the head of emerging markets and morgan stanley says that china is a big problem. hear what he had to say, just ahead. alix: scott walker puts his hat in the race. we will take you to the republican state where he is set to announce his candidacy. matt: spotlight on big bank earnings, what to expect when wells fargo and jpmorgan report tomorrow? ♪ matt: good afternoon, i matt miller, fortunately here with alix steel. alix: i never get to sit next to this man anymore. i'm excited. straight to the markets right now, we have a rally underway and it seems to be somewhat stealth. not a lot of news, per se.

this is a key level the traders watch, particularly last week as we saw a ferocious bout. we did get recapitulation, essentially. alix: but there is nothing concrete. they still see a greexit scenario a few years down the road. matt: compared to last week, iran looks good. alix: i also want to highlight apple. rebounding from its own 200 day moving average, they say those kinds of technical levels are really good times to buy a stock in a longer-term uptrend. looking at the upgraded iphone forecast in their app store. it was down 10%

until it finally bounced back up on friday? we just found out they own 93% .f the smartphone market they are basically putting all of their competitors out of business as far as smart phones are concerned. alix: this sounds counterintuitive, but let's go to the euro-dollar. greece falls off a cliff, you would think the euro would be higher, but that did not happen. more on this removal hurdle of the fed to hike rates. is a smart thought. my original take was that look, if greece is going to stay in the eurozone, why wouldn't you be more attracted to that currency? $320 billion, they want $100 billion more, 300 times the size of their gdp. greece, a country that only wants to get paid without doing the work, it doesn't make sense to me. about thes talk

headlines at this hour. speaking of greece, the greek prime minister is already facing a mutiny in his own ruling coalition. the independent party platform lawmakers say that they will not back a potential greek deal. that opposition alone would wipe out the 12 seat majority in parliament, forcing the prime minister to rely on opposition votes to carry the day. get adering to demands to chance at a bailout, he must now sell the package of spending cuts and tax hikes to the greek parliament. two days ago his own coalition rebelled against similar proposals. earlier today he put his own spin on the agreement. was difficult but we have prevented the pursuit of a transfer of public property abroad. preventing the plan of financial is fixed the asian and the collapse of the financial system, a plan designed up to

its last detail perfectly. alix: greek banks will stay closed until wednesday and the bee has decided not to raise the size of the lifeline for now. reelected as the president of european finance ministers group, jeroen dijsselbloem. there was optimism that a deal in the anna could be announced today. u.s. and global powers want to keep iran from building nuclear weapons and in return they have offered to his economic sanctions. maintaink we have to arms and bargo's when they are pushing for power in the middle east and funding and arming so many of the rebel groups in places like gaza, lebanon, and yemen, as well as syria and iraq.

i think that is why you have seen secretary kerry negotiating in such a tough way. he is not going to fall on those issues. later on the foreign minister was asked if the deal was happening and he shook his head, no, so now we will wait. in the u.s. politics, a crowded field for the republican presidential nomination is bigger today. scott walker announcing on twitter that he is in the race, bygreat -- gained prominence taking on labor unions and begin the first governor in u.s. history to defeat a recall election. hillary clinton is making a pitch to democrats attracted sandersopular bernie message. she outlined the themes of her economic agenda. emphasizing the need for policies that would increase the incomes of middle-class americans. alix: every time they have it --

hillary clinton: every time they have a chance to try that approach it concentrates wealth even more and tactically does nothing to help hard-working americans. matt: clinton said that the minimum wage should be weighed -- raised. she called on companies to share more profits with workers. in a report on last fall's flash crash in treasuries, the yield and the benchmark 10 year plunged reform zooming onwards. a government report says that speed traders played a role and that inks reduced their market making for a. of time. -- a period of time. investors transfixed by the headlines from greece, a case can be made that the chinese stock market plunge is scarier according to a recent op-ed by recherche sharma.

is the author of "breakout nations in pursuit of the next economic miracle." matt: earlier today he spoke to pimm fox and betty liu. ruchir: the fact that greece and the rest of the global , it is israel marginal no bigger than that of bangladesh or vietnam. riskinancial containment really seems to be backstopped by what the ecb has been doing since 2012. now take the case of china. they are the single largest contributor to growth and financial crisis in 2008. secondly, the stock market freefall last week really had to be connected by the most are currently in measures ever taken. it did sort of question how much control they really had over their economy and the stock

market. >> as you described, there is a chinese put out there. what does that mean? -- ruchir: that the view is that despite the massive debt over the past few years, everything is different because the government controls everything out there, back stopping the losses. back stopping everything because they have so much money to do this. if something spins out of troll and it seems that the government is not in control of the situation, you have a similar concept in the u.s. with greenspan in the 1990's and much of the last decade. it appeared that every time the u.s. was in trouble, the fed would do something to the economy until he could not. in china i think the fundamental problem remains, no other developing country in history has packed on so much debt china

has since 2008. pimm fox: they already put their money in real estate, lost it, made it, maybe they lost it or made it in the stock market. what is next? minister volodymyr: -- ruchir: my point is that this game is running out. this has been a game of whack a mole and it seems to be running out. i think that that is a reason as to why i am much more concerned about china than i used be. they are running out of rivals and avenues to put a lot of their excess capital and some of the capital has been leaving the country, as i wrote in that piece a record amount of money has left the chinese economy and that may continue in the next few months. betty: if this does continue, are we talking about full-blown recession? ruchir: recession has different definitions in different countries, but i think we are talking about regrowing

at 5% or so rather than what we heard about looking at the other indicators. it could slow down by a few more points in the next couple of years. the u.s. economy is what mattered the most. every single global major by theon has been caused u.s. economy stumbling or going into recession and my take is that in the neck couple of years the next global recession will be made in china. r rushirt was sharma. reddit calls itself the front page of the internet, but they have been going to their own tabloid style drama.

matt: welcome back. i matt miller, here with alix steel. alix: we have a look at markets right now, it looks like a stealth rally because we don't have any killer moves. it is a solid rally underway. investors seemed buoyant off the news from greece, nothing seems full in the markets off the highs and the s&p 500 is up by 1%. ,he nasdaq has been the most the dow jones seen positive territory for the first time this year. energy news that i want to talk to you about, one big energy acquisition, mpl x has agreed to purchase mark we energy -- marcus energy.

mark west is up by 12% here. that deal is up by $78.54 per unit. right there. over to gambling, i want to talk after about in -- wynn the government of macau said that they make his bands -- ease bans on smoking -- bans on smoking. stocks did see a drop in hong kong. netflix, trading up 4.5% because goldman sachs raised price targets to $780. ,ight now it is the $7.11 mark international subscribers could jump to 460 million by 2020.

finally, apple is one of the biggest winners today on the dow highestp nearly 2%, the since july 7. one of the reasons is fox jen upgraded from buy to hold. bm oh also said it was a good time to buy and the reason is in my bloomberg terminal. the pink line, as you can see that 200 day apple moving average. the white line is there stock rice. this 200 day moving averages $118,000,000.94. the 200 day stock price compares stock market5 price right now and basically right now on july 9 the stock fell with a little bit of a change testing that average. the quote unquote west point to buy a stock in a trend. the next target to be $143. matt: i looked into smoking in

casinos. apparently you can smoke in all of the vegas casinos on the strip, too, but they have such a great air filtration system according to people on twitter, that you don't stink of smoke when you walk out, unlike macau. alix: this is why we love matt miller. matt: not a gambler or a smoker. alix: we have another look at the top stories in this hour. matt: $.50 has filed for bankruptcy protection. his real name is curtis jackson thelist assets and debt in $10 million to $15 million range . this comes days after he was ordered to pay $5 million over a woman who's over a sex tape. this is insane, he made reportedly hundreds of millions of dollars selling vitamin water. how could you squander that money? alix: football players make millions and you need to know how to manage it. matt: he made more than football

players. alix: sometimes it really is in a name. there is a stock start up named grexit and many are landing on the west side of this company where they have seen a 20% increase in traffic. you would think that that is good news, but they say that the increase is messing up with analytics. microsoft launching windows 10, allowing people to switch seamlessly between smart phones, pcs, and top -- tablets, if it works right and it will come with a new web browser integrated with the company's voice activated answer to siri. windows 10 will be available as a free upgrade for limited time only. alix: those are your top tech stories at this hour. matt: a turbulent time for online forum site reddit.

has been replaced by the cofounder and in a statement she says -- in my eight months in's -- as ceo i have seen the good, the bad, and the ugly. the good has been off the wall inspiring and the ugly made me doubt humanity." emily chang joins us now. she seems bummed. emily: matt, you know -- hey, hey, i think that she actually tried to make some important changes at reddit and some people think she is basically taking the blame here and she just the public face for a lot of disorganization and lack of [no audio] asked ifnd is being

she was going to resign and white frankly it is sickening to see those things that the people on reddit wrote about her. "people are still people, even if there is the internet between you." i applaud her for trying to take things in that direction. it obviously didn't work. are you on reddit, matt? matt: i think it is a great place to get information, but just like if i am in a bar talking to people in a free country, we will say whatever we want. you can do the same thing on reddit, that's kind of the point. alix: linnaeus you this, will they reversed the decision she made by firing that woman and sort of having more -- taylor.oria seems like alan powell was busy doing other stuff when she should of been running reddit. he wille has said that

be staying behind these decisions, but can he do it in a way that makes everybody happy? it certainly seems like redditers are never completely happy. do you think the racist and sexist comments are ok? if they are going to try to turn this into a legitimate business, is that stuff ok? matt: i mean, i wouldn't -- emily: for the matt miller's of the world. alix: i would not -- matt: i would not make those comments in public. but people have a right to say what they want, people have free speech in public and on the internet and that is reddit's thing. i do like to read that sort of thing, you can always turn it off. you don't have to read it. alix: you could say the same thing about -- emily: you could say that same thing about twitter, i'm sure that you have been on the opposite and receiving end of those,alix. twitter is also trying to crack

down. the question is not whether or not a community like that should this that all, but should it exist on reddit? a place that has taken two additional rounds of funding to create a profitable business? the technology has not changed since it was invented. they really need to move forward. do not forget to tune in later to "bloomberg west" for more. west," love "bloomberg first of all, and i love reddit. though ahead, we will take you to the streets of athens to tell you what the people there are saying about the bailout. ♪

crowds have gathered outside greek parliament. the prime minister is seeking to implement measures even harsher than those rejected by greek voters just last weekend.

matt: more we turn to athens, david, where protesters have been gathering for the last several hours. what are you seeing? david: protesters have been here for hours that that is starting to dissipate. of hundred people gathered, we spent the last few hours watching that unfold from a rooftop year. speechifying, music, people decrying the european union and europe as a whole. some anarchist factions in the mix. everything seemed to wrap up here as the ball starts moving towards tomorrow. alix: what is it like on the ground? how our business is faring? how are people buying the mark

-- buying stuff? ? -- how are people buying stuff? david: people i have talked to have become very frustrated, the small business owners, it has made life very difficult. several people are having to choose what they spend their money on. if you can only get 60 euros out, chances are you will not be spending that on coffee or food out. people have said that they have really covered a lot of ground and rethink how they spend their money. maybe they went out to times most weeks, now they scale back to one. a woman came in today and needed to prescriptions and walked away with one out of necessity. people are making hard choices in light of those measures. alix: david, what do you feel is the will of people to take on the double dose austerity from competitors? -- creditors? david: a lot of people are happy that it has come to some sort of

resolution, speaking as a country. but business people are very frustrated about what this means and a lot of the day was spent figuring out what was in this deal. we knew that there would be a deal, but just taking some time -- i think that some people will take solace in the fact that this is a move forward. there is still a lot to be done. parliament votes for this on wednesday, there is still a lot more to do here. alix: david, thank you so much. go get some sleep now. matt: i bet he won't, though. he will continue reporting. alix: matt, it's been a pleasure. you are going to go get some sleep area and we have more coming up. lots of marker repercussions. believe -- we will be back. ♪

. .

alix: welcome back to the bloomberg market day. i'm alix steel. we have breaking news.

>> david einhorn says he has had two new long ideas for stocks. the first one is tank of new york mellon. this news just broken last half hour and we can see the stock jumping, up about 1.5%. the other long idea is for applied materials -- even more pronounced in the past half hour, up by more than 3%. einhorn says applied materials is attractive because of etch and deposition. covered his he has short position which reduces and sells metals. that stock is at the most will stop -- up the most. alix: thank you very much. now for a look at our top headlines this afternoon -- more consolidation in the auto parts industry. words warner makes turbo charger

parts. thee's a takeover in consumer goods business. darden has agreed to buy waddington group in a deal valued at $1.4 billion. darden brands include son been, mr. coffee, and crackpot. by thepany is owned private equity firm and olympus partners. it's one of the biggest deals in the energy sector since oil prices started to collapse last summer -- mpl x will buy markwest energy partners for about 15.8 ilion dollars in cash and stock. they are the second against u.s. processor of natural gas and mpl x is a refiner created by marathon petroleum. top dogde:, there's a in the u.s. electricity ain't and it -- game, and his natural gas. surpassed: for the first

time ever as a top supplier of u.s. power. it has been in the making for years as the price of gas slides. a jewel in boom that began in 2008 has boosted natural gas production by 30% and made the u.s. the world's biggest producer of oil and natural gas. arabiag of energy, saudi has never pumped this much oil before -- the saudis told opec it raised oil production to a record in june, saying a year there will be stronger demand for its crude. it hasn't happened yet. oil prices are still 46% below where they were a year ago. makes a deal to stay in the euro for now and yet the has manyty of a grexit asking whether the idea of a shared currency is a bad idea to begin with. an economics professor from dartmouth was on bloomberg themision earlier with

managing director of currency at nomura. they spoke to pimm fox about what the deal means for the future of the eurozone. it is hard to tell whether it binds together or pulls apart. my suspicion is it does all apart. the euro had two purposes. union and political union. it's in the democratic votes in greece are irrelevant. said, takegermans the straitjacket and you have to look at companies like italy. they have not seen any growth and productivity the whole time they've been in the euro and it raises the prospect that we have a short-term deal in greece that may last three days, but if you to comee glue starts apart now for the whole of the euro project. dayink it is sort of a sad in the question you ask yourself is where does growth come within

the euro area and how does unemployment and poverty improve in greece as a result of this deal? the answer in my view is that it doesn't. pimm: what do you think? guest: if we take a step back and look at what happened this week, it shows how far we have come compared to the sentiment we had three years ago. three years ago, when the euro crisis was at its height, journalists like to ask jean-claude tree shea what do using cap's breakup idea and he said it's absurd fantasy and he refused to comment on it at all. now we have a whole weekend of meetings about whether greece should stay or not. clearly, absurd fantasies can become reality and that cements that this currency union has some fundamental issues associated with it. get a fiscal union as we talked about earlier on the program, it is not going to look stable. pimm: he said fantasy versus

you ay -- i want to show quote from the former prime minister of the united kingdom, margaret thatcher get your reaction to this. this is back from 1992, margaret singler saying every fixed exchange rate as cracked in the end. we are all at different state levels of development of our countries and some simply could not live up to raising a currency. we should each be proud to be separate. what do you think? she was one of the few policymakers willing to be honest about what the risk associated with the euro is. everyone else says we believe in the idea but not being realistic about economics. now there is finally some realism coming into play and what we heard from the former prime minister -- he said we need a push to change this and i think that's an interesting

debate. tom: what is your comment that 1992 quote from former prime minister thatcher? it's a pretty smart quote and essential to the decision of gordon brown for the u.k. not to join the euro. this whole discussion about fiscal union and change of the treaty, i think it sounds like cloud cuckoo land. there's no chance he separate governments are going to be able to come together and organize anything. that is where we are. they have shown one deadline needs -- leads to the next deadline is nothing we need to ask about his does this solve the crisis? talking about be this again and again. my suspicion is we get to wednesday and we will be back again. this doesn't finalize anything. there is no growth on the table, unemployment doesn't come down, the greek people are going to

object and politics will play an almighty part in this. going back to thatcher's comment, we have seen independence and having your own monetary and fiscal policy is probably the right way to go because all the tightening and everything we've seen in europe hasn't paid off. the italians it has not paid off for. any countries in the eurozone, their levels of gdp are below prerecession levels. i think there are deep fractures and i don't believe they are going to cooperate. was union is what is coming. unless you are a strong and healthy economy, why would you want to be in the eurozone? guest: there are some countries like eastern european countries that have political motivations to be attached to the western part of europe. eastern europe and the baltic nations. guest: exactly. from a pure economic perspective, there was never

clear-cut argument for it being a good idea and that is the challenge we are facing today. thrown under the bus if you are weak and cannot compete. alix: that was the former bank policy maker the managing director of currency research at nomura speaking with pimm fox. ahead, wisconsin governor scott walker throws his hat into the ring. we will take you to the republicans home state as he enters a very crowded gop field. ♪

alix: welcome back to the

bloomberg market day. i'm alix steel. about 15 minutes before the closing bell and a triple digit rally on the dow -- ramy: looks like nothing is pulling the markets off of the ties today. the s&p 500 is up by 1.1% and the nasdaq is up by 1.5%. the s&p is seeing his best three-day rally this year, same for the nasdaq. as for the dow, this is its best day since june 10 and its highest level in three weeks. let's head into the bloomberg terminal and i will take you into what it looks like. s&p's 10 sectors are all led by the information technology sector and consumer discretionary. utilities all day long have been by about, now down

.25%. taking a look at the vix -- fear is ebbing and the vix is seeing its biggest drop of the year, right now at 13.94, below the 14 mark. this is off of greece. treasury prices for the 10 year -- those are falling and today is their biggest three-day drop in a month. yields are rising, up past the 2.42% mark. looking at currencies, the euro has fallen throughout the day. right now, you can see a fall of about 1.35%. the greek aid deal happened overnight but despite that, the euro is still falling. as we round out this monday, you will want to watch these stocks johnson, jpmorgan and wells fargo. they all report before the open. jpmorgan and wells fargo both hit record highs on june 23. alix: i will be talking to an

expert on securities at a ahead into banks. now a look at the top stories crossing the terminal -- a federal lawsuit is trying to force major league baseball to install protective netting to protect spectators from flying bats and balls. screens toextend the protect all the way down the first and third baselines. the proposed action was filed on behalf of the oakland a's season-ticket holder. marco rubio's and joy campaigns as it has raised more than $12 million. he's one of an expected 17 republican hopefuls, most of them due to report initial fundraising results by wednesday. the florida senator has the support of to outside groups that can accept unlimited donations. they say they have raised an additional $32 million. the trump international golf club in puerto rico has filed

for bankruptcy protection. they club says it has as much as $78 million in debt. they are affiliated with the donald trump organization. wisconsin governor scott walker formally announce his candidacy today, becoming the 15th republican to join the presidential race. he will be making his speech tonight. mark halperin, are bloomberg politics managing editor will be there. he joins us now from waukesha, wisconsin. you actually caught up with walker earlier. what did he have to say? mark: iran into him at the hotel where he's saying. he was having lunch with his family and his parents and other relatives in from out of town. i will tell you what i thought would be the case -- from the time scott walker has been on the national stage, more than almost anyone else i have prater naturally calm and confident. this is one of the just days of

his life and yet he could not be more calm. he joked about the iran nuclear announcement, maybe that it was being done to step on his announcement. clinton took a swipe at him and he joked about that. among equalsirst among this crowded republican field and so far he does not get rattled. some of there hurdles governor walker will have to overcome? : he has had some position changes and all candidates go through that. let's see how he handles that. he has to show he can keep up on the fundraising side. he is not put forward formal fundraising figures yet. no one is going to keep up with jeb bush, but governor walker news to show he can raise money in the second tier of fundraisers. and he needs to prove to people he is ready to be commander-in-chief. foreign-policyl

credentials, but he will have to prove he's ready to be commander-in-chief. handling flip-flops, ready to be commander-in-chief, all of that adds up to republicans saying can this guy beat hillary clinton? republicans assume they need to nominate someone who can beat her. is that a carnival behind you? are there fried oreos? sign me up. mark: it is the state fair. this announcement was wedged in milwaukee.est of the state fair opens in a couple of days, so we won't be here for that but it looks pretty good. not getting about the fried oreos. i want to turn to hillary clinton. she made an economic speech. do her close ties to wall street affect her credibility as the champion for the average american?

she also had some harsh words for wall street banks as well. and talked about policy changes wall street will not be crazy about. she talked about beefing up dodd-frank, which a lot of republicans and wall street are's would like to see dialed back. tough words for wall street because she's feeling pressure from bernie sanders, the vermont senator who has done surprisingly well and is aggressive and taking on wall street. the proof will be in the policies and we will see how donors feel about what she says and whether she goes far enough. she's having to find that goldilocks middleground between being critical of wall street, but not so critical that voters and those donors on wall street turn against her. thank you so much. you can catch "with all due respect" tonight. they will be live streaming governor walker's announcement

tonight. speaking of presidential andidates, donald trump got verbal beating from david letterman. letterman made a surprise short and at martin steve martin's comedy show. david: -- up, big bank earnings are about to get underway. how jpmorgan and wells fargo will set the tone. ♪

alix: you are looking at a rally

underway as we head into the closing bell, the dow jones up by triple digits and the s&p up over its 100 and 200 day moving average. s&p is aboutr the 15% lower versus the 10 day average. nevertheless, all the indices are higher on the year. thank stocks are in focus this week. jpmorgan and wells fargo kicking off another earnings season starting tomorrow morning. i'm more on we can expect, joined by an analyst from guggenheim securities with neutral ratings on both jpmorgan and wells fargo. i want to start with a bank you don't cover -- bank of new york mellon. we just heard david i ought the stock due to rising interest rates from the fed. how much is that priced into the -- bank stock?et

actually there is probably more downside risk than upside risk to bank earnings year, even with rates going higher. does that mean bank stocks are anticipating a faster rate as anticipated? guest: i don't know if it's faster, it could simply be more. alix: why did bank stocks get so ahead of the game? it has been on the horizon for years. chairman yellen to be pretty clear in her expectation that she will hike at some stage. that's causing a lot of interest from investors to move act into these names but the reality is the earnings largely reflect a steep yield curve at a higher level, so it sure there's a lot of upside. when we hear numbers

come out, is it all about the net interest margin or is it another metric you are march -- you are watching? that's going to be a big issue and like a lot of tanks, they've been under pressure from past several quarters. jpmorgan, the capital markets is a significant driver. some of that was signaled with the mid-quarter commentary. alix: wasn't volatilities has to be awesome? guest: volatility is generally awesome, but not when it causes everybody to head for the hills. alix: you can have a market so volatile that no one wants to participate, which is where we were in the last several days of june with debate about the grexit. alix: are we going to see a big difference between equity trading? it seemed to be pretty

good, especially derivatives. the equity number will look a little better, probably up sequentially. see: does that mean we will a better quarter for the morgan stanley's of the world? citigroup is a much more diversified business whereas jpmorgan is a more pure play broker. what about bank loans? how may loans are we going to see? guest: it looks like bank lending is continuing at the same pace, around 6% to 8% -- call it to percent sequentially. we see some strength in some consumer categories and inconsistency across the commercial space with areas of strength in specialty finance lending areas.

the big issue is are these signs going to be behind the likes of jpmorgan? are they done with them? guest: it's hard to say never. it does seem like the multibillion-dollar settlements are largely done, but we still have a number of market manipulation issues being settled with various authorities around the globe which are still in the hundreds of millions of dollars of fines, which is not so significant from a capitalization perspective but can certainly thing earnings. alix: what is your favorite tech? topic continues to be morgan stanley. it's more but the secular growth we see. among the regional banks, it is the bg. alix: and the bank you are running away from? guest: we are cautious a lot of

regional banks because there's a lot of room for disappoint in expectations. you for the extensive look ahead to bank earnings. coming up on what you missed -- paul krugman joins us for the whole half hour. we will discuss greece, hillary clinton, puerto rico, and so much more. you don't want to miss it. ♪

alix: we are moments away from the closing bell and i'm alix steel. joe: i'm joe weisenthal.

[closing bell ringing] u.s. stocks climbing and european equities capping the biggest rally since 2011 on greece's bailout agreement. the euro sliding on speculation the deal may clear the way for higher u.s. interest rates. joe: the question is, what did you miss grexit question mark greece avoids a under very tough terms. was it an agreement among lenders or a brutal cu? alix: we have not one but two nobel laureates here to discuss one of the biggest economic stories and years. clinton had fiery words for wall street. can she really play the role of populist? the: but we begin with stock markets, with a pretty important day for the s&p 500. it closed above the 50 and 100 day moving