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tv   Market Makers  Bloomberg  July 6, 2015 8:00am-10:01am EDT

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good morning. i am stephanie ruhle. stop thinking about your fourth of july fun, serious business today. matt: i am matt miller. we hear from erik schatzker in athens. stephanie: it was a remarkable weekend for many reasons. fourth of july, my number one holiday. u.s. women's crushing the world cup. and the sunday vote in greece. matt: and the grateful dead. the final shows of their to her. it was crazy, because i was so excited about the greek news in a fascinating way, and then women's soccer was -- blew me away. stephanie: 16 minutes, four goals. i was biking on the reach. i could see every house watching it. an extra married -- an
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extraordinary moment for sports specifically women's. you go, girl. matt: we kick it off with our top stories. those are two of them. the next move may be up to greece after voters rejected more austerity. whatever greece does next, it will happen without yanis varoufakis. he has quit. he says there is a certain preference among european asp among european creditors that he no longer be involved in negotiations. alexis tsipras that the no campaign which received 61% of the vote. he called it a courageous choice . >> today, we celebrate the victory of democracy. from tomorrow, we continue and will complete our national effort on exiting the crisis. the greek people's believe in our own strength and justification we are right. matt: germany and france meet up
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today said decide a common response. greek banks may run out of cash in hours unless the ecb extends another lifeline. stephanie: john kerry's temporary expectations that a nuclear deal with iran is imminent. he said negotiators are not where they should be on the most difficult issue. talks have gone on a record nine straight days. the u.s. says it will only agree to a deal that restricts iran's ability to get nuclear weapons. president obama makes a rare trip to the pentagon today. he wants an update on the fight against islamic militants in the middle east. coalition air forces led by the u.s. launched 38 air raids against islamic state targets. the president is expected to hold a news conference after he hears the progress reports.
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donald is going digital in china. the wall street journal says it will start testing mobile ordering and payment in its chinese markets. sales fell almost 5% in the first quarter in china reports linking the chain with a company that sold expired meat. matt: in soccer, the u.s. became the first three-time winner of the women's world cup. they raised to a 4-0 lead against japan the first 16 minutes with three goals by new jersey native carli lloyd. the final score, u.s. 5 japan to know. the winner avenges loss against japan four years ago. lloyd was named the best player in the tournament. absolutely thrilling. i realized yesterday -- i have
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been watching the whole tournament. i much prefer to watch women's soccer because they do not think injuries as much as the men do. stephanie: they are not the drama queens that men are. matt: men go 'augh he breathed on me. the women just go on with it. abby wambach was hit so many times in the head and she just rolled with it and did not bother stopping to show us her pain. it was great. stephanie: welcome to the real world. women can handle pain. now we take you to the five things you need to know this morning. i especially admired matt miller's honoring women. matt: if they're awesome to watch, i will watch. stephanie: number one, i want it to the u.s. women's soccer there has to be greece. greeks creditors turned up the heat on prime minister alexis tsipras.
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european finance ministers are waiting on a proposal to restart bailout talks. following it is aired -- is erik schatzker. he did miss the fourth of july but he is ok. and i have the ceo of greylock capital partners with me. he understands how to invest in greece. matt: and he is kind of canadian. stephanie: talk is -- talk us through what this vote really means. >> first thing i have to say is that it caught almost all of us outside greece by surprise. our sense was that the yes vote may have had a margin in favor. regardless, it was going to be a close vote. to have this kind of a landslide
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come in for the no to back tsipras caught us by surprise and puts us in uncharted territory. we do not know where it is going. matt: it is interesting this took you by surprise, because you are as close as any non- greek american to be as an insider here. you are the only american in talks with greek creditors. you have owned various great debt. -- greek debt. you have been playing this the entire crisis. >> the one thing about it is unlike 2011 and 2012, the private sector is not at the table. this is an official negotiation. the imf. the institutions. that is part of the problem. when we were negotiating with the greeks, we were negotiating with the eu in effect. here, there are so many different people coming and the negotiations at the last minute.
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there was legitimate frustration on both parts that the targets were always moving. the europeans have a habit of making messy solutions to straightforward problems. iceland, ireland. someone finally called him on and puts a referendum. a it caught a lot of us by surprise. matt: eric, how was in athens during the vote? it looked like the yes was coming ahead a wild. erik: i think i can explain how everyone outside and inside the country got the polls wrong predicting a narrow margin of victory for either side. that is because we thought the comments -- the common sense would prevail. we looked through it or that lens. we thought the greeks would analyze their predicament in
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existential terms. are we in or out of the euro? it seems the government was successful in its efforts to frame the referendum as a yes or no to austerity. i am not surprised. go to 60% of greeks and say if you had to vote in favor or against of more austerity, of course they will say no. no one here likes austerity. it is the 40% who looked at her through a different lens that voted on the yes side. everyone else thought selfishly. stephanie: who was the winner? erik: that remains to be seen. i will put it in these terms. which country gave us the phrase "pyrrhic victory"? greece. greece fought the romans and got such losses that the victory in battle was essentially a defeat.
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the greeks were totally tapped out but the romans had more forces to draw to battle. that is what greece faces now. a victory in name only. -- it is not clear that citrus has any support. if you look at the hard-line position european leaders are taking, it is possible to draw the can region he has a less powerful negotiating hand. matt: hans we were talking about this last night. it seemed that all of us are in -- all of a sudden, we saw the tsipras boldness. they are playing a game of chicken but he is playing better. hans: i was trying to decide whether the guy was really in or create he.
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it is probably some combination of the two. tsipras phuong this -- won this in the short term. the referendum was so generally phrase that there is latitude for the greeks to go back and present the europeans was something more palatable. on a personal basis they may have -- stephanie: erik, do we know about voter turnout? erik: voter turnout was great. something like two thirds of registered voters. further to the point of that, voters who came out effectively were right. that is because they did not think about this in terms of the existential euro question. neither our financial markets this morning. the euro is trading at about 10. treasuries at 2.30%. it is far from armageddon. there are a lot of unanswered
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questions. greek banks may not open tomorrow. there is a slim possibility they will. but people are looking at this and saying it does not look that. it is bad for greece -- erik: but does not -- matt: but it is not look bad for everyone else. stephanie: who was on the other side of the table? >> schaeuble. >> he wanted a temporary exit and maybe bring them back in. i do not know how feasible that is. varoufakis resigning opens a little room but the other side of the table is so offended by the way this has happened, it will be difficult negotiations. stephanie: are you surprised it is not more than armageddon scenario? . people were changing their plans yesterday, saying i have to get back to work tomorrow. >> i am surprised and relieved.
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having armageddon out there would be tough. it reduces the latitude for greeks. this can happen and no one is bombing out italy and spain then europeans will think we can let the greeks go. matt: we appreciate you getting up early this morning for us. erik we will see you again. he will continue to report from athens. hans humes i called him late last night to come in. stephanie: and we appreciate it. we want to talk more about the modest market reaction. i cannot believe we are still doing our top five. number one was really everything. number two is market reaction. funny, we thought we would see so much. funny go that is perhaps -- vonnie: we are waiting for the european response. a 3% move at the open overnight
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in the euro. it bounced back over one dollar 10. we are at a dollar 1005 now. even if we get an all and response from the ecb, the most positive we could get, it may not be. that would mean a balance sheet expansion. a lot of people are waiting. matt: thank you. we want to get more commentary on greece from a famed economist. he called out germany saying the stanzas hypocritical. and then interview with a german newspapers he said when i hear the germans say they maintain a moral standpoint about that and believe they must be repaid i think what a huge joke. germany has never repay its debts and has no standing to lecture other nations. i read the entire interview. it is an interesting concept. you have to compare the greek
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atm crisis with world war ii -- stephanie: that is what an economist can do, because they love nothing more than eerie. they do not have to get tactical. hans has to. matt: germany was flattened. you can easily make the argument they deserved that, but millions died and the entire country was destroyed. that is different than what happened in greece. stephanie: number four, julie hyman has that. julie: we have to talk china. most chinese stocks falling despite support measures over the weekend. more than two stocks dropping from each one that rose, even though overall is the index rose because we saw large estate owned companies on the rise. china next measures smaller companies. it is at 4.5% or so. the attempts system the recent
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declines and markets including the suspension of ipos, central-bank support for marginal trading, and stopped state run financing, but i did not enough -- that did not do enough to believe sentiment in china. stephanie: number five. in case you guys are already at the beach, aetna got a three $5 billion stock and cash for humana. it is the first in expected waves in consolidation and the health care industry. the tie up with and some -- anthem could be the next. a lot going on. it will be a sleepy return after vacation. they should have been on the li a. i was on the garden state parkway. lots of focus on it. matt: i spent some time on it. next, great politician turned traitor talks about he is investing in the latest developments.
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in the u.s., we talk energy. stay with us.
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>> welcome back. i am and schatzker in athens. we have the president of a securities brokerage firm in athens here with me. we have to begin with the obvious. what if the banks do not open? >> i do think they will. >> when will they open? >> after the agreements today. >> when will that be? >> i do not know. until tomorrow evening, we are seeing the meeting of european leaders. then we have to wonder when will this be agreement. when will there be an indication of an agreement going on. erik: what if things stay closed another two weeks? >> it is bad for greeks from every point of view. a negative development. vonnie: is your --
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erik: is your firm doing any business now? >> no. we are related to the platform and are very small in it. securities increase an outside greece, we cannot buy or sell. erik: what kind of hope the you have now that this government with a no victory behind it, can reach a deal with europeans? >> there is the council of political leaders in greece. it seems they are winning about. an agreement that they support europe and the european union or should tsipras be more in power. i believe we will win -- we will show the will that we did not show before. erik: to do what?
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to accept concessions? >> yes. eric how how's that possible. you had a referendum against austerity. >> the question of the referendum was fake. what it means, you want austerity or no austerity? who would say we want austerity? anna: they voted no. let's take this opportunity. give me your prediction. what is the likelihood that greece leaves the eurozone? >> no one wants for greece to leave the eurozone. erik: give me a percentage. >> i believe it would be -- they were be measures to be out austerity. erik: so you think they will be it out. we have to leave it there.
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we will be back in a couple minutes. stay with us.
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stephanie: -- julie: welcome back. with greece voters backing tsipras and rejecting that referendum concern about the economic feature is having an impact. we hit the futurist trifecta. old, oil, and the euro. we are seeing a lot of fluctuation across all three of these. what kind of action do we see in gold? >> good morning.
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what we have seen the last six or seven months is that it is stuck in a range. it is at the lower end of that now. the last two sunday nights, we had trouble in greece but gold failed to rally. there is a lot of pressure on gold because of the dollar and what is going on throughout the world. people want a hard asset and gold is a goodbye here. 1165, 1170, anywhere in this area, i want to be a buyer of gold. what will happen is that all of the stocks will flesh out the system and we see a bigger move in gold. julie: is the turmoil we have seen so far has not given a boost to gold, why will that change? >> people look at gold as the wrong thing. it is not a replacement of currency. it is a commodity. the difference is that it is a
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hard commodity you can hold forever without it losing value. with the overly strong u.s. dollar the last six months and the week is in the euro and other things, it has put pressure on gold. but if you look at it against the euro, it is higher. money will start to flow out of markets. i believe this is a terrific area to start owning gold. julie: we go to oil. oil not just feeling the pain of greece, it is also being affected by china and negotiations with iran. >> did you do something ryan? julie: do you have me todd? it looks like we lost him. we will have to leave the oil and euro discussion for another time. we will talk a lot about those this morning. stephanie: thank you. we have to lead with whatever
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greece does next, it will do it without its controversial finance minister. i am guessing he is on a asked track to the greek islands now. hours after voters back the government and voted known to austerity measures, yanis varoufakis got on his motorcycle and said he is quitting. he says european creditors referred he not be involved in more negotiations. greece will now try to get bailout talks restarted. the greek prime minister called on the ecb to send another lifeline to the country's banks. >> our immediate priority is the speediest real opening of the banks for financial stability. i am sure the ecb understands the humanitarian dimension of this. stephanie: the leaders of germany and france will meet up today to come up with it, and response. and it will be an emergency euro
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summit tomorrow. john kerry is downplaying speculations that a deal on iran's nuclear program is imminent. he said negotiators are still shooting for a deal by tomorrow. >> over the past you days, we have made genuine progress. i want to be absolutely clear with everybody. we are not yet where we need to be. stephanie: the chairman of the senate foreign relations committee warned against rushing into a deal that would be too lenient on iran. the new ceo at rolls-royce is rolling quickly on his second day on the job. warren east cut the outlook. he also halted a share buyback. dimon -- demand has been sluggish for jet engines used on certain airbus planes. the cofounder of a well-known
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natural cosmetics company has died. bert savitz gave his name and his bearded image to birds bees -- burt's bees. he was a beekeeper in maine. burt's bees was bought for $925 million. he was 90. matt: i was just using that lip balm. stephanie: and your lips look fantastic. not chapped at all. matt: will go back to athens to hear from a member of the opposition party on chances for a new deal when they come back. stephanie: and erik schatzker anchors a special our on greece starting at 11:00 today. no grows will be among his guests.
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♪ >> you are looking at a shot from bloomberg headquarters roof cam gazing at the empire state building. a hazy morning in nyc here, but not a lazy one. a ton of news items the cover. greece and focus as they vote no. the state of the country still undecided. we are asking the questions what are left to the countries. who better to answer them and has fair, live in athens, with an empty of the greek new democracy party. erik: thank you. this is a member of the leading opposition party. this lady is as american as she is great educated and now in
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parliament in athens. thank you for being here. 61% know, how did that happen? >> people bought that they were voting for or against austerity. that was the way they received it. to the extent that capital controls inspire fear and they were standing in line, they believed mr. tsipras. he told them this is not about our future in europe. he said i will have a deal in 48 hours and the banks will be open tomorrow. as -- taking that as a guarantee, they voted against austerity. the majority of people do want to be in europe. erik: more than 80%. so what happens tomorrow? do the banks? open? >> it looks like he will try to
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negotiate a deal. i do not think the banks will open. erik: tsipras's party has frozen on the opposition to help reach a deal with creditors. what i continue? >> i do not know. we have said we need to get a deal done. things are getting worse and worse. we have called for some sort of talks that have been. that is when he had 40% of the elections. now he has 60% and the referendum and all of a sudden he wants to talk? erik: he may want to talk because -- practically speaking, what kind of role does the opposition half after this repudiation over the weekend? >> the important thing is to keep greece in the eurozone. that has always been important for us. to the extent that we can have
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positive constitutions in that sense, we are happy to do it. but we have a different conception of what this deal should look like. erik: what is an acceptable trade-off with the europeans? >> it should look like less taxes on the private sector and less spending cuts and more reform. and now it that has become an issue. when you talk about economy in recession, you have to talk about debt viability. it was not a big deal a couple months ago but it will have to be on the deal now. erik: you know your political opponents here better than europeans well. what kind of posture are they sitting with the negotiating table with? >> i do not know. this is the big question about mr. tsipras. erik: will be be as aggressive as last week? >> at -- that depends on what
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mr. tsipras once. if he wants national unity, he has to listen to us as well. erik: where do you think he will get compromise -- accept a compromise? >> he won some sort of debt relief -- iran erik: that is asking europe to move first. what is the likelihood that will happen? >> i do not know. i want europe to respond positively to the fact that greeks want to stay in the eurozone, but i understand that and national unity coming first we want to help greece. erik: who will take over leadership of the opposition? >> that is not something to be discussed today. we have to see where we are going. we have to figure out what is going on. what we have a deal or are we going to leave the eurozone? erik: the leader of the party was not the only person to resign.
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yanis varoufakis also did. who will be the next finance minister? >> that is mr. tsipras's responsibility. erik: who even would do a good job? >> i will not judge his people. he will have to. it is his responsibility to bring a deal home, like he promised the greek people and keep us safe. he should choose a finance minister who will do that and keep us in the eurozone. i do not care what his name is, i care if he will do that. erik: thank you. back to you from athens a perspective from the political opposition, invaluable at this questionable time. stephanie: what is invited to me is erik schatzker's greek pronunciation. on point. matt: some interesting things have rolled across my bloomberg terminal, including the fact that a greek government official
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who does not want to be named says that tsipras spoke with angela merkel on the phone and agreed to present the greek government's plan at the tuesday summit. in keeping with his promise to the greek people, he will deliver a plan within 48 hours. the question is will a germany and the eu agree with this. wall street analysts are split almost 50-50. stephanie: wall street loves to kick cans. they do not actually care about a resolution. they just need the beat to keep going on, even though we see a situation where we do not see how things will happen. from a greek government perspective, this kind of outcome has the potential to be better because there could actually be resolution. wall street does not care if there is a resolution, they want
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things to keep rolling. matt: vladimir putin cares. he apparently spoke with tsipras. he wanted to express his support to the people of greece and he urged eu creditors to come to an agreement. we are taking a break from greece. when we come back, one analyst says that sentiment on oil services has shifted to bar bearish. we find out why he is taken the other side of that that, next.
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>> coming up in the next hour, the cio of oppenheimer funds will join us at the open to discuss what is moving markets most and to share investor perspective on the greek referendum. that is at 9:30 a.m. matt: investors have become too bearish on oil. our next test says not so fast,
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because activity will pick up. he is taken the opposite side of the north american energy trade. james west, senior managing director derek covering the oil and services and drilling industries. thank you for coming. it seems that everyone is harris -- bearish. we see 4% underweight holding on institutional investors. 11% on hedge funds. people talking about oil not coming back. using the prices will come back. >> our view is supply and north america, internationally, and demand. we think north american production will roll over in the second half of this year. the started about 9 billion barrels per day. internationally, we see places like russia and parts of africa and south east asia.
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demand has been increasing significantly in the u.s. and china. demand has gone up to 1.5 million barrels a day of demand growth. stephanie: what are you in the minority. why has investor sentiment shifted so far? >> number one is the absolute collapse we saw last year. part of it was lack of opec cohesion and the oversupply in the market. and there is a dogmatic view and the marketplace that we only need 1000 race in the u.s. to support the market. that is wrong. we see a recovery starting in the north american markets. matt: when you see the price of oil coming with that three-pronged back into your bullet? >> $75 per barrel by the end of this year. stephanie: wei du prices need to
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be to create a tipping point in investor sentiment? >> around $10. we have lost around seven dollars in the past few week -- in the past few weeks. you have tech and health care doing fine. investors are saying i do not worry about energy. matt: cedi a $10 redone and the stock side. what about the industry? where do investors need to be to say i start to put more wells in the ground? >> i think we are there. 60 on wti. mid-60's the high 60's on brent. we're at those levels. we have been bouncing around at the last few months. we have already seen activity pickup in the u.s. a couple rigs out at last week. stephanie: let's say we believe you. what names are you most bullish on? >> halliburton.
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followed by baker hughes. a 10% discount out halliburton. persistent drilling. pressure congress. cmj energy services. stephanie: what kind of time horizon what you need? >> six months. you will see a massive pickup in these in the next six months. matt: interesting stuff. i have noted how bears people are. it has an effect on everything, from rick1 count to the political situation around the world. it seems no one is trying to stray. >> we were bearish in february. it went all the way up to the high 60's from 50, brent. we have gone back and forth to being bearish to bullish. we are back in the heiress camp.
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i am comfortable being in the non-consensus. stephanie: guess who also is bullish. t-boned begins -- t boone pickens. more to come on "market makers." a nasty crash in daytona is not the only thing fans are talking about.
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>> margaret said to open. analysts rushing to see if ecb will continue to provide greek banks with eight or not. julie hyman joins us with the analyst action. stephanie: please tell us there is serious action. people are mad. they came from the beach early and the markets are not reacting much.
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julie: analysts are trying to puzzle this out and figure out what happens next. we took this chart from deutsche bank looking at the risk of political contagion. political contagion will be a part of this. it looks at the percent support for populist parties. the higher up on the graphic the higher support for populist parties. this is the timeline of upcoming elections. upcoming elections in ireland, portugal, italy, and france. in the greek elections we are at he had. you are looking at some popular support. the high is going to be in italy, according to deutsche bank. but deutsche bank says there is not a huge amount of risk of contagion on that front. political contagion. the idea that you can go out of the euro and then go back in.
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that idea will not exactly be risky throughout the eurozone. an interesting thought there. this chart stood out to us as an interesting look at what will happen politically. i turned back to stocks. oppenheimer is looking at these stocks driving under performance in each of the s&p 500 sectors. he has getting those as sell ideas this morning. we have freeport mcmoran and copper gold. coca-cola. transocean. you can see what these stocks are doing. qualcomm and merck. moving on to utilities, first energy. jacobs engineering. these are not being affected now by these calls. interesting that he is looking at group and looking at the worst performers. matt: thank you. we take a look at some of the
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most compelling images this morning. you have probably heard that the usa women's team won the world cup last night. i hope you watched it because it was awesome. check this out. carli lloyd hat trick. she scored three goals in 16 minutes. the third was all the way back from half field. absolutely sick. stephanie: outstanding. matt: the first ever hat trick in the woman's world cup final history and the second in general, including the men's. seven goals and the match another record. i felt bad for the japanese goalie. she was kaiser and -- she was crying. stephanie: i do not feel bad for the fisa officials. -- fifa officials. people said there would be a dark cloud hanging over soccer
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but last night was about extramarital -- extraordinary play and teamwork. take a look at this. a nasty accident during the last lot of the daytona. just as dale are part junior sailed across the finish line, a left 13 fans and austin dillon injured. speaking of fans some took the chance to weigh the confederate flags. nascar did not abandon but they asked fans to not fly it. fans flew and an aggressive way. we have not heard a statement from nascar yet. nascar has more corporate sponsors than any other sport. if their fans are bigger and we have realized, we may hear from the likes of sprint, coca-cola and take america. it is a hot topic.
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we will be back in a few.
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>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. matt: good monday morning. i am matt miller in for erik schatzker. he is in athens. we are going to hear more from him there. we're going to talk tech with rbc capital markets managing director at getting his best bets for 2015. worst, our top stories. greece's creditors are turning up the heat of prime minister alexis tsipras. a day after voters overwhelmingly rejected more austerity measures, european finance ministers want tsipras
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to come out the plan to stay in the euro. they are expecting him to do that tomorrow and an emergency summit of european should does european officials are not hiding their unhappiness over the greek vote. >> than negative outcome of the referendum certainly is complicating things. it is creating a wider gap between greece and other eurozone countries and makes reaching an agreement more complicated. matt: degrees finance minister has quit, saying critic or's do not want him in -- saying creditors do not want him involved in the negotiations -- greece's finance minister has quit. president obama making a rare trip to the pentagon, expected to hold a news conference. over the weekend, the u.s.-led coalition launched more than three dozen airplanes against i.s. targets. a big acquisition and the health insurance industry is putting pressure on others to make their own deals. on friday, aetna agreed to pay
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$35 billion in cash and stock for humana. it may be the start of a consolidation wave for the biggest committees in the industry. anthem's proposed takeover of cigna could be next geared cigna rejected a bid last month. both companies are said to be interested in humana. pro basketball players are ready to get more legroom on airplane flights -- they already get more legroom, now they will get even more. delta airlines has a tentative agreement with the nba to build 20 planes for the 37 teams. the will be on was 50% more cabin the average nba player is 6'7", and normal airline seats are built for people who are 5'3" here doesn't your top headlines. stephanie: normal airline seats are made for people that are 5'3"? that is the first time in my life, unless i was in some sort of little person tally, that i'm considered taller than average.
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i appreciate that for once in my life 5'4" and three quarters is considered above average. in players, really tall. matt: and airlines just packed those seats in. no room at all, even on big long flights. stephanie: ok. you you would have to take a big, long flight 2 -- greece like that transition? the eu puts pressure on greek prime minister alexis tsipras spirit how much can the country's economy really take? let's bring in erik schatzker. he is in athens with a former greek minister. erik: yes also a former eu commissioner. ana, thank you for spending time with us here. it is now up to mr. tsipras to find negotiating room with his
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european creditors. what is going to happen? ana: after the referendum and the problems it created the question was not clear as we know very well. after the final result, now we think tsipras has the responsible in the on his shoulders. i believe the only way out now is to propose here in greece and national postal, which will be accepted by the other leaders -- and national proposal which will be realistic, taking into account the reality not only in greece but in europe, as well. erik: you know mr. tsipras and his party. you know the power that brought him into office in january which we affirmed his leadership -- which reaffirmed his leadership over the course of the weekend. how likely is it that he will
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present an offer that needs the approval of all partners concern? anna: we have to keep in mind that sziriza as a child of the crisis, so the crisis can shoulder a problem like this we know very well that the situation is deteriorating day by day. to be frank with your question from what we have seen until now, i cannot be very optimistic. on the other side there is no other way out. matt: you have heard the comments coming out of rustles and out of berlin today. they do not suggest that there is much of an opportunity to compromise. you know this institution the eu. what should we expect? anna: i have seen everything today. it is extremely difficult.
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but i believe that everybody has to take into account the greek people. they cannot be a victim of the government. so there are some rules that we have to respect. but according to these rules the greek government can put on the table one proposal. this is the last opportunity that mr. tsipras has. erik: how do the greek people respond if mr. tsipras cannot live up to his promise and open the banks tomorrow? what happens? anna: i think that there will be an understanding. because now -- [indiscernible] it is the enemy against greece. erik: how long does this understanding last? anna: not very long. this is why i told you this
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country and the way they behave is the child of the crisis. people were in despair because of a failure of the previous program and the previous government. and they have nothing to believe in. erik: is it possible that the no-viote actually turns out to put grease on the passive something better? anna: unfortunately, because it is the decision of the greek people, i believe that things will be worse. what i believe is not to have the final catastrophe, because this would be a catastrophe for many. greece is in a difficult position. it is in the middle of the middle east crisis.
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there is no stability. for greece, the european field is a must. erik: anna thank you very much be a she is a former minister in previous governments and also a former commissioner with the eu, here with me in athens. back to new york city and stephanie: thank you very much erik schatzker. matt: six months ago, he said to buy netflix. if you had you would be up more than 90% year to date. what is an analyst recommending now? find out next, only on "market makers." ♪
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matt: welcome back. we are going to continue our focus on greece, obviously. in the last view hours, new headlines come across the terminal as greek voters rejected bailout voters
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yesterday. joe weisenthal is in athens outside the finance ministry. hans nichols is an berlin. joe, what are you seeing on the ground? what is it like on the streets of athens the day after the no vote? joe: this area behind me in front of the finance ministry was ground zero for the world media a little while ago. there was a resignation this morning, and everybody was waiting for him to come out. it has cleared out a little bit but what happens with his position is one of the huge stories of the day. stephanie: those people you are speaking to on the ground, i am assuming many of whom voted what are they telling you? what are they feeling today? what do they want? joe: the big anxiety leading up to the vote was not even the vote itself but what happens with the banks. i talked to people on both sides. everyone hopes for a better
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deal. very few of the no voters are actually thinking they want to leave the eurozone or anything like that. even ahead of the talk, it was all about, when will the banks reopened, and what will they look like? that is clearly dominating a lot of the anxiety right now. matt: hans what are the chances that tsipras will get more ela to open those banks and give the people their money when you have german finance minister wolfgang schaeuble taking a very hard line? hans: one, we have not heard from wolfgang schaeuble yet. we will hear from him and about one hour. in some ways, the ela, the likely outcome is the status quo. we do not have a major decision by the ecb. it will go to the policy makers spirit one of the reasons to be pessimistic today, and there are a lot of them, but one of them is just the level of despair
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among social democrats in germany. this is the minority party in germany, and the coalition government. they're typically a little more sympathetic toward the greece position. we just are the vice chancellor say he is basically depressed. you listen to him talk about just how complicated it will be to get a third bailout package. that 2012 debt restructuring that was on the table, that has been taken off the table. you have to have a memorandum of understanding and a variety of legal technicalities that need to be met in order to get a third ballot package. leaving aside the substance of a package, the technicalities are going to be exceedingly difficult. it is difficult to see how you can do that in 24 or 48 hours the for something has to give. stephanie: joe? joe: yeah, what heinz is saying is absolutely right -- what hans
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is saying is absolutely right. there are a lot of factors are one factor seems to be that yanis varoufakis did not have much of a relationship anymore with partners. people felt alienated. he also alienated a lot of people within the government, so he was basically left alone. i want to show you the cover of this newspaper that has the eurogroup president looking shots at the results. obviously, that is not him responding to the results. it represents that this is a country where people are acutely aware of foreign finance ministers and the people who have been basically overseeing the greek bailout and the greek economy for the last several years. it is a unique thing. i do not think there are too many countries or people with no foreign finance ministers by their face on the cover of newspapers. matt: it is fascinating. there are probably not a lot of americans who would recognize someone like that. stephanie: thank you to joe weisenthal here at he joins us
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from athens. and hans nichols in berlin. this is a morning where, for me, i want to have a bloomberg terminal. bloomberg -- stay with us for more after the break. ♪
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matt: amazon, netflix, and facebook, those were top tech analyst mark mahaney's best bets for 2015. if you followed him, you would be looking at gains of two over 90%, depending on the stuck it if you not follow him is it too late? i do not think soap you are in martin a haney is with us from san francisco. -- mark mahaney is with us from san francisco. thank you for joining us.
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first of all, let me get your thoughts on the company's that you did recommend, especially those with huge gains. is it time to ease out of those or cans of the like netflix continue to power forward? mark: the setup is different at the beginning of the year than it is now. you had a sector that was largely oversold. we thought we had some stocks that were trough levels in terms of valuations. amazon, netflix, google, even priceline. that has changed. we think the gains are much more modest now than back then. netflix and amazon, we think there is still modest upside in both of them are netflix, some to the tune of around $700. amazon still has a little more controversy, so little more upside, $550 or people still underestimate the earnings power of the retail business. stephanie: how about facebook? it has been a big win, but is that slowing down? mark: that is one i want to
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highlight. for what it is worth, we started the year with that as our number three cake. we actually made it our number two take. if you look at how the stock has traded, over the last cordial month, it has been flat. it has only wizardly broken out. we think there are good reasons it and break appeared we think there is 30% upside. we are now entering in a place or video advertising is becoming material to facebook. they're just 30 to ramp up modernization of this asset called instagram. the more interesting fundamentals of the three stocks may be facebook. they're starting to rain in their investment spending. you have these two new revenue streams, video advertising and instagram. matt: what else do you like besides these three names? netflix and amazon have been killer here at amazon has been a good play for a long time.
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facebook i can hear your optimism. other than the household names, what do you like in tech? mark: i will tell you what we do not like it we do not like it we're cautious on names like twitter and yahoo! twitter is a business that needs to improve a lot of things to users and advertisers. yahoo! the valuation looks attractive, but the chances of financial turnaround with that company the longer we go without major trends in the -- acquisitions, the chances get smaller and smaller. we like two of the travel names, expedia and priceline. expedia has had a great run your day both trade at a small modest premium. they have good sustainable earnings growth, as high as 25%. it is probably not fully reflected. of the two, our preference is
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rice line. stephanie: any other social media platforms with a lot of money to spend -- other takeout target, possible acquisitions you're looking at that these committees could be looking at? mark: probably one of the two or three biggest trends in the internet space, maybe the technology space today increasing levels of m&a. we had a series of companies get acquired, expedia for orbitz priceline for opentable. aol got acquired by verizon. you have more cash. you have to assume there are other acquisitions. the small-cap space seems like one of the most likely takeouts. matt: thank you for joining us. appreciate your time. mark mahaney, rbc. a quick break. ♪
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stephanie: welcome back. we are just a fear minutes from the opening bell in the u.s. but here are the three things you need to be looking at today in terms of the markets. let's bring in tracy alloway and
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she joins us with oppenheimer funds chief investment officer krishna memani. tracy, welcome back. we have not seen you in a few days. tracy: let's talk about the greek thanks, today is a huge, huge deal for the greek banks and for the european central bank. we have had a week of capital controls. money has still been flowing out of the system. citibank analyst estimate as much as 250 million euros have been leaving atm's per day in greece, which means the greek banks would run out of cash by the middle of next week if it continues. that means the emergency funding provided by the ecb becomes very important. they have to make a decision about that some time today. under normal suburban senses -- normal circumstances, that would be the last resort of good
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collateral. greek banks do not have good collateral left. matt: what do you think memani? stephanie: did you call him memani? matt: sorry -- krishna. krishna: i think they will keep the ela at the current level. they cannot increase it. it is tough to do politically. choking greece down does not make sense. they will leave it alone. tracy: second train wreck in markets today comes from china the security regulator said last night they would uphold market stability by providing liquidity, creating an entity with $19 billion worth of financing for stocks. unfortunately though some of those measures are kind of falling flat in the markets. the shanghai deposit finished about 2% up today, i believe. matt: a were of 9% at one point
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at the beginning of the day -- they were up 9% at one point. a $7 trillion market -- so much volatility. it is insane. stephanie: would you call this the second train i come the day? krishna: china has been slowing for some time. chinese regulators want it to go back. it will not happen. the economy is slowing. the markets are going to correct. they have to take the markets there due course. tracy: something china could do full on qe. we will see if that happens. krishna: i think tenney's policy makers need to do a lot to support the economytracy: i searched high and low for stuff moving in the market and investing i could find was
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crude oil. it is down below $60 a barrel for the first time since april. there is worry in china. it is interesting that the market reaction has been this muted. the euro is down 1%. people seem to be taking this all in stride. stephanie: why is that? krishna: we have been preparing for it for quite some time since 2010 or 2011. ecb is out there trying to protect. they have been planning for this for quite some time. policymakers remain supporting the markets. we will be ok. matt: we have gotten a couple complaints from people who said too much greece this morning, by don't care. it is an incredible drama. really exciting to watch these historical events unfold. krishna: absolutely.
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stephanie: does that mean they are so exciting to watch unfold from a historical view or from a market point of view? the markets don't seem to be responding. matt: today. tracy: tomorrow could be grexit day. stephanie: you are wiping out all of my vacation time today. tracy: you can still go to athens. stephanie: that's true. matt: the ela is adding up and adding. at some point the ecb will have $100 billion hole that it will have to collect from spain, france, and holland. that will be a lot more than handing greece $7 billion or $8 billion. i thinkkrishna: i think the greek banks that's we will find out which way we will go. if they fold we are in deep trouble.
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in the interim, the greek government can issue iou's to measure they provide liquidity in the markets. we have a week or two to what's the situation. stephanie: thank you and welcome back. i want to bring in our senior marcus responded julie hyman. novell has run -- the bell has rung. what stocks have moved? julie: it is red. we are seeing stocks pull back overall. not a huge decline but worth mentioning we are seeing red on the screen. it is difficult to draw the direct line from greece to some individual movers. there are two we have been watching regularly since the saga began. one of them is the greek etf. that are down another 10% today. national bank of greece is down
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17%. it hasn't been a straight line downward for nbg since this began. it is down 27% since the close on june 25 that is including the drop today. the underlying markets are closed in greece. there are still some trading as a proxy as a method of price discovery while the underlying assets are closed. these are showing you at least in one measure where investors are pricing greek assets right now. we can see definitely deeper drops there. on friday, the the big deal finally happened. it is at humana -- aetna and humana. it finally closed.
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$35 billion. humana shares are up slightly because it has been rising so much. since we saw weight, the new york post is reporting an activist hedge fund is getting involved in pushing it to sell itself. the company is majority owned by a luxembourg-based firm. looks like they would have to be on board as well. matt: will have to get involved with weight watchers after this weekend. stephanie: you are involved with the bloomberg tv fitness challenged. you have a chance to make it happen with or without weight watchers. thank you so much for giving us the latest. krishna: is a chief investment officer of oppenheimer funds. we are not seeing as much of a market reaction on greece today as we expected. is there any chance that is a buying opportunity? krishna: if there is a significant correction, there would be a significant buying opportunity. i'll think that is
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happening in the market. matt: here in the u.s. we see big drops continuing in europe. we are down 2% pretty much across the board. krishna: yes, by think risks in europe are higher as well. at the end of the day for medium-term investors, this is a buying opportunity rather than a selling opportunity. policymakers are supporting the market. in the environment, equities probably end up doing well after the great, is over -- the greek drama is over. matt: siemens is down 14% over the last three months. this is one great example of a company that even if there are issues in europe, it operates locally, so it is kind -- it operates globally so it is kind of a discount. krishna: absolutely. a change in the direction of the prospect is probably the highest of anybody in the world.
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i think european companies are great buyers. finding great companies like siemens one should be looking at those types of opportunities today. matt: cool. stephanie: awesome. matt: rose-colored each other last names -- bros call each other last names. julie was talking about health insurers consolidating. we are taking a closer look at a $35 billion deal over the weekend and why there could be an even bigger deal on the horizon. stay with us on "market makers." ♪
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matt: we are back here on "market makers" and looking for any market reaction to greece. we don't see a huge connection, but we do see red across the board here. maybe we are not looking hard enough for the connection. dow jones touching a five-month low just 10 minutes into training. i don't see how you don't draw a line between this and what is happening in greece. stephanie: there is without a doubt a line. a no vote does not give greece better negotiating hand. over the next few days, we could see some really negative news. germany could tell greece to stick it. a no vote does not necessarily mean cyprus will walk in with more strength. if they don't, spain portugal,
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other peripheral countries to do the same thing and want to renegotiate. matt: either the european side is bluffing and they are not willing to lose a lot money because they would lose a lot money. every country in europe would have to pay up to fill the ecb holes the greece defaults and leaves. that is where this noble essentially is. this is tsipras calling the europe's bluff. maybe all of the euro area finance ministers have gotten it through the head that this will have to happen and we will throw them out. stephanie: maybe the question they will answer is do they take the pain now or later? until now this global can kicking is not helping anyone. it is giving current politicians and eu officials in their jobs
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namibia takes the conviction of the german say i will punch you in the face of today. matt: kicking the can, the markets do not have a problem with that. stephanie: maybe this should be about markets. maybe this should be about the health of the actual european economy, specifically greeks. not have hedge fund managers. matt: amen. stephanie: we will talk about something else wall street like mergers. aetna has agreed to buy humana and a $35 billion deal. that is likely to put pressure on cigna and other insurers to a deal of their own. would have been following this tangled web of potential takeovers from the beginning. no fireworks or parties for the insurers this weekend. they were working overtime. >> they were. this one felt like it has been dragged out
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. with have been reporting on this for weeks and weeks and weeks. stephanie: it is cooler to report from athens than hartford connecticut. ed: this is the one that made sense. the humanity always want everyone has been looking out for a while. humana wanted to sell itself. matt: it didn't want to sell itself to anthem. something fell apart there. ed: we think the conversation was always much closer with aetna. for whatever reason and we haven't gotten to the bottom of this, it looked like it almost came unstuck last week. they got back to the table and managed to agree and they announced early friday morning. matt: cigna doesn't want to sell itself to anthem or maybe it is holding out for more money. ed: this is the fascinating one. we have not seen this often in
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deals. cigna has said it will sell itself to anthem at the price that has been agreed. it like the price and structure. the problem is social issues. you have two chief executives that want to control the combined company both saying i am the chief executive here and i should be the one running this. they can't seem to agree on that. until they do -- stephanie: why is that? is it about senior executives that want to keep your senior management post? ed: i think it is about ego. matt: it could be that each one of those men believes he is the better representative. stephanie: i am sure he does. much of that is fueled by his ego. it is unfortunate given how important this industry is, how much it is needed by the country and americans. ed: if i am a shareholder in
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cigna, you have had decent premiums with the company. they seem to be happy with the price and structure. these two guys cannot seem to agree on a management structure that suits them all or is sufficient to give the eagles what they want. -- egos where they want. like it they do something when they split that's why can't they do something where they split roles. hopefully they reach some agreement there. matt: both agents of the owners of the companies and hopefully they make the best decision in the agent's interest. ed: good to see you. matt: as greece says no to more austerity, how are conductors reacting? erik schatzker is in athens. erik: he is a former investment banker at lehman brothers, a man who ran for president in greece unsuccessfully but is an active member of a party that runs the banking and finance committee.
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great to see you. >> great to see you. erik: members of parliament, former members of parliament are afraid to tell me the truth. is the referendum we saw this weekend a lehman moment for this country? >> maybe it is but the analogy is not a lehman moment because that was a global moment. this is only for greece. i think the 61% majority that was given would give the perfect pretext for the europeans to say you voted yourselves against europe, no matter what the interpretation is. erik: everyone knew that letting lehman's failed would have consequences. nobody knew how bad the consequences could be. is that the situation we face here? andreas: lehman was a surprise. no one was expecting lehman to
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go down. everyone expecting it to be saved. here in greece, we have a protected was all for five years. -- protected resolve for five years. the market is not reacting to the worst possible news. bad news is good news for the market. people expect draghi to come in and throw more in. erik: what happens here? andreas: we are witnessing a downward path. erik: to what though? mohamed el-erian says this country is on its way to becoming a failed state. andreas: it is too harsh. it is on its way to a huge hardship. maybe we will see the next european meeting will be about humanitarian aid to greece rather than aid for a package. erik: how does that take shape? the ecb is not humanitarian and
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titian. -- humanitarian institution?. andreas: the ecb is not a political organization to give money for nothing. they give money with respect to the value. the greek guarantees are up in the air because the backs of gun bankrupt -- the banks have gone bankrupt. they are waiting for the politicians to come to some sort of agreement. the ecb itself cannot make a decision to support a country. erik: how long does it take before these banks are open again? andreas: depends what you mean by open. opening with capital control? if there is a deal within a few days, they could reopen with business other than withdrawing
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more than 60 or 70 euros. erik: what does that mean? andreas: they might reopen with another currency. erik: when? andreas: that may take some time. erik: what will happen to the economy in the meantime? these are practical possibilities. andreas: this is an economy in free fall. greece is a cash-based economy. there is to go around. the velocity of money has ran down to a halt. erik: help people out of his country to understand what that means. what is immediate is in a freefall and is a cash economy because there is no money owing around? that going around? andreas: businesses are not buying -- if you want to pay with a credit card, most small businesses do not accept it credit cards.
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i went to a shop today to buy some coffee. coffee will become scarce because it is important after a few days. this is an economy that has more than 60% reliance. once these are cut down, you will have -- everywhere. erik: thank you so much. he is the former lehman bankers brother painting a dark vision for greece faces in the next several if there is no deal with the european creditors. back to you. stephanie: thank you. we will keep our focus overseas. heading east, chinese stocks remain volatile today despite dramatic moves to support the market. the shanghai composite did and in positive territory. by the close markets and gain -- china is making more capital available
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for margin lending. the nation's largest brokerages would step in and buy stocks. at least 20 companies are putting ipos on hold. let's bring in michael. joins us now. you analyze buying and selling all over the world. i love what matt talks about the shanghai composite index and how we are seeing an entire index most move like a penny stock. from your perspective, what does this mean? >> the chinese market has a lot of retail component to the day-to-day volume. we have seen fear driving this market. we should also take a step back. the market did double in the last years of the market has been doing well. we have seen capital being to the sidelines or more globally to treasuries. we are in a perfect song with greece right now.
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matt: it is amazing to me. this is a $7.7 trillion market. so massive. we have seen in lots of $2.5 trillion in the past month. taking along the loss with this marketing the fourth biggest market in the world, is there an explanation of that kind of volatility? is a dangerous to have that kind of volatility in the market is? myles: i am not sure dangerous is the right word to use. it is disconcerting when you see the indices moving. one of the things we are seeing is it seems to be some larger oil stocks benefiting where the smaller stocks are feeling quite a bit of hurt.
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matt: the big state-owned companies that had seen buyers from somewhere. it was the small to midsize companies taking a hit today. myles: the smaller ones do not tend to have as much liquidity, so you will see more volatility. i think it is the overwhelming concern that what is the underlying strength in the economy right now? it seems to have stabilized from the data recently, but there is still concern about that. stephanie: there is so much psychological perspective. what do investors need to see? there seems to be some stability. if you look at the swings we have seen, many of us are simply saying we are not negative or positive and we will sit on the sidelines. myles: from what we are hearing
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it is close to a downside in the market. given the huge correction and the bear market down 20% in a short time periods. the worst is passed as. -- past us. we continue to see things to stimulate the economy. a lot of these things tend to be more putting a patch on something, so not necessarily that it is a more near-term solution. matt: a lot of times you need to take your focus off of just the financial markets and look at the underlying issue. looking at the economy, not that we think that will actually happen. the u.s. congress can do it. stephanie: hedge fund managers
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and daily liquidity don't do it. matt: those guys are looking at only the markets. you expect the fed to be more worried about the underlying economy and not take cues from the start market. stephanie: the argument is real investors should not just look at the market. they should look at fundamentals and have long-term views. that would get us out of the situation that we have seen in the last year with those dependent on liquidity or daily news. that is not really investing. that is trading. matt: i can hear you preach all tday. exports update -- a sports update that does not have to do with women's soccer. it was sister versus sister today. serena williams be venus williams 6-4, 6-3 to advance to the quarterfinals. both sisters have won
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wimbledon five times a piece. serena is on track for a grand slam. she won the australian and french opens this year. has she won a serena slam? stephanie: she has already. they have extraordinary acknowledgments under their belt. does it mean venus is ticked off right now? i am sure she is. we will be back, but not with me. i will see you tomorrow. ♪
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to wow! only at a sleep number store. right now, save $300 to $700 on select mattress sets, plus 36-month special financing. ends monday! know better sleep with sleep number. >> good morning everyone. it is 10:00 a.m. here in new york city. matt: welcome to the bloomberg market day. >> history in greece.
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a no vote gives more negotiating power by european creditors say they are still in no mood to compromise. matt: market reaction has been fairly immune. investors on both sides of the atlantic seem optimistic that even after a great exit that even a greek exit can be contained. >> consolidation arrives for health insurers. aetna is buying humana for $35 billion. this could be a trait mega health care deals. good morning, i am olivia sterns. matt: we have some breaking economic news. we will head out to julie hyman at the breaking news that's. julie:

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