being neighbors. and helping each other out. that is america. we've got to make sure that this economy works for everybody who is willing to work, everybody who is willing to do their fair share. i want to spend the rest of my time talking about what that might mean for that when he first century. number one, we have to help working families feel more secure in this world of constant change. that is why health care matters. if you have ever been locked out of the health care market because you have a pre-existing condition, those days are over. [applause] so you can now change jobs, idea, started new business and get affordable and portable insurance.

the same applies when it comes to wages and benefits. child care asding a side issue or a women's issue, we have got to treat it like a national economic priority. [applause] when we've got families were the mom and dad work, then we have to put together ways to make sure their kids are secure and safe. we've got a lot of young people here who aren't really thinking about that yet and that's good. [laughter] we've got to make sure we got sick leave that is in place so that families -- if somebody at home get sick, you are not thinking do i give up my paycheck or do i take care of my loved one? everybody should have that basic benefit. we need to boost of the minimum wage, give america a raise.

that is very straightforward. [cheers and applause] we have to protect and not attack a worker's right to organize for better wages and better benefits at the workplace. [cheers and applause] folks forget sometimes unions are what helped bring about the 40-our work week and the idea of the weekend. i know that is a popular concept [laughter] . helped establish worker protections, safety, a stronger middle class. as i said in no oculus fall, if i were looking for a good job that lets me build some secured for my family, i would join a union because i would want a union looking after me. and we strong -- and we are

stronger together than we are by ourselves. [applause] i want congress looking up for me, too, but you can't always get what you want. [laughter] so in congress doesn't act of behalf of working people, but i try to do is partner with cities and states and mayors and governors and acted on my own. over the past couple of years, 17 states, almost 30 cities and counties, have taken action to raise wages. other cities and states have started guaranteeing workers and paid leave sick days and paid leave. and just this week, -- sick days and paid leave. and just this week, we worked on paying workers overtime. [applause] this is an issue of basic fairness. if you work longer and you work

harder, you should get paid for it. [applause] today, some companies take advantage of an exception in the rule to make their lower wage employees who really should be paid hourly -- they are making 70m work 50, 60, sometimes hours a week without paying them extra dime. workers earnses, less than the minimum wage. to label somebody is management instead of a worker, even though they are making toying $5,000, $25,000, that is the way to get around minimum wage. that is not fair. so we are making the rules. we are making more workers eligible for the overtime that you earn.

that is one of the single most important steps we can help. it will give as many as 5 million americans coming putting 80,000 folks read here in wisconsin, the overtime protection they deserve. [cheers and applause] it's the right thing to do. it's the right thing to do. and america, a hard days work deserves a hard day's pay. in an economy that essentially changing, we have also got to give every american to learn the skills they need to stay competitive. that's why we have to be investing in job training and apprenticeships. that's why we should make community college free for responsible students like tammy baldwin who is introducing in the united states senate no

middle-class family should be priced out of the education that they need. [cheers and applause] and we need to keep churning out high paying jobs for better trained workers to fill. which means investing in basic research and development that leads new businesses and industries. we should put more americans to work rebuilding our roads, railways, airports, our airports. [applause] at a point where the economy is in a position of global strength because we are growing faster than most other countries, we have to rewrite the rules for the global economy before countries like china do. the other day, i signed a couple of bipartisan bills that will help our businesses sell more goods made in the united states than in the rest of the world.

[applause] and i will keep pushing for a trade that is fair and that a race not to the bottom but to the top. because when the playing field is level, american workers always win. [applause] they always win. we know how to work. americans know how to work. so that's what we need for this new economy. helping hard-working families make ends meet. give them the tools they need to earn higher wages and better jobs. keep our business is the most competitive. stay on the cutting edge of technology. investing research, rebuild our roads, rebuilder bridges. that's how we are going to help more middle-class families succeed. in a new and changing economy. we can't stop the economy globally from changing. but we can make sure we are the forefront of adapting to it. and look, i don't want to lie to you. this is hard.

if it sounds hard, it's because it's hard. [laughter] i remember when we were working on health care, i had an advisor -- we were in a meeting. around going around and about how we're going to get this thing done. he said, mr. president, the thing is this is hard. [laughter] and hard things are hard. thatd, well, thank you for astute observation. [laughter] so when he left, he left me a plaque that i put on my desk that says "hard things are hard" just in case i forget. [laughter] battling back from recession has been hard. fixing a broken health care system has been hard. making our economy more competitive for the future -- it's hard. , shoot,last seven years the last seven days -- [laughter] should remind us there is

nothing america can't do. there's no challenge we caps off. there are quite americans -- there's no challenge we cannot solve. there are fine americans who are proving this a reasonable day. [cheers and applause] there's nothing we cannot do. you know, i got to admit. i have been president for six and a half years now. i do not watch the news. [laughter] no offense, folks. [laughter] dayyou would think every there's nothing going on but shark attacks -- [laughter] you know, that's horrible things. every day, i do get letters from americans from all walks of life and they are doing such amazing, inspiring things.

sometimes, just simple things. working hard. running a farm. looking after their families. teaching a child. then every once in a while, they do something that has an even broader impact. lives righttrol here in the cross -- so steve atrell lives right here in la crosse. i'm going to talk about him. in 2002, he started a business out of his house to manage data for car companies and dealerships. i 2007, he employed a handful of people. then he was hit with a double whammy. the recession came in the auto industry almost went belly up. but we refused to walk away from people like steve. that shot the arm, steve says, was enough to keep his company's

confidence going. during the worst years of the ression, steve invested in new people, new technology, decided absolutelyown, was confident his business model was right. as the auto industry came roaring back, things began booming. since 2007, steve's revenue is up 1000%. [applause] his company, authenticom, has gone from 18 employees to 120. [applause] so this business that began in steve's son's old bedroom is now one of america's fastest growing private companies based in a historic building in downtown la crosse. [applause] i guarantee you steve worked hard.

he put everything he had into it. he took enormous risks. but he is also somebody who recognizes that he didn't do it by himself. he is proud of what he has accomplished. but he also talks about how fortunate he has been to be part of a community like lacrosse, to be part of an industry that got back to basics, determined to do things better and smarter. he pays his a place fair wages. sick days.es paid he helps to pay for the tuition of those folks when they decide to go back to school. a sock appreciation program. so when the business does better, his workers do better also. and the support a leica mothers free lunch friday. who doesn't like free lunch friday? [applause] right? so, look, i want to -- he said

you cannot do everything everyone would like. but if you treat everyone like family, that is good for us. if you treat everybody like family, that is good for us. what is true for steve's business is true for america. if you treat everybody like family, that is good for us. not just me, not just you, not just democrats, not just republicans, not just old folks are young foes, not just black folks or white folks. we are not going to solve every problem in one fell swoop. but if we make everything better for our fellow americans, we are going to leave things better for us and our kids. and if we walk together, we are going to get there faster. that is what we are fighting for, everybody. that is what we are fighting for, wisconsin. that is what tammy is fighting

for an what ron is fighting for. happy fourth of july, everybody. god bless you. [cheers and applause] you have been watching president obama speak about jobs at the university of wisconsin. fromy impassioned rhetoric president obama. was fired up. he was taking a major victory lap after the latest economic data. june showed. a slowdown in wage growth, but it was not all gloom and doom. it was a pickup in jobs. by consistent with the overall trend. heather, you were listening to the president's comments. his push for overtime pay for a new class of workers, what were your thoughts?

thought it was a great speech on a number of levels. certainly the new overtime regulations that he is pushing is something that many of us are very happy to see. for too long, we have allowed the number of workers who are eligible for overtime to decrease. it has been slowly eroded and they have put new regulations on the table will be commented on in the next time period that would increase the number of people for whom, if you work more than 40 hours a week, you will actually get paid that time and a half that the law says you should. that is a good thing. it is a good thing for america families. it is a good thing for business, ultimately, and it will help boost wages for melons of families across america. alix: what is the risk that families who -- that companies will decide to go to put him workers or hire more part-time workers rather than pay one person more overtime? heather: it is going to go both ways. on the one hand, you have a productive employee and you need that extra hour or two or three

or four or five about 40 hours. firms will certainly tap into that. that it may encourage them to hire more workers. that actually would be a good thing. allave not fully recovered of the jobs that we lost during the great recession. employment rates remain very low relative to where they were before the crisis. so actually encouraging employers to hire more workers is a good thing. so it is a win-win on both sides. mark: i want to refer to your which you found incomes for the bottom 99% of families rose 3.3% last year. annual gain biggest in 15 years, but still much less than the him a stem percent gain for the top 1%. that, look to recalibrate is a your goal to restrain the growth on the 1% salary? heather: on the one hand, we have to continue to do whatever we can to make sure that wages

are rising with productivity. as the economy grows, the american worker and the american family actually benefits from those gains in a way that is fair. and on the other hand, we need to make sure that all the benefits of economic growth do not continue to go just to those at the very, very top. it creates distortions in our economy. it is certainly not good for the vast majority of american families. finding ways where we can grow together is where we should focus our policy attention. alix: kid did say in the study that the bottom 99% of earnings -- beat growth. there are two different data sets. on the one hand, the data we put out earlier in the week was for peoplel bottom 99% of who pay taxes. the data they came out today was for the last month of wage earners.

but what we are seeing in both data sets is that wage growth for the majority still remains to slow relative to productivity gains and to slow relative to the gains going to those at the very top. if we continue along the trajectory we are on now, we will see a continued increase in the share gains in the economy going to i going to folks at the very top in the income distribution rather than to the vast majority of american families. that is the fundamental and most important policy question in front of us in a which is the theme of the speech the president just gave. mark: how do you get the private sector to play ball? what incentives have not been thought up yet that should be proposed? heather: to increase wages for workers at the bottom, you can rage -- you can raise the minimum wage. you can find ways to raise total compensation. havesure that workers benefits and not lose their jobs as another way of increasing the

take him pay. the overtime regulations will certainly increase take-home pay for workers, especially in the bottom half of the wage disputes in. -- wage distribution. so there are a lot of policy measures to take. people raise wages for at the bottom, across the income spectrum, that is associated with less turnover. that actually is good for business. it is good not just for business, but for families any whole economy. people can develop their skills, contribute more to that firm. so there is definitely some win-win solutions. alix: thanks so much. --k: that is certainly 1 scarlet: that is certainly one take on today's jobs report. next up, we dig bill gross's take on the labor market. ♪

mark: it was -- scarlet: it was

a mix of jobs report in june. alix: tom keene and michael ande spoke with bill gross he says that u.s. economic cycle is weak. mr. gross: jobs are strong and they look good. these types of numbers would lead to significantly higher inflation and wages. but it is not happening this time. not to criticize, but you have to criticize jim glassman in the last segment. everyd the cycle is like other cycle. it is not like every other cycle. it is very weak, demand-oriented, driven by monetary stimulation and by quantitative easing and artificial interest rates. and we still haven't seen an economic recovery seen like prior economic recoveries.

tom: what is the fed waiting for to get back to normality? don't they have a responsibility to get to some normal financial architecture? mr. gross: i think they do. , theld like to point out bank for international settlements is the central banks central-bank. it produced an annual report which i think is a masterpiece. it questions global central banks and their focus on demand. they claim that zero-based interest rates and quantitative easing have a counterproductive influence which limits investment and produces bubbles in the market and is a likely source for future bubbles that ultimately pop. so i think the ground is shifting, but slowly. i still think we have a fed dominated by prior thinking as opposed to future thinking.

mike: we have 5.3 in employment and 2.3% real growth rate roughly. what is the appropriate level for the fed funds rate and how should they get there? nobody knows. yellen doesn't know. that is why they suggest that they move slowly. suspect, based upon higher levels of debt to gdp on a global basis and based upon aging demographics, etc., etc., the new neutral is going to be substantially lower than the old. numeral fed runs rate will be centered around 2%. i think the fed will reach that sometime in 2017, sometime in 2018. straight tot to go ramy.

it is a lie day in terms of action. first off, we go to machinery stocks. is down about 6%. bank of america downgraded the stock from neutral to underperform. the of a analyst ross galardi says machine stops are trading on flat to declining earnings outlooks as well as excess inventory. about 9.8%. by it had been down around 11% earlier. it said it would not pursue a sale. apparently jeremy stoppelman changed his mind. in the past year, yelp has lost 50% of its value. also not doing so great, hurts come -- hertz, the rental company. it is in a spat with ryanair.

it will pursue the company for breach of contract. if you are a customer of ryanair, you will not be able to give customers a car hired service. fourth of july weekend, we will be watching what happens in greece on sunday. alix: cannot take your eyes away from that. we have huge coverage starting on sunday. scarlet: minute by minute, i will be watching. alix: have a great weekend. -- s berkoff is . .

alix: welcome back to the bloomberg market day. i'm alix steel. here's a look at some of the top headlines this hour.

the greek prime minister is inching toward the end game in his country's ongoing battle with its creditors over future bailout funding. in an interview today, he said a no vote in the referendum on sunday would not mean a rupture with europe. xit is not ona gre the horizon. this is after the finance minister said he would step down if the voters said yes. and a mixed job report for the month of june. employers added 222,000 jobs with the unemployment rate low.ng to a seven-year but the share of working age people in the workforce fell to its lowest level in more than 37 years. plus wages were flat. there will be two more jobs hospitalfore the fed september meeting. another democrat is making a bid for the white house -- former senator jim webb announcing his campaign today. like been visiting states

iowa and formed an exploratory committee in november. the former marina decorated vietnam that had a brief stint as secretary of the navy in 1987. yelp is saying no to a sale and pulling its process to find a buyer. they hired goldman sachs to review a transaction after getting interest from several suitors. the company's ceo but the process on hold. shares are down on the news. coming up in the bloomberg market day, we will tell you why shale companies might lose ilion's of dollars in the reason and elon musk has to be a good mood -- tesla's quarter sales were a record. and we will tell you about the $6 billion deal for two u.s. health insurers. it creates the biggest market share for private administrators of medicaid. we are just a few days away from

the referendum in greece. the imf says the country needs at least another 40 billion from the euro region to make their debt sustainable. minister saidnce he would rather cut his arm off than sign a deal that fails to restructure the debt. in athens, he spoke to our guy johnson about the scenario. >> we have committed to signing on the dotted line. >> you will sign the deal that is on offer? to takeid we are going this to the greek people and of the greek people say yes to this particular kind of proposal, we will do whatever it takes. if a no vote, as we are recommending is delivered, we will immediately start along theons and

lines of what is different to the institutions. >> what are the greek people voting on? there are people saying there is no offer on the table. thinkrious to what you where the greek people are. was prevented -- was presented with a proposal and what we said was for us -- i'm sure any independent observer would agree with this -- if we were to a greedy, we would be extending it for another two months. we would have exactly the same situation as we have had for the last five months. gus to this deal which has no specific funding proposal coming with it and no

analysis worth the paper it is written on. so this is what we are saying no to -- this kind of mentality. just some money to tide you over for a couple of months and then we come back to the same conversation. >> if you could be specific, what would you be prepared to sign? >> do you have any doubt that if there is a yes, the same proposal presented to me on the back of the table, it is what institutions want. we will find a way of signing this. i am allergic to extending and pretending. but i will not suffer it. i will do what i'm sure the prime minister would do and what the votingto respect

. i'm quite sure the greek people have had enough of extending and pretending. is a yes vote, you will not be price -- you will not be finance minister? >> i will not. orthis is going to make break you? >> i will help whoever it is to push it through the greek parliament. in speculatingse out. the greek people have had enough of losing their dignity by signing agreement and making pledges that simply cannot be met because the financing is wrong. alix: that was the greek minister of finance -- a great interview. thank you for bringing that to us. bloomberg television has live coverage of the greek referendum starting sunday at 6:00 eastern time.

our global resources will bring the results as they are available and the market fallout from athens to asia. stay tuned -- reese in crisis on sunday and monday. shale drillers are starting to lose their safety nets with a $90 hedge. the insurance protecting them isinst plunging oil prices falling and companies that get a lot of revenue from these hedges could be in for a world of hurt. bradley olson joins us from houston with more. definition of what a hedge is and how it has helped these producers in the past. bradley: it is essentially locking in prices. revolution we have seen in the united states was fueled by that and in order to get that that, a lot of companies had to promise to lock in oil at a certain price. usually $90 or a below and above

price that they use to lock it in. they do that to protect themselves and it has functioned well for a lot of them until they start running out. then they will be facing a full force of that. alix: how much do they stand to lose? ofdley: in a case standridge, it was as much as to a percent in their quarter. are making a third or a fourth of their money on derivatives rather than on oil and gas drilling. that gives you a sense of the exposure. alix: what can they do about that? bradley: i think they are trying to get their cost down and learn to drill and operate in a way that is sustainable. i think you see a lot of the best operators saying they are there.

$65, we make the same amount of money as we did two years ago at $95. but then you have other companies that are problem we not there. they are probably going to seek additional financing and tap the capital markets. that capital still there? it seems like equity is drying up. the credit market is somewhat available but if there is a risk off mentality, junk bonds are not going to be a place investors want to put their money. question.hat's a good a lot of these are losers do have junk ratings, so it is something that will affect them no matter what happens in that market. a lot of people who follow the enp world was surprise that the money was available in the first place. it was $12 billion in equity and

dirty $2 billion in debt for all of these countries. alix: that's incredible. huge amount of money, especially with oil 40% and 50% below where it was. having been surprised before, people are prepared to be surprised again. this is one more protection that will be gone. alix: when these hedges end up winding up, does it create the potential for m&a? i thought we were going to see that months ago. is this the catalyst when an operator doesn't have any other choice when it loses these hedges? bradley: that's a great question. i think it will be one of the catalyst. you have something coming up in october that relates to the borrowing base -- how much of the top-tier dead can they borrow from banks? that's based on the reserves of

oil in the ground. they are going to get hit by those two things and potentially even lower prices. those things could create a catalyst for sure. these companies are valued at $85 oil right now, so no one wants to overpay. alix: i want to wrap up with the p. the company paying a record settlement, resolving some claims on the bp oil spill in 2010. in perspectivet and do they have the cash on hand? bradley: they do. most of the payments will be made over 15 years, so that gives them a huge amount of liquidity. toryone i have spoken

describes it as a positive and to be paid over a long time. there was a headline i saw that says bp gets its life back now which is a reference to tony hayward's infamous words. there are a few more things that they are small in nature compared to the items settled today. in perspectivet when $18.7 billion is looked at as a positive. thank you for joining us. shares gaininga in today's session. the electric car maker beating in the sales forecast for the second consecutive quarter.

alix: welcome back to the bloomberg market day. time for a look at the markets 15 minutes before the closing bell. i want to hand it over for more on the markets. an uneventful job stay. i bet you the traders put in their orders early and skedaddled to the beach. >> taking a look at where markets stand right now, let's see where they are -- they have losses thatof the they had. the s&p 500 nearly flat. the dow jones is down the most right now. -- down by asne much as .3%. this is after the jobs number. investors may be locking in some gains and headed off to a holiday. diving into the bloomberg

terminal, check out the function here and the 10 sectors on the s&p. six of the 10 are in the red. utilities have been the biggest gainer, now up about 1.4%. treasuriesa look at -- the 10 year prices rose today, snapping a two-day losing streak. of 2.6%. fell to a low fallen overes have the past afternoon and looking stocks -- western union seeing its worst performance since october 2013, trading down by about 7%. this is because of record downgraded the company from a buy to a hold after the paypal deal was announced today. be asay they are going to

larger competitor but it does conflict with wells fargo which said there would be a minimal impact. finally, dupont is the worst performer today with shares 2.3 percent., down they will spin off their pollution liabilities into a new company. they inherit 171 sites that have potential environmental liabilities. cleanup costs could be $945 million. a look at some of our top stories making headlines. the world's biggest broadcaster will cut more than one jobs because people are not watching. the bbc faces same problems as other broadcasters. tv oneople are watching tablets and mobile phones. in the u k, every house with a television has to pay a license fee in the budget shortfall could be as much as $234

billion. barnes & noble is planning a split next year. the company expects the split to occur by the end of august. the new ceo will begin his role 650eptember, overseeing stores and then the e-book business. years been more than six since mark zuckerberg tried to buy twitter and there's speculation he may try again. one website says he's considering whether to buy the company. stepped downjust after months of investor criticism. -- dig cost low just sit down after months of investor criticism. tesla has been its forecast for a second consecutive quarter. 11,500pany delivered model s sedan. discuss it is our bloomberg editor-at-large, cory johnson. what does this do for tesla in the back half of the year for

them to meet their four year -- there full-year sales forecast. cory: they met their own target and did better than their announced target, so that is a good thing. had's like me announcing i -- me announcing i is going to have tech fest and got more than i expected. carsoal is to get enough sold this year and they are well below the halfway mark here at the halfway point, where they say they are going to sell only about 40% of the way toward their year-end goal. that might cars sold this be aided by the thease of their model x, suv they hope to release later this year. they did get the benefit in this theter, owing impart to west coast slowdown and other issues. that was not a problem in terms of the numbers. we don't know what they terms are like in terms of revenue or

numbers, but the other thing is the future. they raised prices with a much more expensive car, the all-wheel-drive vehicle, and that's a good thing because they will get more revenue. at the big market is cheaper cars and they are not there yet. maybe some people care more about tesla then your breakfast. but there's some other news in tech today -- the president of intel stepping down. why now? position andceo did not get a motive. why now? it's a great question and frankly, we don't know the answer. as president. she did not want to get the ceo job. she's been there for a long time, even by intel standards. she's a veteran of the company

has a strong leader. but that c suite was pretty crowded there. maybe it just wasn't big enough for the three of them. alix: the last big tex story that caught my eye is yelp. it lands to be bought sort of stalling. why now? cory: this is interesting. the ceo and founder of yelp looked at the deal on the table and decided it was not enough. this is a company that's growing quite fast on the top line. although it is slowing down considerably. yelp andrence between other companies is that it is profitable. they don't need to sell right now if they don't want to. it's not very profitable and if you look at the valuation, even after the selloff today, it's still a richly valued company. but it is self-sustaining and profitable, it's growing fast

and its food delivery business is growing. it has businesses growing fantastically and they are throwing off enough profit to keep alive and for that reason, they can eat choosers when it comes to the offers coming across the table. alix: estimates are this year for it to make 56 net this year. thank you so much, bloomberg editor at large, cory johnson. up atberg west" is coming 4:30 eastern. coming up, wave of consolidation among health insurers. we will look at a deal announced today and look at some pending deals in the broader market. ♪

alix: more merger news and health care today. boughtnet agreed to be -- the two smaller health

insurers combining ahead of mergers ahead of industry las vegas giants. reporterberg deals joins us for more. this gives them a big presence in medicaid. was it defense of or offensive? it's a bit of both. what they try to see is other people are getting together and talking in a figure if they don't do something, they are going to be so much more than everyone else and could become targets themselves. so it makes sense to get together close to a measure of equals. i think it has elements of that. the five big insurers are still in this merger triangle. do they make a move in for one of them? guest: the only one that would be logical is united, which is the biggest. the reason they might come in is

because united will struggle to buy any of the others because while not the same size, they are much bigger. united could come in and bust this up but they could wait, what the merge go through and then by the combined company which would still be easy to swallow. alix: where are the deals playing out? are still in this very elaborate game of musical chairs that seems to have been going on forever. in thehave talked about last month's health insurance. to the best of our knowledge, edna is still talking to humana and anthem and cigna have had their differences about the social issues, but we understand we are in some discussions. interesting one.

there's some option el-erian terms of what they can do. buy anyone with overlap, particularly with they mayd and him, but yet play a big part in what eventually ends up happening. alix: it's like eharmony for health insurance. thank you so much. next, myself and joe weisenthal will wrap up the trading session and speak to a member of the european parliament who will join us live from athens to talk about the referendum. i think she's going to have some strong words. ♪

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

[closing bell ringing] we've got some cheers there. stocks are falling ahead of greece's referendum. the jobs report fueling doubts about the timing of higher interest rates. joe: the question is, what did you miss? there is a trend going on today. mixed result in today's unemployment number. we dive inside the data. alix: and the countdown to greece's crucial referendum. who do you think will win? joe: and we talked to the ceo about popeyes about food costs and the state of the fried chicken industry. a two dayks snapped winning streak. the dow is still negative for , this5 and for the s&p was the first weekly move of about 1% we saw since