discussed his plans with president obama and is expected to present the details tomorrow. we can't wait. marco is making strong statements about higher education. he says that amounts to a cartel that needs to be broken up. a-ok from the u.s. government to send cruise passengers to cuba. we will hear from the ceo of carnival. good afternoon, everyone. i am scarlet fu, here with alix steel. alix: want to get straight to the unbelievable market we have seen today. you are looking at the s&p actually in the green right now. during the day was really ugly. earlier in the day you saw the

s&p falling below its 100-day -- disney 200-day average -- excuse me, 200-a average. then it has been clawing its way to the upside could scarlet: the dow fell as much as 217 point. we got a look at the other asset classes oil -- it is amazing because crude oil has made a comeback. .25%.crude is up by alix: it was really ugly. and if all is a hedge fund manager. -- andy hall is hedge fund manager and he expects prices to rise. there are buyers out there when you have this kind of selloff. scarlet: there is a lot of money going to treasuries.

when you are looking at with --s chart, the 10-year yield you had to laugh. alix: it's true. the reason why is amherst securities had a cool note out saying that it is the 10-year bund yield that is setting the tone for the global bond market. watching the 200-day moving average on the yield. scarlet: you can make the argument that the budnd yield is being driven by the euro. what is next with the nonstop discussions -- maybe not nonstop , but the halted discussions between greece and its creditors. alix: let's look at the headlines this hour. of an steered clear immediate collision with creditors by promising to put economic proposals in writing. this is german chancellor angela merkel. we did get word this afternoon that president obama spoke with

merkel before talking to the greek prime minister alexis tsipras. he needs to persuade the other leaders to throw his country a lifeline. french president francois hollande had this to say about the goals of the meeting. : what we hollande need to have are the reforms response to put in place. once we have the reform proposals, we can conclude this as soon as possible. alix: greek banks may be facing the endgame. the ecb is tightening the credit that is keeping them afloat. scarlet: the fact that they are promising to put economic proposals in writing, baby steps. tiny, tiny baby steps. alix: agreed. scarlet: meantime, the negotiations over iran's nuclear program has been extended yet again. through julyended 10. the u.s. and other global powers want to stop iran from building nuclear weapons, and in return, they will use economic sanctions.

holdingrmer mf global ceo jon corzine and other officials will pay to settle an investor lawsuit. mf global file for bankruptcy in 2011 after $6.3 billion bet on bonds on some of europe's most indebted nations. thanmers allege that more $1.6 billion should have been segregated and transferred to other parts of mf global during the liquidity crisis. settlement will need a judge's approval. i got that. scarlet: some economic data here. unexpectedly rose in may to the highest level on record. more than 5.3 million. it is the second month hiring succeeded -- openings exceeded hiring. alix: the gap rose almost 3% to $42 billion. experts felt by the most in three months, the biggest decline in human commercial aircraft and industrial equipment.

it is ascended businesses are having problems selling to overseas customers. scarlet: europe, china, anyone? there is a hostile takeover in the pharmaceutical business. it represents a 42% premium over the last close. verizon says the management has rejected the proposal. alix: damion lee for properties is raising its offer to buy pinnacle entertainment casinos by 32%. it gives an enterprise value of $5 billion. boomtown casino in new orleans and the river city casino and hotel in st. louis. that is a look at the top stories this tuesday. scarlet: coming up in the next half hour, u.s. republican presidential hopeful, one of 16 -- 16, right? 15? marco rubio calling for breaking up the higher education cartel. what does he mean by that? mark halperin will explain. alix: the biggest winner of the

stock moves maybe this company's own ceo. we crash the surprising numbers. of publiclydreds traded countries halting trading because of the dramatic decline in the stock market. get? ch worse does it does it inspire confidence in investors?i would imagine not. now to the top stories dominating headlines. the central bank's tightening credit and that is keeping the beleaguered country afloat. inomberg's joe weisenthal is athens. what are people watching for? how is the mood right now? joe: everybody is paying attention to what is going on in brussels, that's for sure. if you look at the news, you see finance ministers from around the world on that is constantly. i think what matters right now is what happens with the banks. there's definitely a lot of anxiety. is society has adapted

to the limitations we have seen so far. can it go on much longer without creating real problems? that is the question. alix: is there a sense that iou's will need to be issued just to pay for stuff? i don't know if that is necessarily a widespread sentiment. obviously, there was that quotation from yanis varoufakis and the night of the referendum about that. the longer this situation goes when banks cannot get help from the ecb to get liquidity, the more concerns about the banking system are inevitably going to grow. scarlet: joe, while you are there in athens, as we look for the two sides to begin negotiations, alix talked earlier about how the greek site is looking to make a written proposal and submit that to the european leadership tomorrow. these are miniscule baby steps to get to restart negotiations. there does not seem to be the

urgency angela merkel referred to when she said it needs to happen in the days, not weeks. joe: yeah, when the greek delegation showed up at the eurogroup meeting without something written, it threw local people into açai -- same old greek government could is it the fact that the new finance minister seems to have made an impression on the creditors? that is a start. if they can put something in writing that is of substance that they can agree to, that would be good for them. alix: better than yanis varoufakis? the bar is pretty low it comes to creditors. good job, joe. we will see you in about an hour. joe weisenthal joining us from athens. scarlet: these to health insurers says that at notable by humana for $35 million. nowment is trading 27% -- humana is trading 27% below aetna's price. alix: betty liu asked how they

plan to convince investors the merger makes sense. is a big combination that will have a longer-term impact on the quality of health care, the cost of health care, in an evolving consumer marketplace. i'm not quite sure they know how to play it. the noise will come out of the system and we will do just fine. betty: ok, bruce, is it going to lower health care costs for consumers? bruce: very much so. as easy to transition from employer-based to a consumer-based model and the reimbursement model from the fee-for-service model, these organizations will have the capability to meet both of those trends both in the way of clinical capabilities and the deep, deep employer has on their aetna side. betty: mark, is there going

to have to be some served of divestiture of your business or humana's business? mark: we did a detailed review of the business is at a local market level. this is not statewide, not citywide. this is down to the zip code kind of analysis. we will all have to do some digestive sures. we included those of us to jerk itures and we believe they give us all the returns overtime. betty: how much? what chunk of revenue will you have to give up? mark: we are not broadcasting that number. that is subject to a discussion with the department of justice and we don't want to get ahead of ourselves. some set you might have to give up 13% of your revenue to get this passed regulators. if that way off the mark? mark: i will just say we will not talk about that at this time. atrybody's doing an analysis a far less detailed level than

we have and i think that is where the rubber is going to hit the road. betty: we cannot say that all shareholders are not happy or satisfied with the deal, if you look at the share price. but, bruce, you have to look at , around 223fer is for the company and the share prices well below that price, $30 below that. you? s that telling bruce: it is telling what mark was just talking about. they have been hurt over the last few deals. investors we talked to, they are very excited about the future of the combined companies. i don't think it is the longer-term investors could there's confusion out there.

how to play this particular transaction, considering the ftc review. etty: is that partly on you come in terms of messaging to the investors? mark: not all investors are the same, betty. we will have to let the kinds of shareholders who value the deal find their way through it. we just need to let it clear through. we have a long time between now and when the transaction closes. we are going to let the market sort itself out. mark, why are these deals happening now? we have seen lots of drug deals for now we are seeing health insurance deals and you have anthem and cigna at play. why now? the business model has to

change. it is a wonder the system works at all with three different economic models. to get everybody on the same page, we have to have fundamentally different level of partnership and he can no longer be smash mouth of the local market. it has to be a partnership between payers and providers, making sure that we are getting the right outcome, a healthy, economically productive, and happy member. you look at that is the outcome and he reward the health system for doing that. there are trend vendors that make the market more affordable for consumers. does the chairman and ceo of aetna and the president and ceo of humana, speaking from hartford, connecticut. scarlet: presidential candidate hillary clinton will air her first nationally televised interview tonight. alix: we will be joined by mark

halperin on what to expect. ♪

scarlet: welcome back to bloomberg market day. want to get to julie hyman, who is looking at the markets on this very intense day. julie: it is an intense day, although at this point it is limited to the push and pull in individual stocks and sectors. earlier we had a big drop overall in markets but we have come back and then some. it it has now higher been an intriguing session today. in terms of what we are seeing , chips arerkets down a big part of that. we are seeing advanced micro devices still have a big, big drop. that is after the company cut

its sales forecast, effectively, saying that sales will drop by 8%. earlier they were forecasting 3%. this has to do with the waning demand for personal computers. it is weighing on semiconductors across the board today. many of them, although they have tried to shift their revenue mix more towards mobile, they are reliant on personal computers. this hour. lower at it should be noted that these are also up off of the lows of the session considerably. we have deals and potential deals. horizon pharma struggles making a hostile $3 billion offer for $29.25 a share, 42% premium. depomed earlier in the month refused a private offer. horizon is taking it public. makes painkillers and an

anti-seizure medication. , if it does happen, will cap off what has been an extra the near year for pharmaceutical deals. -- extraordinary or for pharmasset approval deals. alix: thanks so much, julie hyman. presidential candidate hillary clinton is campaigning in iowa today. in theended the event iowa city public library earlier this morning and later she will be organizing a house party. whether you will be cutting up the right of the party, we do not know. scarlet: my guess is she will be getting into this fear. what we are really looking for is her first nationally televised interview, which will take place with a rival network. with us is bloomberg politics managing editor mark halperin. hillary clinton has been relatively media-shy. what are you going to be looking for this evening?

mark: a lot will depend on the questions, and our probably doing the interview will have to sift through all the options. a lot of this will depend on the tone. hillary clinton has always been a little bit uncomfortable being questioned. i suspect a fair number of the questions will relate to harder topics that she has not addressed in any great detail, maybe about her e-mails, private e-mail server, her record as secretary of state. but even on other issues that are less personal to her, the , the iran nuclear negotiations, it will be interesting to see how she handles dealing with the sheow-up weston's, i assume will get from that, only in an interview and not any other setting. alix: what should and she do in houldn't sheew -- s do in this interview? mark: from the point of view a presentation, she should be herself. the hillary clinton who answers

directly without artifice, her close friends will tell you, people who spent time with her tell you, is an attractive come assertive person. she does not always come across that way in the interview setting. republican candidate marco rubio made some comments this morning in chicago about innovation, education, and he called higher education a cartel. i was looking at his bio page. he went to university of florida and graduated in 1993 with a degree in political science. he went to law school at university of miami. it is not as if he hasn't benefited from higher education. mark: well, he is a well-educated guy, but part of why a lot of people in the party are attracted to senator rubio is he is trying to come up with reform ideas. he is try to look at old institutions that have been around for a while and survey lot of americans, including, as you pointed out come himself well, things like university and social security. he is looking at those systems

and saying is there are what you think and you about them? i do think he has -- a way to think anew about them? i think he has struck a chord with people looking to update them for the current century. scarlet: tune in at 5:00 p.m. eastern for "with all due respect." mark and john heilemann will be hosting the program. alix: still ahead, why some ceo's may not have their company's best interest at heart when they announced buybacks.

scarlet: corporate america rewards shoulders, sure, but they disproportionately boost ceo pay. alix: alex barinka expense why many chief executive officers may be too incentivized to focus on short-term returns.

alex: for many ceo's, keeping investors happy can mean a bigger paycheck. of the top 15 nonfinancial u.s. companies that spend the most on buybacks last year, 3/4 have paid based on two metrics, earnings-per-share and total shareholder return. both get a boost when companies fight back the stock or pay a dividend. the likes leaders of of ibm, disney, and the cisco have an added incentive to go out cash to investors. and a time when activist investors are clamoring for more payouts, it raises a question -- are those ceo's getting paid for how well they run the business, or the ability to gain short-term results? spentbm, a company that $14 billion on share buybacks last year to meet earnings-per-share goals. instead of investing the money in the business. meanwhile, almost 40% of ceo ginny ready's $11.4 million

paycheck last year was based on -- one of these metrics. or disney, which is satisfied disgruntled shareholders when it pageed the ceo bob iger's earnings-per-share and shareholder returns. richard --art of a relatively new coal overturning guide to shareholders, but some investors aren't buying it. wrote ak's larry fink letter to s&p 500 ceos urging them to resist shareholder payouts if it means, rising long-term opportunities. with stockholders still enjoying a bull market, investors may not be as concerned about ceo pay that get a boost from buybacks or dividends. if the market trends, tensions could rise. scarlet: what is interesting with all of this is that there is a lot of research on this and he found that companies tend to be really bad market timers. they buy back their own chairs that too high a price and it doesn't benefit shareholders even as it does increase earnings per share. alix: there is a quiet period

where countries are not allowed to buy back shares. you need to look at the correlation with the stock price to see what it does. scarlet: the other thing is that tech companies -- we know so many of the facebooks and twitters, they end up giving stock options to employees. if the companies actually exercise their options, there is a lot more shares in the market and buying back could be removing excess supply. scarlet: they have the balls to consider. alix: push and pull. see you tomorrow. thank you for being with me because there's a lot more coming up on bloomberg market day. carnival is getting ready to say hola to have anna. it gets the a-ok from the u.s. government to send passengers to cuba.

with xfinity from comcast you can manage your account anytime, anywhere on any device. just sign into my account to pay bills, manage service appointments and find answers to your questions. you can even check your connection status on your phone. now it's easier than ever to manage your account. get started at xfinity.com/myaccount alix: welcome back to the bloomberg market day. i am alix steel. chosen ubs group to

help manage its ipo in new york later this year. that is according to people with knowledge of the matter. jpmorgan and goldman sachs are two to play a role. chrysler is spinning off ferrari to help an investment program focused on expanding the jeep and maserati globally. spacex is trying to pin down the events that led to its rocket disgruntled rating -- disintegrated shortly after lunch at cape canaveral last month. musk: we want to spend time reviewing the data and going over it with nasa and just order seeing -- just sort of seeing what feedback everyone has based on prior experience to see if we the most likely root cause is. alix: the spacex mishap marks the third failure of a resupply mission to a space station in

the past year. the crew expects adequate supplies last through october. a man was arrested for using 120 balloons and a lawn chair to fly. with the help of 20 employees he filled the blitz with $12,000 worth of purchased helium and took off. but he had to jump from the chair and open parachute attached to his back to the stunt was an attempt to market his cleaning product company. weremericans and a briton gorgeous today during the running of the bulls. -- gored today during the running of the bulls. eight other people sustained injuries. runs areays of bull part of the annual festival. those are your top stories. hundreds of chinese companies have halted trading as beijing

struggles to insulate the economy from the country's steepest equity decline in decades. the shanghai composite has lost more than a quarter of its value, erasing more than three chilean dollars. earlier, pimm fox and scarlet fu spoke to the founder and portfolio manager of north growth capital, and gordon chang, author of "the coming collapse of china, about the government's moves to prevent .urther losses >> the chinese government has clearly tried to address the decline with rate decreases, support by brokers. they set up a $19 billion fund couldchase equities government agencies have been intervening in the market directly. but clearly it has been overwhelmed by the volume and leverage in the asian market specifically. clearly, as you mentioned, the asian market has declined about

25%. stabilizing a little bit in the last couple days. there continues to be pressure on the market and it is spilling over to hong kong and the united states as well. scarlet: right, and hong kong as fallen into a bear market. gordon, i know you are bearish on china and you have been criticism -- you have got criticism of what the government has done so far. as china looks to its next measure, what about the potential of china devaluation currency? they are trying to build credibility for you and internationalizaiton. is it time to let it weaken? gabriel: i think -- gordon: i think they probably need to do that. when you look at all the money that has come out of china in the last half of last year and the first quarter of this year, the foreign exchange reserves, and also all the money they have been bending to defend, especially in february and march, i think essentially you have an overvalued currency. they are going to have to

recognize that, especially when you look at their week trade numbers. that is a reflection of how bad things are. gabriel, do you agree with gordon that the renminbi is overvalued? gabriel: there have been outflows, but i don't agree on the currency valuation argument. that would not be necessarily a solution for china. i would like to point out that the correction in the market is related more to overvaluation of equities and leverage in the market. it is not necessarily indicator of future growth for earnings for the economy. the economy has slowed. it will be very interesting to see in the second quarter how companies are performing. interestingly, banks have been defensive in the market. the reason for that is the balance sheets are actually better today five years after the crisis in 2008 and 2009. the issue is not overvaluation of the currency. interest-rate are coming down

clearly and dramatically. let me point out another issue. we are in the middle of a credit crisis globally. you see that with sovereigns like greece. you see that in the corporate level and the high-yield market. whether it is an energy company in brazil or property companies in china, which have overextended themselves over the last couple years. as you see rates rise globally, , that would become more difficult for companies that need to refinance. scarlet: the safe haven move is one factor as well. gordon, surprise interest rate cut in june. that is the first time it has happened simultaneously. is your take on this similar to , or is it specific to china that it needs to do what it can to prop up the economy? gordon: this is china-specific.

we have had four reductions in the benchmark interest rate since november. three reductions of the reserve requirement ratio since february. it has had little effect. monetary stimulus in china -- they can reduce interest rates all they want but the real problem is there is a fundamental lack of demand. when we look at this and bubble, this was created by the central government, by talking it up. they have been doing this for about nine months. they now own what is basically a stock market crash. this is extremely serious, because basically, you have got people in china starting to blame the communist party for what is going on. alix: that was gordon chang, author of "the coming collapse of china," and gabriel wallick, speaking with pimm fox and scarlet fu. is, thefirst time in 50 u.s. has authorized a cruise service to havana. carnival cruises will make stops in havana inmate, pending the country's approval.

spoke tod donald scarlet fu to talk about the next steps needed. aetna it is up arnold: it is a privilege to have received the licenses from the treasury department and commerce department. at the same time, we are working so we can honor our intent to which is to sail in may 2016 with our brand. about 700 guests every other week into cuba. scarlet: that is one of the newest brands you have in your portfolio. tell us how that is a good fit education or humanitarian voyage to cuba. arnold: as you know, we have 10 brands, and fathom is our newest. it is all from the original intent to have sustainable from a systematic, social impact, targeting the dominican republic

, where travelers will have the opportunity to be enriched i dominicansng with who have a real track record of cultural transformation in environment and education and economic development. with cuba, it is a little different. time in 50 years, scarlet, where the ship will be able to go carry passengers to cuba and repeat the process. feel privileged to have received the u.s. licenses and are excited about working with the cubans to ensure we do everything possible to sail in may 2016. scarlet: you have done a lot of due diligence and done your research. what do all your studies indicate when it comes to what travelers want to get out of a trip to cuba? how does it break down when it comes to baby boomers versus millenials? arnold: in the u.s. there is so

much pent-up demand and curiosity about cuba. we are looking for to honoring what travelers are seeking, which is basically, immersion in the cuban culture, to just experience it hit the art, the food, the environmental works already going on in cuba. the other cultural exchange aspects, education and religion. that is what people are seeking, whether it is millenial's or people who are older, this type of cultural exchange, and there is high demand, especially for cuba. there was real demand for the dominican republic itineraries as well. donald, can you talk about the infrastructure in havana to accommodate large cruise ships like fathom? what investors will be needed to make this happen? using one ofm is

our ships being redeployed, a beautiful ship, carries about 700 guests. a ship of that size we have already chartered and it needs additional work before we sale in may 2016. we can see that being readily accommodated at a number of ports. over time, with the embargo is lifted, and we see this is the first step, not just for us but for the industry overall, obviously, to take larger ships. port development will have to occur but the cubans are very much aware of that and we look forward to working with them and others in our industry to do just that. alix: that was carnival ceo arnold donald speaking to scarlet fu. coming up, one of the most powerful women in silicon valley is joining surveymonkey's board. more on sheryl sandberg's new job. ♪

alix: welcome back to the bloomberg market day. i am alix steel. we are 15 minutes before the closing bell. want to head over to julie hyman. take a look at the dow. to00-point move from open trough and it now to peak and at the highs of the session. julie: holy whiplash, batman. it has been that kind of day for the major averages. they are all higher now. it has been an incredible session. 30you heard alex mentioned, points almost in the dow jones industrials. s&p.int swing in the about a 100-point swing in the nasdaq. we are the highs of the session right now.

there has been an incredible swing today. i want to look again at the 200-day moving average in the s&p 500. this is the yellow line. we are above it. earlier today, that was the low of the session. we were definitely below that level. we were concerned that technically, if we reach the level on the downside, we would be going down further. interesting development there. in terms of the other groups that have been supporting the gains, utilities on that list. treasury yields heading lower. we will talk more about that at 4:00 p.m. and then of course there was the big turnaround in energy stocks. those other groups that have been the most to support the overall average. consumer staples, incredible turnaround in shares of chesapeake energy, which have been hammered in recent days. ofy're often a number negative analyst notes on that stock and its financial prospects.

has been, alix looking at this life, the turnaround in oil prices that we saw throughout the session. the trough, was down more than 5% as we saw the plunge in oil prices and recovery. what is so interesting about the day, whether you are looking at oil or stocks, is that there wasn't really a big catalyst. alix: nobody can tell me why it happened. you have to wonder if it was technical on either side because of the way -- it looks like a v on all the charts you showed. but again, we cannot point to one reason. thing you other should notice from today's session is that sometimes when you get swings like this, it is because of the low volume. volume is above the 10-day and 100-day average in the s&p 500. alix: yeah, it's awesome. thank you so much, julie.

now to a look at some of our top stories making headlines. w -- floyd nether the welterweight title in that fight against manny pacquiao. now he has been stripped of the title because he didn't pay the wbo the $200,000 fee. he has two weeks to appeal. there was one report he has earned $300 million in the past year. at wimbledon, novak djokovic pleaded his stunning comeback, from down 2-0 to be kevin anderson, 7-5, in the fifth set. the fourth round match was suspended yesterday after djokovic even things up at 2-2. also today, maria sharapova is back in the semifinals for the first time since reaching the chairmanship match in 2011. the russian struggle for a bit vandegwheeat coco of the u.s.

up next, serena williams. tears and screams of joy in the essentials the world cup champion women's soccer team arrived for a celebratory rally. defeated japan 5-2 sunday to take the world cup, with three goals from team captain carli lloyd. it was the second ever i hat trick in the fifa world cup finals. one of the most powerful women in silicon valley is joining surveymonkey's board. facebook coo sheryl sandberg joins the company. -- the joints the company her late husband ran until his unexpected death in may. i am joined by emily chang in san francisco. why is sheryl sandberg joining the board now and what does she bring aside from her personal connection? ryl and dave were true partners and i think she wants to realize his vision for this

company. he was running the company for six years and had a long-term game plan, and she knows perhaps more intimately than anyone where he wanted this company to go. she also mentioned that surveymonkey is more than a company that does surveys. it gives companies and people data that helps them make better decisions, and she feels that is really important. today surveymonkey also named its new ceo, a longtime executive.nd hp he left hb seven days ago. they said he was going on to pursue another opportunity. now we know what that opportunity was. what we are learning is that bill and dave had been friends for 30 years. they met in college and the week that dave passed away, surveymonkey was planning to add bill to the board. to recruit him. we know that surveymonkey interviewed or looked at 75 potential candidates for this job in silicon valley, outside

silicon valley. they all the milley interviewed 12 different -- they ultimately interviewed 12 different people. there were strong internal candidates as well. but ultimately they went with a man who dave was friends with in a long time. we will speak to bill on "bloomberg west" and it will be interesting to asking his vision for the company and how did he realize his vision as well as vision, a person who is blessed by so many in silicon valley, but certainly his employees. alix: really looking forward to that. thank you so much, emily chang. looking forward to that interview could you can catch her interview with the surveymonkey ceo coming up at " bloomberg west" at 4:30 p.m. eastern. high-yield energy debt is tanking in tandem with the falling oil prices. ♪

alix: one of the fastest-growing parts of the u.s. junk-bond market is being hit today. high-yield energy to is tanking in tandem with falling oil prices. will this lead to another wave of defaults as borrowers fail to repay the debt? here with us is one group lisa abramowicz of bloomberg news. what does a day like today with oil prices and that horrible orop for the past two days d to the bond market? lisa: you see falling six cents on the dollar, pretty significant. you have companies like cliffs natural resources, and a venezuelan oil company, bonds tanking. this is a big concern for a lot of people, because energy debt accounts for a much greater proportion of the u.s. high-yield bond market. 15% of the overall market, $200 billion of debt. this is a significant chunk.

if it falls, if it really falls substantially, that affects everybody invested in broad indexes and junk bonds. alix: the oil community, too -- you look at double be rated companies. 30% of the growth. not necessarily huge amount of the oil. it is where we have seen a lot of the juice. to your point, it could be dangerous. lisa: how have they gotten that growth? by borrowing a ton, investing in rigs that are expensive, drilling that is expensive and incredibly levered. you have one company, california resources, for example -- blue mountain came out and said we are shorting this company because they have bonds worth $6.5 billion, and their assets are worth only $2.2 billion. fonts are worth $.20 on the dollar. alix: you have seen the market time and time again lend money

to these company's. one is that stop -- when does that stop? lisa: that is a great question. i would be very, very wealthy if i knew the answer to that question. the hope right now is that the company's get more efficient at production so the actual expenditures will go down and the capital structures will be ok. the concern is the defaults are rising. inmate use out nine defaults, most of them in commodities, in the u.s. high-yield market. this is the biggest month of defaults since 2009. are saying, look, the height of market is one most -- one of the most supported by the quantitative easing program of the federal reserve. what happened to this market that has been dramatically inflated starts having serious problems and seeing defaults? not technical problems, but real fundamental defaults. read determine

their loans twice year to oil companies. this comes again in october. analysts are concerned that october is going to be really ugly. the $100 i gave you, i will give you 20 now. this is a big concern, although in the second quarter companies did sell -- energy committees, high yield copies them pulled about $20 billion worth of new debt, and part of this was to push back to maturity and, up with ways to get around that. the argument that some people make is, you know what, maturity is so far out, we're talking about maturity in 2020. why are we even talking about default? but matthew at ubs raises an interesting point in a recent report. he was saying, look, so far this year there have been 58 defaults globally, putting to snp data. that is more than twice what it was last year. hose ise third oof t

due to companies missing interest payments. if there is a true fundamental weakening of income for these companies or some other event, they could afford even without having maturity. alix: fascinating. thank you so much. this is, like, the most fun -- energy bonds and oil prices?the most fun ever. missed," on "what you what will greek officials present to creditors tomorrow and will it be enough to make a deal? plus, we have the close of markets. a rally on the dow, up by 86 points, or the highs of the session. unbelievable comeback. ♪

alix: we are moments away from the closing bell.

u.s. stocks rebounding after the s&p dropped in more than 1% early in the day, falling through the pivotal 200 day moving average. market equities plunging amid a major selloff in commodities. the question is, what did you miss? alix: cyprus promises new proposals. will they be enough to fend off an exit. the energy trade falls off a cliff. we spoke to the ceo of a major power generator about how he is hedging his bets.