." i'm stephanie ruhle. matt: i matt miller. erik schatzker is on his way back from greece. stephanie: in this hour, we would take you on a world tour. matt: companies mentioned include apple, disney, ibm, samsung, and starbucks, so stay tuned for a packed hour of news. stephanie: we have a lot going on. i want to kick it off with the top news stories of the hour. european leaders are running out of patience with greece. i will say that is an understatement. alexis tsipras is in brussels today for a eurozone summit. it is a last-ditch attempt for him to get a lifeline from europe and keep greece in the euro. angela merkel says time is running out. >> we have shown much solidarity with greece. our last offer in the

negotiations was a generous offer. on the other hand, in these times of challenges, the refugees or terrorism, europe and only be strong in every country has results ability. stephanie: european leaders have to decide. those negotiation's over iran's nuclear program have been extended yet again. john kerry and his iranian counterpart held talks in vienna until early today. the u.s. and other powers want to stop iran from building nuclear weapons. in return, they will use economic sanctions. matt: samsung came up short in the second quarter. earnings were made estimate. a big reason was lackluster sales of the new phones. we have more from hong kong. >> all the hype of the s6 failed

to meet market expectations. it wasn't so much demand, but a supply issue with the edge model and the one-of-a-kind curved screen. constraints lead to shortages. sales dropped nearly 9% from a year ago. profit was down 4%. samsung still struggling to win back customers who switched from the iphone 6. they are losing to smartphone makers in china in the low-end segment. the chip business is still booming with income coming in at $2.8 billion, about two times bigger than three years ago. matt: earlier this year, samsung regain an old customer. the main chip in the next model of the iphone. amd said second quarter sales decline more than originally forecast. the reason was weak consumer demand for personal computers. the pc industry is failing to leewardlure people away from

smartphones tablets. do you know anyone who has bought a pc? stephanie: markets don't even know what that is. we have a public service announcement. i feel pretty good doing this because i have been insulted or for having budget passwords. this takes it to a whole new level. do not give callers your passwords, especially if you are a cfo. the cfo and one company in london got scammed by a caller permitting to be from the bank. he gave the caller security codes. the caller stole $1.2 million. the cfo was fired and is now being sued by the firm. those are your top headlines. we just have to take a be together -- they beata beat again.

i have been known to forget a password or two but are you kidding me? a random person calls on the phone and you are giving passwords? what? matt: that is nuts. i don't even know my password. i just click on forgot password every time. the top things you need to know this morning. stephanie: i will give you number one. key meetings in brussels today on the future of greece. in a last-ditch attempt to secure a rescue from european leaders great prime minister alexis tsipras has shown up and is making the case in belgium today. that is where we find our own international correspondent hans nichols. these meetings into context. finance ministers are altogether. the red carpet, the circumstance.

they are speaking right now. what is actually happening besides wasting a whole lot of governmental dollars over something that should have been resolved long ago? hans: what is happening right now is we have the meeting going on in the new greek finance minister is offering his plan. know what heading into the meeting said they had seen the plan. this is what greece will propose to somehow get their banks back online, get everything back in order. we don't know what is in the plan. no one was optimistic heading into it. the dutch finance minister and president of the eurogroup did not seem to that optimistic. >> basically the old proposals have been rejected by the greek evil people and we will have to take it from there. it will be difficult. we will get new proposals from the greek government.

hopefully we will see if they are credible and if there could be a way out. hans: over the weekend in greece, we had remarkable language. we had one called the creditors terrorists. this started off this morning with the president of the european commission basically asking or an apology, saying it is an accessible to be called terrorists. we are at the apology and make a paste. they will go into meetings. that we have the leaders go in. stephanie: on a second -- hold on a second. apology make up phase two days after the referendum? if it had worked out, he would be pounding his chest saying how do you like you knonow? hans: it didn't work out for mr. suppresstsipras. stephanie: what is he apologizing for? hans: some of the language and

rhetoric. he said terrorism. we are at this you have to take it back stage. to put it into prep school talk so matt miller can understand, they have to take it back. matt: one of the things i understand after living in germany for a long time is that everyone in the country reads a paper and today i had a great picture of angela merkel with they were helmet that said do not give greece even one million euros more. how much does that swing opinion you think? hans: i think they are following their readers not necessarily directing the readers. they are looking for eyeballs. they have tapped into some eyeballs widespread in germany

which is frustration with greece asking for money while not meeting demands asked of them. arei am glad you did not mention the pictures inside of bild. we know what kind of pictures they have inside. stephanie: that is why we ask for them. our own hans nichols knowing exactly what matt and i are interested in. matt: we are also interested in chinese stocks because they have been tanking lately. they are down again today. companies entered a bear market. the chinese government has been trying to prop up the falling stock market with a number of different methods. foreign investors are selling shanghai shares at record face. -- pace. it has wiped out more than $3 trillion in market value. that would be the fifth biggest

market in the world. the loss of chinese market cap. stephanie: did you hear that? important to qualify that. just the loss. matt: $3.2 trillion. that would rate between the u.k. which has a $4 trillion market cap and germany which has a $2 trillion market cap. stephanie: i want to bring in julie hyman with number three. julie: i am focused on potential deals in the pharmaceutical industry. yes, more potential deals. horizon pharma. arises offer represents a 42% rise from the price yesterday. another is raising its bid to about $43

billion for mylan. mylan does far has been spurning tecva's proposals and tried to make a defensive move by offering to buy another company. isthis caps a blockbuster year for pharma deals. matt: i will pull out my hs screen today to see how much money you can make off this deal. julie: do it. stephanie: only on the bloomberg terminal. matt: historical spread. it is my favorite function on the bloomberg. samsung side seven straight quarterly profit drop today. operating income fell 4% to $6.1 billion in three months ending in june. sales of the galaxy s six short of expectations despite the fact that my dad bought one. this company is having a hard time winning users away from the

iphone 6. stephanie: it is the apple ecosystem they have grown addicted to. you are using it and all forms of your life so it is hard to get away. matt: i will editorialize a little bit here. it is the best ecosystem out there. there is no better platform and no better os. it is simple intuitive. is that too much? stephanie: it is not too much. matt is really going prep school today. now he is saying dude it is the best. i will give you number five. your morning cup of joe is getting more expensive at starbucks. the coffee giant is raising prices by five cents to $.20. i am not a starbucks enthusiast. from the get go i could not understand that they could not go small, medium, large. matt: i feel like you deserve

this. if you are addicted to coffee that is one thing. you can get it anywhere. if you need to go to starbucks in your lamborghini to show up with your friends, you can pay $.10 more. stephanie: you know what i say to that? what the starbuck? get it? matt: i do. making money off the mark is volatility. even in a down market we will tell you what asset class poses the best opportunity with our next guest, who is a high-frequency trader. stephanie: stick with us. you are watching "market makers" on bloomberg television. don't go to starbucks and get a copy. save those cents. we will be back in a few. ♪

matt: coming up later today on bloomberg television, humana ceo bruce will join our market day

to discuss recent $35 billion deal. that is at 12:30 p.m. an interview you do not want to miss. stephanie: it is time to give you our top stories of the hour. horizon pharma has proposed to buy depo met for $3 billion. the represents a 42% premium over the company's closing price yesterday. depomed's management has rejected the proposal. in kentucky and fire heavily damaged three buildings in the city's historic district. the buildings are more than 150 years old and were once used to sort barrels of whiskey. in the area is now being redeveloped into a retail and restaurant space. the final numbers are in. the women's world cup final was

the most-watched soccer game in u.s. history. more than 25 million viewers watched the u.s. defeat japan on fox. matt: handily. destroyed. stephanie: that was more than watched the nba finals for the world series. the previous record was set last year for the men's world cup game. those are your top headlines. if that is not a screaming reason to have a tickertape parade for these ladies, i do not know what is. matt: they did an awesome job. most investors worry about market uncertainty but one company is getting a boost from it. virtue financial is that companies. they rose 3.5% while. doug cifu joins us now. things were coming on -- thanks for coming on "market makers."

what is it like to be a high-frequency trader where michael lewis has demonized and villain eyes high-frequency tradiners? doug: it has been a challenge but we view it as an opportunity. at the end of the day, we are a market maker. what we do is not different than was done on the floor 40 years ago or 50 years ago. we did use technology and automation to provide two-sided prices and liquidity in a lot of markets across the world. stephanie: did michael lewis open something up that you should have been more transparent, the rules should have been different? doug: i think transparency is always a good thing.we are proud of the business we have built at virtu. we felt like we have built a truly global innovative business, and we have helped advanced markets. part of the debate really allowed us to speak to regulators and open up and show

what we do. stephanie: i would rather not do that. matt: let's talk about where you are making money right now. china, you say you will get involved a couple of months ago. it has been a crazy couple of months for china. up or down, does it make a difference. the more up or down it goes, the better for you. douglas: the function of a market maker is accentuated in markets like this. you see what happened in china that ripples across the world. crude was down 7% yesterday. we are a large market maker in crude contracts. we are making contracts up and down the curve up and down market. matt: crude -- the volatility there and in other commodities is a result of what we are seeing in china. we don't see a lot of volatility here.

douglas: i think people are waiting to see how greece plays out. what is happening in china is more extraordinary. you can call it a bubble. it feels like 1929 in the u.s. with evil buying on margin. matt: is in that serious? as serious as the 1929 market crash here? douglas: predicting markets is not my business but if you think of a market off 30% in the last two or three months, people selling margin accounts trillions of dollars lost. it is a very retail oriented market and when you have that kind of individual pain going on, it is a pretty significant event. stephanie: let's talk about volume and market activity. the greece response has been somewhat muted. without we would see a lot more volatility yesterday. our investor sitting on the sideline? douglas: i think they are sitting on the sideline. greece is an important event.

we never had a country kicked out of the euro, it is a small economy. what is happening in china and the trillions of dollars there is an economy fueling large as of the world, and that is why you have the rippling through the energy market yesterday. when you have significant events like that, they tend to get attention. stephanie: how much has your business suffered or got more challenging since the spotlight has been shown on high-frequency trading and the name has been demonized? douglas: ironically, i think it has been great for our business because there was this whole idea of electronic trading and robots and machines and automation. it scare people. i understand it. people want to understand whether get the prices. there was a comfort in calling a specialist on the floor. matt: hold on one second. stephanie: don't go anywhere. we will be back in just a few. from greece will brussels, and

even puerto rico. ♪

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with exclusive behind the scenes footage all of taylor swift's music videos interviews, and more. xfinity is the destination for all things taylor swift. matt: we are back talking volatility with virtu ceo and cofounder doug cifu. you later ipo and then went out in april. how do you feel being a public company? douglas: it has been great, a great experience. the market was receptive to us. we got to tell our stories to a group of investors, a lot of who believed in us and made a significant investment. it is a long haul. we have a lot to prove and a lot to demonstrate, that we are

working hard every day. stephanie: the scrutiny not make your job harder? douglas: i kind of enjoy it because i am proud of the company we have created. what a great guy. he is a wonderful guy that has been doing this a long time. it enabled us to tell our story. when people come to virtu to see what we have created, it is more of a time when we work together to make the markets better as opposed to other discussions going on. stephanie: you got your opportunity to tell your story. you were sitting there basically taking it while michael lewis was telling his. douglas: yes. stephanie: is it accurate? douglas: a lot of it is not accurate. i think he told a story from 2009, but not the whole story. he certainly did not talk to virtu and a lot of other folks who know about the market. it is a great writer and wrote from a point of view that was

very well told and it resonated with people because markets are very complex. when people don't understand complexity, they get concerned. stephanie: isn't that dangerous? on his part. to be a great writer and create a beautiful narrative and talk about facts and global markets. douglas: i think it was disingenuous to use some of the words he used. he is not for an market structure but he is a fantastic author with a great audience. it provoked a lot of discussion. ultimately, it was a great thing for our business because it enabled us to get on programs like this and talk about what we are. to have folks to take time to understand there are differences between a firm like virtu and the things discussed. matt: i like moneyball better. i don't think the movie a flash voice will be that great. the volatility index is what helped you guys make money. when it is higher, you do

better. it has been on a tear recently so we are back up to 18 or 17.do you think volatility will come back to this market ? douglas: it has been a very quiet market. it has been very low volume particularly the last quarter. people don't have fundamental views or conviction about the market. people look at greece and china is momentary events. they want to see more and that the economy is truly recovering, particularly was happening in china. whether gdp continue to grow -- will there gdp continue to grow? we are much more volume friendly. matt: we will go to the new york stock exchange for a few years. i thought it was a great place to work. i love the guys who trade stocks down there. is spent sometimes with virtu but volume has been dry as a reason.

dry as california for is longer than the drought. is it ever going to come back? will we put the genie back in the bottle and go to the old days? douglas: when the fed starts making some of its moves and when it raises interest rates multiple times. it is not my job to say when. we will be ready for it. when that happens, you will see more conviction and portfolio shift that drives volume. stephanie: how do you combat the fact that the volume continues to go down, what can you do? douglas: we continue to get better and expand across asset classes. we will go into china and be a market maker in china. stephanie: where do you want to go that you are not? douglas: we don't make a lot of markets in treasuries and other bonds. there is a market that should be ripe for electronic trading.

categories we can grow into where our services are needed when technology and automation can make the markets better. matt: we didn't get to talk about the florida panthers. douglas: let's talk panthers. come on. matt: i have been to a game in florida. i hope you have had as good luck with saving hockey as you have had with >> we went from 66 -291 points, the biggest jump in the nhl last year. stephanie: are you a hockey player? >> do i look like a hot -- a hockey player? stephanie: you could be a hockey player. breaking news. international trade balance which measures the difference between exports and in forex vonnie quinn will break it down.

vonnie: the trade deficit winding to 39 billion dollars. do not forget a huge improvement from the march data. back to normal levels. the exports have been a big drag for first-quarter results dirty it looks like it is resolving. it is due to a stronger dollar and that is not changing anytime soon. it is up about 17%. at has a lot to do with imports and exports. for april, it was not really revised too much. a little bit now are -- more narrow. stephanie: thank you for giving us the trade balance.

it is up to greece to explain how to pull itself out. attending a summit meeting in brussels today, seen as a last-ditch effort for greece to stay in the euro. the head of the european finance group means the two sides. him -- starting from scratch. >> it will be very difficult. we will await new proposals. we can see whether they are edible and whether there could be a way out. stephanie: greek banks will be closed through tomorrow. it is incredible. the stock market also remains closed. matt: close for now but tomorrow they will say closed for the next day and the next day. stephanie: grocery stores,

restaurants have still been able to pay. it looks like time is running out. matt: not good for a whole country. stephanie: negotiators in vienna have extended the deadline again in talks on iran's nuclear program. diplomat had a self-imposed deadline of midnight tonight. the state department says negotiations will continue through friday. the u.s. and other role powers want to prevent iran from getting a new weapon and in return, they will ease sanctions. matt: a lot of reddit users are outraged in an online message board is trying to calm them down. ellen pao has apologized for what she calls a history of rogan promises. users took large sections of reddit offline last week. they're unhappy a well-liked employee has been higher reasons unknown. read it has more than 160 million visitors each month with

that is made possible by the moderators on the boards and they were very displeased with the firing. i like it when a whole community kind of, you know, stands up to save an employee who they feel wronged. stephanie: i am not sure i can get people to go if that happened to me. matt: i would leave with you and support. stephanie: as one republic once said, it is too late to apologize. puerto rico with a hot trade, just one year ago. as the debt crisis escalates will investors get burned? we will speak to an investor that holds puerto rican debt. a man who truly knows the markets. stick with us. you are watching "market makers" on bloomberg television. no better place to be. ♪

stephanie: it is a beautiful day in the town square. they are not at a bank. but i'm here with you. with my partner for the day, matt miller. we will take it down to puerto rico. one year ago, it was the hottest trade among investors. to delay payments which the governor says the island simply cannot pay, are investors going to get burned? let's ask lawrence, the ceo, cofounder, and chairman. of fundamental advisors and asset managers specializing in the market. when i think about investors, it

is moms, pops, and grandma's. boy has this changed. collect that is an important place to start 30 think about who will get hurt in puerto rico, it is puerto ricans themselves. for several reasons. they hold debt. individuals and the debt is held on by the lowest levels that you could imagine. these are employees -- for example, the gdp debt. it is held on by people. matt: $8 billion in debt. it is a lot of money. >> i'm am talking now that the geo debt and issued debt it self. we have to be thoughtful about how we approach this insolvency stephanie: they being whom they

have to be sensitive? >> restructuring. stephanie: do you think he has any idea what he's doing here? >> i will not quite be that harsh, but we need to be thoughtful about what we do. there is a difference between constitutional debt for which there is perhaps but not an insolvency problem. the extraconstitutional debt, there are paths that are necessary. matt: let's go back and make it clear what we're talking about here. puerto rico said -- they cannot file chapter nine as it stands currently. there is a fight about changing that that is gaining momentum. i assume you are very much

against allowing puerto rico. >> they have been supporting a provision that would allow for chapter nine. the super chapter nine, we are not in favor. there is no precedent for that. that would allow states. i do not know if you saw affirmed, the judge classist ruling striking down the puerto rico recovery act. but we like the governor to do is continue to keep the law intact. follow the constitution, follow the clause. the debt is the supreme debt of the land and it deserves that protection. stephanie: do you think he understands what needs to be done? >> what is happening, this has become a political process.

it is not a fiscal process. it is pandering to politics. stephanie: isn't that for any investors to get involved in situation so highly politicized? >> yes, it is. we specialize in those circumstances. we look at those opportunities closely. we think there are interesting opportunities in securities coming back to your show to talk about some exciting areas as well. matt: how much do you hold of the geo debt and how much bonds? >> we cannot discuss particular holdings of particular securities. i will say, forget the fact that alternative investors and conventional holders hold the debt.

puerto ricans hold this debt as well. governing involves making difficult decisions. this is a time for governance. there are ways to get to liquidity here. matt: the concern is if they are not allowed to file chapter nine, they could end up the puerto ricans, like the greeks right now. you are saying they will also be hurt if they do because they will lose their ceiling. >> the rule of law is the distinction. we had a federal court struck down a regime. we have opportunities here to show that this is the united states protected territory that can handle restructuring regime in an orderly fashion. that is the distinction or the parallels between greece and argentina, are not important -- appropriate. this is a united states

protected territory where the rule of law, no one wants anything other than the rule of law to prevail. matt: fascinating. stephanie: indeed it is. thank you. some scruff today and glasses and a whole lot to say. we have got to take a break. matt: when we get back, we will turn to another situation. forget about the break. let's turn to a very different debt situation in greece. many, including our next guest, say that the company has been building for years. in athens with an editor for one of greece's's most popular newspaper. take it away. >> thank you. i am here with you. thank you very much. he wrote an essay, a massive collective tell. what did you mean by that?

>> the greek political system over the last five years, they managed to create a situation where the society and economy in the political system was founded. on the one side, we had greek governance, unwilling to take the responsibility of implementing structural reforms and has rested on the fiscal adjustment on the other side, we had the lenders who have insisted on tax and spending cuts. also, the trust is lost among voters and policies being followed. >> one thing i've heard from several people is there has been a deep division created by recent events, including the referendum. how worried are you? you think the divide will last for a while?

that there will be a permanent divide? >> 61%, but then you start to break it down, the question was not clear and people were voting on different things. then you look at greek society in the last five years and it is no longer on political terms left and right. it is between people who feel they have nothing left to lose whether that is accurate or if that is what they feel. they feel they have nothing left to lose. then there is a group that feels they have everything to lose his greece does not remain in the euro. >> talk more about the divide. specifically, who are the two sides and what are the press x? >> one problem is it cuts across

greek society. we are not talking about rich versus poor or young versus old or educated versus not educated. it is about how they perceived the last five years and whether they decrease going. one problem is no greek party is giving a convincing -- of the future. largely promising things that it really cannot deliver in the current framework. on the other side, we have the lenders saying no, we have to stick with the policies we have had in the last five years which have rated dissatisfaction in the greek society. how you bring these groups together, i do not know. you need to stabilize the situation first. >> everyone will watch the meeting in brussels, but outside of that are you optimistic someone could present a new vision for the healing of this is tied it? >> i think one problem we have

from the lenders side insisting without providing a more hopeful vision in the future means that you cannot take people with you. and there is not anyone in greece at the moment providing an alternative who is able to convince the other side to take that approach. joe: back to you, stephanie. stephanie: how much do you want to bet joe and the editor of the newspaper are huge twitter fans with each other, tweeting all the time. when we return, corporate america. we will look at the money link between record high buyback and executive paychecks, coming up next. ♪

stephanie: welcome back. dividend payments and stock buybacks are reaching record highs in america. as some companies return cash to investors, it could mean a boost to pay. many ceo's have an added incentive to spur short-term returns. >> buyback dividends are reaching record highs in corporate america and for many yield positive, keeping investors happy could also mean a big paycheck. three quarters of the ceo's have a on two metrics. earnings per share, and return. both get a boost when a buyback stock or pay a dividend. ibm, disney, and cisco have an added incentive.

at a time when activist investors are clamoring for more payout, it raises the question, are those ceo's is getting paid for how well they run the business or for their ability to do short-term results. take ibm, a company that spent $14 billion on buyback last year to help meet goals. instead of investing the money in the business. meanwhile, almost 40% of a ceo's's $11.4 million paycheck last year was raised on one of these metrics. or disney, which satisfy disgruntled shareholders when it changed the ceo's pay when it included both earnings-per-share and shareholder returns. the metrics are part of a relatively new cold of returning value for shareholders. some investors are not buying it. black rock's larry wrote a letter to ceo's's number urging them to resist shareholder payout if it means compromising long-term opportunity with

stockholders still enjoying a bull market, investors may not be as concerned about pay which gets a boost from buybacks or dividends. if the markets turn, tensions could rise. stephanie: the senior analyst at fdr capital markets covers the companies that spent the most on buybacks last year and he joins us now. >> great to be here. matt: isn't that what we want as shareholders? don't we want companies to return cash and boost dividends? >> it is a balance in terms of investors. you want buybacks and in some cases dividends but also m&a and continuing to fund business is it is a quagmire the companies are going to their the issue right now when you look at a lot of tech companies in the balance sheet coming up with more cash in some countries, you saw it with apple and that buyback dividend, microsoft has

done a really good job at balancing. the problem is buybacks will not fund. matt: i am looking here at the bloomberg page, apple has 190 $3 billion in cash and equivalents. what bethe hell are they going to do with that money? stephanie: across the board, if we look at ceo's is engaging in buyback, is this unique to corporate america? think about our culture looks like now. everyone is focused on short-term results because we are now in this, give me now and give me more society. >> you look at ibm and what has happened with their growth and some of the troubles they have got. microsoft went through. it is really from an investor

perspective, you want to see the buybacks and the dividends. but really it is about growth at this point in terms of m&a and funding those acquisitions as well as growth. that is a conundrum. i think apple, as we saw, they announced a big buyback dividend. that was just about what the street is looking for. investors continue to want more and you will see this as more and more of an issue given the amount of cash they are generating. stephanie: i realize it is a balance, but are we better off or worse? less i think it is a positive -- daniel: i think it is a positive. a lot of ceo's think they are where they were 10 years ago. it is about returning cash to investors, whether through buybacks or dividends. that is really the continued

battle we will see in the coming months. stephanie: we will leave it there. ♪

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>> live from bloomberg headquarters in new york this is "market makers." stephanie: welcome back to the second hour. it is tuesday morning in new york city and i am stephanie ruhle. matt: erik schatzker is on his way back to the city. stay tuned for all the coverage you could possibly stomach on the greek debt situation. a lot to deal with before the opening bell. stephanie: how about giving you the top stories of the morning or u.s. trade deficit got bigger and a month of may. the cap rosa most 3% to about

$42 billion. exports fell by the most in over three months. the biggest declines came in industrial equipment hair businesses are having a problem selling to overseas customers. and it may be the last chance for the greek prime minister, alexis tsipras. sippers is in brussels -- alexis tsipras is in brussels and needs to persuade other leaders to throw her company a lifeline. the commissioner says everyone is waiting to the new greek proposal. >> the commission is available to work on looking after a program is the greece asks for it. it is now up for -- up to the greek find minister. to give good proposals, to say where he wants to go. stephanie: we're still alive

she could be performing the soundtrack. let's go europe. meanwhile, greek banks may be facing the end game. they are still shut down and the ecb is tightening the credit that is keeping them afloat. tightening feels like choking. matt: i did not realize she passed on. far too young. meanwhile, foreigners are running for the exits. foreign investors are selling chinese stock. the shanghai composite has fallen more than 25% since hitting a record a few weeks ago june 12. that has wiped out more than $3 trillion in market value. properties is raising to buy tackle casinos by 32%. it gives an enterprise value of $5 billion. it owns 15 casinos and racetracks such as the casino in

new orleans and a casino in help -- and hotel in st. louis. the u.s. women made history with hat tricks, high-scoring, and high viewership there but they were awarded like other world champions. the total payout was just 15 million measly dollars. compare that to the total for the men's world cup last year, 576 million dollars, nearly 40 times as much but i will argue it is because nobody knew exactly how awesome women's soccer could be. stephanie: normally i would say, these are free markets, so as much as we can think there are great women's nba players out there, nobody goes to those games. in this case, absolutely everyone watched. it was extraordinary. matt: the most-watched soccer

game in the u.s. that is amazing. no gender difference there. it was the most-watched soccer game of any gender. stephanie: they do not get paid the big bucks because they do not bring in the audience. guess what. they did bring in the audience. let's pay the ladies. matt: it was awesome. set to meet in brussels this afternoon. hans nichols is there. what are the chances of a deal getting done today? last night, i heard chancellor merkel saying only hours are left. hans: it depends on how you define hours. the chances for a full and comprehensive deal, we sat heading into the meeting. the meeting has been going on for over two hours are

typically, short meetings give you an indication if things are not going well. longer meeting means there is opportunity for progress, whatever greece has proposed has not been summarily dismissed. a fact this has been going on for two hours, i would take it for a positive sign but nothing definite. matt: i wonder, they only had i thought 48 hours. weren't we sure about that when we went in to the week? isn't that the idea? hans: you have got to be on brussels time and deadline time. all the clocks are movable. they physically slow down the clocks hereby eu decree. everyone knows the deadlines are forcing. if you do not meet the deadline, then you have to, then you have to come up with another one. there have been efforts to say this is a deadline and we are trying to get some action. we have greek banks that will

not open until he get something done here. if you want greek banks to open you have got to get something done. stephanie: something that is a sad reality, as we heard earlier from the cofounder of virtue, many investors are sitting on the sidelines because it is too hard to understand what will really happen here. investors are not suffering. it is the greek people who cannot get a cup of coffee. they are suffering here. and they are the ones not getting any resolution. now they are getting paid. matt: what if they ran out of tobacco? is this a binary outcome? is it either greases out of the eu and maybe we will mercifully help them out, or, there is a new deal that keeps them in and everyone is satisfied? hans: i would like to say it is line area. chances are it will not be.

having just heading into the meeting, there is some talk about kicking the can down the road. if finance minister quoted the idea. the finance minister could see some sort of bridge financing in the short-term and then have a long-term resolution. it seems like the heads of state as well as finance ministers have generally been opposed to that. if the option is kicking greece out or having some financing and maybe the prospect of having real reforms and structural reforms you could see that happening. i would be has it and to say this is final or binary. but it kind of feels like that. matt: thank god extend and pretend is an option still. i do not know what we would do. we could not talk about this for years to come. stephanie: at this moment, we will not kick the can down the road, we will have a tough situation today. but that does not happen.

investors love can kicking. matt: stay with us. ♪

stephanie: you are looking at a sunny morning in athens and possibly a dark day in the market. or are they staying? we do not know the prime minister's's endgame is. what are the best bets for investors as greece navigates the debt crisis? let's ask the chief investment officer who joins us now from london. willow bay, won't they? what do investors want? >> i think they have it the wrong way around. i think the markets do want to exit than we actually get the problem out in the open.

we have known for a long time that the problem is coming down the road. we have since april. it is time to buy the market. what you want to buy is it does happen, is basically greek government on spirit it can fall thought -- fall by 50%. matt: as stephanie said, we do not really quite know the endgame. is he playing for next it, or playing for better terms and staying in the euro? >> i think we all thought he was a rational western actor and doing the same things we would think a politician does things. we know that is not the point. the conspiracy theorist in me

thinks it allows him to set up a dictatorship in greece. stephanie: you think the conspiracy theory seat -- the conspiracy theorist in you thanks he wants a grexit so that he could set up a dictatorship for himself? >> i think it goes along the lines of i cut -- i have 60% go through a lot of trauma. you look at the history of other countries you had a 50% drawdown in gdp next year. you leave the eu and you lose about $200 billion worth of debt. the greek people are much happier. the spaniards or the italians. >> is anyone getting burned or they sitting on the sidelines?

>> i think greece has not been that big of an issue. i think there is more going on in terms of what is happening in china. if you look at the commodity names, it has been an absolute meltdown recently. so you know, you have an economy that is the second biggest economy in the world. all the economy signals coming out of china have in pretty poor. i think that is much worse and i think people convince themselves earlier in the year that the chinese were going to be able to pull off a turnaround. i think that is looking increasingly in doubt. matt: we had a market maker on this morning who was basically comparing what is happening in china to what happens in the crash of 1929 here in the u.s. do you think it is that bad

what we're seeing in china? >> it is funny you say that. someone sent me an article a few days go talking about 1929, american banks led by jpmorgan created a fund to defend the american stock market. it worked for about two days and then the stock market crashed afterwards. they created a $20 billion fund and let the momentum out of the market and whether it is 1929 or it is 2000, i think it is the same paradigm. markets go up on the same fundamentals when they start coming down tend to have a nasty come down. matt: china has included investing a ton of cash, not that much in relative terms, because it is in a chilling dollar market, into the big state owned companies, and then they have shut down trading in 700 of the smaller companies that were dragging on the index.

what do you think they will do next? >> let's think about the last market we saw this in. europe in 2011 when the markets started shutting down, they told you could not show things anymore. they closed certain things. if the price gets bad enough, let's just close the price and make sure you can see the real price and reopen the market two years from now and hope it is all better. stephanie: sorry, continue. >> i think the chinese are on the road to full qe. of all the big policy makers in the world, they have the most levers left to poll. in fiscal and monetary resources, so they're going to keep going. this was the first of many moves. it will end with them doing full qe the same way the u.s. europe, and japan have. stephanie: we have got to talk

puerto rico. you have spent a huge amount of time there looking at moving your fund there as an investment. what are you thinking? >> puerto rico is very interesting. when we are looking at the map on puerto rican geo's, basically benchmark bonds, which trades around 70, and we cannot get it to work around 70, we can get it to work around 45. it is a little surprising to me why the bonds are still here. i think the bonds could actually go down a lot more. i do not know how they get to a sustainable debt number without a significantly bigger haircut and i am for things in puerto rico to get worse. these things are never easy but i think ultimately, it will be an amazing opportunity. you have a tax system that has got major tax benefits compared to the u.s.

very few other places have that and i ultimately will be there salvation. stephanie: an absolute pleasure. fantastic. the cio and founder of deco fun, an old friend of mine and matt miller, and one of my very first clients. matt: fascinating to hear his take. dramatic measures are underway in china to try to stem what could be described as only a panic selling. trade was halted in more than 25% of chinese shares today listed. 700 companies. a smaller exchange than the more familiar shanghai exchange. it is made up of smaller stocks. those are the ones falling. remember china was buying into its own state owned company with that $20 billion fund. foreign investors are selling chinese shares at a record pace. chris maguire has been the game

through a beijing sanction program. foreign investors permitted to own stocks that traded shanghai, stocks otherwise only available to chinese nationals. chris, i have to thank you but ask you first of all, are you nervous? so many people now have compared this to the crash of 1929. >> we are not nervous because we are a hedge fund that shorts. we're not taking expected of view, nor have we. but we are finding discrepancies by shorting hong kong shares and getting in and out as a true trading fund does. that is what we do. matt: let's be honest, it is a little sensationalist to compare it to 1929 in a broader sense. we are too close to it now, but you have i am sure heard that from other people. we have twice on this very program.

>> we have to remember 1920 nine still took several years of growth in the stock market before it crashed. the chinese market rallied affectively over about seven months. the market had been in somewhat of a bear market or a still market for seven years after it fell back down in 2000 eminent 2008. it only started rallying in november of last year. it has been a short phenomenon of torrential growth and a fairly large 30-40% pullback right now. stephanie: you actually have exposure to stocks that trade in shanghai. logistically, how does that work? >> there is a program qualified foreign institutional investment. for the last 13 years, this is how large is the two shoes through primarily foreign banks have been able to gain access by investing directly into shanghai. we first started investing in local chinese stocks last summer 12 months ago and were able to get our feet wet tipping our toes into the shanghai market.

that is basically china opening its doors to more and more foreign investment capital. they are doing so very slowly. it is only about 25 200 $50 billion in foreign equities. that number matt: will continue to grow over time. that number is a small number as is what we were hearing about earlier. china has got a heck of a lot more firepower to put behind market support. do you think we will see that? >> we will. beijing is doing whatever they can in terms of policy changes to support the stock market. they wanted higher. they would like the shanghai composite to be higher. they are doing all they can in terms of policy changes, interest rate cuts, and really quantitative support that will continue. matt: how much is the economic backdrop i miss? -- behind this?

we are seeing it slow. is that the crux of the problem? >> i think slow is relative. china is still growing at 7%. if it's close to a slow 6%, that is still fairly massive. that being said, valuations and multiples on chinese stocks are still hide -- still high. i think there will be and a trash and, ultimately, but there is a state of flux where this market is not for the faint of heart. we could easily be seen not just 10% swings, but 20 to 30% swings fairly rapidly. stephanie: how much time have you and your colleagues spent in china? >> quite a bit we have a finger on the pulse to what is going on in china. most foreigners like ourselves have a basis in hong kong and i am over there at least quarterly if not every month either going into china or talking to brokers

and salespeople and analysts that are all primarily either visiting or based in hong kong. stephanie: i want to put on this hat for just a moment. when you talk about the chinese government taking action from a regulatory standpoint, how much do you believe the information we get from them? >> it is very difficult. let's be honest this is still a closed economy and this is the last egg emerging market we will ever have in this world. china, 1.3 billion people. the magnitude of growth, the size of market capitalization. this is take. -- big. stephanie: thank you for joining us. chris maguire. ♪

matt: vonnie quinn is following what is happening with the euro. finally some action?

vonnie: we are seeing a drop of 1.1%. we are below the 1.10 dollar there. some kind of deals when all of the leaders leave at 12:30 eastern. or it is waiting for the next step here the australian dollar is trading at a technical level and the reason is below $60 today. stephanie: now we turn to tracy with three things you need to be looking at this morning along with jonathan, the coo of hurdle callahan. there is a lot of news today. >> i chose the number one

stocks. the selloff continues today. you can see the shanghai composite versus gold. the chinese newspaper -- >> mouthpiece. >> you said it, not me. they ran a headline yesterday. we have all of these efforts going by china and associated agencies. >> can we pull the chart again? >> it is tongue-in-cheek but in all seriousness, let's talk about these numbers. back at the peak, it has risen 16% so it basically has a worse run now.

stephanie: you can comment on china or you can say, which chart? you had a tongue twister? matt: gold bugs may be happy to see the chart and what you think about what we see in china? >> the shares went to 30 times earnings. the man on the street was using leverage to buy. it is not really surprising there was a correction there. the comment about believe? >> confidence is more precious than gold. >> the capital markets are based on credit. the word credit is based on the latin to believe. it is important. what is more important is price. those prices look more attractive. matt: they look more tractive? you want to buy chinese stocks?

>> why wouldn't i? it is more attractive every day. >> can you buy them? hodges mother companies have bought trading. you just stop them from being able to trade. >> it is a command economy and there are a lot of steps along the way and they seem to be moving in the right direction. we like the emerging markets based on cash flow, which drives iris -- our decisions. we are talking to families and foundations all over the united days and 40 68. there were it about serious money, long-term success. that is found -- a function of buying cash flow. >> the financial crisis was not that long ago and emerging markets froze up overnight. >> the financial crisis was six years ago now. a tremendous market since then.

people are concerned about liquidity but mostly concerned about other kinds of risks, the risk of failure, not to achieve target returns paired returns they need for universities and foundations to succeed and families to flourish. matt: i want to come back and revisit this topic in a moment. it is fascinating. >> emergency meetings are happening in europe today. the key sticking points's debt relief. i want to talk for a second here when we say greece owes a lot of money, what exactly are we talking about? 300 billion which works out to a debt of 21 -- 29,000 euros? these are all from deutsche bank, by the way. i find it amazing. only 3.5 million of greece passes 11 million population actually worked. it means they basically oh 100,000 euros. these are multigenerational

that's a lot of people say would either end with a serious write-down or a default. classes like a typical student loan when you graduate from college. >> depending on which college you go to, sure. matt: that is interesting. we heard a moment ago that he thinks markets want to see a greek exit and then the company can wipe out $350 billion in debt. >> people compare angela merkel to margaret thatcher and market thatcher famously said that the problem with socialism is you eventually run out of other people's money to give away. that is the problem and you have got to work through it. from an investment standpoint i want to react to price movements and not produce them. i want to buy things when they are cheap. it seems to me and sit or some sort of hard-line followed by a humanitarian package, might be the best way to go and might be

what we see. it's also a lot of problems and sets good examples for other countries that might not want to pay their debt. it has got a soft -- that is a different way to solve the problem in a sense. >> oil fell 7% today last time i checked. it means we once again got to talk about the viability of shell oil. here's our chance. i want to talk about the impact of oil on bonds. 15% of a $1.3 trillion u.s. bond market comes from energy companies and there are worries that >> begin to appear. if you look at your screen now, you could see a bond price for house and resources. founded by one of the architects

of the shale boom. we have been having a tough time lately. stephanie: we always love getting your top three for the day. the bell has wrong. let's take you to julie hyman who has got the movers you need to be watching here at the market open. julie: let's get to it is moving. advanced micro devices, a very painful day for this stock down 17% after the second quarter revenue fell more than it originally projected. the revenues down acres before it projected a decline of 3%. had to do with continuing decline in demand for personal computers. trying to migrate its chips and the balance of its business more toward mobile. clearly when you look at numbers like this. sure's -- shares had been recovering and it might be a

takeout with all the m&a activity we have seen. we are now seeing that wiped away. i want to talk about a hot stock, no more than doubled since the initial public offering a few weeks ago. up 5% today after being initiated within outperform. i want to run through the reading -- the reasons he is giving. everyone wants to be fit. honing the fitness challenge profitability, international upside, and he is also saying it is a software user -- there is a community of users and the company software is supporting the users. fitbit is going up once again today. i finally want to look at a couple of casino stocks. casino companies gaining the first reach in casino industry and pentacle entertainment. leisure is raising the offer to buy pinnacle casinos by 3% to

47.5 per share. this is just for casino spared gaining leisure would buy the casinos and then we would see pinnacles still run them as an operating company. a similar thing with national gaining or we see this mirroring once again. stephanie: we still have a few moments with jonathan. i know what the three most important things were for tracy alloway. what are you focused on? >> on a world with low return environment. you have to understand you will receive -- achieve a certain return over a time. but we have a low return environment. trading about 2.25 and everything trays off of that it while matt grossly expensive, they are not cheap anymore and you have to be careful what you own. index funds, we think they are a bad idea. they are not selective about what you own.

there is a tremendous dispersion within the markets today. this time, it makes sense to pay for active management. matt: are the european stocks getting cheaper now? >> they are getting even cheaper. we do not think what is going on with greece will have an impact on bmw's ability to on money and we are worried about their earnings going forward. bmw is trading at 90 and a few months ago, he was trading at 120. all of those multinational companies that happened to be headquartered in europe -- are getting more attractive every day. matt: i want to the back to shanghai quickly. the index has dropped almost 30% since june 12. you say it is getting closer to looking attractive. how far down does it have to go or what do you need to see from

the chinese government to get in there? >> we are concerned about not chasing momentum stocks. we want to own things like china mobile and shanghai industrial tied to an economy still growing. what we want to see is cash flow. one of the key concepts about investing is that there is no aspect in the world. it is always about price. we do not look for with the government is doing. we look at how the impact -- how that impacts prices. we do not think china is going away. it is where a lot of the future of the world and economic growth will be. and we want to participate. stephanie: what great guests we have had on today. matt: i think it has been an incredible program. stephanie: we started off and

matt was dressed as a too old prep school guy. i was not really sure how things would go. but i am feeling it. matt: definitely two old no matter what. i do not ever where stock -- socks in the summer. stephanie: there is matteo with his loafers on. we have 20 minutes. i hope the ceo will come back soon. but we are not going anywhere. matt: the plans that would allow driverless cars to disrupt the entire industry with one of the best analysts in that industry. stay with us. ♪

matt: if you like your car now you will love it in a few years. the results will dazzle you.

he joins us now with a look at -- and i have been reading your stuff for years now -- i appreciate you coming on the show. it will order you a cup of coffee and pay for by the time you get there. if the auto industry is, i like to say if you took henry ford and brought him to today, he would look around, you tour the auto industry, crack the hood of your typical car, and he would say, that is it? nothing has changed. it is one of the leading causes of death for young people. a huge distraction hitting the auto industry. matt: how long will it take

before we see actual, autonomous vehicles on the road? >> that you could put your kids in with no steering wheels three years. this will be a public transportation in a large city in the public and private partnership. slow-moving vehicles will be geographically limited to san francisco. they will be by far the safest mode of transportation on land that you could be on. the insurance industry loves semiautonomous technologies for people still at the steering well. 95% of accidents are caused by human error. insurance companies love that dramatically lower payout but will still charge you a premium even if you're getting a better deal. when it comes to autonomous pods, the insurance company will have to adapt to a model where they are ensuring the company that makes that piece of plastic

, not the human being in the car. matt: you are an auto analyst but we are looking at what looks like a google car. who will lead this? will it be ford and general motors and bmw and audi? or will it be google and facebook? >> we see about 5% or 10% software moving to 60% software and content. 40% mechanical innovation. we see them pushing for 100 years. if you are an auto analyst, whether you know it or not, you are in an emerging mobility tech analyst. once upon a time, it was mechanical tech. we are now playing moore's law, uber like shared economy models. it is coming and you will see more change in the next five euros than we have in the last five or 60 years. stephanie: do you think apple with all the possible opportunity in this space, do

you think they could actually acquire an automaker? >> we have written on this with our apple analyst on apple's intentions to look at, what is one of the largest in the world 10 chilean miles traveled that is 15% of global gdp. apple perhaps wants a piece of that in one way or another. from apple's perspective, if they want to disrupt the industry, given the resources -- stephanie: if they want to, they can do anything. do believe they will? >> it is too big for them to ignore. stephanie: wait. say that again. i thought he was saying it is too big and they do not want to do it. >> know, too big to ignore. you cannot give it to your competitors to do. you can check your records on this. the car is the ultimate mobile device. matt: it depends how they get in. will they build their own car or work with another carmaker? stephanie: i am saying they have

so much cash on hand. >> apple generates more cash in one quarter. toyota, bmw, everyone in a four or five month time. matt: they could buy one if they wanted to. but why would they? let me ask about tesla. they have disrupted the auto industry at least at the higher-end luxury end. what do you think about the future of tesla? will they go further and come out with any problem -- product on time ever? >> morgan stanley recently hosted a couple weeks ago. we chose the autonomous car and met with others. a takeaway is that tesla has very unique advantages people hundred percent of their cars are collecting information toy four hours a day.

their entire fleet every single one of those miles is a potentially self learning laboratory of mobility. stephanie: people not buying cars, whether they are adopting the loop lifestyle, zip cars? homes, cars. >> that business model and disruption is far greater than any one technology innovation. the number one flaw and the auto industry is utilization. 62 minutes per day, in your driveway for 23 hours per day. it is almost $20 trillion worse -- worth of invested capital and cars. that is a problem that the

shared economy model can significantly address. we think it is doable. i do not have a view on uber. stephanie: just asking. matt: thank you so much for joining us, adam jonas from morgan stanley the managing director. stephanie: we're not taking a break the we're moving forward. it is summertime. for me, i was a lifeguard, i had been a waitress. how about you? matt: a camp counselor, a short order cook. a record store downtown. generation record. stephanie: it is not because there are not any around. i want to bring in bloomberg

economist in san francisco. a waitress, a lifeguard -- >> it is a bunch of reasons, a sharp decline. one is just it is longer. another is apple and kids are all going off and volunteering overseas and doing whatever else to make applications look better for college. poor kids, there used to be a ton of job programs and the funding is gone. the final thing is it has been a tough jobs market for the last 15 years, working those jobs at mcdonald's or elsewhere that used to be filled by teens because they needed money. matt: what does that mean for the kids? are they just hanging out?

>> for apple and kids, they are doing fun and interesting things that are costing their parents money instead of bringing money in. they do not have enough to do. the one thing i will say is since 2011, there has been a rebound. the percentage of young people with jobs in july has gone up pretty sharply since 2011 pair that might be a rebound from a bad recession. but maybe we're finally seeing an end to the long decline. matt: a lot of kids are out there working in a volunteer cents, not getting paid nine dollars an hour to stock shelves. >> correct. the biggest summer job employer for teenagers is the hospitality industry summer cans and amusement parks.

there are a lot of jobs in those areas. they do not pay very well, but most of the sectors have kept growing. there is at least the opportunity and maybe we will finally see a turnaround over the past 45 years. there is some evidence that having a job when you're in high school improves future career prospects. matt: let me tell you how good this chart looks. you put a not adjusted line up against easily adjusted for a summer job it was like a slinky wrapped around a string. stephanie: all the companies out there we have seen increased wages, lot due to political pressure, is that one of the causes of less jobs for the summer? >> and no, the big push in minimum wage has happened in the

last 21 years and teenage employment has gone up. it might eventually we will see down the road. especially the case in los angeles where minimum wage is going up so much, it will probably provide a lot one where the other. it cannot be what has happened since 2000. stephanie: i think it is a real bummer that less and less kids are camp counselors, waitresses and bartenders. i know everybody loves 17 internships, maybe not a bartender, but you can. the amount of kids who have 38 internships by the time their 20, for me some of the most important lessons i learned were sweating in a restaurant kitchen, getting the bill of rights, dealing with horrible customers, drunk guest. matt: should not be dealing with too many drunk guests.

thank you for that. great stuff. i think we learned a lot. stephanie: we will take a look at some of this morning's most compelling images. matt: the annual running of the bulls festival. people run with the fighting bulls from the heart of the city to the ring. stephanie: this guy, look. matt: it looks like he did ok. some people get gored. back i got hit. i have done this myself in my early 20's. i did more the traditional way, hang out in the bar doorway drinking your 17th beer. stephanie: isn't that like saying you ran the new york city marathon but in reality -- >> most people who run with the ball, you do not run the whole way. the bowls are a heck of a lot

faster than you. most people i know in spain and i now know a lot of people they do not really do this. it is more like a stupid american tourist thing to do and maybe they have done it one time and that is enough. stephanie: at least one american hedge fund master has done it -- manager has done it. it is less about the bowls and more about what is going on your head. matt: it is one of the biggest parties in the world here the running of the bulls is only one part of it. stephanie: okey-dokey. i have got good -- got to give you mine. daniel was arrested for using 120 balloons and a lawn chair to fly. he filled the balloons and took off preventing the landing, so he had to jump on the chair and open a parachute to market his

cleaning. i loved the movie "up." but. matt: why would you get arrested for doing something so awesome? stephanie: how does that sell a cleaning project -- product? if you ended flat on the ground, that would have required cleaning stuff? matt: that is a very good point. we will take a quick break. later today, humana and not in an interview. ♪

scarlett: it is 10:00 a.m. in new york. matt: welcome to the bloomberg

markets day. scarlett: a decision is set for tonight. matt: with global uncertainty, where is a safe place to put your money? traders say the answer might be nowhere at all. scarlett: carnival ready to say hola to havana, getting ready to send cruise customers to cuba. scarlett: good morning everyone. i am scarlet fu. matt: i am matt miller. stocks are trading down across the board. the s&p 500 is off .33%. the dow is down 67 points in 17,616.