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 greece.

alix: greece, greece, and more greece. joe: i want an all-greece show. alix: there might be a bright spot in biotech. we will talk to the ceo of biomarin. the health-care sector really blew it out of the water. first, the markets. dow up 20 points on the day. s&p up five. joe, take a look at the broader context here. intraday, a little bit of greece, a little bit of china. we closed off the highs of the session, and at 2:00 p.m. we got word from fed vice chair stanley fischer that the u.s. economy is close to full employment, but we are not going to tighten prematurely, so the goldilocks scenario continues. joe: one was the fisher headline. the other one was that greece will have another eurogroup meeting tomorrow.

even though they are careening to the referendum, there is a little talking going on. alix: talking about the update and the up quarter, the count up clock stands at 1,365 days since our last correction. joe: worst first half in several years. as you said earlier, stocks, not a good quarter. this was the first quarter since 2013 that the treasury market sold off. we know the fed rate hike is probably coming, so this is a uarter andflavor of q first half. alix: the euro did a good job. you would expect the dollar to be stronger. joe: a lot of strange stuff. one of the biggest sector losers was utilities, which often trade like treasuries because they are rate-based. a different quarter than what we have seen lately. alix: the s&p trading in the smallest range since 1995. joe: other than the recent vix s

pike, a pretty boring quarter. alix: a deep dive into the bloomberg terminal, taking a look at the moving averages that i love to talk about. this is where we ended up today. the s&p just touching its 200-day moving average. it stands at 2053. the reason i bring that up, a lot of trading happens around it. that was a reason why we were able to sustain a rally today, but still very dangerous levels. joe: i know traders love these lines, but i always kind of thought they were witchcraft. still interesting. i am deep diving into some hard economic data on the bloomberg terminal. another great consumer confidence number today, far ahead of expectations. you see the trend appear. i can draw a circle? alix: good circle, joe. [laughter] joe: you see the trend is really high. it has been bouncing around a little bit. you have to like these elevated levels.

alix: it wasn't just you -- fischer said the u.s. consumer is making a comeback. he cited specifically the consumer. joe: when you see these numbers, you have to feel pretty good. alix: there is so much to discuss with our guest. high stakes in greece as it marches to a referendum. the andreessen weighs in on chinese stock market bubble. i am excited about that. we are joined by sri kumar and michael block. hi, guys. so good to see you. have not seen you in a while. joe: greece, does it matter to you? is this the kind of thing that investors shoulday close attention to? >> for the noise it creates. i don't think it matters in terms of contagion. if there is an accident, if you will, it will involve the ecb flooding the market with

liquidity to the tune of one trillion euros. that is very euro-bearish. an accident, but if there is one, that's what i'm focused on. we will keep doing with this until there is a happy accident and they clean up. >> i am very much in disagreement. i had meetings in athens six weeks ago. evenafter, i came back, then when it was the minority view i said that default and possibly a grexit is the more possible outcome. that is exactly how it has worked. the other side, we have talked wille about why the fed not increase interest rates. as you approach september, this is going to get much worse. both on the u.s. side and the greek side, there is a lot of things happening that will be a lot of contagion. this was supposed to be a

wedding without a divorce when you come into the eurozone. that's not the way it's going to turn out. spainece can go,? why not -- one at spain, why not even italy? joe: are you worried there will be contagion? michael: i'm really not. i want to get back to something as we talked about. to answer your question, even if there is a mess, we will clean it up. a lot of pain short-term for greece. the message sent by the eurogroup and ecb will be that spain is not going to fall. let's not forget, spain has a manufacturing ism in the mid-50's now. high unemployment, i will call that a lagging indicator. structural unemployment there. sri, you said something interesting about what this means for the fed. i agree with you wholeheartedly.

the key thing that stanley fischer said today was that they are focused on emerging market volatility. we can debate the semantics over whether greece is an emerging market now or in the future, but the point is the fed is watching and they are scared. they don't want to rock the boat more than it is rocking. i'm with you on that. i think the fed stays lower. that will help risk, to some extent. sri: i think it's a lot more than that, alex. -- alix. the europe side has shown it is totally unable to handle the situation. they have dragged this on for five years. why would you have any confidence they would resolve it now, when it has broken through? that's the first part. greece is the canary in the coal mine. the euro structure is defective. there are no fiscal transfers. there is no financial identity, like we -- national identity, like we had after katrina in this country. the support does not exist in the same way in the eurozone.

that's the big difference. now you have the greek government wanting to sue the european central bank. they are less than two hours away from default. so when that happens, you are going to see bond yields rise in different countries. going to come under a significant amount of pressure. the international implications are going to be serious. let's not underestimate that. leave, wee you guys have to talk about china and the extraordinary moves we are seeing their. last night, the biggest swing since 1992. crazy china chart. you saw the biggest intraday swing since 1992. how is that even possible? joe: 5% down, than 5% up. you had a great week from mark andressen -- marc

essen, now i have seen everything. is this sustainable? michael: the volatility? joe: the rally we have seen, the volatility. michael: this is obviously a market disconnected from fundamentals. economic data going one way, stocks the other way. i can make the argument, sure, china will keep going up long-term. i like it in a six-year framework, but a lot has to be cleaned up. nevermind the economics, i'm talking stock market as well. i'm thinking two things. one, look at correlations. you can take the returns of chinese stocks against the rest of the world. the correlation is nil. the past few days, there has been nice correlation, for a day and a half. but it's not there. is this a little tremor going to cause a bigger problem? i don't think so. i would love to tell you, this

is a bad sign, run for the hills, but i'm not there. alix: one thing before i let you guys go -- sri: i need to get a word in on china. joe: i want to see this -- here this. sri: based on recent discussions in shanghai and beijing, the government would like to see the stock market go up, because they would like to see some state-owned enterprises place on the market to reduce the debt ratios they have. that's a good sign. however, it is happening in a way beyond control. china likes to be a controlled, managed system, but the markets don't behave that way. the risk is that the market doesn't respond to the way the government wants it to. the other is, what i found is the economy is slowing much more than the government gdp numbers are indicating. if that's the case, you have a real issue in terms of the credit quality, and the government needs to be very

concerned. has been thechina big source of global growth in the last five years. if you do not have china, who do you depend on? the eurozone? there is nobody to substitute. alix: thank you so much. always good to have you guys. sri kumar and michael block. there's something we need to talk about, joe. we gain an extra second today, the leap second. what do you think of your extra second? joe: i will probably look at more headlines on the terminal. alix: can you be to that? i'm going to sleep. one second of sleep is good. coming up, what did you miss during today's busy trading session? right after the break. ♪

alix: what did you miss? i am alix steel. puerto rico -- bonds selling for a second straight day. the jones act. take a look at imports in puerto rico, $3.5 billion in april. there's a reason why they see a bond selloff in the last few days. there's a reason why it's very expensive to import stuff into puerto rico -- you have to use u.s. vessels. that ups the amount you have to pay. and it is an island, so you need everything to be imported. joe: i heard a comment from an s&p analysts that heard that puerto rico might be a bigger deal than greece, because unlike greece, puerto rico owes to funds and insurers, so the linkages make markets scared. my what people missed is in the tech sector. last night, bloomberg reported

uber is in a bond offering, still losing the same amount of money. that doesn't stop anyone from wanting to invest in them. but i was intrigued by a blog post by venture capitalist fred wilson -- where is the tech bubble right now? public market valuations aren't too bad. valuations are not too bad. it is in the late stage valuations, c an where it starts andarthd d rounds, -- sec d valuations, where it starts to surge. that's where it looks like there is a bubble. alix: the interesting part of that is that it seems like that want a bubble, in the late-stage private market, not the public market. joe: compared to the.com bubble,

which was widespread, if people are pumping money into uber, i think they will be ok. alix: if you want to spend money over the weekend, there is a campaign to save greece. people are flocking to crowdfunding site indiegogo. joe: so popular, the page has crashed. it's amazing. it raised $80,000 this morning. an hour and a half later, it was up to $200,000. alix: they want to give the money to the actual greek people. i don't know how that works. joe: $1.6 billion short. alix: but it is the spirit. coming up, is biotech in a bubble? we will speak to the ceo of an industry leader, coming up next. ♪

joe: what did you miss? alix: we want to get right to top headlines at this hour. indonesian authorities say at least 113 people are dead after a plane crash. a military transport plunged into a neighborhood in the country's third-largest city. the plane was carrying 50 people, and air force officials said it had engine trouble just after takeoff. chris christie made it official. he is running for president. the new jersey governor has become the 14th republican to join the race. party leaders and business executives wanted christie to run in 2012, but he turned them down. again,ckers signed on such as home depot's cofounder. the house of mouse has a new financial chief. kristi mccarthy is now chief financial officer. she had previously been treasurer and executive vice treasurer for the media conglomerate. replacing a cfo who left

earlier this month. those are your top headlines. joe: the nasdaq biotech index is --th more than death's surged more than 300% in the last five years, but many, including janet yellen, ca bubble. she said that valuations seem stretched, particularly for small firms in social media and biotech industries. despite a notable downturn in equity prices earlier in the year. joining us is the ceo of a leading biotech company, j.j. bienaime of biomarin in san francisco. what do you make of these valuations and the warnings we received from yellen and others? do they understand what is driving it, or are they missing something? j.j.: i think the evaluations are related to the fact that biotech is starting to benefit

from decades of research and development, and advances in molecular biology and medicine in general. i think the market is anticipating a big way of extremely innovative products that will have a dramatic impact. joe: you know, i feel we have seen these run ups in biotech stocks in the past. they tend to happen when people are enthusiastic overall. people like to speculate. is it different this time? we go through these cycles. what is the story behind biotech right now that makes it not just another hype cycle? j.j.: he story is that this is a true industry that is overall profitable, with very significant revenues. take a company like biomarin. we have revenues of $900 million each year. we will easily see $1 billion of revenue next year. i think this is why we have been

reported by investors. alix: one of your big pipeline , ags is to combat dwarfism failure of normal conversion of cartilage in the bone. but to offset that, you have cash flow,- weak which will grow over the next few years according to estimates. at what point do you think investors will demand cash flow instead of rmb? j.j.: this has been an issue for the past 10 years for biomarin. some investors have been asking us to get profitable, although our long-term investors understand we are very efficient in our already dollars spent. we generally get drugs approved in about five years, which is less than half of the industry average. we have been getting some results on a regular basis, positive clinical trials and new approvals for products.

we have recently communicated , assuming oure drug for muscular dystrophy gets approved in the u.s. or europe, this year or sometime next year, non-gap basisn a profitable in 2017. joe: how worried are you about regulatory threats on the horizon, particularly related to the extraordinary high cost of drugs? j.j.: you have to differentiate between orphan and ultra-orphan drugs. a lot of drugs are orphan drugs. we are mainly in what we call the ultra-orphan space, talking about less than 10,000 patients in the world. the five products we have today

are approved for the indications they treat. we are not observing a significant change in the reimbursement environment. we are launching a product that has been on the market for about a year in the u.s., doing extremely well. i would say that as long as you don't have significant competition, there is a lot of pricing power in the orphan business. alix: thank you so much for joining us, j.j. bienaime. joe: we will be right back. ♪

alix: welcome back. one thing you do not want to miss is china pmi.

tomorrow is the day when we will overnight.mi the reason why that is so cool -- the 50 level, over means expansion, under means contraction. 50.4,s the official data, skirting the line. joe: all of the china-watches will be watching china pmi. people who trade china and -- australian and new zealand dollars. very exciting. wex: part of the reason is, want to see if foreign demand might be turning a corner. when you look at hsbc luminary read on manufacturing -- prel iminary read on manufacturing, we saw it rising. if that is a concern, that could be something for china. joe: the first day of the month is pmi day, so we get manufacturing reports from across the world. i'm very interested to see what greek pmi looks like. it is going to be very ugly. alix: i thought, they actually

have manufacturing? joe: they have pmi reports for all these countries. it's the best day of the month, besides jobs day, for getting a nice read on the global economy. this pmi, the chart there, story is that the economy is totally stalled out since the series -- syriza government came in. it looked like there was a recovery, but we saw the positive flights and everything else. this new pmi should give us a nice read on just how bad it is. alix: absolutely. we are going to get a read from the ecb, about emergency liquidity assistance. a cut to the gdp forecast for greece to a contraction. negative headlines keep building. 11:30 a.m. tomorrow joe: lots more greece to come in the next several days. alix: do not miss that.

joe: don't miss the grease stuff. -- greece stuff. alix: thanks, everyone. have a good afternoon. ♪ we live in a pick and choose world. choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number... don't miss the lowest prices of the season, going on now. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! 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.

uber books -- what good signal heavy losses for the car booking behemoth. i'm cory johnson in for emily chang and this is "bloomberg west." robot revolution is on. we will talk about the future of the machine economy. solar powered ambition -- a pilot seeking a record sector -- record setting journey. seems like it has been