makers. on erik schatzker. matt: i'm matt miller. crisis averted in greece, for now. it is not a done deal. that still has to come from the greek parliament and all the other parliaments. erik: another agreement needs to be reached on a bailout. matt: a new term i heard, "agr eekment." erik: it took me long enough to get my head around "grexit." two real estate developers will be with us. mort zuckerman william rudin and adam newton will be here. alexis tsipras the greek prime minister, surrendering to european demands for action. an agreement came after an

all-night meeting. tsipras agree to spending cuts and tax hikes. greeks will have to transfer $55 billion of assets to a holding company that will try to recoup money in order to pay back the europeans. among other things recapitalizing greece's banks. angela merkel says it is time for greece to take responsibility. chancellor merkel: trust has been lost. we all know that paper is patie nt as we say. what will be important is to implement what we have agreed on doing tonight. erik: the attention shifts back to athens. tsipras' party may need over the weekend when he asked them to endorse and austerity program. they will have to approve the program in principle.

toning down the optimism on a deal on iran's nuclear program. earlier there was talk a deal might be announced today. negotiators trying to make sure iran is not able to build a nuclear weapon. matt: a takeover and consumer goods jarden has agreed to buy waddington group in a deal valued at $1.4 billion. jarden's brands include sending and mr. coffee. waddington makes plastic utensils and is owned by olympus partners. contract talks begin between the uaw and big three automakers. the union wants to reduce the pay gap between new hires and workers of longer tenure. the industry says the two tier system is the reason the industry has been able to add jobs. jordan spieth is on a roll heading to the british open. spieth won the john deere

classic, second win in a row. a victory next week and would make spieth the world's top ranked golfer. he won in a playoff with tom gillis who joined the pga in 1993. erik: the same year jordan spieth was born. matt: i do not like when young kids win golfa. it is one sport where older gentleman can have the upper hand. i feel that way now that i am one of those older -- well i'm horrible at gulf. erik: this is the point of the morning where we get you started with five things you need to know. vonnie quinn has number one. the market reaction to the

agreement in principle between greece and european creditors. vonnie: in the last few minutes, we are getting word the ecb is going to leave the emergency liquidity assistance ceiling unchanged. that is a big deal. the banks probably will not be opening in the next day or two. capital controls will remain in place. onperhaps $2 billion would have been enough to get banks reopened. perhaps change the 60-year-old limit people can take out. risk on tdoday. relief that there is a possibility of a bailout package agreement. we will need to see 6 reform votes in greece's parliament before that happens. in germany, since the beginning of last week we are up nearly 7% on the dax. we had seen the dax fall. it has been rising ever since the possibility of a deal got closer. look at the s&p 500 futures. rising this morning. a nice pop for the s&p.

greece's two year yield down 26%. much lower than the 55% we were seeing last week. and peripheral countries as well. german 10 year yield rising. spanish-german spread down 130 basis points. euor -- euro weaker below 1.11. erik: equity investors, risktakers if he or to be jumping out ahead of the agreement in principle. anticipating something good. i do not know what something that amounts to. it would be approval in the greek parliament. then what? we do not know what agreement the europeans are going to put on the table when it comes to the third bailout. matt: you are talking about equity investors? there are few people buying the debt greek debt. erik: i'm talking about the

macro picture. matt: i've been surprised that a how brazilian the euro -- how resilient to the euro has been. it does not move much. erik: had talks over the weekend broken down, had it seemed as if schaeuble was going to get his way and greece was going to be suspended temporarily -- matt: meaning forever -- erik: where would the euro be? matt: i don't think it would have changed much -- you my have seen down because of concerns of credibility of the currency. you may have seen it go up. erik: number two. chinese exports rising for the first time in 4 months in june providing some evidence that growth in china is stabilizing ahead of an important gdp number out of china wednesday.

exports rose 2.1% in june. imports dropped 6.7%. leaving a trade surplus of $45.8 billion. exports rising helps imports dropping does not suggest that the transition to a domestic demand-led economy is working. matt: speaking of supply and demand, oil. saudi arabia raised its oil production and pumped a record amount of crude in june. this comes as opec forecasts the demand for crude next year. that's a gutsy move to produce more than 10 million more more than even the 1980's, when there is so much concerned that demand could fall because of more fuel-efficient cars and kids apparently do not drive much. erik: this helps explains the drop off in oil last week. matt: seeing oil down this morning. erik: number four.

after spending more than $9 million on a home buying spree in the u.s. blackstone is starting to sell some houses. blackstone's invitation holmes has agreed to sell 1300 atlanta area residences that do not fit its strategy. that does not mean not qualifying as buying or owning homes. these houses are not in areas where blackstone feels the average income and quality of education are high enough to command the kinds of rent it needs to make. for the homes to generate the return a private equity firm requires. matt: that is not a good sales pitch. erik: someone else is going to be satisfied. blackstone is a financial investor. the home buying spree by alternative asset managers continues last month. cerberus bought 4200 homes in the midwest clustered around

illinois. matt: not a good sign when the three headed dog buys houses in your neighborhood. number five, apple made up 90% of the smartphone industry's profits and the first quarter of the year, up from 65% a year earlier. 92% of all profits in smartphones, from 65% a year earlier. they dominated. this is according to estimates. it is not hard to understand why the iphone six has been huge. apple destroying everyone. erik: let's go to our big story. interrupted briefly by china. greece makes a deal. greek prime minister alexis tsipras agrees to european

demands to exchange $95 billion in aid. christine lagarde spoke in brussels on what his next following this agreement. ms. lagarde: it has been a laborious night, but i think it is a good step to rebuild confidence. erik: hans nichols is in brussels where the action was this weekend. olivia sterns is in athens. that is where the action is this week. hans, what happened this weekend? is it, as mohamed el-erian described, gunboat diplomacy? that is how hard-liners were able to shut down tsipras' throat what he now has to take back to parliament? hans: it might have been gun to the head diplomacy. we had difficult negotiations that saw greece come close to leaving the euro.

ahead, more difficult negotiations could we spoke to the finance minister of finland. he made it clear that greece needs bridge financing, based on condition out a need to do things before money gets released. banks showing no sign of being open. emergency liquidity assistance is going to stay at the same level. banks could have a hard time opening soon. erik: it is almost as if tsipras put the gun to his own head. had he not call for the referendum walked out of talks, he would have had a better deal to push through parliament now. what is sentiment like in athens? olivia: very curious. there is relief and anger. relief because we thought last night could be the moment of truth where greece is forced out of the euro. the worst outcome has been averted. anger at tsipras a sense that he has capitulated to creditors.

what he agreed to is a much harsher package of austerity and what the country collectively rejected a week ago. there is a lot of anger. one party member of syriza said that greece is being waterboarded and said that the germans are tearing apart europe . many local papers are making reference to world war ii. parliament behind me, alexis tsipras has his work cut out for him. we think you will have support. a couple days ago he got 251 out of 300 votes for posterity. we think he will be able to pass the six or so of mentions of pension saving and tax hikes etc. the real mutiny we expect from his own party, syriza many think a cabinet shuffle at least is inevitable. erik: hans back to you in brussels. what they have is an agreement in principle. the parliament still has to pass

this agreement. then they have to negotiate a new bailout. my question is this. can you look at the failure to accept the june 26 offer from the eu and subsequently hold the referendum as anything but one of the greatest miscalculations ever in international politics? hans: i don't know about international politics. i'd imagine someone can dig of the treaty of ghent or what happened in versailles. earlier you talked about gunboat diplomacy. this is checkbook diplomacy. your view that it was a tactical and strategic all error, this is not just tactics, this was strategy on the part of mr. tsipras. widespread among any finance minister you bought into here or any prime minister's that have been meeting. they were confused.

when the vote came back, they were clear. just to bring back the checkbook diplomacy analogy. they were very clear that more money would not be released unless certain conditions were met. that continues to be the case. step by step, there will be more conditions for additional cash. erik: olivia? olivia: i would pick up on that by saying if you think about the damage that has been done since tsipras announced the referendum, it may have won political points but it has done damage to the economy. banks have been closed for two weeks. we are entering our third week of capital controls. that is something you heard dijsselbloem picking up on. the economy has deteriorated further than the first bailout, when it was put on the table. erik: gray stuff from athens. hans nichols in brussels. we will be checking in with you in the hours ahead. we have to return to business in new york. matt: ahead, we talk about, with

two prominent real estate developers and their latest project boston property's more zuckerman and bill rudin. adam newman. stay with us. ♪

olivia: welcome back to "market makers." i am olivia sterns from athens. with me is gikas hardouvelis. looks like a u-turn here. agreeing to a much harsher package. can he get this through parliament? >> i think so. he had the support of 251 mps of the 300. i think he will get the support. the pro-european parties

promised they will vote yes to whatever deal he brings back. of course the deal is a lot worse than i had agreed with europe and november. in november it was only one billion worth of measures. we had a credit line ahead of us. the economy was growing at 2.5%. olivia: let's deal with what we have now. is it going to work? are we going to be back here a year from now? >> i think if we mean business if mr. tsipras understand that reforms are a socialistic policy , creating a level playing field, fighting oligopolies and monopolies, giving a chance to the eu's. olivia: you think the current program could get reform? >> this means a new greece, a new environment. this gives power to the people. the socialists vote to espouse

reforms. olivia: people also need to go to the atm and get money. when are the banks going to reopen? >> they will reopen when the central bank gets the signal from the eurogroup that greece is in a program or about to enter a program so they can increase ela. ela is liquidity assistance. olivia: one controversial piece is a proposal for a 50 billion euro fund to facilitate a process of privatization because none of the creditors think it is going to happen. what do you think about this? >> i think we saw this happening in 2011. back in europe they did not want to put their hands in their pocket and deliver cash to greece. it presented 50 billion in cash. the imf is going to try to push europeans to put up more money.

it is a good thing to do as long as it stays within greece and we do not lose sovereignty. olivia: is the chance of a grexit off the table? >> i think grexit now is off the table. the probability is not that we are out of it, we need to deliver on reforms. all the greek people have to stand behind the pro-european parties. olivia: you are confident alexis tsipras will find support. we are going to leave it there. >> he will. maybe he will resolve his -- dissolve his own party but greek s will vote for it. olivia: thank you so much. gikas hardouvelis the former finance minister. back to new york. matt: olivia sterns in athens. we will get a sentiment on the street. david is on the ground in greece chatting with business owners like those you see here. ♪

erik: welcome back to "market makers." time for futures in focus. taking a look at oil prices. down for a second straight day. well off the lows of the early session. oil coming off its biggest weekly decline. weighing the prospects of iran increasing crude exports and an over supplied market. world powers say they may come to a nuclear deal as early as today. joining me to discuss oil is c director of strategy at

bell curve capital at the cme. iran's role in global oil markets, i want to take it there. where do they rank in production? should we be worried about more supply? chris: ramy, iran is very low on oil production. you are looking at 400 thousand barrels coming on if the deal goes through as early as january 16. the deal, while the talk of the town right now if it does not get done a lot of traders believe it will not get done. very low. really, all the eyes are on china as far as oil's price is concerned. ramy:: iran says it has a goal of boosting oil production by 50%. banks are predicting that that will take about 6-12 months.

the time horizon is fairly far in advance. would you agree? chris: i would not agree. i would put that in there with greece paying back there debt. i think iran's goals to double oil production in six months is lofty. ramy: we saw chinese equities turnaround friday. this was after eight -- a rout over the past several months. is friday a good sign of a turnaround? chris: i think china has been the talk of our trade desk for the last five weeks. i believe it will be the sixth week it continues to be the talk. we saw nothing but a bounce. we had chinese policymakers step in with a huge influx of cash. that being said, there was an import an increase in crude oil, a bump up from last year of over 27%.

that is good news for oil bulls. what you are seeing is a continuing of the momentum to the lower side. i think china is nothing but a bounce here. there are structural concerns traders are worried about and you can see that in copper prices. ramy: we need to talk about greece being in the news. how much of a factor is the development happening there to you? chris: i believe the grexit is off the table right now. pushing another three years down the road is something that a lot of traders believe. that is what you saw as far as the euro, staying in the range bound, 1.10-1.12. germany is so unhappy, you are seeing a downtick in the euro strength against the dollar. a lot of traders believe we are pushing this down a few months. ramy: great. thank you very much. oil is trading at about $51.79.

back to you. erik: thank you. time for some top stories. the european central bank is waiting to see what greece does next. bloomberg reports the ecb is not raising the signs to greek banks. they have been closed for two weeks. alexis tsipras gave into european demand, going to tax hikes, spending cuts and pension reforms in order to get financial aid of almost $100 billion. after an all-night bargaining session, tsipras try to put a good face on a desperate situation. mr. tsipras: the deal was difficult, but we have prevented the transfer of public property abroad. we have prevented financial asphyxiation and the collapse of the financial system. a plan that was designed up to its last detail perfectly.

erik: tsipras still needs his parliament to sign off on the deal. over the weekend, his party rebelled when presented with austerity measures. the crowded field for the republican presidential nomination in get even bigger today. wisconsin governor scott walker will join the race. he gained prominence by taking on labor unions. he became the first governor to win a recall election. matt: in mexico, 18 prison employees being questioned after the escape of the country's most notorious drug lord, jo aquin guzman, known as "el chapo." he used a mile-long tunnel. it is the second time he has broken out of a maximum security prison. there has been a security breach at london's heathrow airport. protesters opposed to plants

penetrated its perimeter fence put activists who call themselves plane stuipid cut through the wire to stage a demonstration. some of your top headlines we are following. erik: when we return, two of new york city's prominent real estate developers are making a bet on brooklyn. you find out why when we come back. ♪

erik: look at that. brooklyn. it is not just new york's hottest residential real estate market. two of the city's most prominent property developers are sinking more than a third of a billion dollars into brooklyn commercial real estate. boston properties and rudin management teaming up with wework on a building in the brooklyn navy yard. it will be one of the largest commercial buildings outside manhattan in decades. the cost, $380 million at boston

properties' chairman mort zuckerman is here. so as rudin management see you, -- ceo, bill rudin. and wework's ceo adam newton. how did this get off the ground? metaphorically speaking? >> when bill andmort have been early investors in wework. the opportunity came. the city came and said we want to turn on the brooklyn navy yard. erik: the city came to you? when might bloomberg -- when mike bloomberg was the mayor. >> we said without partnership for developers, this was too big for us. when the project started coming together, there were two people

i wanted to approach. i called these gentlemen. within a week, they spoke. they decided this is a bet worth taking. bill came back and said we are going to do the deal. matt: at bloomberg come anyone who has been in the office knows we have the sixth floor where people have to interact before going to their separate desks. that is what wework does. the idea that you need human interaction between this and says. it has been very successful. why choose wework as opposed to any other company that would put businesses in one space? >> we made a deal with adam right after sandy. the building had been significantly impacted. we approached adam about creating the first wework and

living space above that. at the beginning of 2013, the new administration came in. they continued encouraging adam and us to work on this deal. we thought it was really important for economic development for the future of the city to grow jobs and create an environment. in brooklyn, over 50% of the population is aged 19-49. it is aware the young people want to be. the companies today want to be where people live. that is why brooklyn is exploding in terms of companies moving there. companies are moving it is very exciting. erik: i get the idea that people want to work where they live. they already live in new york

city. i live around the corner from the navy yard. why do you believe that people want to go to the navy yard as opposed to running with the idea that people want to work where they live as opposed to downtown brooklyn. or do what they have been doing for decades living in brooklyn and working in manhattan. >> a lot of people would prefer to live in brooklyn it is a simpler process. it is a unique product. i think a lot of people are going to work in that environment. it is special to have the kind of work environment he created. that has worked in a lot of different places. erik: that is going to be the draw. one thing i would point out is that subway access and bus access to the navy yard are not

the greatest. it is a half hour walk from the closest -- >> we will have a theory stopped right at the -- a ferry stop at the end of where our project is going to be. we are working with the navy yard to expand transportation. the amenities and the infrastructure that we have designed, along with adam and his team, in terms of food service, the wellness center the out door space. we will have a bicycle valet. we will be working with the uber -type companies to have better linkage to the subway. by the time this building is open in the end of 2017, we think we will have solved a lot of those issues. you talked about you walk to the sixth floor. we will have on the ground floor a unique food service offering.

you can literally get your cup of coffee, there will be a basketball court right below the steps. erik: wegmans is going to be around the corner. >> you have so much infrastructure and investment going on in brooklyn. add the navy yard you have got the wegmans, the studio, building 77. there is so much investment. erik: it makes sense to me to move out of new york city because it is so expensive. >> brooklyn as part of new york city. matt: when i say new york city, i mean manhattan. brooklyn is becoming just as expensive, just as trafficked and congested as manhattan. why wouldn't you move further away? >> i will tell you something about brooklyn. we talk about the brooklynization of the world. you can go anywhere in the world and order a draft beer.

it is going to look like what you would get in brooklyn. the world is looking out brooklyn as a leader of thought and design. it is not just more meals -- it is not just millenials. it is the right place from a cultural point of view. on top of that, what we are designing there, no one has ever designed eight ground up building thinking of collaboration when the building is built. this building, from the moment of conception, let's build the most collaborative and creative workspace. with the help of these companies that are really helping us make it into reality. it is really going to become something that has never been seen before. >> to us it is the killer app for the office building. the manufacturing facility of the future. adam talks about collaboration. that is what we have done. erik: we want to talk a little

bit more about what makes wework different what got you interested as investors let alone developers. we are taking a quick break. we will be back with adam neumann of wework bill rudin and mort zuckerman. ♪

matt: later today on bloomberg television. nobel prize-winning economist and princeton professor paul krugman at 4:00 p.m. erik: we are back with mort zuckerman of boston properties, bill rudin of rudin management and the ceo of wework adam neumann. talking about the project they are going to realize in the brooklyn navy yard. also wework as a company. bill, you and more are investors.

what attracted you to this concept? >> two things. one is the concept, which is quite unique. two is the ceo. in my mind, everything depends on the personal or professional talent of the leader. i was impressed. i'm learning to adjust and so is he to my high opinion of him. he's really remarkable. >> i think the same thing. we created the first wired building in new york city. we understood the importance of technology infrastructure. adam's company is not 2.0, it is 10.0. when you walk into their space and you see the excitement, you see the interaction between the different companies and the environment that he has created, it is a very powerful concept. matt: it is a powerful valuation. what do you think about the

valuation, it has doubled in a year. that is a money. >> i was one of the original investors. therefore, i think the valuation is too low. erik: here's an important question. did you have to do something special at a board level at either of your companies particularly yours mort because it is public. because you are personal investors, to make the personal dashed corporate investment in wework. >> we do not invest in other companies. we have done all of our development either through the acquisition of specific buildings or the development of specific buildings. we have never invest in and out our companies. i has never been a part of what we do. erik: i saw the first wework building, we did a piece on it. it was exciting and fun. this new building sounds even more exciting.

what are the problems with this area, there is no place to get a beer. in midtown manhattan there is not a suitable bar for everyone's needs. in the navy yard is there a place to get a drink after work? >> everyone is laughing but that is important. erik: there is beer within 200 feet of the front door. >> there's a great brewery in the navy yard. part of the collaboration is around food, responsible drinking different things that come together. on every floor of that building there will be two kegs , free and open all the time. the interesting thing about our members, you will never see them abusing that. it is always nice, one beer after work. the thing i will say, when you get with a building like this,

it is an opportunity to see a group of like-minded individuals doing what they love. coming together as a group. even though they each work separately, they help each other. they believe that helping other people will come back to them. it is an amazing thing to see. >> as i mentioned we designed the ground floor. we have a unique consultant working with us to create that environment when you walk and so you can have the collaborative feeling. erik: how different is this place from other buildings? >> what we have done, it is quite remarkable. in my mind it the most unique kind of environment for office space. he has created a culture. a lot of people like that culture. if you go into a typical office building there is very little interaction. erik: you can create culture out of design? >> you can. it is not just design, it is function too.

there are a series of things that the building provides. matt: do you think this will encourage the success of the entrepreneurial companies? we are talking with later from someone from dell who says we need to create jobs. does this kind of environment help to raise entrepreneurial companies? >> this is not something i am saying casually. if you see what he has accomplished this is not a pie in the sky imagination. he has done it many times. he is going to do it with these buildings. >> we've created the infrastructure for small companies to literally plug and play. they do not have to think about looking for the space, signing a long-term leases. this is a membership model. it makes life easier so that they can create their own environment to attract employees so they do not have to compete against other companies who have bigger spaces. erik: before we run unimportant

question, what kind of incentive is the city providing? >> there is no real estate tax in the navy yard for anybody who has leases there. that is a big incentive. there are benefits, reit benefits. qualified companies get significant tax benefits. erik: and for you guys? >> no incentives for us. we have a long-term ground lease we negotiated with the city that adam had been working on. it allows us to create a low-cost, effective space for -- erik: in a unique location. >> i will add to that, the responsibility, the neighborhood is a responsibility. they took some risk. i welcome everybody when the building is done to see the future of work. >> we will buy you a beer. matt: i will drop by.

i saw the first building and i was encouraged by the collaboration. i would love to check out the new building. erik: thank you very much. mort zuckerman, built rudin adam neumann. an exciting project. we will return to that once it gets off the ground. back to athens. david is standing by. you've been walking around the streets of athens to try to get a sense of how people are feeling and reacting to this deal that their prime minister struck over the weekend. tell us what you have seen. david: i'm outside the market, a ways away from the square. i started out by talking to the owner of a cafe. the folks i have talked to are talking about a deal in the abstract. they know what it is going to mean for them. the two things the cafe owner talked to me about our taxes and capital controls. that is what he's been feeling

most acutely. i was in there on a monday morning and this place was by no means packed. business has been down 30% since the controls went into effect. that is of something i have heard, business down into double digits every place i have been. erik: it is hard to be otherwise when people aren't limited to 60 euros a day. terrific stuff. i know we will be coming back to you. david is live in athens. another david, david letterman, said goodbye to late-night tv two months ago. he could not resist the opportunity to rest of the donald. letterman said "i was content and then a couple days ago donald trump said he was running for president. i have made the biggest mistake of my life." letterman joined steve martin and martin short to rip on trump's hair and controversial comments. here's more. >> delist i have here tonight. interesting facts about donald

trump. [cheers and applause] >> number 10, that thing on his head was the covert in -- the gopher in "caddyshack." how about building a wall around that thing on his head. donald trump weighs 240 pounds, 250 with cologne. donald trump has pissed off so many mexicans he's starring in a movie entitled "no amigos." number one, thanks to donald trump, the republican mascot is also -- there you go. matt: i think the cologne joke is the best. he wieghs -- we weighs 240 250

with cologne. i wonder is at some point in this campaign once we start to take donald trump more seriously if he will have to give some kind of disclosure on his hair. erik: do you think? matt: is it real? does he use a lot of hairspray? does he have a team that does the hair for him? do you not wonder? erik: inquiring americans want to know. matt: if you had my problem, you would wonder. novak djokovic won wimbledon. then you see how he celebrated after beating roger federer in 4 sets. the syrian number one -- erik: serbian! matt: serbian, sorry. he took a bite out of the grass. he explained, as i was a child,

it was something i always wanted to do. erik: he also said that the groundskeepers had done a fantastic job and the grass tasted sweet. if you won, it is inevitable that you are going to eat the grass on centre court. matt: i've always been a fan of novak djokovic's, ever since he angered new yorkers by cursing out american player at the u.s. open. erik: the crowd was behind federer. matt: federer is like 47. erik: 33, something like that. matt: martina hingis won two wimbledon titles. this is, what, 10 years or 11 years since the last time she won maybe 15 years. two doubles titles. erik: we are running out of time this hour. when we come back, the second hour of "market makers." matt: stay with us, please.

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>> live from bloomberg headquarters in new york, this is "market makers." with erik schatzker and stephanie ruhle. erik: good morning once again. you're watching "market makers." i anm erik schatzker. matt: i matt miller, in for stephanie ruhle. opening bell and 30 minutes. erik: the prime minister of greece faces a mutiny in his coalition. alexis tsipras surrender to european demands to get, in order to get a path towards a bailout.of up to $95 billion he has to sell the package of tax hikes to the greek parliament. two days ago, his coalition

rebelled when he was on his way to brussels. in the meantime, greek banks have been closed for two weeks. the ecb has decided not to raise the size of the lifeline for the time being. in vienna, there is now send out as to whether negotiations could reach a deal on iran's nuclear program today. diplomats have already missed three deadlines. negotiators want to make sure iran is not able to build a nuclear weapon. any deal would have to be reviewed by congress. it's mcconnell -- mitch mcconnell told fox lawmakers are skeptical. that would not surprise you. over the weekend, diplomats cleared one remaining hurdle. they agreed on a phasing, a phase lifting of united nations arms embargo. matt: more consolidation in the auto parts industry. born warner is buying greeny international. the enterprise value is about

1.2 billion dollars. borgwarner is paying 42% premium. wisconsin governor scott walker is joining the race for the republican presidential nomination. he became the first governor in u.s. history to defeat a recall. walker will be the 15th republican to formally announce he's running for the white house. watch that live at bloombergpolitics.com as 6:15 pm eastern. those are some of the top headlines. erik: the greek deal must go to parliament for approval. hans nichols is in brussels. michael mckee is in new york city. hans, does the eurogroup feel more confident about negotiating with some kind of coalition

because that is almost inevitably what we are going to find in greece a few days from now. once syriza rebels mutinies, tsipras' mandate within his own party has to have evaporated. hans: this might be a paradoxical answer. they do not really care. they say that is a challenge for the greek government. not necessarily what they need to be occupying themselves with. they need to occupy themselves with their end of the condition out the agreement to move forward passes the greek parliament and then passes their parliaments, then we can move forward. the idea that mr. tsipras was forced to sign difficult terms, there is not a lot of sympathy. in some ways, that was a grave of his own digging. erik: mike, let's talk about the fact that what hans just alluded

to, there is a deal in principle. those who feared a grexit ought to be relieved. but there is a lot that has yet to happen. mike: they have got to get it through the parliament in athens. and then six european parliament have to agree. then they start a bailout deal negotiation. this is not a bailout deal, this is preconditions to start talks. a lot has to go forward before we get to the point where we can say grexit is not an option. erik: what about capital controls? we were told capital controls are going to remain in place but there might be a lift on the cap "on the markets withdrawals. for the time being, the ecb is not doing anything. mike: they kept aid in place but did not raise it. we see what happens on wednesday, if the greeks get this through parliament they will probably agree to give them more money. it is going to be hard to open banks until there is certainty. if you were a greek would you put money in the bank? erik: --

matt: deposits are probably zero. they kept aid in place, the aid has been used up. they still have a line of credit but they have drawn the line and given out almost all of the cash. let me ask you, you spoke with the finnish finance minister. he repeated three or four times no bridge financing. they will talk about this this afternoon and tonight. hans: right now, finance ministers are meeting on the idea of rich financing. what i heard mr. stubb say was no bridge financing without conditionality. whatever price tag you say to get them through august, that is part of a separate deal that would also require prior actions

from the greek government. one other interesting aspect of the interview, he said that a bank bailout would not be coming from the esm. the banks have a huge cache problem. they have a shortage. how they figure out how to get cash from the ecb or some the quincy line into the greek thanks is a huge question. it is an open one. so far, no one has provided compounds of action. erik: back to you in new york city. let's try distinction between politics of these negotiations and the deal in principle and the economics. what are the economics of what mr. tsipras had to agree to? mike: greece had started to grow, now they are back in recession. there is going to be pain in the short run because they will be raising taxes and cutting penson payments.

forcing german style business reforms unto the greek economy. over the longer term that should be good for the economy to help it grow. they want this $50 billion bailout to put the assets of greeks into a fun so they can sell them off. the water utility, the electric utility. they agreed to do that in 2010 and never did it. what tsipras did not get is an agreement that they can take the proceeds, put them back into the bank, put them back into productivity enhancing investments in greece. it should help greece grow but they will have some short-term pain. matt: i heard a lot about the $50 billion fund, privatization fund over the weekend. a lot of politicians skeptical that the greeks have assets worth $50 billion if you do not include the acropolis and m

yknos. do they have utilities worth $50 million? hans: it is aspirational. if you listen to the way prime minister's, chancellors, and finance ministers have been talking, that is a target. that is a number they want to get to. valuing those assets is going to be a fight. that is one of the reasons they initially wanted to put it in luxembourg. it is going to be housed in athens. it will be supervised from the eu. i do not want to call it funny money, but that is the goal. half of that money, supposedly is where the bank rescue is going to come through. you still need to find $25 25 million for banks. matt: putting a value on the assets should be easy. hans: it will take a while to figure that out. matt: thank you for your work.

thank you for joining us in new york. erik: when we come back, the reaction live from athens. you hear from the city's mayor, hoping this is the end of a confrontation with europe. stick around for that after the break. ♪

matt: back to athens. futures in the u.s. are up, that is promising. with that in mind, let's head back to athens for more reaction to the greek deal. olivia is standing by with the mayor of that city. olivia: i am indeed. thank you. my pleasure to be joined by maier giorgos kaminis. thank you for joining us outside parliament. this package of reforms looks like a complete you term for alexis tsipras. how does he get parliament to approve the reforms on taxes pensions, spending cuts that the greek government could not over

the past three years? mayor kaminis: the greek government could not. it seems that together maybe they can make it. it is good news that we have this agreement. the second thing the prime minister has a comfortable majority to undertake these reforms. he will be supported by the political parties of the opposition. it is a difficult task for everyone. they have to do in two days what they have not done for five years. instead of undertaking those reforms, they were trying to avoid them. and they were taking measures, cutting down salaries, pensions and that has proven to be the worst choice. olivia: you are confident tsipras will get improvement from parliament by the end of wednesday. mayor kaminis: i think so.

he will have a comfortable majority. it is very important that there is a division in the country between forces for the memorandum. the main opponents seem to be in a compromise. we can build consensus for reforms. olivia: what you think about the reform package he agreed to. it is harsher than what greece rejected a week ago. is it a reform package that is going to get greece going again? mayor kaminis: what the greeks rejected was not be reforms. nobody really asked them for that. what they rejected was more austerity more cut down's to salaries and to pensions. olivia: what we have now is more austerity than that. mayor kaminis: maybe for a short period of time we will have more

austerity because we did not do what we should have done during those five years. but with those reforms, we will have more promotion of entrepreneurship and those things we should have done during the last five years. olivia: the local newspapers are saying that alexis tsipras surrendered. a member of his party is saying greece has been waterboarded. do you feel that greece went up against the creditors and lost? mayor kaminis: i do not think so. greece has done what it should have done. now we see that those are the very interesting things in history. alexis tsipras has to behave like richard nixon, who was the first to conclude the agreements with china. sometimes there are people who you would not expect to make

these but i the most appropriate to do necessary things when they should have been done. olivia: you think this is going to wash with the people who say he is a trader who capitulated? mayor kaminis: there are some people, and now we will find this kind of anti-european faction. mr. tsipras, he has to find his allies in the pro-european segments. olivia: we are expecting a reshuffle. how much damage has been done to the economy over the past two plus weeks of banks being closed? mayor kaminis: for the time being we cannot speak of numbers. the impression i have, at least for the city of athens, is that

we have very heavy damages. especially in tourism. it is so sad. all the forecasts before the crisis for the last crisis or that we would have the most terrific season both times. anyway, i am confident and very optimistic. i think we will do it very well. olivia: mayor kaminis:, thank you for your time. i went to the port of pireaus, a lot of people said there were half the tourists there were a month ago. hope, anger in athens. back to you. matt: hopefully we can take a trip to greece. if this becomes resolved. olivia sterns and athens. thank you for your time. coming up, jp morgan and wells fargo set to report tomorrow. what you should be keeping your eyes on ahead of the big numbers. ♪

erik: it happens four times a year. thank earnings week starts tomorrow. jp morgan and wells fargo are the first of austria's biggest banks to report. jp america is out on thursday. goldman sachs and citigroup are out. morgan stanley only seems to wait until the next week. a week plus a day. covering american banks. it is a tough environment for these banks. even with the economy recovering. i noticed that morgan stanley and wells fargo are the only two banks analysts expect will post an increase in revenue. everybody else is going down.

in some cases late jp morgan selling off the commodities business, there's an explanation. >> they are all waiting for higher interest rates. they thought it would come sooner than later. it keeps getting pushed out. they charge higher interest rates went rates rise on their loans. that is the main business for a lot of these. erik: what else are we going to be looking at? everyone knows is going to be paying more attention to mortgage growth, loan growth not the greatest situation because of the fed. >> mortgage could be one bright spot to the corner -- the quarter. wells fargo one in with their biggest pipeline in two years. originations are up 20% quarter over quarter and year over year. wells fargo is number one in mortgage, jp morgan's number two . that could give these guys a boost in an otherwise lackluster quarter.

erik: when it comes to the conference calls, looking ahead, is everybody going to be in tune for more on rationalizations cutting expenses? >> that is one lever these guys can still pull in an environment that is not growing. the fed has not yet raised rates. bank of america is one big one everyone is looking to show that they can cut costs. erik: we will be looking forward to your coverage. taken covers banks at bloomberg. matt: the opening bell will be ringing. one day after almost resolution for greece.

♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes footage all of taylor swift's music videos interviews, and more. xfinity is the destination for all things taylor swift. matt: a few minutes from the opening bell. peter atwater is the president and founder of financial insight . joining us for the next couple

minutes. tracy is here as well. bloomberg markets executive editor. three things to watch. >> number one has got to be greece. it is not just greece. this is the social unrest surrounding greece. a big thing on twitter is the #thisisacoup. in response to the deal unveiled by greece and creditors. that was a pretty harsh deal. there's talk about greece having to sell off $50 billion worth of assets. a lot of people are upset. you have paul krugman in "the new york times" saying the #is right and that greece is getting the bad end of the stick. matt: it reminds me of a radiohead lyric, "you do it to yourself." this would not have been nearly as bad where it for the

referendum. you cannot continue to borrow money and not pay it back and then borrow more money and not pay it back and then borrow more money all while not working and not paying taxes. erik: i want to point out that paul krugman is going to be on bloomberg at 4:00 this afternoon. peter, in your notes over the weekend, you were trying to channel discontent in greece predicting anarchy. >> i think you are seeing that hitting the twitter sphere. this was a coup attempt. there are more attempt than there are successful. by the europeans. i think deal is a generous term. if someone had trademarked the word there would be lawsuits. we agreed to continue. erik: it is one thing to be upset on social media. it is another thing for people en masse, to take to the streets. >> i think you will start to see

that in greece. the referendum last week, greeks liberally chose uncertainty. they said we are done. i think that was the beginning of a social revolution that happened at polls and voting places, not in the streets. but after this week and what you saw, particularly from germany that is bringing back all sorts of historical frustration and anger. i think we will erik: tracy, number two. tracy: the iron or prices. we had a collapsed last week but it has come back today. if you take a look at the charts, it is down to multi-year lows. iron ore is now at its new normal levels. this new level could persist for the next five years or so.

why is this important? we have a whole bunch of minors that is having international markets fund their growth. they have $200 billion worth of net debt now. that is up six times higher than it was a decade ago. matt: was it iron ore supply? erik: inr prices have collapsed. -- iron ore prices have collapsed. peter: i think something is missing from the discussion. all that debt has shown up on the other side of the balance sheet as well. the debt funded all these acquisitions. the iron ore guys dig how they did in 2007. now you have all this debt with valueless assets. diminishing cash flow and i've got to tell you. it looks like iron or greece. what do do with all this debt? erik: it is going to be service

though. -- serviced though. these projects in brazil continue to produce. they produce at a marginal cost low what it is trading at. even if the project is not profitable, i would service it. peter: i would watch those. once those starts companies are knowledge in, houston, we have a problem. tracy: we have a bunch of minor saying they're are going to split dividend payments as well. it seems like an obvious thing to do as well. matt: here we have from left to right in their it does look like multi-year lows. -- and there it does look like multiyear lows. tracy: number three -- does anyone remember october 15 last year? use are the most liquid assets in the world.

this is what we saw on the 15th. why are we talking about it now? the u.s. treasury is expected to release its report to what happened on that day. matt: that is last year we are looking at. tracy: this is the big day where the yields collapse basically. matt: unbelievable. peter: a flash crash in the bond market. people say it should never occur. peter:tracy: the interesting thing will be whether the u.s. treasury blames it on regulation or whether balance sheet have shrunk. or whether they blame it on high trading or investors being in position in one direction. peter: i think this is a reflection of the marginal liquidity that is out there in the treasury markets today. you have central banks that have stockpiled through qe liquidity. you have banks because of regulations requiring large portfolios and treasury bonds.

the marginal liquidity of that market is far less than people assume it to be. given the way that ripples through to corporate and high-yield, i think bond market liquidity and therefore volatility, is going to be much more severe than folks have seen. matt: the way that you look at things is a little different than most other analysts. most people think that fundamentals or people's behavior leads to sentiment or confidence and that leads to prices, you see it the other way around. peter: how we feel dictates how we act. for bond investors, this is a complete change in confidence. bonds were supposed to be safe. you reach a point where they start to move around violently. that perception becomes reality to the way people think and trade. matt: peter, thanks so much for joining us. erik: he is staying with us.

matt: i'm side. tracy: i am leaving. matt: peter is staying with us and tracy is out. erik: right now, it is time to find out what stocks on the move. we have some companies to watch. >> id. -- i do. when you think of things coming up in smoke, but for the operators that you can see on the board, it is a reason for the rally. that is because the government of macau may ease bans on smoking on game floors. ramy: mgm is up 3.25%. wynn resorts is the big leader. this is down from friday. las vegas sands is up by 2.66%. macau has to do one thing -- improve the health of workers and guests. it will be interesting to see if they can do that. and oil, let us look at the

second-largest processo of natural gas. rmp alex has agreed to buy markwest. it had been is up -- as up by 15%. this deal puts a 32% premium at $78.64 per unit. it is up $68.70 right now. the deal is expected to close in the fourth quarter. that is subject to approval. finally, other movers. garmin right now is up nearly 3%. this is because the share price may rise 35% to $60 of the next year. garmin does car navigation systems, but has been shifting to wearable fitness devices. both have been helping its bottom line. weight watchers is up by 2.27%

here. it is a nice take over for apple or google gives the stock is now worth four dollars now. erik: thank you very much. when we come back china. if the government there is committed to boosting the stock market, does that make shanghai shares side? jimmy will be here. stick around. ♪ t

erik: you are watching "market makers." do not forget about china. greece may dominate headlines but the shanghai has closed higher for the third straight day. it is building on its largest gain since the financial crisis. fidelity calls shanghai and five. build grossman says that government interference made china more of a short. jamie is a fellow at the

council. also here is peter atwater. jamie, who do you side with? jamie: absolutely bill gross. china has been people from selling their stocks. they has forced insurance companies to use funds to buy and casino enterprises. there are bounds to those big companies, but there are all these other stocks that are locked up. if you are an owner of those shares, 80% of the investors are retail investors, when you can sell them, you are forced to sell and you are very likely to do it. erik: you mentioned the mom and pops are 80% owners. we hear so often from china experts that this market is not have much of an effect on the average family in china. matt: they only have say a few

percent of their wealth tied up in the stocks. jamie: i do not think that unless everything bigger happens that there will be a massive impact on the real economy of china. the big story in my mind is what this does to the reform agenda. two and half years ago, he and the government said they are going to let market forces allocate resources. the biggest problem that china faces is the misallocation of resources stemming from the misallocation of political resources. what does this do to market reforms and political reforms? peter: this is the beginning of a much larger turn down with china. recall -- retail is always less to the party. the fact that you have mom and pop from china actively and aggressively speculating the market says this is much more like 29 than it is 87. the problem with that is that the chinese government in response is going to become more and more reactionary and

authoritarian as confidence continues to fall. even though they have closed down the markets effectively, that is not stopping the decline in confidence. as a researcher, i would say it is exacerbating. the problem is that the mood continues to drop while you have a market that is highly regulated. at this point, if they try to reopen the market, you will see a similar cascade not unlike what will happen with greece when they reopened banks. erik: how do you measure this? peter: i measure it by how people are behaving. watch the chinese government go from encouragement encouragement, encouragement to ciccone and -- for tony and stedraconi steps. an theyand they are terrified that

this has gotten away from the. they're going to have to be come more authoritarian and i do not think people have grasped what this means for transnational corporations that are operating in china. jamie: the story is not that there is a market correction. of course, there was always going to be a market correction. the story is that the chinese government has gone nuclear in its response to this very natural downturn. it has put all its credibility on the line. matt: not money right? jamie: there is money, but it's not just that. they are backing all the margin loans, which has the potential to be bigger than foreseen. there's a lot of liability. china has a lot of money so they can cover this problem with cash. the issue is that they have gone nuclear in response. it is a lose lose situation for the chinese. if the stock market stays high,

then they have equity valuations that do not make any sense. matt: like 100 times earnings. jamie: yes, ridiculous. if it goes down, they lose because the population looks to the government and says, we thought you were magicians. erik: why is the chinese government so compelled to act? peter: the story in china with its citizens is that it's a centrally planned economy. the state is in charge. to have markets running away from their control they have to demonstrate that they are in control. if you think they are nuclear now, just wait. because as confidence falls, they will be percent as increasingly impotent. our confidence in governments and institutions is reflexive. they are only as powerful as we believe them to be. if the state of china has a real challenge in maintaining control and a world of falling economy.

erik: what is stopping the government from making the people order state of china stocks? jamie: there is a schizophrenia in the chinese government. erik: why is that so crazy? we ordered our central bank to buy bonds. jamie: yes, we bought bonds and lowered interest rates. it is not potentially try to bailout the entire market. erik: yes, we did! peter: it is fascinating to see people who were celebrating and praising the action of the u.s. central bank are now condemning what you saw in china. as a researcher, that is an important transition. we have gone from central banks as omnipotent to central banks muddying the waters. if that trend continues, then you have an entire system that will become dependent. matt: the one thing we did

differently is that chinese are essentially taking money away from the average person, or at least locking it up for the time being. we penalize sabres. we take away future income from sabres. erik: the mechanisms are different. the central bank here is independent of course. it is not take marching orders from the president. jamie: the central issue is that the chinese government is both the problem and solution. it is much more systemic and china because they have this misallocation of resources. the government has said they need better allocation. the stock market goes down and they panic. there are more tools that they can use. but if china does not reform its economy, it runs up to this middle income trap and has bigger problems that it is not organize for an economy that it needs to be. so that's exactly right. the story was, let me

centralized power. now you have over centralized power and enterprises are actually stronger than they were. you have a situation where it is very unlikely that the market reforms can work. erik: gentlemen, thank you very much. peter atwater, thank you very much. jamie, thank you for the conversation. matt: it is really a fascinating story that may be important that the other story we are focusing on. erik: let's look at some the stories making news this morning. saudi arabia is acting if the worrall is not already -- role does not already swimming and it pot of oil. in a record amount, more than 10 million barrels. that is the biggest output in whether 35 years. saudi arabia expects demand to rise. there is a takeover in consumer goods sector.

they value the deal of $1.5 billion. jarden make some mean and waddington makes disposable utensils. lego is trying to make a better building flock. there are starting and 15 your program to find a bio base alternative to plastic. they use 77,000 tons of petroleum last year just to make these colorful plastic bricks. you go lego. matt: those are your top headlines. when we come back, we're going to talk about scott walker. he is announcing his campaign for presidency. why is he a front runner? ♪

erik: later today on bloomberg television, nobel prize-winning economist paul krugman joins "market day pick."

and then the were 15. scott walker jones 14 other republicans on the race for the white house. i'm losing cal. there are so many. scott walker called the front runner. phil mattingly is in washington with more. does he jumped to the head of the pack right away? phil: he's in the top. he has some of the best resume -- one of the best resumes there is good as a governor, he restricted collective-bargaining. he has allowed conceal and carry in the state of wisconsin. number two is his resume of victories. he has one three elections in a purple state in four years while the entire national democratic party has been against him. the republican party has been looking for ways to win and purple states he has that going for him. because of those three victories, he has a donor network that is huge. his campaign has a list of 300,000 donors. he raised $86 million for his three campaigns.

one of his biggest backers -- the koch brothers. erik: he will get a lot of attention when he makes his announcement but hillary clinton is not being quiet. phil: not at all. she has her big economic speech today. what we're looking for here are principles. one is the increase of workforce for people. number two is boosting people's incomes. number three is changing corporate and semitism. -- incentive is appeared that is trying to make companies move from quarterly incentives to monthly incentives. that is something to watch in seven minutes. erik: that is coming in seven short minutes. matt: pc maker dell hopes influence leadership. the company is making a an investment in entrepreneurs. nelizabeth, thanks so much for joining us.

michael best -- michael dell says we need to create jobs in the global economy and often your ship is away to get at that. what are you doing to spur that? elizabeth: entrepreneurs are creating a lot of jobs. it is a farce to think that big companies are creating the most jobs. we are concerned that eight out of 10 are failing in the first few months. we need policies that support them. we are in the middle of this campaign and it's very relevant right now. we have created a night that will have you and policies that make a sustainable goal for entrepreneurs to scale. erik: what do they need? elizabeth: access to capital ecosystems around them, networks and technology, and they do not need to buff up against regulations not necessary for them. erik: such as what? elizabeth: for our country access to capital is positive

good for other countries, it is not there. we have created a scorecard for women entrepreneurs for what they need. if you look at countries like in yet or pakistan, where access to identification for women is not there, access to technology markets, and networks are what entrepreneurs need. matt: how much are you focused on entrepreneurship here in the u.s.? one of the things i see we are doing a lot is bringing foreign nationals and giving them the best education in the world and immediately kicking them out of the country before they do anything. elizabeth: oscar were shipped the country is what we are filing on -- founded on a need to continue to grow. -- entrepreneurship in this country is what we were founded on a need to continue to grow. we are focusing globally and we're looking at the u.s. as well. but we are in a global economy. if i log onto a website, i am a

global entrepreneur. erik: why are women not getting capital? matt: they should be. erik: they are for the most part. elizabeth: if they did have one, there were be more than 7%. only 3% of women who are founder ceos are getting access to capital. they are not gender blind. this is something we need to work on. matt: i do not think they are in real life. elizabeth gore, thank you so much for joining us. hopefully you can do some good. ♪

>> it is 11:00 p.m. in tokyo. erik: you are watching "bloomberg market day." >> we're keeping the country in

the euro for months. tsipras run out get its own coalition to accept. erik: what is happening on the streets of athens. what is happening on a deal worse than the one projected just weeks ago. brendan: and clinton makes her first economic speech today. job number 1 -- to boost middle-class wages. ♪ brendan: good morning. i'm brendan greeley. erik: i am erik schatzker. we have to start with greece today. it's a tentative deal to keep the greece in the euro zone. tsipras capitulates all the demands by its creditors to begin the disc