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 in to

stave off the selloff. here in the equity markets, we have seen gains starting to lose momentum as we head toward the closing bell. in the bond markets, some selling going on. that has gotten yields a bit higher. 2.3% for the 10 year note. the big chinese investors are selling off their u.s. treasuries to raise cash. take a look at the euro traded. more. not moved much down belowcoming $1.10. take a look at oil. it's been exciting to watch, volatile as all get out. it has been over $53 today.

just a couple days ago, it was under $51. it has come down - 12%. let's get the top stories crossing the bloomberg terminal at this hour. we begin with the imf, downgrading its forecast for global economic growth. the global economy will grow 3.3% this year, down from 3.5% in april. much of the downgrade is driven by the u.s. the imf cut its forecast for u.s. growth from 3.1% to 2.5%. greece and china both highlighted as potential and obvious trouble spots. untilalexis tsipras has been i to come up with economic reforms in exchange for another bailout. there may be some breathing room. blanchard.vier >> they have to provide more financing and relief.

to take veryve if one sideures -- says you do it, we don't, it's not going to happen. we still hope it's going to happen. betty: european leaders are insisting on spending cuts. greece is promising to implement reforms on pensions and tax hikes. matt: the new york stock exchange knows what caused the computer malfunction that knocked out trading for more than three hours yesterday. investigators were looking at a faulty software update. they had verified that was indeed the cost. -- the cause. even though trading was halted, shares lifted on other exchanges. they traded well. up thedaq picked overflow. it wasn't as if there was no trading going on. the labor market hit a speed

bump last week. more americans filed for an up limit benefits. the data can be volatile this time of year. mortgage rates have dropped in the u.s. for the first time in three weeks. the crisis in greece may have helped -- financing costs fell as investors put more money in government bonds. the average was a hair over 4%. staying right around those incredibly low levels. marketshe chinese stock bounced back after losing more than a third of their value in less than a month. the shanghai composite index of 5.8%, the biggest gain since 2009. of ihsthe vice-chairman on china's weakness in the oil markets. >> china for a decade was the driver of world oil demand.

over half of the total increase in world demand over 10 years came from china. the slowdown we are seeing in china is rebalancing their economy, lower demand from china is something that is important to the oil market and that's where the underlying factors are at work right now. betty: chinese regulators have unveiled several measures aimed at restoring market confidence over the last two weeks. att: ibm says it has achieved breakthrough in tracking computer chips. the new chip is the first with transistors that are seven nanometers. is one billionth of a meter. 10,000 of the new chips to equal the width of a human hair. when bigger than the one you saw on that finger. betty: diners will have to wait -- the fdand of 2016

says restaurants will now have until december of 2016 to comply with federal menu labeling rules , one year beyond the original deadline. out ayahoo! is rolling new fantasy sports service designed for mobile devices. the move steps of competition with the likes of draft kings and fan dual. they can create a fantasy basketball, football and hockey teams and weekly cash prizes. yahoo! is beefing up its online sports services. one trade groups has 57 million people in north america play fantasy sports. the you -- do you indulge? betty: no. i think you might. matt: a little bit. up, media and tech executives gathered in sun valley this week. china's stock market

swings again. this time into positive territory. the government make some unprecedented demands on corporate executives. betty: our businesses in greece preparing for an exit from the euro? some revealing information on it. a very weird story. 3:40?we had to wait until we will look at a picture of bill. pimco'surning now to comeback, the investment firm has overhauled its management since the contentious departures of bill gross and mohamed el-erian. i sat down with doug hodge and s --d about concern doug: if you look at how the

regulation has been formed over the last several years, whether 2u are talking about solvency or dodd frank, it's the safety and soundness of balance sheets. it was the balance sheets of the banking system, primarily. if you throw in aig, you could argue perhaps the insurance bounce sheets. -- balance sheets. the banking system was comprised. ensued and harvest so forth. the regulation has been oriented around the sapience i was of balance sheets, which mix perfect sense. we don't operate off a balance sheet. what we do as a financial intermediary is to help others invest portions of their balance sheets. whether it's a defined-benefit pension plan or individual investor who puts part of their savings into a mutual fund come all of those moneys are invested in the capital markets with

,lear mandates, guidelines boundaries around how those moneys should be invested. that is a significant difference than a bank or insurance company. our role in the financial system is as a service provider rather than institution that provides a balance sheet. betty: what if there is a liquidity crunch and you start to see runs on mutual funds? doug: you have to step back from that for just a moment. in the 75 years of the mutual fund industry, there has never been a run on a mutual fund. inual funds are clearly terms of their structure, clearly different than a bank. there's a reason why there is a run on a bank. the last depositor may show up at the window and not get their money back. that moment when the bank runs out of money. image will fund does not have that risk.

-- a mutual fund does not have that risk. the price might be lower than you wanted or expected, but a mutual fund holds assets for every shareholder for every investor in the fund itself. the price of those assets moves up and down with markets and the investments they hold. that's a very different structure and hence a very that wet relationship have with an investor as compared to a bank with a depositor. betty: haven't you used the can't talk about pimco and not talk about bill gross. the redemption of the total return fund -- you have seen months and months of redemption and the funds have still been able to operate and it is still functioning. you've been able to stabilize

that. that isn't example of how pimco and others are not systemically risky. doug: i'm very proud of the way we have performed. we have had withdrawals and redemptions from her mutual funds. bond fund you perturbed to. we have been able to deliver category leading performance. -- the big bond fund you referred to. it has been nine months since bill gross left. what have you been doing as a ceo to stabilize the internal environment and speak to clients and say you are back on the right track? betty: the arrows at pimco are pointing up. we had some work cut out for us. our team has been stable, the integrity of our investment process is in place.

we are delivering strong performance in our clients -- and our clients remain loyal. i could not be more proud of our team. go, there was a story that bloomberg put out -- an interview with bill gross where he said every day at three clock p.m., he looks at pimco funds. if he's doing better, he has a good night, if used doing worse, he has a bad night. -- if he is doing worse, he has a bad night. pimco, our charge is to deliver performance to our clients. that is at the core of everything we do and that the core of our culture. that has not changed. betty: that was doug hodge. interesting -- he had not spoken to bloomberg television before as the ceo. he did an interview once in asia

with mohamed el-erian. you can see the different personality from bill gross -- matt: definitely from bill gross. betty: and mohamed el-erian. , it seems like you are a bit different from mohammed. mohammed was all over tv and writes articles and op-ed's. you are not like that and he gave a lap and said television is unforgiving. laugh and said television is unforgiving. matt: still ahead, the markets are in the green after yesterday's selloff. at session lows. we will take a look at what's going on. ♪

matt: welcome back. i matt miller, here with betty liu. betty: let's get straight to julie hyman. we are finally getting earnings season underway. with all this big macro stuff going on, we will have earnings to contend with as well. let's start in the drug industry. specifically the pharmacy industry. walgreens coming up with its earnings today, beating estimates. and had been cutting costs plan to close 200 pharmacies after the merger. the shares are rising 5% and have been the best-performing in the s&p 500 today. looking at alcoa, the shares

were down sharply yesterday ahead of its earnings report after the close. now, they are trading higher by 3%. alcoa's earnings missed estimates -- we have seen plunging aluminum prices. 1%, enoughup just for them to be estimates. that was one silver lining in the report. a look at pepsico as well -- pepsi came out with earnings that beat estimates, raising its forecast. it has been feeling the pain of a stronger dollar and stagnant soda sales. the shares earlier were higher. they have waned and are now down by more than 1%. this next business has been strong. business has been strong. , and earnings analysis of the companies that have reported so far. here is the summary line at the

top. 22 of the companies have reported with sales growth of si 6.2% on average. up, we willg this do a scorecard of this as we go through the season. another way to look at it, the earnings estimate. right now, there when 18 for the s&p 500 -- they are when 18. -- 118. a little less optimism going into the season here. matt: this shows earning estimates overtime. have they changed or is this for different quarters? julie: this is overtime as they change. that's why we see them go up so much because we have seen earnings growth. now that we have looked more recently as to how that has changed. betty: thank you so much julie hyman. matt: let's take a look at our

top stories. in london, a 24-hour strike shut down the city's famed to, it's winding down. -- famed tube. chaos.4 hours of the strike ends tonight. there is likely to be some disruption tomorrow. the decisions about the new 24 hour service due to start in the fall -- workers are striking over pay. one union says the offer was divisive and unacceptable. there is a very good feel on the table. it's not the first time the two workers have been disgruntled workers have been disgruntled. were encouraged to travel outside or work from home

when possible. millions left work early yesterday to beat the strike. today, the roads have been filled with cars and people cycling and walking. buses have been crammed. not a comfortable journey. business groups say the strike will cost london millions of dollars in lost productivity. i would not be surprised if it approached a billion dollars. they love to go on strike. they do it pretty often. betty: to the middle east, more than 4 million syrians have fled the country since the outbreak of civil war in 2011. largest says it's the number from any crisis in nearly 25 years. displaced --ave turkey has absorbed much of the impact. more than 24,000 people arrived from syria in june alone.

matt: those are your top stories. westg up, we will head out to sun valley, idaho where media and tech moguls are gathered. we will get the latest. stay with us for that. ♪

betty: hundreds of tech and media moguls are meeting in sun valley, idaho for the annual retreat. one newcomer in attendance is that guy, elon musk, who drove up in a tesla sedan. his first appearance at the conference. olivia sterns is there covering all of that action. this event has nurtured some big deals in the past. you just spoke with mark thompson. what did he say? theia: this obviously is

big summit of the year for media moguls. aol deal gotan hatched here last year. this is where murdoch got the idea to go after time warner cable. we are looking for more big news deals to be in the works. i spoke to mark thompson, the ceo of the new york times earlier. the new york times in the past month has just announced to watershed -- two watershed transformational deals. facebook instant articles and apple news. -- you those deals would have to go through a pay wall to get to new york times content. a lot of content publishers are concerned about ceding power of the pipe to a third-party. i estimate we will see more deals like that where the outsourced their content. many,we are talking too

many social media players. is from thisone behavioral point -- the smartphone is almost everything. smartphone behavior is very different. it's much more apt-based. searching is tougher. people become creatures of habit in terms of the apps they use. more and more, people are thinking how do i keep people on the app. what kind of services can i offer? olivia: i did ask him when we will see the new york times on snapchat. he said watch this space. we will see a lot more interesting content deals he might not expect. betty: strange bedfellows in sun valley.

you also saw a lot of sports titans there as well. olivia: of course. sports is the most lucrative john rough media these days. a lot of big sports guys here. -- lucrative genre in media these days. kraft and roger goodell at the sun valley lodge. i'm not saying they were talking ,bout the plate -- deflategate but roger has yet to weigh in. does heow many times talk about the patriots cheated? they constantly. betty: we will be back. ♪

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bloomberg market day. the u.s. and iran are still trying to hammer out a deal in iran's nuclear program. secretary john kenny spoke -- john kerry spoke in vienna moments ago. secretary kerry: we are here because we believe we are making progress towards a comprehensive deal. but as i have said many times as i discussed with president obama last night, we are not going to sit at the negotiating table forever. president said the country is preparing for a post-sanctions era. global alliesther say they will ease sanctions with an agreement. governor nikki haley will remove -- will sign a bill to remove the confederate flag later this afternoon.

here in new york, and accounting firm executive who works for some of bernie made off -- is setmadoff's clients to be sentenced. he is expected to receive leniency in return for his cooperation. he unwittingly held by conspiring to produce fraudulent investor statements. jumping says it is not on the music streaming bandwagon. at least not yet. theier reports suggested company was doing just that and that the social network is ready to take on heavyweights like spotify and pandora. greylock partners is behind some of tech's biggest names. greylock may have started as a

small boston-based firm, but it has created hit after hit after arriving in silicon valley. >> i think we are asking to take on a lot a risk. i think there is a lot of money in the system. i think there is a lot of optimism that is causing pricing to be higher and expectations to be higher and we are asking to take higher risks probably since the 1999-2000 timeframe. mobile is a fundamental shift thirdis probably in the quarter. you can see amalie's

full interview with david d and john lilly -- you can see emily's full interview with david sze and john lilly later today. greek currency has emerged again. we are going to hear from one of the most colorful ceos in the country, john ledger, as his company continues to close the gap with competitors. that and much more coming up. meanwhile, stocks bounced back in china after losing more than a third of their value in less than a month. 5.5%hanghai index up today. bank managing director nick along was on "market

makers" this morning. : 95% of the trade index limit up. so you gains since 2009. but when you look at it, 1260 stocks were suspended from trading anywhere. you look at the confines being brought 10, that if you own 5% of the company, you cannot sell it for six months. they have literally thrown everything out of this market. stephanie: with market action like this, what happens to the retail guy? mr. lawson: that's a good question. one of the sayings that one has to remember, the broader ramifications, a function of

buying, one of the things you will see is that the dax has been up the last couple of days. ramificationsthe with iron ore, what happens with oil as well.also, they are not going to affect the hang seng. it has been a function of this search to try and fund their margin core. erik: i was sent overnight a couple of charts that i found useful. they'll is treated that chinese stocks traded in lockstep with the schiller pe for the listed companies for a long period of time. all of a sudden, in 2014, there was this massive diversions, suggesting that there is a --

well, a bubble had begun to build and perhaps continued to build until last month when the stocks started to selloff really hard. do you agree with that analysis? mr. lawson: we have seen things like that. we are obviously facing another bubble. theink things like liberalization of the chinese market through stock connect fueled it. i think at some point in time -- or maybe it's too late, maybe we should have been in intervention think it just- i got caught up with it.

we hear the stories of crowd retell investors heavy levered to be able to invest in this market. or weaker caroor sales. we have seen the liberalization of credit and the provision of greater, less stringent margins, facilities to retail investors. standing by banks their own stock is collateral. the place where it is fitting itself. that is what is happening now. scarlet: much more ahead on the bloomberg market day. we will be hearing from one of the craziest ceos in the country, t-mobile's john ledger. ♪

scarlet: welcome back to the bloomberg market day. and after the telltale sign that things are not going the way officials are hoping for, after andx months negotiations, the circle, he can see draw, -- drachma cq. the amazing part of that

is that it actually implied parity to the euro. so if they went to some sort of iou, there would be huge devaluation to the point where inflation would be so high that they would go to buy dishwashers to preserve their wealth. betty: let me just backup for a moment. a reporter in greece rented a receipt and then called visa to say why is this in drachma. and they did not have a good response. alix: the spokeswoman said the collected in euros. but how does that even happen? there are so many parts in a credit card. visaes to the merchant,

and mastercard, and finally to our bank. there are four processes before it gets to us. betty: maybe they are testing something out. alix: clearly, somebody had to have been thinking that. or maybe this is some scenario where this might happen. betty: i like our headline. i am like our headline better than the story. [laughter] "drachma in the wild," i love that. where commodities have settled in new york trade. oil, right, and interesting bounceback. alix: this really does wind up having to do with iran. the white house is saying. that the iran talks can go either way. secretary of state john kerry says the u.s. is ready to end nuclear talks if needed. there are tough issues that need to be resolved.

nobody knew if this deal would come through and what that would mean for the price. now that we seem to have potentially deal -- not yet -- we are seeing a rally come into play because then we won't half or he million barrels put online right away that is currently floating -- betty: right, it's not going to be automatic. if they don't have a deal tomorrow, if they have one later, congress will have 60 days, not 30 days, which means it gives them 30 more days to say no. even if iran comes on the market, is there someone to buy it? betty: look at what is going on in china. and you are seeing other commodities like iron ore, right? aix: and russia is selling bunch of oil to china so that is a whole different competition. we did see iron ore move up again. as we saw, chinese stocks able

to rally. but citigroup said yesterday they do think prices will fall to $30 a ton in the first half. that is crazy. that is a really know -- a really low number. you are not seen the kind of demand from china. stocks are still high. betty: does it look like these measures the government has put out -- alix: it depends on it trickling down to the real economy. stocksndustrial company suffer a and they say i'm going to say, great, i will start a steel mill. betty: thank you so much. now some of the top stories we are following today. the great premise or has until midnight to come up with economic reforms for exchange of another bailout. one of the creditors says there

might be some breathing room. greece will submit a proposal in the next few hours. earlier, we spoke with olivia blanchard. mr. blanchard: what we are working on is greece and the european creditors. we made clear that it is possible to ask for less from the greeks then then the original program. there has been a democratic election with a referendum. this has to be taken into account. the greeks should probably be asked to do less than originally intended. betty: so european leaders insist there must be spending cuts. ryanair is set to offer freda messick flights to greek travelers. it plans to waive charges for at least two weeks, all depending

on the cooperation of aviation authorities in the athens airport. free flights could start as early as next week so get on board. and there is a big transaction and the beauty business. procter & gamble has accepted an offer to merge 40 of its beauty brands with coty. t-mobile set they gained 2.1 million customers less quarter. >> every single quarter, we are at a one million, 2 million customers. it is semi-irrelevant. 60 at this point, we have million customers. i'm pretty sure we are bigger than sprint.

betty: the shareholders are pretty happy. has the time for apple smart watches come and gone? retail sales are down 90% since they were introduced in april. most of those sold are the moat -- are the lower profit style. apple has not released any figures and is not commenting on this decline. today, i spoke to tom wilson, chairman and ceo of allstate. he talked about what he thinks about the mergers going on in the insurance world. mergerson: the ace-chub makes sense to me. they do enough of the same things where there is some cost savings. they are complementary enough so they should be able to leverage their complementary skills. -- the inch shirts insurance space, it has many neighborhoods in it. you have health insurers.

the precipitating event in the health-care mergers was the affordable care act. in the reinsurance space, you have seen a bunch of new capital come into that business. so there has been a whole lot of consolidation in the neighborhood. the next neighborhood is commercial. ace and chubb sell commercial insurance to businesses. ingther this will be a starte and consolidation in that space, i don't know. we are in the personal lines business. we sell insurance to consumers. that is our neighborhood. half of the businesses are done by mutual companies. those are companies that don't have stockholders or merge with anybody else. all things, these things tend to move from neighborhood to neighborhood. thinking always out

about our online presence. the question is, is it going to happen in the commercial insurance industry? scarlet: is the u.s. doing enough to deal with climate change? we have been agnostic as to why it is happening. scarlet: forget the reasons behind it. mr. wilson: it is always about assigning blame. the weather is more volatile today. , of course, make sure we can be there for our customers. so we don't new technology, new capabilities, so when there is a disaster, so when sandy came through new york, we were , ouring on people's doors customers, before they called us.

part of it is adapting technology to help you adapt. you cannot stop the storm from coming. the longer term the us-based ado is how do we build houses that are resistant to this kind of problem and buildings in commercial public spaces before you know it is going to happen? scarlet: you collect so much data through your business. how do you make money off of the data? may profit by giving our customers the best possible price. when we are selling somebody insurance, we don't know whether they will have an accident. so we use data to tell us. by now we can tell exactly how people drive. we can give them an even more accurate price. it helps them. if we help them, then we make money. betty: that was allstate ceo tom wilson.

creditors are closing in on a deal to salvage caesars entertainment. among them, billionaire john paulson, who has made some big bets in his life. ♪

betty: here are the stocks to watch today. caesars entertainment has in falling. in oneditors are closing a deal to salvage a bankruptcy plan is a push for restructuring. laura, one vary big name here's john paulson. laura: yeah, sort of a newcomer. partners, canyon

sorrows, these big hedge funds coming in and really try to get a deal together. betty: what are they proposing here? laura: what they want is additional equity. the parentquity at and equity at a subsidiary as well. they just want more. the deadline is coming up here in court. in the bankruptcy case is actually going to rule whether these other creditors will cut losses against the parent company. and will rather that can continue other rest of the company goes bankrupt. we have some momentum here, some agreement, consent. the judge may say i will allow those lawsuits to stop, at least for a while, you can continue negotiating. betty: how influential is paulson leading this charge among creditors? laura: there have been other situations where they decided to help out apollo either by

deleveraging are converting debt to equity. so they are pretty influential in this situation. betty: what about caesars itself? how is it operating right now? laura: they need to get some kind of deal together. they have been negotiating from austin year -- for almost a year. they are really trying to [indiscernible] betty: you mentioned the court decision. laura: it will be july 22 in chicago. the stock has been rising today. that may happen again. it may fall, depending on what he says on the 22nd. betty: thank you so much for joining us. plan to salvage caesars entertainment. we've got much more ahead on the bloomberg market day. stay with us. ♪

from greek to china, so much going on in the markets.

who better to hear from then steve ratner. ,lix: after 13 days of talks optimism for nuclear deal is beginning to fade. betty: subway cuts ties with longtime spokesperson jerod fogle who put the company in a serious bind. but jerod is in subways only problem. betty: good afternoon. alix: let's look at the markets at this hour. it was a vary confusing day for traders as we see this relative strength in the s&p. we are near the lows of the session, but we are still up about 10 points. yesterday, traders were waiting for a cell singer -- sell single --