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. you have the s&p right now below its 100-day

moving average. thoseof traders look at levels, see momentum on the downside and get direction from that. so, those are clusters of activity. i know you are looking at the utility index earlier today -- let's see if we can bring that up. utility stocks moving higher, perhaps for a defensive play. we saw this as we discussed earlier with the supreme court ruling, also giving a boost to utilities as well. let's look at treasuries and the other u.s. treasury market is doing. a lot of buying going on. the 10-year note at 2.33. alix: got to go to safety. ironically the euro/dollar, you are seeing a stronger euro or it is it really about a stronger euro at this point or a

weaker dollar? it was a fascinating move today. euroould have expected the to sell off completely. pimm: or people are just taking off their short positions. alix: that is a great point, absolutely. pimm: now top stories crossing the bloomberg terminal at this hour. the u.s. supreme court is wrapping up its term with several key rulings. they bolstered efforts to make elections more competitive. they upheld a commission certified by arizona voters to redraw congressional district. they also said that states can continue to use a lethal injection drug that has been implicated in several botched executions. shares of coal companies move higher after justices struck --n in obama ministrations administration rule that led to the closing of dozens of coal-fired plants of the last two years.

the u.s. wants as much is $13.7 billion in civil fines from bp and more than $1 billion from anadarko. it was the largest explosion in u.s. history, releasing millions of barrels of oil into the gulf and later this hour, more news on a very busy day at the supreme court. pimm: and standard & poor's is lowering its rating for greece ccc-, i believe that the debt beleaguered country will leave the eurozone. -- greece hased closed its banks. depositors are limited to $56 aawing 60 euros or day. european leaders are

encouraging prime minister alexis tsipras to reengage. german chancellor angela merkel says the greeks have to be more debtble if they want the crisis to be solved. >> the generous proposal was our contribution, and that is why we need to say that the willingness was lacking on the greek part for such a compromise, which then led to the failure of the negotiations and the decision to call a referendum. greece will vote on whether to accept a proposal to unlock more financial aid. the prime minister is urging citizens to vote no. pimm: from one debt -- tox: from one debt crisis another. the leader of the u.s. commonwealth of puerto rico told creditors that it was on payable debt. island dropped.

and hyundai has a new endorsement deal with the nfl. the deal kicks off in september. the korean automaker replaces general motors as the league's official sponsor. the nfl will earn $50 million a year from the new deal, double what gm paid. alix: and discovery will have a lot more than just shark week, which i am still too scared to watch. discovery will air most of the olympic events to an estimated audience of 72 million people in europe. the company, which includes john malone as an investor, is ramping up its content efforts. pimm: and there are new signs of strength in the real estate industry. ownedct for previously homes rose in may for the fifth consecutive month. the pending home sales index

increased 9% in may after a advance lastevised month. employment growth, a pickup in incomes, and relatively low borrowing costs are helping ure buyers. alix: nbc says to donald trump "you are fired." the network will no longer air usa and miss universe pageant. trump announced he would not be dissipated in "the apprentice," which also airs on nbc. is expected james to become a free-agent again, but relaxed cleveland fans, he is not expected to break hearts again. he will not meet with other teams, setting them up for a bigger, longer contract next summer. those are your top stories. up on the bloomberg

market day, new jersey governor chris christie unveiling his presidential website this weekend. his white to unveil house bid tomorrow. what he is one of the most interesting candidates in the race. pimm: and jeffrey sachs has harsh words for europe's leaders. fitbit iswhy shrugging its shoulders when i comes to the apple watch launch. all of that and more coming up on the bloomberg market day. back to greece. the former of gamco investors both dodge fund leader not see greece leaving the euro anytime soon. pimm: earlier they spoke with betty liu, who ousted we are at the breaking point here. marketlet's face it, the does not like uncertainty and does not like negative surprises. most people felt the deal would be worked out --

betty: and look what happened. greece represents less than 2/10 of 1% of global gdp and less than 2/10 of 1% of global markets. it is hard to imagine this will be a major event for markets. most greek debt is held by institutions,nt not the private sector. it's unfortunate. anything could still happen, but i do not think this is what the market is making it out to be. betty: how about you? guest: he mentioned the size of like what happened with lehman brothers, when that went bust, it was the reserve fund that created a problem. we are still waiting for the ripple effect. not with sanding how the market is reacting to it, and that gives you opportunities for the it refreshese, and -- betty: does it refresh?

: yes. i think china will get their act together. i think draghi, even with this background noise will do well. and the united states will do well. if there is a sharp decline, it will be in the market. the only difference between lehman and greece is lehman's debt was oh by the private sector. most of the debt in greece is held by quasi-governmental agencies. i think it's a very big difference areas -- difference. --io: mary difference from very different from 2011. betty: if you were to put your bet, what would you say is the percentage chance we will see greece leave the euro? guest: i can only tell you what i read from people who are more knowledgeable than myself -- betty: which is? guest: less than 50%. germany does not want them to leave the euro.

germany has been a major beneficiary of greece being in the euro, which has kept the euro artificially depressed. germany will become priced out of the marketplace with major exports. it's a big issue. betty: right. guest: plus, they are calling for this referendum. the people in the street increase want to stay in the eu. if they vote in favor of , he is outen tsipras and they will have to call a new government and the imf will say because the greek people voted to stay in the eu, with lyrics will extend our offer to you and everyone lives happily ever after. -- greecend, this is has been restructuring or in default 92 of the last 100 years betty: area right, we have been here before. was iceland,

latvia. this is another one. it was reasonably well anticipated except for short-term dynamics. .imm: that wasmario gabelli the: we will look at characters on the political stage. do not miss it. ♪

welcome back to the

bloomberg market day. i am pimm fox here with alix steel. alix: and we finally have some momentum in the selloff. you sound excited. julie: it is something. the beginning of the day, it was looking lackluster. all of the major averages were down less in 1%. that has changed as the day goes doubledhe nasdaq has its losses. the s&p and the dow erasing its gains for the year as we see in acceleration on selling on an certainty. -- uncertainty. now we know there are lines that atm's in greece. we know there will be a referendum. we do not know what happens. there are not a lot of playbooks for this. if notve been trading, at record, certainly at multiyear highs. jpmorgan got downgraded today to perform from outperform over at

oppenheimer. shares -- you can see the index of banking stocks. i would like to point out, much itself,organ is financials have pretty much completed their recovery. also being hit today, a lot of companies that get a lot of sales from europe. goodyear tire. one of the worst performers in the s&p 500. it gets about a third of its sales from that region, about a quarter of its sales. 32% ofman international, its sales from germany a loan. these stocks really seeing gains. and i want to mention one

domestic mover. that is macy's. no real exposure outside the u.s.. it was downgraded to a cell today. they are not optimistic that the company will be able to turn around its week comparable sales growth, in part because of the strength of the u.s. dollar. the dollar fallout continues. pimm: not spending as much money. thank you, julie hyman. there was a for tally from the taiwan waterpark disaster. a 20-year-old woman has died. a cigarette probably caused the fire that burned 500 people at a waterpark. outer burst into flames -- powder burst into flames. 400 people are hospitalized, happen serious condition. pimm: it appears 30 britons were killed in tunisia when a resort was attack.

suspects are being hunted. several have been arrested. that a man who opened fire at the beach attacked alone, but may have had help. he was killed by police. for people who were home at the time managed to escape. firefighters three hours to douse flames. those are your latest top stories. more republicans are expected to join the race for -- forsidency tomorrow, the presidency. tomorrow, chris christie will announce and later on in july, john kasich will announce -- alix: i think that will be 15. pimm: yes, chris christie and john kasich. alix: a lot of players. you have jeb bush, joe biden,

donald trump. let's start with donald trump. andcampaign is a week old already fighting lots of controversy. where does this leave him, with nbc basically firing him? longer a member of the peacock family, and looked -- he has managed to get into this great with mexico. his comments haven't claimed a lot of people, not just mexicans, but a lot of people who found it in inflammatory. he is not backing down. that is not his way. the interesting question, now televisionis no career for mr. trump, whether that puts to rest the notion that all he was running for was to plump up television ratings. he is on his own. he is either running for president or going back to his business ventures. it seems to me that this seems to cement the fact that donald trump is running for president. like him or hate him, he will be

in there for a good long while. pimm: we spoke about chris christie going to announce tomorrow. his campaign slogan is "telling it like it is." john: just like you, pimm. alix: that's true, he does do that. pimm: does he have the track record to actually win? defective front runner after he won his reelection in new jersey in a in 2013. -- landslide then came bridge gate. he is also dealing with problems in new jersey. budget problems, pension problems, i downgrade, high unemployment, low growth. nothing to boast about. on the other hand, he is the most charismatic, probably the best stage performer of any of the republican candidates. he is going to go to new hampshire and try to win this

one town hall meeting at a time. it's no doubt a longshot, but there are a lot of people in the republican race to say that much firepower on stage, if he gets into the debates, he may be able to claw his way back into the race. pimm: you have firepower. tune in tonight, "with all due respect" with john heilemann and mark halperin. rico with debt it cannot pay. that conversation is next. ♪

not looking soe good on the island of enchantment. puerto rico has been struggling to manage $72 billion worth of government debt, and the governor spoke with bloomberg stephanie ruhle, reiterating the absolutelyh would get out of its distressed state.

guest: we cannot default. it is impossible. it is impossible. constitutional a obligation. i will bail the debt. alix: the governor has changed his tune. in an interview with "the new that puertohe said rico's debt is not payable. "there are no other options. this is not politics. this is math." laura keller joined stephanie ruled this morning. is not an easy situation. there are creditors trying to give money to puerto rico thinking this might help -- stefanie: we need to qualify creditors and help. investors, private investors who want to go in and make a ton of money. thet: they do, but if

economy has never ago, they do not get their money back, right? betty: they are savvy investors. they know how to do this. what indication do we have that the puerto rican government understands the plans being made? guest: -- none!nie: nothing to adjust infrastructure. there are thousands of teachers, cafeteria workers, custodians who should have been laid off the cause the puerto rican middle income population has shrunk so much, but the government is not having conversations. aret: so, those people trying to make those decisions. there infighting? right now i would not say

it is infighting. you start with the big collapse and there starts to be lots of big questions about what that is going to be aid, -- you will see -- , they know what thing or 2 -- these are extraordinarily sophisticated, truly understand the distressed debt market and you're talking about an island that does not have the expertise. the current government, they have never been in a situation like this. they had this restructuring plan for their power plant. nothing is happening. it's just going to simply be a failure. i mean, it could be, right? discussions are going on. they have been going on for months and months and months. there will be a conclusion. there has to be. a payment onave july 1. what is the horizon, the next big payment coming up? guest: we have that and there's a $140 million payment in august. it's a little bit smaller, but

that will kick off -- stephanie: they cannot even borrow at this point at 11%, which they could, less than a year ago. they can't even get that. guest: they do not want that to happen again. that is the problem. it just may not work. alix: pimm, it has been a pleasure. get: and you will maybe some information from the greek prime minister, right? yes, greek prime minister alexis tsipras speaking on greek tv. we will bring you headlines. stay right there, stay with us. lots more coming up. ♪

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only at a sleep number store. right now, find the lowest prices of the season, with the c4 queen mattress set only $1499.98. know better sleep with sleep number. alix: is "bloomberg market day." we have breaking news. julie hyman has been following and has details.

julie: he is giving a speech, not just speaking to the greek people. one of the more interesting assertions he's making is greeks will survive even without a bailout program. greeks will not abandon democracy because the bailout program ends. he says greece will implement the decision at the ballot, of course the referendum about whether the greeks are going to accept conditions proposed by creditors. he says the greek government was given an ultimatum and banks were closed because the lending program was not extended. says creditors don't want a greek referendum. they don't want the people making this decision. pieces creditors are giving greece a deal that is not a solution -- he says creditors are giving greece a deal that is not a solution and the greek government did everything it could do. -- it seems to be a

gamble he is making send this to the people of greece to decide whether they will accept the conditions of the creditors. we have had another development in a near crisis situation we have been monitoring, that of puerto rico. s&p downgraded the credit rating of greece. fitch has done the same to puerto rico. and may be cut further. it has high levels of credit risk, default appears probable. ofs is after the governor puerto rico told "the new york times" there is uncertainty over the commonwealth's ability to repay debt. some developments in both stories we are watching. we will continue to watch this super is -- sick prius -- cy prius commentary.

triple c negative with a negative outlook and saying there is a 50% chance greece will have to leave the eurozone. we see stocks continue to grind lower around the session lows. we havee can't seen -- seen that drift lower all session. i don't know if you want to call it grandstanding. that sort of keeping the line, holding the line he has held the last couple of days. not really giving any hope there is going to be some last-minute decision. that hope seems to have gone away. but even cementing that view. alix: really putting the onus back on the creditors saying the creditor's plan is not to throw the country out of the euro. it is too costly if we leave.

you are seeing a live shot of the greek prime minister speaking in an interview on t.v. we will keep you posted on more headlines. thank you so much, julie hyman. now for some of our top stories. diplomats in vienna are on the verge of an agreement on iran's nuclear program. the e.u. foreign policy chief says the signs are close to a deal. and other global powers want to make sure iran is not trying to build a nuclear weapon. in exchange, they will ease economic sanctions. now to egypt where the top prosecutor was killed today by an explosion in cairo. egypt's official news agency says his convoy was bombed. the prosecutor had pushed cases against members of the muslim brotherhood. brotherhood-- the ousted mohamed morsi. the field of presidential candidates is growing. ohio governor john kasich plans to announce he is running.

bloomberg is reporting he will make the announcement july 21. there are already 13 declared republican candidates and will be 14 after tomorrow when new jersey governor chris christie will announce he is entering the race. 2 is headingulse to hawaii and is scheduled to arrive later this week. this is the longest leg of the around the world trip. the goal is to circle the globe without using a drop of fuel. "jurassic world" was a box office champ for a third straight weekend. it to get in more than $54 million over the weekend. isthe fastest moving -- it the fastest movie ever to make $500 million in north america. those are your top stories. coming up, the apple watch sales numbers. rocketsk's spacex's

explodes. we discussed the next step for the transport company. at the top of the hour, jeremy siegel will be with us as we begin our new show with joe weisenthal. i will ask what keeps him up at night. all of that and more coming up on "bloomberg market day." angela merkel said greece must compromise with creditors. she said nobody can get 100% of what they want in rescue talks. angela merkel: there needs to be effort and solidarity inextricably linked. if this does not come to fruition, the euro might fail. this is not what we want. we want to work on this. we have made it quite clear anything that can support greece and whatever was suggested is still on the table. sachs wrote that

europe's leaders are hiding behind rhetoric. earlier, he spoke about his criticism of european leaders with tom keene. this is one of the circumstances that never should have happened. it shows very poor economic management from the european side. basically, unfortunately, a lot of intransigence, especially from germany. but also from other partners who decided months ago they would not really negotiate with this left-wing government increase. -- in greece. they just want to push greece out of the euro. ironically, they cannot push greece out of the euro. they could push greece into collapse but they cannot push greece out of the euro because there is no exit mechanism. the basic ideas currency depreciation or

restructuring or the dreaded word "forgiveness." do you see any indication of a catalyst to forgiveness of debt? wheney sachs: macroeconomists have looked at , they have seen the case for debt reduction. germany has held firm, there will be no debt relief. that is what has brought us to this juncture. it israordinary -- extraordinary that with this breakdown we have the u.s. treasury secretary publicly saying greece needs debt relief, and europe immediately saying no way. what is going to happen is greece will go into default because they cannot pay. but what is happening on top of

the default which could have been handled cooperatively and consensually is now a full-fledged banking panic. this is just adding misery to a country that already has the scale of the great depression. tom keene: ireland had a different emotional sequence than what we are seeing in greece. >> ireland got out of it but not without a huge amount of pain. if there is no way of greece exiting the euro but no other solution, what happens? jeffrey sachs: in my opinion which is not shared widely, my belief is greece should default and it should stay in the euro. this is not contradictory. it just means there should be relief on this mountain of bad debt. if europe won't give relief,

greece should take relief by saying we cannot pay. recognize the vast majority of the debt is owed to public institutions in europe. this is not even private market assets we are talking about or liabilities. this is money greece those two areas -- owes to european facilities and governments. get the banks open and operating again within the euro. alix: that was jeffrey sachs speaking with tom keene and vonnie quinn. markets continue to fall on concerns over greece. the dow is around the lows of the session. the s&p off by 39. much more coming up after the break. ♪

alix: welcome back to "bloomberg market day." i am alix steel. i want toe you on -- update you on greek prime minister alexis tsipras. you speaking in an interview. dca live shot of his interview saying the greeks -- you see the live shot of his interview saying the greeks will survive without the program. he telling greece they will survive without the program and putting the ball back into the creditors' court saying a grexit will not be an option. it will be too expensive, that the greek government was given an ultimatum. putting the blame back into creditors' hands saying a grexit would be too costly for the eurozone. that is having an impact on the

markets. we are around the lows of the session 15 minutes before the closing bell. day wheres comes on a we have not seen a 1% correction in stocks for about nine weeks. this is an impressive downturn. is theit is the --julie: biggest acclaim we have seen for stocks. he is showing nerdiness saying bring it on -- he is showing nerviness saying bring it on. the dow is negative for the year. the s&p and dow negative for the quarter. the s&p is having its worst day since october 2014 and at its lowest since april 1. the dow, its worst day since march and nasdaq the worst day in treatments -- in three months. let's look at the intraday chart of the s&p 500.

it has been remarkable how the selloff has been getting seein -- gaining steam. overnight when futures began trading in reaction to the greek news, they were down 2% and then came back gradually. we are only down less than 1%. since then, we have seen a deterioration as the session has progressed. we are seeing the pain everywhere. are now trading lower along with the rest of the market. financials, materials, health care, technology, you name it, is down in terms of the of sectors -- sectors in the s&p 500. want to look at the individual movers creating the biggest strike. apple down 1.5%. we are seeing a pullback. in terms of proxies for the

crisis, we have three i want to mention. the athens e.t.f. and it has been accelerating in terms of decline now down 20% after we got the headlines s&p was downgrading greece's credit rating. this tracks china, which is lower after that country's market entered a bear market. mbia is falling on concerns about puerto rico's financial standing and what that will mean for companies that ensure that territory's debt. in treasuries, we have been seen yields come down. some strategists are saying this is going to cause the federal reserve to push out the interest rate increase, so we have been seniors come down. 2.31 percent on the tenure now. the dollar has been more confounding.

.6%.ollar is down about the perception seems to be the e.c.b. might gallop to the rescue with stimulus. in the u.s. today, the vix is having its biggest gain all year of 39%. we have not seen a reading like that in some time. everybody has been calling for a return to volatility. it is coming. that is what all the options traders kept saying. here it is. alix: the s&p is down 2%. dow is also in the red for 2015. we are getting continued headlines from the interview increase saying as long as people support me, i will be president. a yeshas been speculation vote to the creditors' demand could lead to a new government.

he is saying as long as people support me, i will be president. but i will remain faithful to my principles. not backing down. not calling for change in government. thank you for a look at the markets. nats we look at top stories -- now to a look at top stories. suppliers started making phones that use force touch sensors. it allows users to adjust the strength of screen taps to bring up different functions. uber executives were being questioned in paris about breaches of french labor laws. for services under pressure from regulators and has been a target of strikes by cabdrivers. taxes onavoided

traditional taxis. oracle claiming google infringed on its platform copyright to develop software for its android phone. a lower court ruled in favor of oracle. the justices declined to hear google's appeal of the ruling. those are your latest top stories. still ahead, stocks still tumbling on greece. the s&p wiping out the gains for the year. the chief market strategist weighs in on the action next. ♪

stocks are taking a hit. the chief u.s. market strateg ist joins us with his call on the s&p. julie hyman with us for context. what do you think?

not sure looking out six months from now this will be the most important story of the year. i think we will look back and realize the earnings picture is more important than this greek story. we were talking before we went on air. this may be more of a shoulder shrug then we would have feared it to be. but givenike a lot, the severity of the news item, probably not a big deal. alix: we are coming up to earnings season. we have had the issue of the stronger dollar. julie: we have a lot of companies reliant on europe. some of the biggest declines today from goodyear tire are 4 ofanies that get 1/ revenue or more from europe. is thistion remains, greek situation going to affect

the rest of the economy? >> this is not a european growth problem. this is a greek problem. most important thing is what it might do to the financial system. banks, theyat the are not telling you we are in market meltdown mode. look at interest rates, gold, commodity prices. day.is an orderly it is worse than normal but orderly. that is what is important. with the fix jumping up, i think you will get this all back as the volatility quite stem. -- quiets down. do you say i get to pull the trigger on things i love? is this the kind of day you like? >> when the market opens down about 1%, it is probably not enough to jump in and take advantage because it was a small pullback. if you see 3% pullback, unless

you think something fundamentally is different, i think it is a buying opportunity. julie: you have your 2% pullback if we stay at these levels. he say you don't think this will be the most important event of the year. will puerto rico be that? how will that be versus the greek situation? if a lot of people hold this debt and don't know, how much is that going to be a problem? >> i am a stock guy. if you are a municipal bonds person and try to reach for yields and have puerto rico debt, he might be feeling pain --you might be feeling pain. i think earnings will come in better than expected. 20% over the course of justice quarter. yet the earnings expectations have fallen. that means the estimates are too low in the s&p. i think there is a lot of upside. alix: you say the analysts got

it wrong? the fastest pace, last quarter was much faster. analysts have not adjusted numbers up on energy stocks. commodities have rallied 20% and you will see bigger than normal surprises. alix: when you have a federal reserve that has mentioned greece, external international events, they look at a possible put the fed that off? >> i think it depends on how this plays out. if this results in the next three weeks, that greece is out and we have to do with the aftermath or they are in and the issues resolved for a while, september looks like the most likely date. this is a rolling setting deadlines -- if this is a rolling setting -- if this is a

rolling schedule, it could be september. there's a flattening yield curve but you have to wonder if something else is going on. julie: it does seem for now greece is largely contained. we also have to put in context affect financials have done so with the index of banking stocks at the highest since 2008. when you look at the run they have had, can say that for u.s. stocks overall even though we have muddled along recently. we are still relatively close to record highs. when you look at today's action, have to put it in the context of what we have seen. i want to know what keeps jonathan of that night. i want to know what keeps jonathan of that night. >> if we end up with inflation,

the fed's hand is forced. if it runs away, the fed has no choice but to move faster and that runs this party. we are not there yet. that would be much more damaging than negative news from puerto rico or greece. the other thing is about the financial sector. when you have a currency crisis, a debt default in a major counterparty, the banking sector is supposed to sell off. alix: thanks so much. lots more coming up. ♪

alix: we are moments away from the closing bell. i'm alix steel. joe: i'm joe weisenthal.

[closing bell] alix: u.s. stocks falling the most since april. european shares have their worst day this year. moves are due to concern greece will exit the euro. joe: the question is, "what'd you miss?" alix: what a day to be starting something new on bloomberg television. there's a global stock selloff on the same date we have a new daily program that asks "what'd you miss?" joe: we want to show you what we thought was most interesting. alix: we begin with this rough day in stocks. triple digits selloffs in the dow across the board embassies offer to present -- embassies -- indices off 2%. take a look at the s&p. it is closing barely