way the talks are going but in general, people want to see these talks continue and i think lawmakers do as well. tom: thank you so much. some of the color in tehran as the negotiations begin. from the 10th congressional district in ohio, michael turner is with us this morning. you are in actual executive service, former mayor of dayton ohio. that is important because this becomes more complex. iran, we have our images of it all of it overlaid on shia sunni, and a rock.

how do you dovetail the iran discussions into what all of america look at with isis? rep. turner: certainly as you look throughout the middle east you see the turmoil happening, the lack of strategy and policy and their lack of achieving goals that they had stated. tom: they had an ugly weekend on this. rep. turner: the president has admitted he does not have a strategy and you are certain he seeing that. with respect to the iran negotiations, the question is, do we have a deal? the administration has said there were elements of this deal that you ron says are not in the proposal. there parliament is taking action to limit the inspections to say, we will not have our military facilities open. brendan: beyond the details of the deal, what is the proper role of congress in these negotiations? rep. turner: certainly providing oversight.

the president should look at this as a treaty. i think this should have gone through the normal process in the senate of ratification of the treaty with the administration says they are not going to go through those processes. at least congress has taken action but in this, the goal is supposed to be preventing iran from getting a nuclear weapon. i do not think most people believe that will be achieved. tom: gideon, do you agree? gideon: i think the legislator in the u.s. is more important than the legislature in tehran. this is not going to block the deal. the question about whether the deal will be good enough for congress to accept and not block is still an open question. brendan: keep in mind when you say the legislator is a problem you are sitting next to a legislator. gideon: i am more worried about the legislature in washington to block the deal more than tehran. brendan: how a legislator this morning as mike turner,

congressman from ohio. coming up, will robots take over the world? that is the subject of foreign affairs. this is bloomberg "surveillance" on bloomberg television and radio. ♪

♪ tom: good morning, everyone.

features -17 -- excuse me futures up 17, now up 15. a little bit of tension in greece this week. brendan: step one, save greece. step does go, save the euro. step three, save the european union. european companies should plan for a grexit. that is from francesco papa dia. he will be with seth will -- stephanie ruhle on market makers. vonnie: this is a former director at the ecb when person who put in place the euro and defended it through the 2007 crisis. now he is saying, get ready, it could finally be time for a grexit. 17 countries, one euro. this is one of the individuals

who said this would matter forever, this is the direction europe should go in. now he is saying it is druckman time potentially. are you ready for that? brendan: what i am wondering about, i have seen lots of noise over the weekend and also in that tweet about, let's save greece, what we need to fix the euro go -- eurozone no matter what happens. gideon: everybody thinks you should go forward, at least the elite tapes think you should go closer to union rather than far a lot -- part it ultimately for this old to work, you have to have greater integration. stephanie: in theory i 100% agree with you just like in theory, i would like to see washington, d c function. the most we can hope for is to kick the can down the road and the sad reality their bank is that market participation,

leverage finance guys are going to be the only ones will make money or succeed through this and europe will continue to suffer. gideon: but this is, again, this is sort of a bad habit. i was an intern in the european parliament in 1994. stephanie: that must have been cool. gideon: it really was, it was an amazing pickup line. here's the deal -- at the time they were wondering, can you have the euro can you have monetary union without fiscal union. we still have not answered that question. gideon: going back to israel and palestine we cannot go to final status talks right away because the divisions are to bang big. what if your little steps do not build the confidence? vonnie: can i just mention, he has a blog and it is not in his

interest to get rid of greece because then the euro union will be stronger. stephanie: is it not in his interest? brendan: stephanie ruhle will be on "market makers" with francesco papa dia. he helped invent the euro. he will be on at 8:00 a.m. eastern. this is bloomberg television and bloomberg radio. ♪

♪ tom: good morning everyone bloomberg surveillance. let's get to our top headlines. vonnie: the scene -- the hunt for two escaped killers. a tip led searchers to a rural area in the southwest of the state but they found nothing. the manhunt is moving back to an area closer to the prison. a billionaire wants to buy weed telecom, the third biggest telecom and france. the bid is unsolicited and there has been no tall.

the company would have more than 31 million mobile subscribers. starbucks is pumping $30 million more into its loan program for coffee farmers. the fund aims to help them maintain their supply. they have advanced $20 billion -- $20 million in loans. it is an imf program in starbucks. starbucks is like a developmental thing. brendan: how much competition does the imf need now? tom: they are a little distracted, euro at 113. foreign affairs devoted entirely to how robots will take away your job. it is a wonderful forecast -- foot a graph in 1914. it was unimaginable what to come, a world war. gideon rose -- robots, and what

they will do to us. the assumption is we need human labor. is that assumption being tested? gideon: in the early 19th century you might've set automation and technological change is coming in horses will be out of the business. horses actually did very well. there were more horses in the economy at the beginning of the century death at the end of the century than the end. in the next half-century, forces went the way of horses. the question is, will humans whose jobs have stayed around will they eventually be facing their horse and buggy moment and the future will their jobs go away? that is an interesting question. martin wolf has a great piece in the issue. he is not worried because he thinks all the technological who plot is overdone. i think the optimists might be right. brendan: third two myths about

autumn nation that of improving wrong, that it will read and are -- render human labor obsolete and that we can spend more time with our families. gideon: we participate in the economy and life in multiple different roles and in our role as consumers, in our role as purchasers of leisure options, we are going to do very well. things will be cheaper, there will be more to do. our role as workers, our jobs might be taken away. how will we be able to purchase the leisure time in the goods to fill that leisure time with what kind of money? where will we be getting the wherewithal to do that as we might not have jobs? it is an interesting question and no one has answers. your job will be going away. the new question is, well new jobs emerge? vonnie: argumentation -- arguments are that we will need

people to run the robots. will there be enough jobs for those people? gideon: essentially you are betting on the con here. the question is, will that happen now or will digitization and automation get to a point when a link between the satisfaction of our needs and a human job is going to be broken? tom: you lead, and of course the great work they have done out in m.i.t.. what is their basic theme about this new era this new moment we will fall into? gideon: things really are different. we're in a second machine age is how they put it and this time around, there may not be the standard process in which new kinds of jobs come around because this time around, the machines might actually fundamentally change things. humans have the power to hold that, just like the greeks have

the power to say no to your. humans have the power to say no to increasing automation. brendan: did we incorrectly focus on actual physical beings, cars, mechanical dogs? eventually they will come for your job and my job, and that will happen not in a machine but on a server. gideon: algorithms are just as important as actual robots. a roomba is not that giant terminator pushing the dyson. the interesting question will be when automation and artificial intelligence are ubiquitous will that fundamentally change life? brendan: when are they coming for our jobs? gideon: one of the things people in the magazine say, the next 10 years will not look radically different but after that, all bets are off. vonnie: do we have to make great strides in artificial intelligence? gideon: it is going forward so

fast so quickly that the only question is, how cumulative will it be and will you reach a singularity. tom: richard greenfield putting on at the tig netflix, he ups the price target because linear tv is done. we're talking technological pieces. gideon: driverless cars are really cool but what is even cooler cars. the question is the changes that are occurring now, how do they relate to the changes that we used to have? the older changes were much more dramatic. brendan: this is the tyler cowan leases that nothing is so revolutionary as indoor plumbing. gideon: the skeptics say you do not have to worry about all of this stuff because what is a slow down and stagnation, not rapid advance. tom: this is the price of those car martinis. brendan: are you obsessed with

drinking martinis? tom: when you get to a certain age, that helps. showing optimism and skeptics. brendan: it is not the size of the type, it is what it says. vonnie: we have our twitter question of the day and thank you so much for sending in your tweet. we asked you, has sippers caved? the first answer, no, he has not. do you remember when you own the bank $50,000 a ou but when you own them $90 million you own them? brendan: i do not know that that is true. i do not know that that is true of greece because the real problem is that the rest of the eurozone has been isolated from greece and the convention is, it may leave without a program -- problem. tom: when is the restriction going to occur, it all comes down to that.

vonnie: he has to at the end of the day, too risky for no deal. third answer, how does the saying go? beware of greeks bearing gifts. in this case, a deal. will they stick to the deal? brendan: in this negotiation you see the eu creditors costs only wanting to building mechanisms to force greece to do things they do not trust it will do on its own. this is a negotiation with no trust. vonnie: there are individuals involved here to. brendan: let's like a morning show, individuals and egos. what is your agenda this morning? tom: it may be greece. we need to watch headlines. we will do that for you around the world on bloomberg. the basic theme is we have got to get the aunt today. -- beyond today. brendan: it is always a jog to

the next eurogroup finance meaning. in iran, they said basically, it is not a final law and what people want is the sanctions to and. tom: secretary kerry will be involved. vonnie: my agenda is, it is june, the supreme court comes back. every morning we wait for some decisions. tom: like today. vonnie: we get a variety between now and the end of the month and what cases will pick up next year. gideon: how about fast-track? brendan: gideon rose, our senior producer was so worried how we were going to get trade and and you folded it in. tom: gideon rose, thank you so much.

futures back were they were at 5:00 a.m. this morning up 17. police say with us on bloomberg television and bloomberg radio as we continue to look at europe. ♪