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 2:00. the first thing is you had a vice chair president coming out and saying the u.s. economy is close to full employment. there are signs of wage growth. andgs are getting better you had headlines out of greece, there are some signs of greek movement. there will be a kumar tomorrow at i've :00 p.m. -- a call tomorrow at 5:00 p.m. scarlet: we don't have the greece situation resolved and we have the jobs report on thursday which is earlier because of the longer we can. us towhich leads treasuries. you can see the movement there as well. looking at the first quarterly loss for treasury since 2013. not a lot of buying today. scarlet: for the quarter, you losses, notat more a lot of interest. lower yields.

and finally we've got to keep an eye on the euro. you is something highlighted yesterday. the monster reversal. it started off we care and then rallied. is moree more direction clear. you've got a drop of 8/10 of 1%. it is still not clear why the euro rebounded yesterday. people were thinking if greece does leave the euro the currency will be stronger? alix: complacency that everything will wind up being ok. we have been down the throat before. alix: ture. -- true. is adent obama says it concern but will not cause major turmoil in the financial system. , obama saidnference the markets have appropriately factored in the risk opposed by the situation in greece. president obama: it is painful for the greek people and it can

have an effect on growth rates in europe. wayurope is not growing the it needs to grow, that has an impact on us and brazil. those are major export markets and that can have a dampening effect on the world economy. has placed calls to european leaders to discuss the crisis. scarlet: diplomats will not meet the deadline in the rand nuclear talks. negotiations have been extended to july 7. iran has reduced its stockpile of enriched uranium and it could be used for making nuclear weapons. the u.s. and other powers are willing to ease sanctions if they agree to limit on its program. indonesian authorities say 37 people are dead after plane crash today. the military transport plunged into a neighborhood.

was carrying 50 people. officials say it had engine trouble just after takeoff. alix: the house of mouse has a new financial chief. had been macarthur the treasure and executive vice president in charge of corporate real estate. jay, whois replacing stepped down earlier this month. expandingber worldwide. we obtained a document that the company generates $470 million in operating losses on 415 million in revenue. it does not make clear what the timeframe is for the loss and at anber is growing annual rate of 300%. has become christie the 14th republican to join the race for the white house. he made the announcement today

at his old high school in new jersey. is tiredistie: america of handwringing and weakness in the oval office. we need strength and decision-making and authority in the oval office and that is why i am proud to announce my candidacy for the republican nomination for president of the united states of america. party leaders wanted him to run in 2012, but he turned them down. some early backers have signed on again. scarlet: the obama administration will raise wages by requiring employers to pay them over time. give a cover 5 million workers. these are classified as managers. many of them work in retail or the restaurant business. sleepyou can get an extra

tonight. atomic clock will pause for one second. the rotation is slowing so a tweet is needed. after the last to leave second three years ago, mozilla and links and crashed. scarlet: and it was on a weekend. this time it is -- alix: during trading. ," --g up on the petrobras "bloomberg markets day," we detail the rise and fall of the company. scarlet: apple music is available today for download. shazaam ceohat the thanks. the secondrapping up quarter. we will discuss how currency will play a role in the next round of earnings. scarlet: that and much more coming up on "bloomberg markets day." act -- asking the greek

people to vote no. scarlet: the parliamentary spokesman for the new democracy is one politician leading that yes the fight and he spoke to erik schatzker on what voting yes means for the greek people. >> this is the first referendum in four years. it could only take place over the question which is greece's position within the european union. this is also what our european friends are telling us. only our german friends but also natural allies, mr. samende, are telling the story. if you want them to remain a full member, you have to vote yes. a no vote is not going to solve the dilemma. erik: how do you debate that way and get the greek people to understand that is what they are

voting for? >> the greek people are feeling in catastrophic consequences the form of the capital controls. it is completely paralyzed. erik: so they understand. >> people are beginning to understand what is at stake. we have this argument, austerity was terrible. 25% of our gdp. a lot of people got poor. how worse can it get? it can get worse. this is a real dilemma. we are also trying to spin it in a positive way. there is room to have a better deal with our creditors. it does not have to be a tax only deal. this was the priority of the because the government did not want to hit the civil servants and pensioners.

fors in the administration 18 months. we were trying to make it more efficient. we felt the country deserves a better administration and a private sector which is going to be able to invest without being constrained. this is a relevant debate. erik: every sitting government has the bully pulpit. why does it appear as though the farsition for yes are so not well-organized? we have not been hearing all that much. we see people like you on television. it is not like there is a groundswell, you do not see people walking around. grassroots andis organic. people who came to demonstrate. they were people who never showed up to demonstrate. i feel compelled to make a case.

you reach them through all possible means. what i do personally, i run a full campaign. i do media. to people to explain what the alternatives are. not just the catastrophe that why it islt but also important to be a member of the european union and why we can get a better deal than the one that can be offered. we will win this weekend. i don't know the margin. even a single vote, i would be happy. i'm convinced greeks who have worked so hard to turn this into country are not going to throw everything away by voting no on sunday. ofrlet: that was a member the greek parliament is speaking with erik schatzker in athens. alix: chris christie announcing his candidacy. how well did he do?

next. ♪

scarlet: "bloomberg market day." welcome back to inx: let's go to julie hyman the final hour of the first half. scarlet: that is very dramatic. really appreciate the enthusiasm. let's take a look at how stocks are doing in this final hour of trading. they are holding up ok. the s&p right now 4/10 of 1%. the nasdaq up about two thirds

of 1%. sort of a flurry of headlines on different topics. they stocks have come back down, potentiala improvement in the economy. steel keeping fed rates gradual. really, on anye, kind of change. all of that equaling some muted gains for the averages. i want to check on the so-called crisis trio. thatis the greek etf fell yesterday. it has rebounded by 6% today. sxi is rebounding by 2.2% after falling yesterday. here is one that is not rebounding, the bond insurer

that fell yesterday. 23% on concerns about its in thee to puerto rico event there is a failure. we are seeing it down much less than it was earlier today. saidafter a lot of analyst the drop yesterday was overdone. i want to look again at peabody energy. yesterdayrallied about 9%. that saidhat ruling the epa overstepped its bounds on regulations of toxic emissions from coal-fired power plants. after that, there was optimism maybe there will be more demand or cold. that is going the way today. it is down 13% wiping out yesterday's gains and then some. analysts are saying there is still a problem of cheap natural gas as a competitor. the issues of the coal market are not going away and i want to cisco.n the food company

it was canceling its acquisition of u.s. foods after it was blocked by the u.s. government. today it is being downgraded to a halt. had announced a buyback of 3 million dollars. that is less meaningful than hoped and so though shares pulling back once again. a lot of second day moves. also abercrombie & fitch. is a stock that is falling by 3%. downgraded to a hold. analysts saying we are not seeing enough of a recovery in abercrombie's sale. the short interest is incredibly high. you look at my bloomberg terminal, a lot of pessimism. huge leaps in the short interest. so of this company is ld short. not a lot of optimism about its recovery. that as a'm sure

contrast to something like h&m. julie hyman, thanks. some breaking news with comments coming out of the u.s. treasury. jack lew spoke with finance ministers on a call. he spoke with the your chief group as well. urging parties to reach a pragmatic compromise on greece. is sort of echoing the statements we have heard from the u.s., get it together, pragmatic solutions. make it happen. cheap, as we is know. it is the time for action. chris christie enters the race this morning. that makes him the 14th republican candidate and arguably the most charismatic. alix: he is also. by controversy, sandy relief money mismanagement, and his temper. with us is the politics managing editor. how did he do? >> a pretty good announcement

speech. very impressive. no prepared text or teleprompter. just a couple of note cards sitting on a podium he glanced at occasionally. he had his family on stage. it was a loose, compelling performance. he did a nice job. clearly he's got the gift of gab. as a candidate, you can't help but look at the numbers in his state. nine credit rating downgrades since he took office. .4% growth rate. give us your scouting report on chris christie. john: those are some of the problems and others. a lot of republicans don't like him. second highest unfavorable ratings among republicans. a lot of republicans would never because voting for him

he's got a lot of positions from gun control, immigration, taking obama care money that they do not like. so he's got an uphill climb. the only thing he has going for him is he is a very good political performer. maybe the best of all of the republicans. he is going to focus on new hampshire. he does not have much prospect .n iowa or south carolina he is going to go to new hampshire and do town hall meeting after town hall meeting and hope he can get his overall national poll numbers high enough to get into those debates. if he can, there is a chance, a small chance he can climb his way up into the first tier. if he does make it to the debates, it would be interesting. alix: i would totally watch that. john: just donald trump and chris christie. you would pay money for that.

alix: i would. work on that for us. john: i'm going to charge money for tickets. scarlet: tune in tonight at 5:00 p.m. eastern. molycorps ishead, bankrupt. we detail the decline of the rare earth mining giant. ♪

scarlet: so much of our high world works because of rare earth metals. alix: molycorp has filed for bankruptcy. reverend -- rare earth metals are and why they are not

the only ones on the brink of a bust. bankruptcye's announcement of molycorp, the biggest non-chinese rare earth miner, has brought investment worries to a head. in 2011, it hit a record $74 a share. since then, it has imploded, losing 99% of its value. today one share is worth about 12 and a half cents. here is a quick primer about for earth's. there are 17 of them, highlighted here. they aree to be mines, not easily done so. for example, this metal is in in iowa.ys alex king the element strengthens magnets in hybrid cars and wind turbine. it is used in force and lamps and has the green to white

light. back to rare earth's fall, china all ofs about 90% of them. in july of 2010, it cut exports by 72%. global prices rocketed and they opened more mines looking for substitutes and ways to use less. in the past few years, toyota made the size of its previous ford redesigned its fusion hybrid and now uses half as much. turbines use less than before. in 2010, the company targeted 80% less use overall. coupled with more supply from new mines from california and malaysia, it has led to the bottom falling out in rare earth equities. the aunt molycorp -- beyond canadian greenland and

nearly allave lost of their value. for the investor, rare earth's heyday has come and gone. scarlet: you got a chemistry lesson doing the research for this story. it sounds like we are blaming china. remy: it started with china when they put out those export quotas. got what they deserve, some people might say. now we are seeing these prices fall and even china's rare earth society says right now the demand is actually, the supply is three to four times what they need. all of the prices are going to stay low. alix: this is staggering. i remember a few years ago this is what we talked about every

day. they were all about molycorp. what the traders were playing. issee it go bankrupt unbelievably staggering. ramy: $26 million market cap. and all of the other rare earth miners are staggering. i wonder about the capital intensity. now it is trading as an over-the-counter stock. what happens? they areycorp says going to exit bankruptcy by the end the year. we have to wait and see. alix: good stuff. scarlet, bye. ♪

alix: welcome back to "bloomberg market day." the top stories at this hour, greece's bailout program expires

tonight. asking for as is two-year program covering all of greece's financial needs including debt restructuring. the plan does not include economic reforms. eurozone officials will discuss the request tonight. a new bailout would be the third in five years. two u.s. senators are looking to puerto rico with bankruptcy protection. they are sponsoring a bill seeking support from senate republicans. a similar measure is also offered in the house. a nuclear deal with iran is within reach. world leaders remain at odds over sanctions according to the russian foreign minister his meeting today with john kerry. the men also discussed terrorism and agreed to deepen cooperation on ukraine. bulksa may resume collection of phone records

according to fisa. it returns some powers to continue the program but it is only temporary until agencies can adopt a new system. every child in coliform you must be vaccinated against diseases to attend public schools. jerry brown has signed legislation banning personal belief exemptions. parents who decide not to vaccinate will have to homeschool them and they can also send students to a public study program off of school grounds. california, the most expensive hotels in the world are in san francisco. the average price for a room in the city by the bay is $397 a night, up 88%. the rise is driven by the tech boom and a lack of hotel construction. those are your top stories. coming up on the "bloomberg enters the" apple music game with the launch of

its own service. and a financial document sheds light on the heavy loss uber is accruing. we will give you those details. and at the top of the hour, speaking with the ceo of 50%arin, which has surged on a pipeline for drugs. all that and much more coming up. inside for the greek debt standoff, which has markets and investors on edge. we are joined now for a perspective. looking at the chart of the s&p that has continue to grind lower. has the market priced in some event risk for greece? >> i would not give greece too much credit. the s&p has been tired and expensive and was to four correction. i do not think there are many

companies that suffered because of that. clearly this is an opportunity off the table.f this is not contagion. contagion is a potential financial meltdown. that why the euro is down more? dollar selloff, people have made up the story and it is convincing. in 2012 it would have been convincing. the debt is owned i a bunch of but that are bruised, nobody is going to change their lifestyle. ,o major bank is going to fail outside of greece anyway. with that, it is negative, but it is not detrimental. the issue is any deal that is given to greece and might also be requested by spain, italy,

portugal. that is what matters. we don't know what the deal is going to be. there will be some concession here and there. can the eurozone survive that? the more other countries will be scared. alix: i remember reading the financial times over the weekend. it said what would happen if the greek voted yes but they were forced out of the eurozone. it would imply a monetary union of only exist in violation basic principles of democracy and it will come to be perceived as a totalitarian regime. strong words. well, it is a war of words, so to speak. of course there should be a right for a vote. don't forget the vote was put in place after the deadline. people have to stop following the rules. trustees to be built.

kris will have austerity no matter what. either because creditors impose it. what greece needs to do is they need to provide an environment for investing. a path for growth. you don't do that by insulting your partners and by saying we want more money. other people don't want to give them money. they have to deal with the consequences. alix: it seems like a really hard line for alexis tsipras and then we hear perhaps there will be some kind of deal unveiled. what is the game plan in the offices right now? axel: they are politicians. they just want to live another day. there was a conference call. the head of the eurogroup announced they will get the new proposal from the greek government. the european central going to extend the current status of the emergency liquidity assistance. greece, the after

ecb might have a reason to not just keeps the ceiling but also to increase the haircut or do something else. with those negotiations ongoing, even if there is no substance, the ecb will be reluctant. alix: how much more firepower does the ecb have? ela, but deflation scares are off the table. draghi has used deflation as a lame excuse. the comparisons are fizzling out . germany has record low unemployment and pressures are building up. he wants those to move higher. he is not going to rest until that happens. greece is a sideshow in that. the argument is building steam and drawn he has argued -- mario

draghi has argued about those markets. he likes the weak euro. ken the euro. many of these arguments to try to weaken the euro are physically out. is worst-case scenario greece is getting a deal that other countries want to have. so unfortunately a good deal for the euro in the long run is one that is tough for greece. greece needs to get its act together. is ainance minister who marxist is not the person i have confidence in. alix: thank you so much. i love talking to you. worst case scenario is a good deal for greece. the to see you. coming up on "bloomberg market day," taxi drivers in france stayed a protest against uber.

they're going to court to answer accusations of fraud. we discussed the case against uber in france. ♪

to theelcome back bloomberg market day. time for a look at the markets 15 minutes before the closing bell. julie hyman, it looks like -- i'm excited -- the s&p and the dow are going to end lower. at the virgins among stocks. julie: -- a divergence among stocks. julie: yes indeed.

the nasdaq could be up. a little bit of excitement as we head into the last few minutes of the session. dow, the nasdaq has been the clear leader throughout the day. overall we had this rebound from yesterday. decent amount of volatility on the greek headlines and speaking of volatility, take a look at the vix. it has been volatile. we were talking about the has picked upch recently. we can see that today. even as thevix is down -- as the vix is down. we are seeing the highest level we have seen since february of a reading of about 18.5. is the best five-day performance for the volatility index this year. we have finally seen this return

to volatility traders have been calling for. a look att to take individual movers, some of the biggest throughout the session. pantair is one of them. 7.2% stake in the company. you can see there is a lot of speculation, could it be itt or flowserve? perhaps so. we are seeing movement on m&a front. near merger here. 51% of the combined company is how much the shareholders will own. basically talking about an insurance broker, the third largest. watsonting that towers is lower, which is a switch from earlier. i'll to mention the deal we

heard about in the biopharmaceutical space. we are seeing the largest upfront payment in a biotech licensing agreement. 13%.up did they will have a ten-year partnership to static euros for cancer and autoimmune diseases. curestnership to study for cancer and autoimmune diseases. so an interesting structure here with this deal. very interesting stock reaction. alix: absolutely. biotechs have huge run apps. thank you so much. a look at some of our top stories at this hour. itsgra looking to sell faltering business. the company spent $5 billion to buy valve core. it wants to concentrate on improving business for its name

brands including chef boyardee and slim jim meat sticks. it will consider options, including a sale or merger. they have risen about 24% before today. an investor as pressure the company for change and convinced them to nominate three directors recommended by him. a new report says netflix is on the verge of beating the four big broadcast networks. netflix will have a bigger audience than abc, cbs, nbc, and fox. the company spends less on more thand is growing 40% a year. and those are your top stories. the streaming music wars got hotter. apple music will be free for three months and then cost $10 a month. shazam unveiled a

new feature that lets users to get closer to their artists. we asked if people will pay the monthly fee for apple music. >> i think they will. it is still early days. the ability to have all of the music you want for a monthly fee is a popular way for people to consume music. apple is going to deliver great service. >> do you feel you are competing with them on this? forve been using your app years and years. i go to itunes and purchase it because you have a link there. do you work together or will you compete? >> we work together. downloadeda lot of music for them. we have integrated apple music into shazam and we look forward to continuing to let users by or stream or listen to radio. >> and today is an interactive service you are providing where if i should is am something, i can click and see what joni

mitchell has been should's am -- shazaming. >> we have the ability for users to follow artists and for artists to share what they are shazaming. they can nowmaz, share that with over 600 million followers. to getting her on board as well. wars,the streaming music what is a going to take for one company to come out on top? >> i think there are different services for different types of people. what apple is going for for someone who wants culture around music and the music itself. there are partnerships with

people to generate playlists. there is the beats radio station which has a dj. it is not just picking up your phone and putting on the song you want. it makes sense. i use netflix and blue. where would you put shazam? it seems to be a unique app. there is nothing else that does this and the main part of the product is figuring out what something is if i'm in a restaurant or a bar. is right. we help them discover music and then we partner with apple music, spotify, and others to help them consume that music syria and we are in a switzerland like position. riley.hat was rich is approaching a valuation of $50 billion. the company is apparently losing money. it is hosting $400

million in operating losses. for more, i'm joined by cory johnson joining us from san francisco. what doesn't of the document tell us? cory: so much. i have spent most of my day model. on an uber we don't know how many drivers there are. we don't know the average user. we don't know the average cost of a trip. we don't know the margins they take off the top, whether 15%, 20%. tour he to see a number like $415 million. ry to see a number like $415 million. revenues are less than a 10th of that. that is a fascinating thing. losses should not surprise

us. the one thing we know about uber is they are aggressive. they will stop at nothing to get into new markets and to gain market share. they will not be slowed down by regulators and local laws. they will not be slowed down by a lack of drivers or customers. the notion they are going to spend every dime they take in and more seems to fit the personality. alix: case in point, uber offering free rides from city to encourage people. --t was uber's response cory: or file a permit to go to the bathroom. alix: what has been the response to the report? they have not confirmed or denied it. they have not told us much. it gives us another window into

this company. a company, it is hard to believe anything that comes out of their mouth. to get this look at numbers tells us a lot. we are going to dig into this and figure out what this tells us. i also think what is going on in france is important. you have a place for the local government, the french people passed a new law in october saying we don't want unlicensed, untrained drivers out there with this product and yet it is still out there. there are still drivers and customers taking rides in paris. now uber is more popular than ever after the riots. alix: thank you so much. at large cory johnson. you can catch more on "bloomberg west" today. there will be a eurogroup conference call at 11:30 a.m.

tomorrow. we also have the euro chief saying the call is to discuss the state of play in greece. more conversation on the greek debt crisis and today marks been of the second quarter for most company. we will examine how currency swings will affect earnings reports weeks away. ♪

alix: this is the "bloomberg businesses" for most it is the end of the second quarter. we are halfway through the year. did investors -- should investors be worried about the stronger dollar? to help answer these questions is mike regan who joins me with more. what were the sectors that

killed it over the last six months and what were struggling? mike: health care is up eight point 9%. consumer discretionary, retailers, restaurant chains are up 6%. those are the standouts for the year. , those were the standouts for the upcoming season according to the estimates. always get it right on the nose. obviously joking. the second quarter earnings is shaping up to be pretty bad. from an index level, the sixmates are for negative .5% growth for the s&p 500 companies. that would be the worst since the recession. oil is the big part of this. the oil and the dollar. oil has had a good quarter. but when you down,

look at earnings, you are comparing the second quarter of this year to the second quarter of last year. the dow -- the dollar was much lower. even though things abated a little bit. as far as earnings, health care is the best group and is projected to have the best earnings growth. mean they aret relatively immune from a dollar spike? or more growth? immune tottle less cyclical changes. obviously drug companies, insurance, they have been considered defensive industries because they do not bob and weave with the overall economy. health care turned into a growth industry. withtock prices, otherwise itotech, is a pretty weak earnings

season. even if you exclude energy. energy is the big story. drop in energy. you are comparing second quarter to the second quarter of last year. if you take out energy, the growth is less than 1%. tend to lower these estimates as the quarter gets nearer. at the beginning they were predicting about 3.2% drop. it has doubled since then. alix: so we will see revisions. mike: it could be a lot better. alix: thank you so much. coming up, we are going to have what you missed. stay with me. ♪

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

alix: you are looking at the close of the second quarter. we are halfway through the year. the dow ended up 47 points today. the s&p up eight. the real story of the day is what happened in the second quarter. dow and s&p both finishing lower. the s&p snapping nine consecutive quarterly gains to end lower, and the dow falling for a second quarter, which has not happened since 2009. a different story than the nasdaq, which was higher for a tenth consecutive quarter. joe: the question is, what did you miss? alix: we are halfway through the trading year, so we will check in on the s&p 500 200-day moving average. i love these levels. i can't wait. joe: i'm excited about