market day. banks and markets in athens are closed as the country could be days away from a default. ago, theil a few weeks rise in chinese stocks seemed unstoppable, but not anymore. find out how bad the crime could be. discovery pays for the broadcast rights to the olympics. mark: good afternoon from bloomberg world headquarters in new york. i am mark crumpton, here with pimm fox. pimm: let's get right to the markets and see how stocks are selling right now. losing 29 points, the dow jones industrial average

also falling down 1.3%, a decline of 240 points. we are near the days lows. the nasdaq also lower by more than 1.5%. --'s look at the market treasuries, buying goes on in all maturities, the 10 year, the 30 .11.he 30-year, that means a lot of buying in u.s. treasuries. let's look at the euro. today, the euro showing a big decline in the early session and regaining some of that now at 43 against the dollar. let's look at top stories. court wrapping up with several key rulings. independenteld an commission set up by arizona to redraw congressional districts. they also said states could continue to use a lethal

injection drug that has been implicated in several botched executions. and shares of oil -- coal companies moved higher after the justices struck down in obama toinistration law that led the closing of cold fire plans over the last two years. supreme court will not hear appeals from bp over oil2010 gulf of mexico spill. the united states wants civil fines and more than $1 billion from anadarko. the explosion was the largest in u.s. history. mark: european leaders are urging greek prime minister reengage.pras to greece has closed its banks and , theyp them from failing

are not expected to be reopened before thursday. depositors are limited to cash withdrawals daily of $60. german chancellor angela merkel says the greeks have no one to blame but themselves. this general proposal was our contribution and that is why we that the willingness was lacking on the greek part for a compromise, which led to the failure of the negotiations and calling this referendum. mark: greeks will vote next sunday on whether to accept the creditors' proposals. prime minister alexis tsipras is urging greek citizens to vote no. pimm: from one debt crisis to another. puerto rico's bonds thing to a record low today. is billion of public debt "unpayable."ble --

he said that creditors should work with puerto rico to reduce the obligations. mark: in egypt, the top prosecutor was killed today fine nick/and in cairo. egypt's official news agency says his convoy was bombed as it passed by a military academy. pushed casesr had against the muslim brotherhood. managers two uber being questioned in paris today. on specified a licit activities are being investigated. the ridesharing service is under pressure by french regulators. uber has avoided rules and taxes imposed on traditional taxis. channel isiscovery

showing a lot more than just sharp week. they will be airing the olympics in europe. the olympicsl air on its euro sports channel. the company, which includes billionaire john malone as an investor, is ramping up its programming efforts. $2 million onthan content last year. and contracts to purchase previously owned homes in the united states rose for the fifth consecutive month. economists surveyed by bloomberg expected a 1% increase. employment growth, a pickup and incomes and relatively low borrowing costs have helped lure new buyers. lebron james will become a free agent again, but not to worry, cleveland fans. he is not expected to break the hearts of cavs fans.

he will decline the options on his current deal, but will not meet with other teams. that will set him up for a bigger contract next summer. those are your top stories at this hour. coming up in the next half hour of the bloomberg market day, chinese stocks continue their drop, officially entering a bear market today. investors shrugged off another interest rate cut. pimm: and if you want to understand what is going on in greece, the writing is on the wall, literally. mark: and mohamed el-erian says the outlook for greece is bleak because there is an 85% chance of a greek exit from the euro. that a much more coming up. pimm: let's get more on greece. urging alexisrs tsipras to stay mark: in the eurozone. k is in athens and

the protesters have taken to the streetse. erik: theyost -- most certainly have. we're looking at a pro-government rally. they are protesting austerity, but more than anything else they are showing support for prime minister alexis the press who is called for a referendum and is urging the greek people to vote against one of the most recent they'll out offers from greece's creditors. sipras will be speaking on greek television ad 3:00 new york time. i may find out then, but would not bet whether he is softening his negotiating position. he has not been willing to soften it up until this point. there is probably no reason to

expect he's going to do it today. back to you. we have been listening to your reports about greeks lining up at atm machines to withdraw cash. what effect have you seen on the daily lives of the greek people? erik: this is perhaps the most surprising aspect of this crisis. we come to these things with preconceived notions. we expect people are going to respond, shall we say, negatively over the looming concern and that is not what i have seen today and it is not what our colleagues at bloomberg have seen today. it is pretty much business as usual. people commuted to work with no trouble. they were able to pay for things with credit cards. the lines at those atm machines were at the most part orderly and the machines were spitting out cash.

if the machines were to run out there would be concerned, but that has not happened yet. until it does, there is no reason to expect thiscalm that that seems this calm to pervade athens will break. mark:+++ ground? we do have protest. have greeks resign themselves to the fact that the country might

leave the euro? erik: it is not clear. they have resigned themselves to the present. they do not seem to be to upset. that could change over coming days. as far as the referendum goes, that maybetimistic someone will come back to the table, maybe the europeans will give a sign they are willing to budge. they said that today. we certainly are not seeing any sign from the greek parliament that it is willing to budge, but that is what the referendum was designed to do, forced the europeans back to the table. we will see in the next couple of days whether there is any indication it will happen. tonight i have to tell you, it it is not about to happen. mark: bloomberg's erik schatzker joining us with the latest from athens. thank you. earlier, stephanie ruhle and joe weisenthal spoke with mark farber about the prospect of a greek deal and where he sees investment opportunities. guest: they will come to some agreement at the last minute, but i do not think any positives, because greece is

basically bankrupt. the debt should be written down at 50% or more. however, i do not believe that stocks are going down because of greece. i believe that the market has .een weakening for a long time 200riday, there were almost lows on the new york stock exchange. the shanghai index is down 20% from the heights. by people as an excuse to sell stocks. marc, should people in europe feel confident that what happens in greece stays in greece or have contagion fears spread and we should expect this in spain and italy?

i think a lot of europeans and the bureaucrats in brussels, they hate them, because the bureaucrats in brussels are like the imf. basically a corrupt organization , imposingt pay taxes taxes on other people in the world and i strongly believe that the typical european would prefer not to have or be a member of the eu. marc, i want to get your perspective of who is going greekfit the most by the debt crisis, brought on by the negative headlines, what kind of investor? guest: i will tell you precisely. the investors who are in cash. they benefit the most.

asset prices have gone down substantially in the last couple of weeks. in the case of china, within two weeks, the market is down 20%. the bond market has given up all of the gains since the beginning of the year, and there are losses in bonds. were in cash, they are not totally wrong, and -- biggest losers are [indiscernible] 46% from itsn tight earlier this year. many stocks have lost money. besides cash, is there anything that you like right now? my bloomberg like

terminal. i still like the price of metals. still come under some pressure. who knows? [indiscernible] be any substantial economic growth. may,japan, abenomics, in industrial production was down 2%. money printing does not solve all problems. er.m: that was marc fab mark: still ahead the bloomberg market day, up until a few weeks ago, chinese stocks seem dumb ed unstoppable. does this bear market have further to fall? that is next. ♪

mark: welcome back. in mark crumpton, here with pimm fox. pimm: let's go to julie hyman with a look at the market action. coal mining stocks are doing quite well. this has to do with a decision from the supreme court that says the epa overstepped when trying to regulate emissions from plants.ed power we see the stocks rising. maybe we will not see the continuation of the shutdown of a lot of the coal plants. peabody, alpha resources, bouncing, but bouncing from a long, painful decline that had

not just to do with regulation of the industry, but also of the competing price of natural gas, which has been a much cheaper alternative. you see the chart down 41%. i want to talk about a related group two: miners, that is railroads. railroad stocks pulling back with the rest of the market. they, too, have been seeing a lot of rain. for a couple of these companies in particular -- if we prices go down, grain prices fall and shipments declined, that is not good news for these stocks. if you look at the index, it is down 20% from november. it has entered a bear market. i also want to look at earnings per railroads. this is attached to a story on the bloomberg terminal which looks at growth in earnings-per-share versus the

s&p 500. blue is the railroads, red is s&p. analysts are predict inc. the loss sincetrywide 2005. pimm: thanks very much. julie hyman. the shanghai index was the best performing earlier this year, now it is in a bear market. was senthai composite lower for a third consecutive trading session. the index down his more than 20% since its june 12 high. it previously gained as much as 152% since the third quarter of 2015. with scarlet fu and stephanie ruhle and explains what he thinks cause be reduced interest rate in china. guest: i think there were reduced interest rates, certainly there was the idea of

supporting the market behind it, but i do not think that was the primary motive. beenhinese economy has slowing consistently for several years now and this is the chinese authority trying to spur growth. stephanie: how do you point to the chinese stock market having such a bull run? how do you explain it? guest: there as been a certain amount of government support behind that bull run. the government wants an index -- what's an exit for state owned enterprises. .nd a market gives them that exit. it gives them the ability to securitize some of that debt into the stock market. i think there is also wanting the stock market to generate a wealth affected in china. one of the things the chinese economy needs is a shift from manufacturing toward consumption. however i think the wealth effect of the stock market rising, i think if you look at

what has happened at the stock market over the last year, is worthless doubled. -- it has more than doubled. weakertegories may be than that. i do not think the wealth effect has been there on the upside. as the market comes down i do not think you will see a particularly disastrous effect on the economy. at scarlet: there is also the question about whether this creates a pause or an inflection point. what measures does the government have up its sleeve? guest: very few. g.arlet: besides jawbonin guest: they can talk and that can help. sentiment driven market. retail investors take their cue from what the government has. however, i think that the government is not omnipotent and ultimately in any stock market

fundamentals come to bear. the investorier, quotas, ease of access were selloff what about the and the timing of the decision to exit china? guest: i'm not sure the selloff -- their concerns really are the constraints getting into the market. it's still not a completely open market. if the gloves continues they will not factor that in? so.t: i do not think i think they look at the technical issues for foreign investors going into the market. pimm: that was simon male. news.time for breaking julie hyman is standing by with details. grace,it has to do with but not the country's leaders. eece's ratings have been cut

ccc by standard & poor's. this is after what we have seen happen over the last 45 -- 48 hours or so. again, that is in line with what seems to be the market read. you see behind me, grek. that is the greek etf we have been watching today, selloff. even as the athens markets are closed, that is still trading and it is hitting the lows of the day on these headlines. it is down 17.5%. edr is declining sharply as well. down 24% on these headlines, downgrading the debt from greece. mark: julie, thank you so much. stay with us. market day continues in a moment. ♪

pimm: graffiti artists around athens have been expressing their dislike for greece's economic situation on public city walls. here are a few that caught our attention, taking a look at what happens when you are in greece and you do not particularly like the eu. there it is. ims can go home. interesting,t was is are not small scale drawings. these are large-scale public displays of public frustration not only with the imf and the european union, but also the government. mark: i am out. what's coming up? at the peoplelook lining up to take that money out next on the bloomberg market day. ♪

pimm: welcome back to the bloomberg market day. i am pimm fox. want to go straight to olivia sterns. olivia. olivia: we now have the

statement from s&p, the ratings agency. i just have a little bit about why they downgraded the long-term outlook for greece. they say they see this decision as a further indication the sippers government will pray -- tsipras government will prioritize domestic issues over membership. in our view -- this is s&p here -- the probability of greece exiting the eurozone is 50%. absent changes, a commercial default is inevitable in the next six months and a 50% chance of greece leaving the eurozone. you're looking at live pictures of protests on the streets of athens. back to you. pimm: greek prime minister alexis tsipras is scheduled his

country and about 30 minutes. cutting ties with donald trump. the presidential candidate has been under fire for his comments about latinos. network will no longer air the miss usa and miss universe pageant. wouldalready announced he not be process abating and "the onrentice," which also airs nbc. ohio governor john kasich plans to announce he is running for his party from nomination. he will make that announcement official july 21. there are already 13 declared republican candidates and there will be 14 after tomorrow. when new jersey governor chris christie is scheduled to announce he is entering the race. and apple is installing a new feature on the iphone. started making phones that include forced touch. for such senses how hard users rest down on the screen.

allows users to adjust the strength of their screen taps to bring up different functions. the solar impulse ii is headed to hawaii. this is the solar paneled plane --t is scheduled to a real to arrive in a white next week. -- arrive in hawaii next week. it circled the globe without a single drop of fuel. in 54ic world took million dollars over the weekend. it is the fastest movie ever to make a half billion dollars in north america. from disney" finished second. those are your top stories. coming up in the next half hour on the bloomberg markets a, the to fightstry will live another day. shares for all miners are jumping. and diplomats in vienna trying to reach an agreement on iran's

nuclear program. we will have the latest on the negotiations. and discovery will pay 1.4 billion dollars for broadcast rights to the olympics. we will speak to the chief executive. we have more coming up on the bloomberg market day. greeks are on a rush to atm's government's -- following the government's surprise decision to hold a referendum. bloomberg spoke to the greek people about their fears. not hide money anywhere, the sides and many banks and atm's. we did not find money. >> i am afraid and i want to get my money before i lose it. ♪ >> i went to the other europe bank and there is no money. that is my pension. i pay rent. i have to pay my rent.

i have to pay too many things. >> i do not think something awful happened. >> we are worried about our jobs, our futures. >> did you take money out today? >> no. >> it is the most serious situation i have experienced in my life. i am 25 years old. this is difficult for the greek people. we are waiting -- [indiscernible] pimm: more now on greece. earlier this morning on surveillance, our tom keene spoke with mohammed el-erian. how the eurobout

nations, other than germany, are reacting to the greek crisis. guest: it is important to the nature of the contagion. it is not economic. it is not financial. it is purely technical. the next step, if greece control -- continues on the road to an denomination of the currency. that is a different contagion. they will be thinking how do we reduce our exposure to contagion and what can the ecb do to help. you have been out front with the idea of a new currency. canpeople to believe greece stay in use the euro, what do they get wrong? are two narratives. there is the political narrative where everyone says we would like greece to stay in the eurozone. greece is going through what economist's call a sudden stop. when you close the banking

system, you trigger cascading failure, and when that happens, it is very difficult for politicians to remain in control of the economy. what happens next comes from having observed what sudden and recognizing it is hard to control your destiny when you are in a sudden stop. : you have an abrupt stop and then you have many key decisions to junk which lead conditions in the market. >> that is why it is so urgent that not occur. he made a good point earlier. all of america has to do is germany has been sending money to greece and obviously will not get it all back if there is a default. why would you not want to do this? massiveecause there is

uncertainty. massiveyou deliver a debt reduction to greece, and greece needs that, there are no guarantees greece will come through on reforms. so, you have a situation where others,side trusts the and in in negotiation when you do not have trust, that is very difficult to take the first step. you have this typical game theory in which you cannot get a cooperative outcome. it is not hard to solve from an engineering perspective, but it's very hard to solve when the two sides do not trust each other. if greece of effectively rips up their debt notes, this poses a capital problem for the ecb, does it not? guest: there will be losses throughout the system. i am not too worried. a lot has been done in the last

-- years to ensure that there was one legal uncertainty. it is not clear what happens when you go from a currency you do not own to a currency you do own. that is the big legal uncertainty out there. m: how many degrees of freedom does angela merkel have right now? does: whew, because she not control facts on the ground in greece. quoted a wonderful earlier. this is a different greece. it will emerge from the intensive care unit, but it will be much mall or in terms of the size of its economy and is likely to be a different economy and it's very important to understand facts have changed on the ground. pimm: that was mohamed el-erian,

chief economic advisor to elian's and a bloomberg view columnist earlier today on surveillance. let's go to olivia sterns for breaking news on stocks, they are trading near session lows. likea: they are in a looks the selloff we have seen around the globe is picking up momentum as we head into the end of the u.s. trading day. the dow is down almost 100 points. at the s&p 500 is down for the fourth straight day. now they are trading at their lowest level since april 1. it's lowestng level since march 10. we are also seeing a big reaction on the bond markets. you see u.s. treasuries rally, core european debt rally. you're saying the periphery of europe selloff. that same old risk on contagion we used to see in 2010, 2011.

bond yields creeping up and portugal by as much as 34 basis points. reaction been little to the euro currency. the euro is really shrugging this off. it is really stronger. the dow now off to 75 points. very much, olivia sterns. coming up on the bloomberg market day, a victory for the coal industry in the supreme court's ruling on the environment. and stocks are jumping. we have details, coming up next. ♪

pimm: welcome back to the bloomberg market day. decided thecourt environmental protection agency did not properly consider the cost of new regulations. shares of arch coal, peabody, and other companies headed higher, defying the slump in the overall market. the new rules have led to the closing of dozens of power plants over the last seat of years. joining me with more -- our guest. good to see you. guest: good to see you. pimm: the environmental

protection agency did not consider the cost. alix: which is billions and billions of billions of dollars. what is also amazing about this ruling, calls talks were having a really had time. on one hand, you had a fundamental transition. you also at very cheap oil as well. demand for actual coal is struggling and coal stocks have been so unloved. pimm: there you go. index -- therel we go. down 51%. and you have a lot of pension funds saying we are not going to buy a coal stock, anything -- divesting their of stocks that have 30% or more earnings from coal. and that is energy now.

how fast did companies try to diversify? this is still a big issue. they need a little love. they got a little bit of love. pimm: this ruling now goes back to the lower court in order to figure out these rules and the cost. the you still need emission rules. of course. and now we need to figure out what is going on in the commodity markets. crude oil is the first one. we are. part of this is the risk off. the dollar is not very, very strong, but overall this is risk off any market as you have greece leading headlines here. also bank of america had a pretty interesting note out that said oil would the cap at $65 a barrel. a lot of producers will have to hedge. to see aly interesting cap call at $65. pimm: -- we want to move on to

copper. alix: interesting. risk off, no problem. copper is higher. you see the copper futures are flat. this is about china. 16%.ere between 13% and that should be a big weight on copper. you see china using yet again. these grid investments are starting to really kick. that is a big mover for copper excuse residential -- me, commercial real estate and residential are also rebounding. construction looks healthier, which is where a lot of this copper winds up going into area -- into. pimm: what is going on with gold? exit,you think, a greek gold will spike up -- not so

much. up for dollars. very surprising trade for me. if you live in europe, maybe you are buying euro denominated gold , but even in europe terms, it is lower on the day -- pimm: basically unchanged for the year. alix: but if you look deeper, physical buying right now is picking up in europe. the u.k. royal mid said that there was a: of demand from greek customers. that is double the five-month average. they might not be buying the futures market, but definitely seeing buying in the market. pimm: golden coins. alix: put it under your mattress. much, alixs very steel. top stories. spacex engineers are trying to figure out why one of its rockets exploded. the unmanned falcon 9 blew up just after lunch yesterday.

lost, but the international space station crew will not face shortages. ge is selling the bulk of its of is newsfleet management to canada's element financial. the price -- 6.9 billion dollars. ge plans to sell about $200 billion in lending assets. and the solar impulse ii is headed to hawaii this very hour. it left japan this morning and is scheduled to land in hawaii later this week. this is the longest leg of its around the world trip and the plane is on a mission to circle the globe without using a zynga drop of fuel. those are your top stories. using a single drop of fuel. one of the majoring logjams of uranian talks includes inspections of military sites where past activities are suspected.

earlier mark crumpton spoke with indira lakshmanan and asked about the progress of the talks. ira: we will not get a deal tomorrow, but i think it's very likely the 2 sides will come together in the next few days, sometime in early july. aboutecretary cohen said verify, but trust, the obama administration goes further. they say, this is about distrust and verify. the real key is verification and willkind of access iran give. another big story is one that we have, which is the 2 sides come up with a plan for phasing in the deal. the way that they are going to there will is first be an agreement where they say, yes, we agree, and then we see a so-callediran takes

voluntary steps to curb its program while the u.s. and the eu work on the really complicated things that go into sanctions relief and step three would be the modem that the iaea verifiesiran has made changes and taken those curbs on the nuclear program, at that moment, sanctions would kick in. andtiators are very hard fast there will be no sanctions relief up front. if the deal is agreed to on july 3, july 9, there will be no upfront sanctions relief. in agreement that sanctions relief will calm, but u.s. officials have told me many times it will take between six and nine months for iran to ena ct all the curb before it can

start selling all of the oil on those tanks. we would see the increase in the oil market the first artist when he 16. how are they going to answer the questions that the international community has about the past military dimensions of iran's and how are they going to resolve that? you see that vienna is culturally beautiful and charming. we have horse-drawn carriages going right in the background. at sorry about that. that is what we are going to be seeing. they have to come together on the issue of verification, inspection, and the past military dimension. pimm: bloomberg's indira lakshmanan in vienna. discovery paying for broadcast rights to the lipids. we will speak to the chief executive, next. ♪

discovery will pay $1.4 billion to broadcast rights to the olympics. it is the next four olympic games. this is the first time that a single company has held all of the european rights, much like nbc universal holds them in the united states. david zaslav spoke with bloomberg tv. guest: we are able to get all of the olympic rights to all there are some requirements of offering some of the olympics on free air, which we will do, but similar to the way it has offered for years in the u.s., we have support that

reaches arms in europe and is the leading sports platform, and we will be able to hold his significant amount of rights for eurosport. we also plan on offering a olympics direct to the consumer and every device, every platform. when you think of the olympics as ip, there is no more than the olympic games. it appeals to all demos. we will have that for the next decade. remember, we are the leading international pay-tv company and in europe we have real strength. we not only have over 10 channels in every market, but we have free to air channels and the u.k., five and italy, two in germany, spain, northern europe. any plans to acquire

more sports tv rights? deals forhave done our euros for it. eurosport is economical. about half of the content and olympic programming. -- in olympic programming. we are pretty well taken care of. pimm: that was david zaslav. ofis the chief executive discovery communications. coming up on the bloomberg market day, greek prime minister alexis tsipras is set to speak at the top of the hour. we will bring you those headlines as he speaks. ♪

it is 3:00 a.m. in hong kong. alix: this is the bloomberg market day. tsipras is about to

begin an address to his country. seekingerto rico is debt relief. its governors as investors should sacrifice if they want the island economy to grow. and as we head to the closing bell, the s&p 500 down the most since the end of march. good afternoon. i am pimm, here with alix steel. alix: what a great way to start my monday, here with you. we are looking at the markets. we have a big selloff on the dow, 285 points. all in all, this is the first one present down move we have seen in stocks in about nine weeks.