hours. it could be the last chance for greece to reach a deal and stay in the eurozone. scarlet: we go back to sun valley, idaho. we will hear from the new york times ceo, mark thompson. pimm: we will take a look at what subway can do to limit the damage of the investigation into fogle. scarlet: good afternoon, everyone. matt: let's take a quick look at the markets right now. stocks open higher after the nyse outage was solved yesterday. they have since come back and our trading now around session lows at 121 on the dow. we were up at 200 points on the dow earlier.

just off the session lows at 2061. you are seeing red arrows but they are green if you look at the one day. shift inibly volatile crude gaining 3%. it had come down below $51 just a couple days ago. copper putting up again today as well. focusing on oil here. the big mover. down 12% the last month. a big drop for oil. scarlet: we need to look at treasuries because they were aware -- the 10 year yield rising for the first time in five days. we've had some calm overnight in asia that helped to encourage people to not bid up the safe havens. scarlet: or maybe they are selling them.

scarlet: because they are not allowed to sell. euro-dollar little changed right now even as greek officials get ready to submit their proposal in a few hours. the dollar stronger versus the yen as the yen is also weaker -- the yen was stronger versus the euro as well. versus yen over the last two months -- euro-dollar over the past week has lost some ground. much something that is a fluid situation because we are waiting for the greek proposal. matt: there has not been a lot of the euro-dollar movement. even on days when we've had a lot of news coming out of the weekend -- a lot of euro-dollar movement after the referendum. scarlet: everyone is saying it's all fixated on when the fed moves. matt: let's take a look at the

top stories we are following at this hour. scarlet: the greek prime minister has until midnight to come up with economic reforms in exchange for another bailout. one of the creditors suggests there may be some breathing room. officials say greece will smith proposals next few hours. we spoke with olivier blanche ard. >> we are working on an agreement between greece and the european creditors. we have played an important role. it is possible to ask less of the greeks than the original program. there has been a democratic election and a referendum. it has to be taken into account. the greeks should be asked to do less than originally intended. european leaders insist there must be spending cuts. greece has promised to implement reforms on pensions and taxes. the imf downgrading its forecast

for global economic growth. the global economy will grow 3.1% this year, down from 3.5% predicted in april. the imf reduced its forecast for u.s. growth from 3.1% to 2.5%. both greece and china were highlighted as trouble spots. you think? matt: the new york stock exchange was a potential trouble spot yesterday. it knows what caused a computer malfunction. investigators were looking at a faulty software update. they have verified that was indeed the cause and it will report the details to regulators even though trading was halted, shares listed on other exchanges traded very smoothly. there is a big transaction in the beauty business today. procter & gamble has accepted an offer to merge 43 of its beauty for $12.5h cody

billion. the haircare brand and cosmetics and fragrance units. matt: was a on dress -- scarlet: jose andres called trump's statements disparaging to immigrants. trump is threatening legal action saying he has a 10 year lease. do you think you suzanne? -- sues him? matt: he doesn't sue a lot of people. and his hair. full retainer. he is in the conversation. he is making an impact. matt: an amazing world. scarlet: that's a look at the top stories of the hour. matt: the technology and media

elite are meeting in the mountains of sun valley, idaho for the annual conference. scarlet: olivia sterns is there as well covering all the action. she was standing by with the ceo of one of the most powerful newspapers. olivia: indeed. thank you so much. i'm joined by mark thompson. great to have you here this morning. in the past month, to really -- two watershed deals for the new york times. everybody is talking deals. do you think we will see more deals like this? mark: the platform opportunities and experiences does feel like a trend, differently. people on smartphones tend to use apps rather than searching the internet. it's not new.

the times went to a well for content in 1992. -- aol for content in 1992. the idea of sharing another environment is not a new idea. it gets you distribution and new audiences. there are questions on the business side. olivia: how do you think about monetizing it? it was made public that the facebook instant article sell and us able to keep 100% of the advertising. and put the articles on facebook, which is a good thing. we will go into these experiments to learn, to learn about whether they promise better user experience. if it's better than being linked across to the mobile web.

, whether wet helps reach new audiences and what the pun looks like and whether these are effective or not effective in encouraging readers to become more engaged and somewhat to subscribe. olivia: what does this mean for the pay model? the new york times proved the critics wrong with asking people to pony up a couple dollars. putting your content on some of the else's platform means you cannot charge the same way. mark: we are talking to all of our partners about how we make it possible to authenticate, how we use these platforms to develop these situations. we reach up to 90 million people a month. million print individuals -- we are very interested in the other 85

million. we can make money by showing them advertising. there are prospects for the future. our pay model is very different than the wall street journal. we have a florist a model. -- porous pay model. letting lots of people read and try the times journalism and figure out ways of encouraging some of them to become much more engaged. libya: what are the other platforms that look attractive? mark: we are having some discussions. you should not assume that the only kind of people who are interested in having our content are people with big social media platforms or big device plays. almost anyone hoping to attract people to stay on an app and find the app useful is potentially interested in offering some level of news content. will we see the new york

times with a circle on snap chat? mark: it's something we have focused on. we are talking to many media players. noticedeveryone has this behavioral point, your smart phone is not everything, but it almost is everything. --s much more apt-based searching is tougher. people become creatures of habit. people think, about how to keep people on the app. what kind of services can i offer? olivia: when the new york times wrote about the pay model, everyone said it was crazy. mark: the big one is simply the thought that legacy media can't play a role.

we are rolling out digital revenues -- double-digit quarter after quarter. that was not meant to happen. we were not meant to innovate and compete and we are. it's a much more open field. big brands immigrants people trust in a cup located, crowded, noisy world, the brands you can trust punch through. olivia: how hard is it to find talent of these days? is it worse going forward? mark: when i go and talk to the school -- there is no lack of enthusiasm for becoming a journalist. people will make the choice -- the profession looks different. the barriers to entry are much lower. you can do journalism from your dorm room.

getting into the business is easier. wet it's not offering -- have people who went been there for decades and that's great. generally, is becoming more uncertain. thinking about a 40 year career is tougher. is like a journalist the other creative ministries like becoming an actor or novelist. -- creative industries. it won't have all the benefits of creativity. and all the benefits of certainty of money to pay that mortgage. olivia: and a fair amount of luck. think you for joining us this morning. -- thank you for joining us this morning. a nice, casual top. mark has not shaven in a few weeks. i would like to be a night owl

and that like that. -- live like that. scarlet: still ahead, another day, another big m&a deal. matt: just one of today's big deals. we will have the rest, coming up.

scarlet: welcome back to the bloomberg market day. matt: i want to get straight to julie hyman for a look at the m&a action we've seen today. julie: some of it successful, some of it thwarted. you've been talking about the big beauty deal with coty buying procter & gamble's various

beauty brands. they will spin off these brands and coty will merge them with one of its units. coty is trading lower. some analysts questioning the company's ability to digest these brands. willg had problems, what coty be able to execute better? png has been trying to get slimmer, offloading 100 brands as it seeks to focus on its core businesses. i want to check in on ethan allen. caused a spike in the shares of 5%. a couple of private equity firms might be interested in ethan allen. no reporter has reported this in the past -- this is the latest report of this kind of potential activity.

we are looking at a company called pacific energy -- it is a colombian oil producer. agreed to buythat it have now said that they are not going to go ahead with that acquisition. we are seeing the shares plunge here, the most on record for that company. a notable move in this energy company. reportafter there was a by capital forum that said the intel acquisition might face some antitrust risk. $54 a share. it's trading below that. the shares down three percent today -- 3.3% today. the iran nuclear talks continue at this hour. iran's foreign minister says

negotiators will not be rushed to the talks. you cannot change horses in midstream. speaking a few minutes ago. you can see him talking live. the talks and the end of works than once again until tomorrow -- talks indiana were extended vienna were the en extended once again until tomorrow. the confederate flag will come down tomorrow morning and be shifted to the confederate relic room. the house doing the senate and agreed to remove the flag after 13 hours of debate. ryanair said to offer free domestic flights to greek travelers. they plan to waive charges for two weeks dependent on the collaboration of aviation authorities and athens airport. the flights could start netsuite

-- next week. that's one of those things they promise, but to execute it come all these other things have to happen. matt: i would apply anywhere for free -- fly anywhere for free as long as i could check my bags at no cost. airlines drive all the luggage to carry on and you have to wait because there's too many carry-ons. when will they wise up? coming up, insurers across the board are consolidating from health care to property and auto. hubb by ace,ion of c our competitors looking on with fear? we will speak to tom wilson, next. ♪

scarlet: welcome back to the bloomberg market day. we've been reporting on some deals in the insurance industry. aetna agreed to by humana $437 billion. ace will buy chubb for $28 billion. how our competitors sizing up the competition? uytna agreed to b humana for $37 billion. betty: we met in aspen. allstate was a big sponsor. in the middle of when we met last week, we had chilled and ace announce their merger. how did that impact the insurance industry? does that impact what you are going to do? tom: the merger makes sense strategically and economically.

they do enough of the same things -- they are complementary enough that they can leverage -- likensurance space, it's -- it has many neighborhoods in it. you have health insurers. a precipitating event in the health-care mergers was the affordable care act. you've seen a bunch of new capital come into that business. there's been a bunch of consolidation in the neighborhood. the next neighborhood is the commercial -- ace and chubb sell commercial insurance to businesses. whether this will be the starting gun of a consolidation in that space because of the people see what they see and what to do it, i don't know. i'm sure they are thinking about it. we are in the personal business. we sell insurance to consumers. that's our neighborhood. half of the business is done by mutual companies.

companies that don't have stockholders. i don't think you will have a starting gun in the personal lives industry. these things tend to move from neighborhood to neighborhood. we are always thinking about this we bought insurance -- we bought esurance. is it going to happen in the commercial insurers industry? scarlet: something that shakes out for longer here. --ant to get your thoughts as someone who has a lot at stake with natural disasters come is the u.s. doing up with climate change? tom: we have been a gnostic us to why it's happening. about wiretapping. -- as to why it's happening. the weather is more volatile today.

we have to make sure we can be there for our customers. we've built new technology, new capability so that when there is a disaster -- when sandy came through new york, we were knocking on people's doors because we knew they were in the path of the storm. part of it is adapting technology to help you adjust. you cannot stop the storm from coming. the longer term thing the west is to do, how do we build houses that are resistant to this kind of problem? you have to invest before you know is going to happen. betty: you collect so much data through your business. how do you make money off the data you have? tom: we give our customers the best possible price. when we are selling insurance, we don't know whether they will have an accident, so we use data

to tell us. we can tell exactly how people drive. we can give them an even more accurate price. it helps them and we make money. scarlet: thank you so much for joining us. betty liu will be back in just about a minute. it's so rare for us to both be on set at the same time. a discussion on china where the stock market has recovered. ♪

matt: welcome back to bloomberg market day. we are looking at a pro-eu rally and athens.

keep in mind that although european leaders like to say the referendum was about staying in , andou or leaving the eu greece, the idea was we are voting for or against austerity. it has nothing to do with whether or not we stay in the eu. scarlet: the majority of greeks want to stay. matt: the majority want to stay in the euro but do not want austerity. they want to have their cake and eat it, to bank. -- too. scarlet: we want to stay in the eurozone but we just don't agree with the conditions. let's go straight to the top headlines. matt: the iran nuclear talks continue at this hour. vienna.ry just spoke in he says both parties are in

-- he insisted the u.s. will not be rushed. that echoes a twitter posting from iran's foreign minister singh the iranian negotiators will not be rushed, either. -- saying the iranian not be rushed,l either. iran's president says the country is preparing for a post-sanctions era. they say that will ease sanctions if iran agrees to limits on nuclear development. ibm says it has achieved a breakthrough in tricking computer chips. its new chip is a first with transistors that are seven nanometers. a nanometer equals about one billion of a meter. it would take 10,000 of ibm's new chips to equal the width of a human hair. the microchip industry has been able to create smaller and more powerful chips but this is growing increasingly difficult due to technical limits.

betty: t-mobile says it gained 2.1 million new customers. usersd new monthly phone totaled seven has 50,000 in second quarter. -- 750,000 in the second quarter. >> it is semi-irrelevant. we have just under 59 million customers. you can play that out -- i'm sure we are bigger than sprint. scarlet: shares of t-mobile have gained 44% this year. for apple's smart watches already come and gone? sales are down 90% since they were introduced in april. most of those sold are lower profit styles. apple has not released any figures. those are your top stories. matt: coming up, we will hear from doug hodge about pimco's

turnaround and white parted ways with bill gross. scarlet: what subway can do to limit the damage, the fallout from the investigation of jared fogle. matt: this could be the last chance for greece to reach a deal and stay in the euro zone. i said that exact statement a dozen times in the last six months. it's a deadline. a real deadline. haveet: chinese stocks rebounded in a huge way. the shanghai composite jumped 5.8%. after losing about one third of its value over the past month. me that china's government has made a lot of mistakes handling the markets. >> the chinese have handled this terribly. they allowed the bubble to occur by opening the shanghai-hong

kong connect. now, they're making mistakes on the other side by having the government buy stocks matt:. joining us is ted fishman. the rise of the next superpower challenges america in the world. thank you for joining us. let me ask what you make of this, this market crash, basically. so many people have compared it to the u.s. stock market crash in 1929. ,ed: it has one thing in common a lot of first-time investors, public investors who are unsophisticated. we know that the intensity of pain is much more than the intensity of pleasure. when chinese families start losing their savings, they would tend to panic. ,ou mentioned the greek crisis last chance for this, less

chance for that. people have been writing the last chapter of the chinese economic miracle for a long time. thinking of this market crash as the end of china's miracle is way overblown. scarlet: way overblown? steve framed the next stage of chinese growth as socialism with chinese characteristics. a lot of people look at the market meltdown and commented that this is like capitalism 101, schooling china. is that is farat from the case. is what we are seeing inevitable? ted: it's inevitable in markets in general. i was a market trader for a long time -- we saw this exact same thing in pork bellies. is the-to-one part beginner steps the chinese took in encouraging the chinese public to buy stocks as a way to prop up the economy.

it wound up manufacturing a bubble. they thought they were being more capable as consumers -- it would prop up real estate prices. you saw an asset bubble. on the way down -- i have to give the chinese government credit. they may have taken some sloppy steps to prop up the market, but the chinese public very much intense -- their government showing they're willing to step in, giving the chinese public a lot of confidence. even though we might not agree with the measures, the symbolism is very strong. matt: you cannot call it confidence when they order you not to sell stocks for six months. that causes massive market problems. stock force me to hold and i need cash, i have to sell

real estate or my copper warehouse or my cars to get it. measures arehese individual investors. they are not over that 5% threshold. those would be the bigger players. state-owned industries have been asked to step in and buy stocks. that seems very sloppy from our point of view, but it's the kind of forcible step that the chinese government is expected to take by the chinese people. matt: they have suspended those in smaller companies. 700 companies suspended a couple days ago. they keep shoveling money to the bigger state owned companies. they are making this economy so lopsided. ted: their always willing to make the economy lopsided in favor of the state owned industries. are aate owned industries

black box anyway. ir realws what they're rea valuations ought to be? i would not be surprised if they don't plummet and they stabilize. scarlet: let's take a step back here. charge, it's to avoid social unrest. connect the dots on how the to shiftt's efforts the economy to more domestically led helps diminish unrest when you've got this kind of volatility. ted: this is why the effort to prop up the stock market in the first place was so misguided. the government thought by putting more money into the pockets of investors by asking the investors to drive up the market, they would feed the consumer economy. that is not going to work at the bubble collapses. that will be a failed attempt.

there's a lot of hidden consumer spending in the corporate sector in china. a lot of consumer goods we would count on the consumer side are purchased by chinese companies for their employees. consumer spending is higher than we generally think of it. if the bubble is collapsed for real, you will see a huge double-dip on consumer spending on the private side and consumer goods paid for by companies. scarlet: we look at all the numbers on the stock market in china and how dreadful it's been. if you look at the economic fundamentals, it might tell you a different story. i have economic surprise index for china. when you look at the chart, it doesn't mean contraction, it just means data is worse than expected. it has improved a little bit. iss that mean the stimulus working? ted: i don't know what has happened in the last couple days

is working, but when you do get a crisis, you will get in pleased -- increased discipline by the corporate sector. for the u.s., the question is different. if china is weaker in the long run, what does that mean for u.s. companies? wage inflation will be over and that outsourcing will be viable in china. fewer jobs moving to other economies in southeast asia. the ripple effects of a true collapse could be quite profound. not a talking about recession, just talking about a decline in the growth rate. the growth rate in china is still -- matt: thank you for your time. definitely something you should check out. scarlet: that doesn't for me. what do you have coming up? liu satill ahead, betty

down yesterday with doug hodge. he succeeded bill gross. he discussed the firm's position. stay with us for the pimco ceo, not bill gross. ♪

matt: welcome back to the bloomberg market day. we had some headlines here on the london whale. remember that big deal? stephanie: he is not going to be fined by the u.k. authorities.

the conduct of authority had proposed a fine against him. by about one million pounds -- it would be an industry ban. he is a former j.p. morgan chase trader who was called the london whale after he made enormous derivative bets. matt: billions and billions and billions of dollars. julie: but he won't have to pay anything. not as a part of this. --t: nor will he be banned he will be able to work in this industry. julie: he can, but will anyone hire him? we will explore that another time. i want to get to what's going on in the united states in terms of stock trading. if you look at the major averages, we are up .5%. in terms of the rebound, not nearly as strong as it had been

earlier. look at the dow on an intraday basis. you can see the big swing we have seen in the index. we were up as much as 249 points. pairing so much of that as the day has gone on. now up just .5%. i saw a tweet from mark sebastian. he thinks investors are waiting for the next development in the greek situation. maybe they want to put some more decided bets. a much more mixed picture than it did earlier -- we opened strong. stocks tradinge higher. now, looking at a much more mixed picture. we telecom services and utilities down. materials remain higher. as the dow has paired those gains, i want to look at what is

responsible. these are the dow lacquers. might facea deal regulatory issues. procter & gamble selling its beauty brands to coty. this deal has been talked about for a week or so. i want to look at what's going on with the treasury market today. we've had some selling of treasuries, yields going back up. 2.3%. when we saw utilities down, that seems to be the primary culprit. i want to look at the vic's as stocks, it's paring its earlier moves, now down 4.4% in trading at nearly 19 for the volatility index. matt: pimco is the firm that point the term "the new normal."

s there an even newer normal today? you need to look at china in a broader context. the chinese economy is much larger. they still have spillover impacts to the rest of asia and the global markets as well. we are watching china very closely. is bettyning me now liu. what an interesting conversation. betty: it was. the first time he has appeared on bloomberg television as the ceo of pimco. what he was expressing is what a lot of ceos around the country are expressing. they are watching china closely, watching greece, they hope there is a resolution.

they are not saying that the -- they are still optimistic about what's going on in the u.s. they think the fed is on track. those are reflections from don hodge -- doug hodge. matt: he did not mention any trades on china. betty: no, he did not. gross, you bill cannot have a conversation -- i'm sure he would like to have one, but you cannot have one without talking about bill gross. it's been nine months since bill left the firm. i directly asked doug, what is it like now at pimco? how do you feel about bill gross now? doug: the arrows at pimco are pointing up. we had some work out for us.

the integrity of our investment process is in place. we are delivering strong performance in our clients remain loyal. i could not be more proud of our team and the way we have performed over the last nine months. betty: there was a story bloomberg put out that i thought was interesting, an interview with bill gross where he said every day at three clock p.m., he looks at pimco funds. if it's doing worse, he has a bad night. when you hear that, what do you think? is to deliverge performance to our clients, our investors. that is at the core of everything we do and that is the core of our culture. that has not changed. matt: very interesting to hear him talking about bill gross. i'm sure he is sick of it. i would be interested to hear what he thinks about mohamed el-erian.

betty: that was his predecessor. he is a different kind of ceo. mohammed is an economist at heart. he will give his forecast and where he thinks the fed is going to go and where he thinks the global economy -- doug is not that kind of ceo. he's much more about the operation, client relationships, things that will affect the firm . that is more in his wheelhouse. he is a bit different than his predecessor. clearly one of the most powerful ceos. matt: very cool. congratulations on the interview. i'm sure we can check it out online at bloomberg.com. more of that throughout the day. we are keeping our i on greece right now. the government rushes to craft its final reform plan. still looking at pictures of pro-eu rallies in athens. public opinion has been in favor

of staying in the euro. still ahead, while a mockingbird covers the latest edition of bloomberg's business week come inside, you will find a tale about the dark times facing the world's biggest fast food chain. subways struggles after the break. ♪

matt: welcome back to the bloomberg market day. before federal investigators raided the home of jared fogle, the company was in the midst of rebranding to revive second sales. no charges have been filed against fogle and it's unclear what the fbi was looking for. unless you want to make an educated guess. subway has ended the 15 year

relationship with fogle. losing jared is not subways only problem. it's a story will find in bloomberg businessweek. thank you for coming on the program. -- i don't want to get into what's going on with jared and the fbi now. as far as jared and subway, he must have been a huge boon to sales. everyone feels like it must be fairly healthy. >> definitely. he has been the face of the brand of the company for so long now. he shot his first commercial back in 2000. he has been the subway guy ever since. matt: they were thinking about rebranding him as the family man for subway going forward. >> they were.

i know he is married and he has a child, at least one. he would have been the perfect person for that. matt: let's look beyond jared. subway is languishing as far as outside estimates are concerned. they are a private company. what is the problem? >> it's hard to say exactly because they are a private company. analysts and experts have said they have a lot of stores in the u.s., probably too many. those of other stores. -- those stores are cannibalizing sales of other stores. matt: what are they doing to turn that around? the same couple of guys have owned it for a long time. we have seen them do some health-related things and that seems to be their focus.

having some food that is a bit healthier than a burger and fries. they have rolled out breakfast, they have avocados now. they have a new healthy line of sandwiches. beyond that, they have not done that much. matt: i guess they need to think of something new. more about that in bloomberg businessweek. you can check out her findings there. it's on newsstands now. you can also get it online. greek -- ahas the mysterious hotel bill, coming up. ♪

and 10t is 11:00 a.m. pieces go, 2:00 p.m. in new york and 2:00 a.m. in hong kong. the greek government will commit puzzles for economic reforms in the next few hours.

it said that a couple hours ago. this could be the last chance for greece to reach a deal and stay in the eurozone. betty: pimco's comeback. you called their management since the departures of bill gross and mohamed el-erian we will hear from doug hodge. seizing caesars entertainment. good afternoon. i matt miller, here with betty liu. betty: let's get to the market. in the equity markets, we saw the relief valve after the chinese had stepped in -- the chinese government stepped