for now i'm angela merkel says no. there's worry that consumers may be turning away from unhealthy packaged foods. ceo of tgive the friday's with us. how much pressure is he under to serve healthier fare to his consumers? >> good morning, everybody. i'm olivia sterns. stephanie: we have breaking economic news. we are getting data on manufacturing and construction. mike: those betting on the u.s. economy are winning today. the numbers come in better-than-expected for the month of june.

the reading up from 52.8 -- we see strengthen the underlying toex as new orders were up 56 and production is unchanged. what will really interest people as they try to figure out what happens tomorrow morning with jobs, is the employment number, a big jump. you have adp and isn signaling strength in hiring. maybe we will see some forecast changes. construction spending also out at this hour. analysts were looking for a forecast gain, .8% gain. these numbers are very volatile, likely to be revised. two numbers out at 10:00. the construction spending numbers and isn both better-than-expected. a good news day for the u.s.

economy ahead of the jobs report. matt: we will go now to the rapidly changing situation in greece. a new offer from alexis tsipras and little enthusiasm for it from his creditors. we have a team across europe, erik schatzker in athens with the latest government overtures and hans nichols. julie hyman is here in new york looking at how it's all playing out. we are getting closer and closer to a referendum. will it happen? : it won't surprise you to find out that alexis tsipras is effectively talking out of both sides of his mouth. on the one hand, he is papering athens with signs that say vote no in this week's referendum. we've been following these people. you can see the signs going up.

in the meantime, the yes campaign is turned to mobilize its own forces. one of the members was passing out these stickers. olivia: i think we lost erik schatzker. let's get to hans nichols in berlin. some concessions in this late-night letter. will it be enough for creditors he e? hans: the creditors are not entirely unified. merkel says no negotiation until they hold this referendum. she was very clear on that. then, we have a host of other finance ministers hinting, suggesting that maybe greece should call off that referendum. where there is agreement as the two sides are pretty far apart on the actual offer. alexis tsipras said he could

except a few addendum's. they turned out to be not so small. like the german finance minister are saying there quite far apart. back-and-forth is eroding trust, confidence. that has been drained from the system in the last five months. just when you, thought things could not get worse in terms of the confidence , itl, the trust they had seems like they drain even lower. that will be a problem if you restart negotiations after the referendum. mark, too soon to say how producers -- creditors are responding to the late-night letter. fall, ther a two-day biggest drop since december, look what's happening today

after greece said it's willing proposals creditor with some changes after the biggest quarterly drop for european stocks since early 2012. the nonpayment of the imf loan was negligible, the impacts on european bond markets. greek bond yields are declining today. earlier, they rose to their highest since november of 2012. italian bond yields declining. spanish bond yields decline. german bond yields rising today. that is fascinating. the is the euro against dollar. giving back all of monday's gains. the last quarter was the best quarter in over a year for the euro and it strong as quarter since the third quarter of 2013. the euro down .3%.

situation worsens, it rises, when it gets better, it falls. that is the european market. a bit of a relief rally going on today. matt: i want to check out u.s. equities here. julie hyman has that. julie: same sort of thing happening in the u.s. stocks rising for the second straight day. the s&p has recovered half of the losses it experienced at the beginning of the week. over pessimism on greece. now that we have optimism, there is relief being expressed. ifdoesn't hurt matters that you are betting on the u.s. economy, you are doing well today. we had the adp payroll report followed by the manufacturing report, both beating estimates. doing theal groups best in today's sessions. financials aren't away the best-performing group. -- far and away the best-performing group.

technology stocks have also been rising. the treasury market, we also have selling in treasuries. yields rising on his perception that if we get a blockbuster jobs are for tomorrow, that will allow the fed to finally be more aggressive in raising rates. matt: let me get back and try to check out erik schatzker's feed from athens. you were saying a moment ago that the yes vote has some proponents there as well. we see in the polls, yes is getting a little stronger here. erik: yes is moving up, no still commands a close to a majority. the prime minister appears to be talking out of both sides of his mouth because yes, he is campaigning for a no vote, but at the same time, he is tried to strike this deal under new terms with the european creditors.

he is supposed to deliver an address on state television this afternoon. it's that address that is going to give us the ultimate clue. how serious is he about reaching a deal or is this just another trick? something to manipulate more, his domestic political agenda than to bridge that gap. matt: thank you very much. we want to take a closer look at the reaction, the fixed income markets come in particular. we are joined by jeffrey rosenberg. great to have you here. a wild market out there. huge volatility coming out of asia. how do you trade markets like us known none of what's going to happen with greece? jeff: you have to take a longer-term view and look for the short-term volatility as to what the lasting impacts might

be. we long had the view that greece captures all of our attention, he doesn't have the same connections to the global financial markets that it did 2009 when issues could cascade into a much bigger systemic risk. , so it's hardnts to see exactly how that's going to play out. arespillover effects probably more contained than we've seen in the past. affect the key spillover , everybody wants to know about whether or not what's happening in greece has the potential to make janet yellen holdback. jeff: exactly. the interim connection between that is how would mario draghi respond. what would be the spillover effects and the rest of europe. an anticipation that mario draghi would have to ramp up his support for the european economy.

that's what bond markets would be looking for. the u.s. impact, the market impact if draghi is doing more and european bond yields are going lower, it puts pressure on u.s. interest rates. if there is economic spillover, and gives janet yellen more reason to delay anticipated liftoff. matt: add that to a possible --ong jobs number tomorrow forecasting 320,000, way above consensus. that makes it harder for janet yellen to raise rates because the dollar strength will affect our economy negatively. jeff: the argument is harder to make now because of how much dollar strength we have already had. we priced in a lot of that differential european growth versus u.s. growth which created the strengthen the dollar -- strength in the dollar.

the marginal jobs number won't lead to a number 25% -- another 25%. not significantly stronger from here. it changes the story for the economics to change janet yellen 's opinion. matt: a real euro bear now saying $.95, below parity. if we get 300,000 and we raise rates while europe is doing even more qe, does that shifted too much? jeff: that story has been in the market for a long time. --, there is some marginal it's not the big move we already saw putting five -- .5% increase. -- the 25% increase. olivia: in the second quarter, the euro had a great three-month span versus the dollar.

very different story and the u.s. treasury market. the first negative quarter for the u.s. treasury market since 2013. fixed income investors have never been quite so vulnerable. the biggest reversal on record. how does it feel out there trading in these markets? are you more nervous than ever than one big move one day could turn into a bad year? for fixed income investors is that they've had a lot of years of pretty decent returns and they've in rewarded for taking on more risk. throughout their portfolios. they've been forced to do that because of zero interest rate policy. investors need income. we are talking about older investors, people on the fixed income who need income. there is no interest rate in the zero interest rate environment. that puts more risk in their portfolios because the times --

kinds of assets that provide that income are higher risk. that's where your vulnerability is to any shift. the vulnerability is that people are overextended and you have not a lot of cushion in market pricing. matt: time to dial that back? jeff: we've been talking about that for a while now. rebalancing a portfolio between your reach for yield needs and preservation of principle. let's take down the income technically. we want to preserve principal a bit more. we are pretty defensively positioned going into the summer. terms of yield curve positioning, we like the intermediate part. olivia: did you guys go shopping together? matt: summer suits. olivia: please note the color of jeff's tie.

a nice navy that goes nice with tan suit.t -- thank you so much. , general mills coping with consumers who don't like cereal anymore. ♪

olivia: good morning and welcome back to the bloomberg market day. let's get a look at the top stories we are following for you on the bloomberg terminal. olivia: who doesn't love a good insurance story? a massive deal in the industry today. hubb.imited buying c

chairman will run the combined company. he is the son of the former aig chief, hank greenberg. sure's of both companies up right now. some surprising sales figures from big automakers. general motors sales down 3% in june. it cut its rental fleet sales by 45%. wonder if uber had anything to do with that. best series pickup truck fell almost 9%. truck fell pickup almost 9%. crack shareholders approved the firm's merger with heinz. kraft shareholders

approved the firm's merger with heights. -- with heintz. struggles with changing consumer tastes -- general mills is removing fake flavors and coloring from its serial. look at this. matt: trix doesn't look good all-natural. itvia: on the right is what would look like with artificial ingredients -- without artificial ingredients. matt: is it still for kids or not? i don't think kids would like aat one on the right for closer look at where the company is headed, let's bring in an analyst with edward jones. day. cereal every single i might not be the best arbiter

of what's good or bad for general mills. trixhey recover by making look less tasty? tied into our desire to have more health and wellness throughout all our lives. diet is a big part of this. even kids cereals are impacted. the cereal category will be fine, but we need products that cater more to help and wellness, gluten-free, more focused on protein. take the artificial coloring out. the category has stabilized here recently after a couple years of softness. it's been tough in this segment for a little while. matt: how do people not you cereal? -- eat cereal? jurrien: they want quinoa -- olivia: they want quinoa based

oatmeal. matt: what do you eat? olivia: greek yogurt. >> i.e. a lot of cereal, myself. there's the issue of lack of portability. it's tough when you are driving into work in the morning and you are on the go and you are rushed and sitting down having a bowl of cereal takes too much time, crazy as that sounds. that's where the industry will have to be more creative and innovative with inking about the category. it does tie into health and wellness. the category can get back on track. it will take a little while. matt: what do they have to do, then? yogurt? greek yogurt has picked up a lot. it's more portable and more companies are putting cereal stuff they can dump into yogurt. will help. the two categories that are working for general mills, yogurt and snack bars.

health and wellness, portability, people eating these products on the go. you will see more of that going forward. this company is turned to become more of a natural, organic company. ie's last year. they are turned to remake themselves at this point. -- trying to remake themselves at this point. olivia: they are trying to appear more natural. what are the biggest risks to your buy rating on the stock? >> they beat the number on earnings. a lot of that came through cost savings, lower tax rate. the sales growth numbers missed the targets this quarter. that will be the biggest challenge for can this company grow the top line. we are seeing a lot of growth in these emerging markets.

the challenge is going to be the top line. can they grow sales? they have a lot of categories like betty crocker and pillsbury , those boring, traditional food categories that are struggling. can they overcome that through product innovation and doing more in yogurts and snacks? matt: thank you for joining us. i want to give you a quick headline here on auto sales. honda numbers out now. up 4.2%, but not as much as the estimates had been, 7%. every company that has come out with the exception of nissan has posted sales that were lower than estimates. ford, gm and fiat chrysler all missed. olivia: more to come. we will go back live to athens and have much more on the latest market movers. ♪

matt: welcome back to the bloomberg market day. talking a lot about greece today and auto sales. tomorrow come the jobs number will come out one day early because friday is a holiday. they will put out the jobs number on thursday instead. it could be a big number, the consensus is for 230. our economist expects 320,000 jobs for the month of june. olivia: that would be a huge number. that would add a lot of fuel to the fire for janet yellen's argument that the economy is improving. the kind ofthis is thing that pushes her in that direction. is, this could be a weight on the euro.

it could boost the dollar against the euro. we heard from jeff that may be is already baked into the trade. dollar strength is something janet yellen is very wary of. --could eat into u.s. >> manufacturing and exports. i'm going to split. have a great rest of the day. you have a great wednesday as well. see you tomorrow. olivia: don't go away. still ahead, we will head back to the conference where betty liu will be live with the chairman of hatch beauty. ♪

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olivia: welcome back to the bloomberg market day. let's take a quick look at where the markets are trading at this hour. he was equities moving higher as hope emerges that we may actually get a deal over greek

debt. this comes after alexis tsipras sent a light a letter that late-night letter to creditors asking for a two-year extension any third bailout. you are seeing equities trade higher around the world. gains and financials and materials. energy the only sector in the red. we do have breaking news -- crude inventories. julie: we are seeing another bill -- build in crude inventories. inventories up 392,000 barrels. gasoline inventories down about 1.8 million barrels. since aprilild 24th. we have not seen a build in a little while here. one would think we would perhaps see a pullback in oil prices.

it takes a few minutes for the effect to be felt. opec is reporting its highest production in three years. that, combined with this build in inventories would appear to be negative for oil prices. we've been seeing them fall back today after the american petroleum institute also reported a build. olivia: thank you so much. i want to get straight to the other top headlines. we have to start with greece. greece is talking compromise to get more financial aid, but germany wants to hear more than talk. alexis tsipras says he will accept the latest offer from creditors. he has some sticking points on taxes and pensions. the greek offer is not the basis for serious negotiations, saying it's unclear if greeks will hold that referendum on sunday. says greece did not

get what they bargained for when elected sippers -- alexis tsipras. >> the sad thing, the greek people can only take 60 euros , 25%rom their bank unemployment and this government was elected to grant austerity. olivia: the third of greece's banks reopened today. handout -- only to handout pension payments. the two were arrested by french police earlier this week -- the latest legal challenge for uber in france. denies itrs -- uber is operating illegally. a drug scandal has printed a copy milling second of at toyota to quit. prompted -- those are the top

stories at this hour. more breaking news. toyota's monthly sales numbers are out. julie: toyota auto sales have risen by 4.1%. the estimate was for gains of 3.3%. it looks like the overall level is 210,000 vehicles in the month of june. coming in a little above what analysts had anticipated after we had disappointing numbers from general motors and ford. ford reporting a steep drop in sales of its at series pickup -- rf series pickup -- a f series pickup. the greek prime minister speaking in athens right now. sounding like he's going ahead with the july 5 referendum.

i wonder if we can get a translation. he has been calling for a no vote in this referendum on sunday. this is a saying that decisive step toward a better deal. if we had a no vote, that would be a decisive step toward a better deal. this comes after he sent a late-night letter to creditors asking for an extension. we are trying to figure out if that was him backing down. it appears he is positioning himself as if he is not backing down because he wants to go ahead with the referendum. he says the referendum is not a rupture with europe. a vote no is a decisive step toward a better deal. he says he has no intention to leave greece out of the euro area. we are translating the headlines live. we will monitor everything he is saying. we send betty liu on a rough

assignment. talking to the world's top movers and shakers in aspen. betty: everybody is ribbing me for being out here. it is work, olivia. ,'m here with christie hefner the founder of hatchbeauty. great to see you. christie: i have to do my duty here and say i'm the chairman of hatchbeauty. olivia: you are very involved. you are basically taking products from manufacturing to distribution. christie: yes. ist they are very adept at using consumer insights to find where there is a space, particularly for large retailers like trader joe's and costco, and creating proprietary

brands and the formulas and products and ingredients and the distribution strategy. i love brands, as you know. i met the principles three years ago when i was still doing work with -- i hired them as a resource in the beauty personal-care space to do creative thinking. i was very impressed by their ability to combine smart business strategy with creative thinking about brand positioning. them.ed in touch with 1.5 years ago, they asked if i would join with them to take the company to the next level. i want to work with people i like to hang out with, who are smart, where i can add value. betty: are you helping them raise money? christie: we looked at doing an investment, but we don't need the money right now. there will come a point when we will take in a partner. betty: a lot of people are vc window isat the

closing. it's harder to get funded. they are at the level where they get private equity, not bc money. from having put our toes in the water, there is a lot of money looking for smart places to go and i don't think that's going to change in the next 18-24 months. betty: you do a lot with women and weber state -- diversity. --n you left playboy >> 40% of my executives were women. -- thefacebook, twitter remarkable thing about the report, the numbers at the level they were the are before. what's going on? christie: look at the broader swath of industries.

if you take the fortune 500, the percentage of women in the sea suite is the same as it was 10 years ago. i don't think there is a single silver bullet to fix it. yes, there is more than women themselves can do and i agree with much of what is said about women needing to raise their hand more and apply for promotions without waiting until they think they already have to beed all those skills, willing to take overseas postings come all that. we have structural challenges. it's embarrassing to lipid the only westernized economy that does not have paid family leave. westernizedhe only economy that does not have paid family leave. there's the old boys club where of most ofcontrol the sec suite. betty: people hire people they

like and no. -- and they know. christie: it's no longer an issue up you should do this because it's the right thing to do. there is awareness that it's the smart thing to do. betty: great to see you. thank you for joining me today. christie hefner, the chairman of hatchbeauty. back to youill go later on in the show. have a great time out there. still ahead, a volatile week for chinese equities. the shanghai composite falling by 5% for the second time in three days. away.l brindon't go ♪

olivia: welcome back to the

bloomberg market day. we are an hour into the trading day. breaking news coming out of athens. alexis tsipras is addressing the nation, speaking in parliament, calling on his people to vote no on the referendum. he wants them to vote against approving the latest ballot deal -- bailout deal. it will help the negotiating of a better deal and he doesn't plan to take his country out of the euro area. these comments taking wind out of the markets. european equities selling off a little bit. you are looking at move in the well00, not a big move but off session highs we had this morning. i went to get live to erik .chatzker who is in athens give me your reaction to these comments from alexis tsipras. he is saying i'm not actually

during the creditors to kick us out of the eurozone. erik: that's what he wants everybody to believe. he finished speaking moments ago. just to characterize for the kind of posture he is taking, this is not the alexis tsipras that international investors wanted to see. moderatethe one european potentials wanted to see this politicians wanted to see -- european politicians wanted to see. headline is the referendum is going forward as scheduled on sunday. he is urging greeks to vote no, to say to reject the bailout proposal from greece's european creditors. he says it's not about the euro. this is the fulcrum on which the whole debate is rocking back-and-forth. is the referendum about euro

membership? the yes vote, the yes campaign wants greek people to believe that it is about euro membership. there's good reason to believe it is because that's how it's interpreted in brussels and berlin. alexis tsipras says it's not about euro membership. he says europe is to blame for shutting greek banks by limiting the liquidity available. he says syriza is fighting for greek pensions. assures the greek people that their pensions and their deposits in greek banks won't be lost. how he's able to offer such an assurance is an open question for you and me. i cannot answer it. he is making that promise to people. because greece will be in a stronger negotiated position come monday. forcing creditors back to the table to offer greece a better

deal. given what we heard from angela merkel -- merkel spoke moments ago and says she is open to a deal with greece. it's difficult to see how alexis tsipras can make these kinds of promises. olivia: a fast-moving situation. you mentioned that angela merkel was just speaking -- you see the leader of italy speaking at the press conference with chancellor merkel. referendum iseek a mistake. he will respect the greek people's will. he says it's on think all that italy and other governments will fund greek pensions without reform. that italy and other governments will fund greek pensions without reform. i want to get back to you on the

banking situation. i've been try to figure out how the ecb will respond to all of this. whether or not they're going to how far away do you think we are from seeing a big greek bank run? it's impossible for a bank run to happen because the banks are closed and people are limited to 60 euros a day. the pensioners are limited to 120 euros a week. steps tos taken forestall a bank run. it's more a matter of whether these banks are ever going to be able to open again. lastse the bailout ended night and because greece missed its payment to the imf, these banks are effectively insolvent already. that will make it awfully difficult for them to reopen if -- as thement

government has promised on monday. there is speculation going around athens right now that it will be weeks before the banks reopen. it's quite possible they will never be able to reopen in their current form. it's far too early to speculate on that level. it would be exceedingly difficult for the government to try to reopen these banks today or tomorrow or even monday at this point. olivia: scary times out there in greece. you may not be coming home before monday. i want to continue on the market reaction. i want to get to mark barton in london. how are the markets digesting these headlines gekko mark: there has definitely been a market reaction. these are the comments from alexis tsipras come up 2.2%. we've come down a little. we are still up by 1.55%. he says he wants greeks to vote

no, but he says he has no intention of leaving greece -- leaving greece out of the euro area. creditors believe a no vote will lead to greece leaving the eurozone. let's not take away from the rally. we have a two day percent decline in european stock markets. wo-day 4% decline. rallying right across the board today. this comes after the biggest quarterly drop for the stock 600 since early 2012. collateral damage from the fact that greece did not pay the imf 1.6 billion euros? the greek bond market, initially yields rose. they are now declining by 70 basis points.

-- 17 basis points. the peripheral market totally unmoved by that. one of the interesting markets today is the german boon market -- bond market. yes, we've had a small reaction but you comments, cannot ignore the fact that we have had a big rally today. julie: same here in the u.s. markets. we are seeing a rally across the board, bigger than yesterday's rebound. .6%.&p and dow , itou look at the chart looks like u.s. investors are following these greek headlines to an extent. down from the highs of the session, but not talking about a big move at all.

nothing here is conclusive. you will not see big, dramatic moves until there is something more dramatic today out of greece. in terms of what's leading today, it's clearly financials. the best-performing group in the s&p 500. the big $20 billion deal in the insurance industry with a spying -- ace buying chubb. olivia: thank you so much. still ahead, restaurant chain tgi friday's looking to boost sales with millennials. aboutll hear from the ceo why he is selling 6000 calories -- 1600 calories jack daniel's ribs. ♪

olivia: welcome back.

fast casual and casual dining art duking it out. atricans spend $30 billion fast casual last year. casual dining is moving in the opposite direction. traffic has been declining at a rate of 2% each year since 2009. now, is trying to go younger, healthier and more customizable and faster service. nick is the ceo and president of tgi friday's and joins me now from dallas. also on set with us, pimm fox. to steal backing market share from chipotle in an panera? richard: we are relevant right now -- going to millennials, we saw up until this time last

year, 20% of our basting layouts. today, 32%. -- 20% of our customer base. him: i'm wondering if you can tell us about the franchise business. richard: one of the things we've we have new sponsors and we initiated a program to re-franchise most of our restaurants. and focusing our time on being a world-class franchise or. we've been doing internationally and in the u.s. areas of aed business we just closed a deal yesterday for a bunch of restaurants in the u.s. we will be a franchise only system by next year with the exception of 50 restaurants around the u.s.. olivia: what is the by a burger,

give a burger scheme? richard: we started a thing called and less -- endless apps . we've backed that up with another program called by a burger, give a burger. a great opportunity to come into they get aants and coded they can use on their social network and somebody can pick up a burger for free. we will give them a code to send out to their social network. really important for us to give people something socially they can use on their social network. you tell us what the same-store sales growth is? richard: globally, we are trending positively. here in the u.s. come in the lows in the digits. here in the u.s., in the low single digits.

you mentioned how well fast casual is working. fast casual is not being used as a celebratory occasion or a dinner occasion. we focus a lot of activity around bars. building a share of bar traffic is not about chains, it's about being the most relevant bar in a marketplace. our same-store sales and bars are significantly up come up over 10%. olivia: interesting. maybe we will check one out soon. thank you for joining us. don't go away. much more to come. ♪

--olivia: good morning and welcome back to the bloomberg market day. i'm olivia sterns. pimm: i am pimm fox. let's take a look at the u.s. stock market and see how the dow jones industrial average and snp both moved higher. .6%.&p 500 gains more than of course, a busy day in the markets with the announced chub by af child -- and the greek prime minister urging voters to vote no on the referendum. pimm: the euro is off a little --olivia: the euro is off a little against the dollar, but still up since sunday when we heard the greek banks would not open. here is what has happened. alexis tsipras speaking