a new bailout program, but german chancellor angela merkel says there will be no new negotiations before a referendum on sunday. reporter: home prices grew at a slower pace in april. we will hear from nobel laureate robert schiller about the state of the u.s. housing market. mark: the price of cocoa is headed higher, so you'd that are stock up on those new chocolate bars now. good afternoon from bloomberg world headquarters in new york. this is "market day." let's get straight to the markets right now. we did not extend yesterday selloff, which was the biggest and more than a year. we're looking at modest rebounds , but unless the s&p closes

point 89 -- it looks like we are at the level right now -- it may and nine straight quarters of gains, but we will see how it all plays out in the last hour of trading. keep an eye on the euro -- weaker impaired to the dollar. not off by much. let me rephrase that -- off by .7% compared to the dollar after yesterday's remarkable turnaround in which it strengthened. people are still not clear what drove the turnaround. --ally, let's look at bonds mixed on the day, but treasuries are set to post a decline for the quarter. the 10-year yield moving up marginally. mark: let's take a look at some of the top stories crossing the bloomberg terminal at this hour. greece's bailout program expires tonight, and now the greeks want a new one. a prime minister is asking for 18 of your program that would cover all of greece's financial needs including debt restructuring.

the plan does not include economic reforms sought by creditors. eurozone officials will discuss the plan tonight. stillhink greece is living in its own world and playing a game of chicken, and with the consequences, as we were talking, he does not represent the full part of the country, but tsipras has taken over the brick. mark: a new bailout would be greece's third and five years. chris shiller -- scarlet: christie has become the 14th republican to announce a bid for the right house. governor christie: america is tired of handwringing and indecisiveness and weakness in the oval office. we need to have strength and decision-making and authority that can the oval office, and that is why today, i am how to

announce my candidacy for the republican nomination for president of the united states of america. scarlet: party leaders and business executives had wanted christie to run in 2012, but he turned them down. early backers have signed on once again, such as a founder of home depot. mark: americans are growing more optimistic about the economy. consumer confidence hit a three-month high in june, higher than estimates of all 75 surveyed by bloomberg. they credit a stronger labor market and stable gas prices. scarlet: home prices are growing at a pace that is slower than expected. home values and 20 cities rose , missing analyst estimates. the biggest gains came in denver, where prices rose 10%. cleveland saw the biggest decrease where home prices fell .5%. we will be speaking with bob shiller in a few minutes.

an about-face for jetblue, which for years proudly proclaimed itself a holdout on fees and allowed passengers to .heck one bag for free southwest airlines is now the only major u.s. carrier not to charge a baggage fee. scarlet: pro golfer phil mickelson was reportedly the source of most 3 million dollars in gambling proceeds at the center of a money laundering case according to espn, which said he wired the money to a man who laundered money in an illegal sports betting operation. mickelson has not been charged with wrongdoing. mark: the obama administration is raising the wages of millions of americans by requiring employers to pay them over time. give and will cover 5 million workers taking as little less $455 million a week. they are not eligible for overtime today because they are classified as managers. many work in retail or the restaurant business.

atomic: at midnight, the clock will pause for a leap second. the earth's rotation is gradually slowing, soy tweak is needed to keep clocks synced. after the last leap second three years ago, reddit, mozilla, and linkedin crashed. this hourking news regarding disney. julie has details. julie: disney has named a new chief and dental officer after the former ceo announced his departure on june 1. the new cfo, christine mccarthy, has been named cfl and senior executive vice president. she has been with the company over the past 15 years according and hasger, the ceo, been the company's treasurer. in addition to that, kevin maher has been named senior executive vice president and chief strategy officer. formerly, he was in charge of

business development. these promotions being announced after the departure of james .illow from the company christine mccarthy going to oversee management relations. if you look at what is going on with the stock, not seeing a lot of reaction. it's up about on .3%, since other cfo was the departing and it was only a matter of time. mark: thank you. coming up in the next half-hour -- seems no end is in sight for the greek debt standoff. how much of an impact will it have on the u.s. economy yet the mark: move aside, greece and puerto rico. the island of macau is an even worse shape. economic output dropped nearly 25% last quarter. in the new case shiller index

itws how much of an impact could have on housing prices. scarlet: erik schatzker's live in athens with the city's mayor. thank you very much. i am sitting/standing if you will with the mayor of athens. let's begin with the noise that we hear behind us. we are standing only a couple hundred meters from parliament. there is a large crowd gathering asking for what? >> asking for greece to remain in the eurozone, within the european union. thisow very well referendum is not the plan they have presented to us.

it is about remaining or not in the euro. erik: do the greek people understand that? even individuals like the german ,inance minister said today "even if there is a no vote in the referendum, greece cans will stay in the euro -- greece can still stay in the euro." if a man like that is prepared to say that, how are the great people to know what to vote for? kaminis: i would suspect that he wants us to vote no, but i do not understand how voting no could help us stay in the euro. we want leaders to go back to the table of negotiation, conclude an agreement in favor of the dignity of the greek people and economic development. we have to conclude an agreement

that respects european rules and institutions. core ofto stay in the the eurozone. you that if it takes place, we will have a victory. erik: how did you know? why are you so certain there will be a victory for the yes side, the side that wants the

+++ i thought just as many people last night rallied in favor of the government and in favor of a no vote. mayor kaminis: everyone knows that the polls have shown that at least 70% of the greeks want to remain in the eurozone. erik: but what if they get confused when it comes to sunday ? what if they do not understand what you believe to be true, that the vote is about staying in or out of the eurozone? an up or down vote on the euro -- what if they do not understand that and think they can vote no and the europeans will make accommodations? is: they have understood what we are going to face if we leave the eurozone. erik: what is that? poverty ands: .solation in the european union why would greece be forced to leave the european union? great britain has its own currency and is still a member

of the european union -- not always a happy member, but don't a member. -- but still a member. mayor kaminis: great britain is a very rich country. greece is a very poor country and will not be able to afford what is required to remain in the european union, and second, we think that our relationships with the rest of the european countries have suffered a lot politically. it would be very, very difficult to regain the confidence of the rest of the european countries, but i am persuaded that yes voting, we will stay in the european union. want toat do people who vote yes need to do in the next several days to get the vote to go in your favor? how will you mobilize the greek people to do what you want?

mayor kamninis: there are not still so many things to do. i have gone around and i have seen that even people who wanted changingo have started because they have started taking note of what is going to happen if we leave the eurozone. erik: why are people not more upset? i have seen the lineups in front of the cash machines are very orderly. people do not seem to be angry. they are not fighting. they are not stealing and robbing from each other. these are the apocalyptic scenarios people panted for athens under capital controls, and, yet, it has not happened that way. mayor kamninis: i can assure you this will not happen. all the bad press during the vote in the last years -- erik: well, people remember

2012. mayor kamninis: we had some incidents. but people are very, very mature . if see them remain calm even they are angry. they are waiting. erik: people like me, for example, and those watching us have this conversation should not necessarily judge the mood of the athenian people by the behavior on the street? they should not see these people behaving calmly, going about their business, going to work, going home, preparing dinner, and going for a walk in the evening and think to themselves, "those people are going to vote with the government?" they should not draw that conclusion? mayor kamninis: no, i don't think so. people are very mature. over the last few years, there has been a lot of anger, but also during those last years, a lot of maturity. people have started understanding what has happened to the country, why did it

happen, and i am positive we are going to win. , greecet's say yes wins decides to stay in the eurozone, to remain part of the single currency. come monday, what happens? mayor kamninis: monday, it will be a total different scene. erik: does this government resign? mayor kamninis: i think they should because they would have lost a very, very key -- erik: confidence vote? mayor kamninis: yes. they wanted the no. people are going to vote yes. after every referendum, the national vote obliges the government to take the position that it should take. now the government, if it loses this vote, it has lost the confidence of the people, and i think they will understand it.

if that is the case, who is going to lead this country? no one has stepped forward among the political opposition to say they will challenge mr. tsipras and leave the opposition to victory on sunday and win the next election. mayor kamninis: if we have this result, i'm confident that we , there will have it be a new dynamic in greek politics. erik: of what sort? describe it for me. will kamninis: i think we have fresh, new leadership and pro-european forces united. erik: you are an influential country. this who would you throw your weight behind? patient,ninis: just be and let's see what happens. it's very early to start talking

about those things. the main issue is to win the referendum. not you personally, but how is this country -- let say, again, hypothetically speaking, the country votes yes -- how is greece going to retain the confidence and trust of its european creditors? let's not forget that the previous governors were incapable of implementing the kinds of reforms demanded of this current government, which this current government has refused to accede to? how will this new government be any more successful changing tax codes, labor laws, the pension system? these are no small tasks in this country. mayor kamninis: for the reason that i've just told you. erik: the new dynamic? mayor kamninis: this vote will .pen a new dynamic

many forces over the last years have stood silent, but now, they stand for the yes. we will have new voices appearing. they are already appearing. erik: help those outside the country understand what the country is going through right now since the government introduced capital controls. mayor kamninis: physical banks are closed. that means every transaction -- we do not have any transactions. realize what could happen if they leave the eurozone. it is a tremendous experience to see. you do not have money to pay your most important transactions. it is very, very important. that changes the mentality of people. erik: how long will it take before these capital controls begin to bite? not just taking 60 euros out of

the bank but food and medicine and a six applies begin to shelves ofrom the pharmacies because no one can pay for imports -- food and medicine and basic supplies begin to disappear from the shelves of pharmacies? mayor kamninis: it will not take long before things come back to normality. what kinds of signals is the yes side getting from the , for example? what kinds of assurances are you willng that the yes vote restore some semblance of stability to this country? because that remains an open question. mayor kamninis: yes, of course, but the sign that we have is the climate of the european union will change. erik: you must have that

confidence because otherwise, you will lose your credibility with the great people. mayor kamninis: me? of theo, the forces opposition. if the country votes yes and good and do not happen in very dort order -- good things not happen in very short order. mayor kamninis: people over the last years have matured a lot. they will understand that things are going to change little by little. erik: when you see mr. tsipras go on state television as he did last night and say there is no way the european union or eurozone would kick grease out of the single currency, what do you think -- kick grease -- kick greece out of the sickle currency, what do you think? that he'd know

something we do not know. scarlet: that was erik schatzker speaking with the mayor of athens, who told bloomberg television that a referendum will open up new forces and greece, new political dynamics. more perspective on greece and what this could mean for the u.s. and global economies. we are joined by the chief economist at kpmg. you set through that fantastic interview. mr. kaminis said he could not understand how voting no on the referendum could end up helping greece stay in the euro. constants: i think there is some on that.e debate you cannot really be kick out of the euro. i would mean voting no would mean that tsipras stays in power . this would mean if there is no stops.nt that the ela the liquidity for the greek bank stops, and the only solution is

issuing a new currency because they will not be able to continue to fund themselves in euro. i suppose we could see that scenario, but in terms of being kicked out of the euro, there is no legal mechanism to kick a country out. it would be more things deteriorated to such a point where the banks do not open, and in order to have the economy function at all -- even in a disastrous way -- there needs to be a concert -- a currency, which would be the drachma. words, therether would be no alternative but to leave the euro because you have no economy functioning otherwise . what about angela merkel, the german chancellor's talking points? you heard the athens mayor say people in greece have matured a lot since 2012. do you agree that this is a valid comparison? constance: i think it's not so

much a question of if greeks are better off, although a are certainly better prepared. i guess what they have seen -- in a way, this brinksmanship in the situation where we have the banks closed really shows them that the future outside the eurozone looks pretty bleak, right? it would be better to craft a deal that allows the economy to continue to function, even if it , thenot function robustly to leave and see a situation where we have extreme economic --os -- and then to leave than to leave and see a situation where we have extreme economic chaos. there are still the negotiation's going on now, and those will likely go on well into the evening in europe and possibly past midnight. the finance ministers of europe are now negotiating with greece at the moment while we sit here, and it is possible that there will be some sort of agreement reached tonight.

when we think about what the sticking points are, one of them is really what is going on with pension reforms. it's easy to look at greece and year old's 55 retiring, and that's not fair because nobody in germany or france or spain gets to do that, but greases and such economic crisis that we have entire families living off grandma's pension. there has to be some sort of relief for the greek people to get their footing before we start implementing the austerity measures. scarlet: that is a lot of work to be done, and we have to wait and see how that shakes out. in the meantime, the world continues to spin. what does risk look like with a six-year-old aging bull market?

we were to get into a vote, and the most recent poll i saw was 56% from reuters yesterday with 29% yes, so the remainder are undecided, so yesl a majority for the vote. i do not think we are looking at a 2008/2009 scenario, but to say that we would enter a bear market and have 20% down on equities over the course of a month would not surprise me at all. impact, of the economic the irony, other than of course the psychological impact, is that will probably push u.s. rates down. that would push the 10-year bond back down to that below 2% range. mark: four other countries on the periphery, like italy or spain, will there be some tangent effect because of what otherng on -- for

countries on the periphery? ,onstance: that is the fear that greece is giving concessions that other countries is thatget you the hope the ecb is still aggressively during monetary easing, and we are still seeing that help the economy in italy and spain a little bit now. helpingnstance hunter us understand the greek crisis. we been talking about this for years, going down to the wire again. scarlet: let's head to julie with a look at the markets. onie: we are seeing markets the rise at the moment, rebounding from yesterday's losses. we saw the major averages take a little bit of a leg up just in the past half hour or so, after we had some greek labor ministers saying there were .igns of move went -- movement

that seem to give a little bit .f a further lift to stocks scarlet: thank you so much for the latest. mark: all right, i'm out, but robert shiller will be with us. willet: robert shiller talk about home prices rising but not as much as expected. are we still in a recovery? what did you think? we'll be right back. ♪

scarlet: we've got much more coming up on the "bloomberg but what i do want

to focus on here is the latest case-shiller index. it shows home prices grew, but at a slower pace than anticipated. we will be speaking with robert shiller about it shortly, but we want to get you some headlines crossing the bloomberg terminal this hour. president obama says the greek crisis is a substantial concern, but it will not cause major turmoil. president obama said the markets have appropriately factored in the risk posed by the situation in greece. president obama: essentially, what you have here is a country is -- has gone through some very difficult economic times, needs to find a path towards growth and a path to stay in the eurozone. what we have been encouraging both the greek government and our european partners to do is to continue to negotiate and find a pathway towards a

resolution. scarlet: obama has placed calls to european leaders to discuss the crisis over the past two days. now to another fiscal crisis making headlines -- puerto rico says it wants to put its debt payments on hold. the u.s. commonwealth has a population of 3.5 million people and more government -- more debt than just two u.s. states. the u.s. government will not be coming to the rescue. >> this is consistent with the responsibility of the administration, to not provide a bailout but important advice and expertise that can be used by the leaders of puerto rico to try to address the significant challenges that they face. scarlet: s&p downgraded puerto rico's debt, saying default does appear to be inevitable in the next half year.

the nsa may resume book collection of phone records of american citizens -- that at least is according to the foreign intelligence surveillance court. the power is only temporary, until intelligence agencies can adopt a new system. every child in california must be vaccinated against diseases like measles and whooping cough to attend public school. the governor has signed legislation banning personal belief exemptions. parents who opt not to vaccinate their children will have to .omeschool them speaking of california, the most expensive hotel in the world -- most of them at least -- are in san francisco. bloomberg crunched numbers and found the average price for the city by the bay -- $397 a night, up 88% in the last year, the rising cost being driven by the tech boom and lack of hotel construction. coming up in the next half-hour, bad news for chocolate lovers --

increasing cocoa prices and weather are boosting prices of chocolate confections. we will tell you how expensive it could soon get. the roller coaster in china continues as markets swing 10% overnight. can governments keep the bull market running? the greek standoff continues. protesters in athens speak out at this hour as the deadline for the country's imf payment is just hours away. that and more coming up on "bloomberg market day." all eyes are on greece right now, but investors may want to shift their focus to u.s. stocks, according to adam parker, morgan stanley's chief investment strategist. adam: i am bullish. i think the bottom on these numbers are too low. i think the economy in the u.s. is likely to be better in the second half of the year than the first. lagged one markets the reasons of the world, and you have a market that is only

2% off its all-time high, and people are waiting for earnings to come up to get in, so i'm bullish scarlet:. -- so i'm bullish. scarlet: joining the now is robert shiller. do you agree with adam parker of morgan stanley that it's now a good time to buy u.s. stocks gapper professor shiller: i think the market is highly priced. it has been highly prized before and gone higher. , myt now, i have surveys gale school of management surveys of stock market attitudes showing it's kind of like 1997, that people have low confidence in the valuations of the market, but they are still optimistic. i find it very hard to forecast right now. i think it's a little dangerous to be in the market, but that's not saying it will not go up to new highs. scarlet: right, you have some of couldow confidence, which

be added fuel for the gains in the market. the strongeve that dollar -- the strong dollar and a weakness in oil prompted many analysts to reduce estimates for this year through the first half -- have they overshot on the downside? professor shiller: i do not forecast earnings. the factors you mention are obviously important. i would mention others that are kind of long run. one is corporate earnings over gdp is at a high level, and that tends to mean the reverse. i think there was a lot of cost cutting after the financial crisis. we may be seeing a boom on earnings that does not last. that will be playing out in the next couple of weeks. have datantime, we do rolling and that the federal reserve is paying a lot of attention to, including this morning's release of the case-shiller index, which showed

mixed results. what is your confidence that home prices will continue rising at a sustainable pace? depends onhiller: the time horizon. i'm not at all confident over the next five or 10 years. the housing market is different from the stock market in that it has a lot of short run momentum, and it has been going up since 2012. in some cities, longer. that is likely to continue. really thating exciting going on in the housing market in most places right now. san francisco is exciting, but not overall. housing prices are going up between 4% and 5% nationally, which is a good clip, given that inflation is low, but it's not in the boom just before the financial crisis. and nothing like it was even a year or two ago. duke prices reflect the improvement overall -- do prices

reflect the improvement overall? have we gotten to the point where increases are over and we just maintain these levels? professor shiller: i suspect so. that excludes san francisco, maybe, or some other places that have been growing fast, but, yeah, i think it is kind of -- if anything, it is kind of a weakening market. our latest data on a seasonally adjusted basis are weaker than they were last month. it has been gradually weakening. it is still going up, and i think it might go up for years. it's not a major consideration for a homebuyer. .f you want a home, buy it it will probably outpace inflation for a while. what it does in the long run is anybody's guess. scarlet: when consideration is where rates are. one consideration is where

rates are. what does that mean for the portability of homes, as we close out the spring selling season, particularly in markets like san francisco? mortgage shiller: rates are a significant factor in home prices, and when they go up, it's an issue. go down, a lot of people take that as a signal to buy. that's what happened in 2012. that reversed the whole turn of the market. maybe long rates won't -- the question is if the fed is going to start raising rates. maybe they will not, given the uncertainty about the greek crisis. i do not know how long this is going to keep us -- we might be worried about a contagion effect. it might keep rates from going up very much. scarlet: baby that september timeline will not happen then. of yalehiller university, thank you for joining us. coming up, better by those chocolates now because the price of cocoa is headed higher -- those chocolates now.

alix steel joins me with more later on. ♪

scarlet: welcome back to the "bloomberg market day." a big question in the coming days is if nations will continue to control their oil. our guest gave his outlooks for the future of brazilian oil and why the global shifts lie in shale.

daniel: yesterday, i was meeting with the present president, and she made it clear, the recognition that for 10 years, china was to a large degree driving the brazilian economy and certainly driving the price of oil and the recognition that is over. we are in a new era dominated u.s. shale. reporter: in an interview, you said shale would be the powerhouse of oil by 2020 and matt in america -- in latin america. daniel: the new president of retro cross -- of petrobras lowered estimates for what their 2020 production will be because they got themselves into this thing where petrobras had to be in everything. way too much debt on its shoulders and neon to its capacity, and they had these local content rules that drove up prices. i talked to the ceo of one oil company who said, "brazil is not

on our agenda." tom: literally, the advent of shell petroleum was out of a suitcase, a guy traveling and working out of a suitcase. the romance of that is over. are these institutions in charge of their destiny? daniel: what's in charge of the destiny is this new country producing world oil, which .appens to be the united states producers, wall street, financers -- that's the swing right now. has already been what john d rockefeller would call a good sweating. the thing about brazil, just to go back to that, remember, three or four years ago when president obama went down to brazil, he talked about giving money to tozil to produce oil

imported. that's how quickly that has changed. tom: i'd be curious to know your outlook. daniel: i think next your, 0-ishs in the mid-6 range, and it depends on what happens in the world -- next year. iran, iraq, barrels coming online again. oil is i think exporting still a very hot question, irrational. we're the largest exporter of oil products, but we only export crude oil. balance the system, but i think it is iran coming back into the market and the impact it has and how the iranians want to marriage that.

scarlet: that was the vice chairman at ihs speaking on "bloomberg surveillance." i want to bring in my cohost for the next hour, alix steel. wti closing up tuesday hire right now. we could see that it is partly a knee-jerk reaction to the dollar -- we could say it is partly a knee-jerk reaction to the dollar as well. right, and we had a bit of a selloff recently. all in all, it's a bit of a risk on day in the market. the interesting part of the oil world right now is iran. seems like the deadline for nuclear deal has been extended to july 7 to get that final tech, and citi thinks an agreement could be reached in the summer. exports could ramp up in the .irst quarter of 2016 the fascinating conversation to meet about oil is how much can iran really bring on realistically without investments in international oil

companies? 500,000 to 700,000 barrels in three months. iran is opening its one million-plus. scarlet: definitely less than thought, and how much will be oil versus condensate, and will there be a market to sell to? russia, saudi arabia, and iraq have been competing hard-core in china where ever and usually has iranonghold -- where usually has a stronghold. atx: we are also looking soft commodities. the usda had a report out about supply and demand and planting dynamics. farmers are planting less corn, and that's why you saw corn spike today. there's more demand also for corn, so that is part of it. soybeans, and opposite story. they are planting more fields of inventories in acreage that they plant.

scarlet: stay with me. i want to keep you on for this next story on cocoa prices. alix: i'm hungry. scarlet: global demand for chocolate is on the increase, but the industry continues to face challenges, particularly surrounding production, weather, economics, and politics. just that. as a result, chocolate makers are raising prices and making , so it does not look like you are getting less for your money, but you are paying more for less each time. world'suador, the biggest grower of these beans, is really struggling right now. a lot of heavy rain hurting about 18% of the cocoa. on the other hand, west africa is having flooding problems of its own as well. loads blocking roads, leaving cocoa pods literally rotting on the trees -- floods blocking roads. at the same time, rising demand

in asia, and that is leading to creative ways for producers to deal with rising costs. here's really expensive chocolate, so you pay more for the premium rent. a bag that looks fancy. scarlet: or they add things into the chocolate, where you have the krispies with a little bit of pop to rice. alix: other companies have been trying to do more vertical, introduced their own cocoa crop so they can cut down on cost, but this will not go away anytime soon. scarlet: stock up. .tart hoarding your chocolate alix steel will be back in about 12 minutes to lead us through the market close. stocks in china are staging the biggest rally in more than x years, but first, they plunged in china are staging their biggest rally in more than years -- more than six years.

more on that when we come back. ♪

scarlet: businesses are blasting president obama's planned to make more americans eligible for overtime pay. workers who earn as much as $50,000 a year or $900 a week would be eligible to claim overtime under the air labor standards act -- the fair labor standards act. we bring in lindsay for more on story.veloping this comes on the heels of different retailers and employers increasing the wages they pay employees. lindsay: this is a different set of employees that would benefit. all time shift manager -- full-time shift manager tight people, but retailers have come , saying theyt cannot hike it so much. anyone in business

support it? you say the industry does not like it. what about supporters in big business? lindsey: so far, it's hard to say who those people might be. you would think places like whole foods and costco where they talk about treating workers fairly -- they might be on -- theyut people like might be more on board than people like mcdonald's or walmart. but retailers have said they are going to comment in the 60-day say itthat they have, needs to be a lower number, that it cannot be such a big jump, but in the meantime, they can have fewer managers and hire more people part-time. there are ways around it. can they dot else beyond commenting? will they be lobbying fiercely? they will be out there trying to tell obama this is not a good idea. scarlet: have we heard anything from the republican side? no, people have been

pretty quiet on this. more on president obama plus plan to make more people eligible for overtime. chinese stocks entered a bear market this week. plunged 5%the market before recouping losses to close up 5% on speculation the government will take steps to prevent the recent selloff from worsening. added up, and the shanghai, biggest intraday move from peter trough in 20 years. the senior etf analyst joins me now. people have a hard time figuring out what is going on in china. the expectant flows in and out of 's? ese-related etf reporter: it's interesting, there have been flows across the year. when you dig in and look, a lot

of people are moving money out etf and into the h share, so we have seen a little move, but if you take a step back and think about it, over the course of the year, the a share story has been so massive. the etf is still up 7.5% in the past 12 months even with the selloff. i think investors are little concerned, but it also depends on your outlook. the media has been looking at the story as sort of a market timing story, but some investors are looking at it as a long-term multi-year story that is playing out. of course it never goes perfect, but this is just a little bit of a hit on the way to greener pastures, which will be dictated by the chinese government. scarlet: right, a hiccup in a longer-term story. part of that is about the msci adding chinese stocks to its indexes. what does that mean for the etf

that you look at? reporter: right, there's a few 's that track in shares. the crane shares chinese internet doesn't also the powershares golden dragon -- they do, but broadly speaking, the emerging markets etf -- eem in particular is going to take in shares by the end of the year. that will be 2% or 3% weighting in the index, but there is so much benchmarked, you are looking at $3 billion or $4 billion and buy orders. off to the side is this interesting story about the end share market that has been completely overshadowed by the a shares and h shares. etflet: you look at so many 's. tell us about the level of fees because it's difficult to borrow some of these. how does it compare with emerging markets? reporter: overall, these will be

a little pricey. any area with there is no vanguard you can expect higher good rule of thumb. terms of borrowing, that's a ballgame.erent it's going to cost about 10% a year. for the most heart, that's going to be a trade that is on you, but the etf's themselves will be .0, 70 basis points scarlet: thank you so much. i learn something every time i speak with you. etfmberg news' senior analyst. much more coming up on "bloomberg market day." keep it right here. ♪ we live in a pick and choose world.

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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. it is noon in san francisco and this is the "bloomberg markets day." euro area finance ministers are said to be ready to discuss a new program.r

chris christie announcing he is taking a bid for the white house, discussing the reality of his chances to take the nomination. uber coming under fire in france. good afternoon. i'm scarlet fu. alix: looking at the markets and the end of the first half of the year. a rally underway, making up some of the losses from yesterday. you're looking at the s and p barely in the green for the year. you can call it flat. stock of the s&p 500, you can see a move higher by around 20.