surrenders to europeans. can he sell more austerity measures? walkerovernor scott makes it official, he is running for president, becoming the 15th candidate in a crowded gop field. hillary clinton gives a major speech on the economy, vowing to revamp wall street. good afternoon, i am pimm fox. betty: i am betty liu. we are beginning the week and a look at the markets. pimm: it is a big rally. betty: after that 17 hour negotiation between greece and european leaders. it looks like they have a deal.

500 up%, we have the s&p almost 1%. on track for a gain today. betty: we are staying around the highs of the session so far. in the bond market, the bond markets interestingly enough were not as violent in their reaction to this. pimm: a little bit of a selloff in the 30 year and 10 year. betty: you go ahead. pimm: let's take a look at commodities. you want to look at oil, let's look at oil here it $52.77. not a lot of people like oil at this level. when was the last time it traded below $60 a barrel? i think last summer i was about $45 a barrel. betty: i think a lot of people are anticipating want to come on these iranian negotiations. pimm: if more oil comes into the

market, perhaps that will depress the price. down 90%. -- nine and a half percent. let's see how the euro is faring against the dollar, just a little bit of a move. the japanese yen, a little weaker. and the pound sterling gaining just a little bit. now let's take a look at some of the top stories crossing the bloomberg terminal. the prime minister of greece may face a mutiny in his own ruling coalition. alexis tsipras surrendered to the european demands to get a chance for the $95 billion worth of bailout package. he has to sell it all, as well as spending cuts and tax increases to his parliament. terms twoted similar days ago. >> the deal was difficult but we

have prevented the pursuit of a overfer of public property -- broad, and the trick -- the collapse of the financial system. a plan that was designed up to its last detail, perfectly. pimm: greek banks remain closed and have been for two weeks. the ecb has decided not to raise the size of the bank's lifeline. american and iranian diplomats trying to work through the final issues that stand in the way of a historic nuclear deal. earlier, there was optimism a deal could be announced today. the u.s. and other global powers want to prevent iran from building nuclear weapons and have agreed to ease sanctions on iran in return. betty: wisconsin governor scott walker says he is running for president, turning to twitter to make the announcement. he is the first governor in u.s.

history to defeat a recall election. walker joins an increasingly crowded republican field. 15 candidates have officially declared, two others are expected to enter soon. marco rubio's presidential campaign says it has raised one and $12 million. he is one of 17 republican hopefuls, and each are due to byort their fundraising wednesday. hillary clinton is making a pitch to democrats attracted by bernie sanders' populist message. the democratic presidential candidate outlined the theme of her economic agenda, emphasizing the need for policy that would increase the income of middle-class americans. >> have had the opportunity to listen to americans' concerns

about an economy that still is not delivering for them. it is not delivering the way that it should. it still seems to most americans that i have spoken with, that it is stacked for those at the top. betty: clinton has called for a higher minimum wage and for companies to share their profits with workers. walmart has a message for amazon -- anything you can do, we can do better. they are launching a sale wednesday to rival amazon's new offering, prime day. more than 2000 items will be discounted in walmart, and they are emphasizing anyone can get the discounts. pimm: comcast is launching a streaming video service. the company faces growing competition from the likes of netflix and more customers becoming mobile through the use of tablets and mobile phones. the service is called stream and will cost $15 a month, and

watches in boston later this summer. it will launch everywhere else in early 2016. time warner's borrowing power could increase by four point $7 billion. they could support a debt load of nearly 25 billion dollars in 2016. by revenue, time warner is the largestlargest -- third television company. willew horizons spacecraft make its first up close examination beyond neptune. the interplanetary space probe was launched nine years ago, and it has traveled more than 3 billion miles. those are your top stories at noon. betty: very cool. coming up in the next half hour, investors a be worried about the wrong country.

while much of that attention has been on greece, child what to be a real concern according to morgan stanley. pimm: more on wisconsin governor scott walker, best known for his battles with the unions. greek prime minister alexis tsipras has surrendered to european demands for action to secure a new bailout of $95 billion. we have reporters all across europe reporting for us. in athens is olivia sterns. hans, i want to start with you. most crucial aspect of this bailout deal with i assure you have seen on twitter, has been comparing it to a coup in greece . hans: there is a coup in greece. nanosphere focus said -- yanis varoufakis says it reminds him of the treaty of versailles.

it is an agreement to make an offer. earlier this morning, one of my colleagues had a chance to ask the question to madame lagarde. she said step-by-step that each move would have to be correspondent to another move. there will be a vote in the bundestag on friday. we do not have a great deal of clarity for what they will do for bridge financing. greece faces an immediate cap starting today. that, thatoss over has to do with the bridge financing. finance ministers are in a meeting right now trying to cash out some sort of a deal -- hash out some sort of a deal. pimm: thank you very much, hans nichols. i want to go to athens, david grace is standing by. us about thetell people you meet and the reaction

to the bailout question mark -- to the bailout? we see a bunch of taxis that are moving pretty quickly in the city center where restaurants around me are still pretty much buoyed by people coming to athens. we took a ride down and the driver of the taxi, a computer engineer who has been without a job for three years. what we notice is a really long line down at that port for services. the taxi drivers told us they will wait in these lines for hours and hours. they are maybe not even guaranteed to get a fair out of that. they are really hurting. we are wondering how this was going to be affected by the price of trolling. -- petroleum. somebody said they are not worried there yet. we are seeing some diminution of

it, at least on the domestic side. betty: thank you for some of the insight on what is going on. -- olivia sterns is joined by a political scientist. here with professor , a professor of political science at yale who happens to be greek. let's start with the news that is just crossing, the deputy minister is resigning. is this the first of many resignations? is alexis tsipras' pretty turning on him? >> certainly the extremist in the party will defect. we do not know how many will be defecting. the estimate is somewhere between 10 and 30, 35. that means alexis tsipras will

have to reshuffle his cabinet and look for a new coalition partner. that is probably going to be either party. he will have to perhaps reorganize his own party. the positive side is that he is not going to have to defend -- depend on the hard left in order to cost measures that he has agreed to. that liberates him and gives him much more control over his party. david: a cabinet reshuffle -- olivia: a cabinet reshuffle is imminent? >> it is, and we are likely to witness many deeper lyrical transformations. olivia: how does alexis tsipras sell this to the greek people #it looks like a u-turn. >> he is the best person to sell it, very much like nixon went to china. he is popular, he is a popular politician. he is still very young and new

to the job. he can tell people listen, we did not have it good choice. the alternatives were horrible. he can tell them it is going to be painful for a year or perhaps two, but then there is an upside. reforms can change the underlying dynamics of the greek economy and allow the economy to develop and grow. he really has to run with it. he has to own it. no politician in greece owned the reforms from 2010 so he has the opportunity to become a very big reformer in greek politics. if he believes it, he can do it. olivia: you believe he can be a reformer. he is the guy who ran, promising a stop to the austerity. >> a lot of politicians change and the mark of a good politician is the ability to newrk -- two change in a

environment. olivia: alexis tsipras -- genius or full? >> it all remains to be seen. a bad deal.st i think there are positive upsides and he does not have any choice. he has ambitious, he is smart. olivia: you do not think he put the country in a worse place because of the referendum? >> he did, but the country and himself have to grow up. there is a realization that there are no easy solutions, if you want to change things have to get your mind on it that you are not going to go back to the years of prosperity without really trying. professor.nk you, back to you. betty: thank you so much. olivia sterns in athens. pimm: still ahead on the bloomberg market day, more

perspective on the situation facing the greek people. betty: we will be speaking with nicholas burns, the former u.s. ambassador to greece. ♪

♪ pimm: welcome back. i am pimm fox. betty: and i am betty liu. let's get a check on what the markets are doing in light of the agreement in greece. looking at some specific winners in the nasdaq, starting with garmin. becausen is up 4.6% baron says its share price should get to $60. shifting to wearable fitness devices and those sales and profits have been helping their bottom line. over to another gainer in

up after and win is the government of mccallum says it may ease bans on smoking. in hong kong also rallied on that news. american airlines is up by about 3.1%. this year, after a bloomberg report showing that jet fuel prices fell 37% from a year earlier in the second quarter, and that means margins will gain likely by 740 basis point. 4.9%,x is trading at nearly 5% in the noon hour because goldman sachs raised their price target today to $780 from 620. this year, it is because of the company's international expansion. netflix international subscribers could jump to 450

million people by 2020. you can see that the buys have fallen over the past few months and this is because the price target has been rising. expect it willt hit $657.50 over the next 12 months. happener by calls that the higher the pt goes. betty: the higher you go, carter it is. -- the harder it is. pimm: c step aside,oal, there is a new top dog generating game called natural gas. it has surpassed call for the first time ever as the top source of u.s. electrical generating power. it is a milestone that has been years in the making as gas prices slide and new regulations make coal more expensive. microsoft is launching windows 10 on july 29.

the upgrading operating system will let users switch seamlessly between personal computers, tablets, and smartphones. it is intended to give the apps a similar feel on all devices, and it will have a new web a.owser integrated with cortan windows 10 will be available as a free upgrade for a limited time. there is a million dollar reward for new information leading to the return of a pair of judy slippers ruby red stolen from a museum in 2005, and warned in "the wizard of oz." three pairs still exist, including one on display at the smithsonian institute in washington. they could be worth $2 million to $3 million currently. betty: i love that last story. pimm: i wonder if you have to

fit the size of the shoe in order to qualify. betty: can you click three times and get whatever you want? pimm: still ahead, what should strike more concern in investor hearts than greece? we are going to talk about emerging markets. morgan stanley says china. ♪

♪ betty: this is the bloomberg market day. i am betty liu here with pimm fox. can you make the case that the shocking rise in chinese stock valuation and their disconnect from the chinese economy should be far more worrisome to global investors than the grease -- and greece? global macroead of at morgan stanley. he joins us in the studio. great to have you.

maybe we should cut to the chase, should we be more worried about china than anything else? riskshink because the regarding greece have been telegraphed really well for a while now, and the effect that greece has is very marginal. the financial condition risk really seems to be sort of backstopped by what the ecb has been doing since 2012. take the case of china. china has been the single largest contributor to global in 2008.nce the crisis the stock market's freefall last week had to be directed by some of the most draconian measures that any government has ever taken. it did sort of question how much control do they really have, over their economy and the stock market. betty: you describe, there is a chinese put out there.

describe what you mean. >> if you talk to many people their view is in china, to fight the massive build up in debt, everything is different because the government controls everything. the government will backstop all theyosses but the losses, will be able to backstop everything because they have so much money to do this. if something spins out of control where it seems the government is not entirely in control of the situation, that questions the beijing put. we had a similar situation in the u.s. with the greenspan put in the 1990's. it appeared every time the united states would be in trouble the fed would do something to rescue the economy, until it could not in 2007 and 2008. in china, the problem remains that no other developing country in history has stacked on as much debt as china has since

2008. china ande look at where people are making their money, we are today put it? think, myxt? >> i point is that this game is running out. ole.s a game of whack a m that is a reason as to why i am much more concerned about china that i used to be, they are running out of growth drivers and avenues to put their excess capital. some of the capital now has been leaving the country. a record amount of country has left the chinese economy and that may continue in the next few months. betty: if this does continue, what are we talking about, a full-blown recession in china? >> recession has different definitions in different countries. if you look at the other

indicators, and the chinese economy could slow down by a point or two more in the next few years. historically for the world, the u.s. economy is what has matter the most. every major global recession has been caused by the u.s. economy stumbling or going into recession. my take in the next couple of years, the next global recession will be made in china just like many things in the world today. betty: a made in china recession, no thank you. make the cannot consumer zone bail this out. >> the global economy is doing well but i think china is a risk. betty: thank you so much. we will have more in a moment. ♪

betty: welcome back to the bloomberg market day. top storye crossing our terminal. president obama says secure retirement is a critical component of what it means to be a middle-class american. here is the president earlier at a conference on aging. you understand the whole terrain, not just the challenges, but also the opportunities. not only the questions we are asking today but the questions we have to start thinking about for tomorrow. because this conference takes place just once a decade, we have to make it count. one of the best measures of a country is how it treats its older citizens. by this measure, the united .tates has a lot to be proud of

medicare, medicaid, social security, some of our greatest triumphs as a nation. when social security was signed into law, far too many seniors were living in poverty. betty: in an article, the president said a lifetime of hard work should be rewarded with a retirement that is secure and defined. chinese authorities accuse officials of manipulation involving speculative trading. there were nearly $4 trillion in losses over the past few months. pope francis is heading back to the vatican after a weeklong south american trip. journey brought the pontiff to three of the most impoverished nations.

urged more respect for the world poor. the trump international golf club in puerto rico is filing for bankruptcy protection. the cocoa beach golf and country million asked for $9.2 to reduce its debt. the course says the course is affiliated with donald trump's organization. that is a look at some of our top stories. coming up, the progress in the greek bailout talks sends european markets higher. we will look at where they closed. and a deal between iran and six world powers is said to be 90 complete. however, foreign minister indicating there would be no agreement today. will go to vienna in the next hour. big day in politics as hillary clinton outlines her economic priorities.

scott walker of wisconsin as his name to the laundry list of those seeking the republican nomination in 2016. his campaign gets off the ground in wisconsin today. mark halperin is with us. scott walker joins the race. we were showing a reuters poll earlier that shows, among the top six candidates, he is number six. does scott walker stand a great chance to get the nomination? >> if he executes, he will be a top-tier candidate. he is not well known nationally. the national poll do not matter as much as the state-by-state polls. you look at those states that have such a disproportionate impact on who becomes the nominee, he has a pretty good lead.

he is in the high teens, low 20's. a decent fundraiser. he will have to do better there. a powerfulhim i candidate is he is a former governor. he also has some good skills on the ground. the question is can he be a dominant figure, someone that people see as commander in chief? about that today, talking about national security. for a lot of the country, it will be the first time they sure him in that context. betty: he was well known for fighting against the unions. what are his weaknesses? hasn't he been accused on waffling on certain issues? he has changed his position on right on illegal immigration, whether there should be a path to citizenship. think maybe we should allow people to change

their minds, but he has moved to the right on things like same-sex marriage, abortion. it is in those areas where a lot of people are looking for -- particularly in the donor class -- they are saying, can this guy be consistent? but there is some irony there because part of what he has been campaigning on is his consistency. he needs to prove he can win the general election. he has won in wisconsin, but being a pretty divisive figure. the only person to survive a recall election here. pretty much polarized the state and divided it. betty: how will he stand up to hillary clinton, who we heard from this morning? he has a difficult case to make. any republican who wants to be to nominee has to explain republicans how you will win the

electoral college. he has a strategy that does not seem to suggest winning in states like colorado, new mexico, maybe even virginia and north carolina. it is more of a northwestern strategy. if they can win iowa, wisconsin, illinois, michigan, which democrats have been dominating, then they can win the white house. in terms of taking on hillary clinton, she went after him and others, and there would be clear distinctions on social issues, economic issues, cultural issues, and maybe even national security. he would relish the chance to take her on and have a clear divide, which other candidates may not make as distinctive betty:. . betty: thank you. to talk more about this, talk about the republican viewpoint who workedonard,

closely with mitt romney at bain capital. ed is the author of the bestseller "unintended consequences." what do you make of walker joined the race? he is positioned well to win the primary, a question of whether he can win a national election. at this early stage, it is just a game of russian roulette. who can show he can stand up to the scrutiny the media will put on them and has the capability to run a presidential campaign? betty: would you rather him win the nomination than jeb bush? >> i think he can get a higher share of the immigrant and hispanic vote. all the other candidates, except for maybe marco rubio, will have difficulty with that. jeb has a built-in advantage in

that issue. republicans,f historically, have gone to the most electable candidate. betty: mitt romney recently hosted this retreat with marco rubio and chris christie. were you surprised that he had these two at this retreat? >> i was there, by the way. he had everyone from the middle to the center, if you will. no ted cruz, but everyone else was there. jeb was in london at the time. they were all making their pitches to republican donors, but it included almost everyone. mitt go?ere will >> if i had to guess, marco rubio, jim bush. -- jeb bush. i think he believes they have the best chance of winning. betty: and who do you like? could go with either of those candidates i named.

get a high percentage of the hispanic vote. i would raise money for him and other moderate candidates as well. , she: hillary clinton detailed her economic agenda early this morning. i believe we have some sound from her speech this morning. this was on the buffet rule on taxation. >> those at the top have to pay their fair share. that is why i support the buffet role, which makes sure that millionaires do not pay lower rates than their secretaries. betty: what do you make of that? >> the truth is, if you look at , theyxes paid by income go up substantially as people earn more income. it is true the capital gains rate is lower today than it has been in the past. there are two views on how the economy works. one is we are waiting for animal spirits and demand to pick up.

the other is demand is a function of risk-taking, which is a function of equity. if you tax success, you will have less speculation of equity. betty: you sort of dismiss that one point about capital gains taxes being lower than before. that is a big point. that matters to middle-class americans. she is saying she is going to roll that back. >> i think it is a very popular stats. it may well prevail in the election. i think it ends up doing more damage than good for the economy . as i said, i think the economy is driven by its capacity of risk-taking. in a recession, why does the economy pullback? it bobs up against its capacity for risk-taking and the house back in investment to compensate. if we had an infinite amount of equity, we would have no economic cycles, because no one

would fear taking risk. betty: what do you make of the widening income gap than? >> i believe in two different economies. if you come up with something in an economy, it will be very big. betty: of all the people, you choose taylor swift. did you just speak to her? no, but i listen to a lot of her in the car. betty: taylor swift represents the innovative economy. >> the world economy. then you have teachers, doctors, individual plumbers, they cannot grow with the world economy. they are limited at that level. over time, you are going to see people who access the world economy, are going to grow very large relative to individuals. that has been america's strength. as a result, our employment -- betty: you are talking about

leaving doctors and lawyers behind? think this does anything but increases the demand for labor. you can see that in the growth of demand compared to the rest of the world. what restricts wages is the supply of labor. million.s., we had 50 foreign-born adults and their importsrn children, and are 16% of gdp, and even in balanced trade, we are buying low skilled labor and selling high skilled labor to the world. that will drive up high skilled wages. american innovators have done their job -- betty: we are also importing high skilled jobs. this is why democrats want to reform immigration. >> i don't disagree with them. i think it puts pressure on wages. any increase on the supply of labor will put pressure on wages. betty: i know you are not a fan

of the obama administration. >> yeah. betty: would you be less or more of a fan, if in fact, hillary clinton won the white house? ini think she is a wolf sheep's clothing. she realizes she needs to steer to the center, although she needs to keep the more radical elements of the party in check. ultimately, she is a continuation of the obama administration, which is not produced thai growth and rising middle-class wages. betty: she is tough. >> i respect her for that, for sure. betty: glad to have you back on, edward conard, formerly of bain capital. have thelet you go, we economist two is arguably the date of your existence on later today. nobel prize winner paul krugman

along with edmund phelps, joining us for our 4:00 program, "what'd you miss?" go on astock markets roller coaster ride and there are positive signs about the economy, including a jump in exports. ♪

betty: welcome back to the bloomberg market day. speaking about the markets, let's go straight to ramy inocencio for some of the big stories in the market. right now we are seeing

stocks still in the green after those greek developments. the s&p 500 is up .8%, the nasdaq up by 1.25%, all at their highest levels at -- in the last three weeks. the dow is finally positive for the year. the s&psee, nine of plus 10 sectors are gaining today, but utilities are lagging, down .3%. electric utilities in particular. staying in energy, one acquisition to tell you about. has agreed to purchase mark west. they had been up as high as 60% earlier today. is $15 billion in

stock and cash. this puts a 32% premium onmarkwe markwest. let's take a look at volatility. right now, we are seeing the worst two-day drop in a year. this is from greece. treasury prices for the 10-year are falling, today, their worst three-day drop in a month. this is the highest level since july. betty: thank you. let's take a look at how the european markets have closed. mark barton from london. talks and7 hours of six months fired to that, finally we have a deal that paves the way to another greek bailout. now, all that alexis tsipras has to do is sell it to the greeks.

600, the biggest four-day rally, up 6%, since december 2011. 570 billion euros has been added to the values of european equities. days, last five trading italy has added 10%. portugal achieved that 10% feet in just four trading days. to think, last tuesday, we were talking about a correction for european stocks, which would have been a 10% decline from its highs in april. these are the three big movers in european markets. dksx, a swiss watch company. international personal-finance, the u.k. lender of small, unsecured cash loans. biggest drop in six years, down

by 25%. cut all law would non-interest costs, which may have an effect on the company. anofi climbed after they received an upgrade by the banks. back to you in new york. betty: exports rose with the first time in four months, giving evidence to the fact that growth in the chinese economy may be stabilizing. china's export engines want to like last month, halting three consecutive months of declines. rising 2.1%,e above the 1.2% estimates of economists surveyed. it's an encouraging result given the month-long stock ram that has reverberated through the markets. suggests china's stimulus is stabilizing demand,

but there are many headwinds. world demand for chinese goods is sluggish and a strong you n makes exportsua less competitive. on wednesday, beijing reports second-quarter headline gdp growth. betty: back to politics, we are talking about donald trump. ♪

betty: welcome back to the bloomberg market day. david letterman said goodbye to late-night tv two months ago, but he could not resist the opportunity to roast donald trump. he said, i was content, and then couple of days ago donald trump said he was running for president. i have made the biggest mistake of my life. you can see him on stage with steve martin and martin short working on donald trump. facts aboutng

donald trump. number 10, that thing on his head was the gopher in caddy shack. number seven, he wants to build a wall. how about building a wall around that thing on his head? number five, donald trump weighs 245 pounds. 250 with cologne. number two, donald trump has pissed off so many mexicans, he is starring in a new movie called "no amigos." and the number one most interesting fact, thanks to donald trump, the republican mascot is also an ass. betty: he has done it again. donald trump is actually pulling quite well. the quinnipiac poll puts him at

number two among candidates. mark crumpton is with me giving me that look. k: there have been reports that the head of the rnc, has contacted him and privately told him to tone it down. mr. trump says, i am just saying what the people want to hear, but there have been stories that this may work in the primary season, but in a general election, will this hold up? betweening to flash out now and when the primary start? media it is good for the who are running stories about him every day, but so far in preliminary polls -- mark: many are angry because he is taking the attention away from a serious issue they want to talk about, immigration reform. betty: that will be one of the

controversial issues for scott walker. he said he is jumping in, candidates? 150 it is a crowded field. he did make his bones in wisconsin standing up to the unions. betty: the collective bargaining power of the unions, which is huge for republicans. he will be holding this event tonight. , butll gauge the reception more importantly, how will somebody like him hold up to hillary clinton? mark: mark halperin is there and he will be talking to us about that. betty: we are going to be right back on the bloomberg market day. ♪

betty: it is 10:00 in san francisco, eight :00 in new york, and it :00 in athens. betty: alexis tsipras --mark:

alexis tsipras agrees to tax increases. can you sell the deal to greek lawmakers who were elected to reject austerity? betty: did a less are nearing a deal to curb your's nuclear program but the foreign minister shakes his head no when asked if there will be an agreement today. users show their power. ellen pao resigns as the reddit interim ceo as readers complain. what is next for the website that bills itself as the front page of the internet. betty: good afternoon. mark: thank you for joining us. let's get a look at the markets at this moment. as