matt: welcome back to the bloomberg market day. i am joined by alix steel. a lot going on. in the last hour, we heard from president obama and a little protest turned to riots in athens, greece. on thenbelievable images ground. part of me wonders why this did not happen any earlier. the groundook on that what is happening. can you set the scene for us? have subsidedtest a bit. we can still hear some chanting and protesting on the ground, but we went out to see what was going on. for the last couple of hours, it has been very peaceful. we hear 13,000 people have aroundd in the square parliament. when the sun set, things began to turn. a few molotov cocktails were thrown south of the square. that prompted a lot of people to

rush down the street in the opposite direction. the police that have been stationed in front of the parliament building began to rush out toward the square, firing some teargas canisters. that found its way up here as well. that happened 15 or 20 minutes ago. it has subsided, as i say, since then. oft: i immediately thought what we saw last year in greece. , thell group of an artist police responded immediately, and it has now turned back to a peaceful if possibly loud protest. is that correct? david: two or three hours ago, i was down in the square. it was mostly members of the communist party holding signs, passing out literature. a large group paraded down the avenue to my left to join them. we saw mostly the red and white signifying that political party, that group.

toward the south of the square, there were some black banners of anarchist groups. they were a presence, but much smaller than what we had seen from the communist protesters comprised the majority of the protesters this evening. protests may look big on television, but in athens here, it looks small. there is not a lot of road test happening. these images look very dramatic and very widespread, but once you filter out, what happens? david: it is a very compact square, only about two blocks wide by one block tall. the square itself was not packed to the gills. where you did see a lot of people packing the streets was above it, by the steps to the parliament. about 13,000 people there. i've been here for several days. there have been a few protests

and demonstrations, and this was the biggest i have seen so far. when we woke up this morning, there were posters up. people were talking about the fact that the communist party was going to protest. we got the sense that it was going to be a bigger deal than what we've seen so far. the senseyou get talking to business owners that they are on board with this kind of protest, or is this a very ? parate kind of thing david: i think they are not on board, probably with the anarchist fashion here. i think there are a lot of people who would sympathize with what the communist protesters were talking about tonight, that being forgiveness of greek debt, a rejection of the deal the prime minister agree to a couple of days ago with the european union. there seems to be a lot of people, those whom i talked to, who said that they sympathize with those views. i would say with some confidence that they are not sympathizing with the anarchists catalyzed this protest tonight. the responses been

to the prime minister's television response yesterday where he admitted that he does not believe in the economic program that he is asking parliament to pass? david: people talk about the u-turn he has made. he has this very long negotiating session. came back to greece, and last night's interview on state television was the first time people here in greece had the chance to hear from him. in that interview, he defended himself. he talked about the creditors who were, in his words, vengeful, held a knife to his throat, he said. it was an opportunity also for him to justify a agree into the deal, to talk about why he had to agree to raise the sales tax, agree to broaden the tax base overall, talk about pension reforms, talk about lowering the retirement age, all things that are controversial here. in the interview, he said it is a progressive policy to raise the retirement age, not

for a country to have people retiring at the age of 50, and he says that is something that greece on its own could have decided to do. the interview last night started off a robust conversation in all factions of government about the deal that alexis first -- tsipr as agreed to. that the police have been on the scene, but have there been any reaction from members of parliament? we have not heard from members of parliament about the protests in specific. the debate, as far as we know, continues in parliament. i did get headlines crossing from the current greek finance minister saying europe and greece need to a line against austerity, saying that these coming few years will be a trial. he said europe will be tested in the coming years, so parliamentarians continued to talk and will continue to talk until this vote tonight. what will precede that is a greece's greeks --

prime minister. it seems like the debate will continue here a few hours more. thank you so much for the perspective there on the ground. i want to get a look at the markets here in reaction to what we've been teeing in greece. if you look at the intraday stock chart, it's fascinating how it has been moving with these headlines. the moment we heard that the protest really heated up was when we started to have the s&p turn lower, the moment we heard them settling out of it was when we started to grind off the lows. matt: basically, a violent faction came out, and from the video, you can see that some of those people were intent on causing bodily harm or at least property damage. the markets reacted, although i would like to point out that the band you are looking at is only about .3%. markets have remained pretty resilient in the ace of this issue -- the face of this issue

across the board, talking about equities, bonds in the u.s., or the euro. i think the euro has been unbelievably resilient. it has been interesting to watch the little moves that are put into play, but it does not look like a lot of people are trading on this. the point you made yesterday, we had the euro band, and the $1.09 we still have not broken out of that. nevertheless, we talk about how the market do not react to greece. well, they clearly do. it's just the reaction is not massively extreme. you see program traits. going to machines making trades all day. they do not take positions with the news. with the president talking about iran for so long this afternoon, it is an issue that is front and center. we saw it come down below $52 a barrel today.

what is going on? the: part of that as dollar. the dollar has seen a three-month rally, but also, we got some inventory data came out. we saw a build when it comes to that storage unit in oklahoma in the midwest, and desolate in gasoline inventories have also grown. this is a big deal because refiners are working overtime right now, but they keep making products that are not being used. that dynamic also playing out in the consumer market right now. we do have other stories making headlines at this hour. president obama vigorously defending the nuclear deal with iran, passing the historic accord as the only possibility to avoid a nuclear arms race in the middle east and reduce the chances of war. president obama: if you look back at all the debates that have taken place over the last 5, 6 years, this has been a democratic priority. this has been a republican

priority. this has been prime minister netanyahu's priority. or goal is making sure iran does not get a nuclear weapon. the presidential news conference is not the only part of the white house defense of on iran. the vice president did spend the morning meeting with house democrats to brief them on the record. congress had 60 days to review the agreement. president obama says if lawmakers passed legislation rejecting the deal, he will veto it. matt: israel's prime minister stepping up his criticism of the deal, saying israel has a "great to defend strength" itself and that his nation will not be bound by the agreement. meanwhile, the prime minister's political rival says he is coming to the u.s. to lobby for a compensation package to maintain israel's military advantage in the region. the federal reserve chair spent the morning meeting with a white house panel on the economy and says she sees a number of

encouraging signs that the economy is reviving, and if improvements continue, the fed will likely start raising interest rates later this year. yellen: a decision on our part to raise rates will not notal the economy does stink. we are close to where we want to be and we now think the economy can not only tolerate but needs higher rates. alix: she says the importance of the first rate hike should not be overemphasized because interest rates are likely to remain at very low levels for quite some time after the first increase. janet yellen appears before the senate banking committee tomorrow. those are your top stories at this hour. returning to greece, the imf has criticized the greek bailout deal as pushing for deeper debt relief, a move that is likely to fuel fierce debate in germany about lending greece more money. matt: we are joined now by the former defense minister and economic former

minister of germany. you now have a consulting firm in new york. thanks so much for your time. let me first ask about the german feeling about what is going on in greece. it seems that, especially with here,minister tsipras there are so many u-turns. he seems so untrustworthy. is that a proper reading? read.er: it is a proper there is not much trust, but , and is a certain attitude i think it's not only healthy. just blame each other and mutual finger-pointing is not coming to any better solution at the end of the day. matt: how important is it to together? ro zone germany and france kind of let this project, and it's important to remember it's not just an economic zone, it's about peace

for europe and the world. minister guttenberg: that is what it should be. the factor, it is some kind of fiscal union we have, but no political union, and that was one of the first mistakes of the eurozone, such as we have never had a political union, and this is what we have to swallow right now, so that makes it even harder. they want us to have a eurozone intact at the end of the day. if it leads toid even weaker eurozone where everybody can blackmail each other after a wild -- while whenever it becomes tougher on the negotiation table, this eurozone is not going to prevail with the next decade to come. alix: part of the rhetoric that emerged has been a lot of heat on germany. i want to play a sound bite from prime minister alexis tsipras. thee minister tsipras: result of the euro summit and result of the eurogroup was a

result stemming from pressure put on a country and put on a who are decided in a democratic way. alix: he does not name germany, but you can understand that is the application. you can understand a split between berlin and paris. what do you thing about that? how do you manage the kind of reputation? minister guttenberg: germany helped grease out at the end of the day. there were a lot of talks about , and at thegrexit end, germany gave a solution and offered a solution. if it was wise or not is another thing, but now it is come to say there's a lot of pressure coming from germany, but on the other hand, you have the chancellor sitting there who has the impression of being a person and was just a counterpart whatever happened happened in a way that greece came out and

said, "let's try another step." and the french said let's keep the club together and germany said the club only works when we rule off of talent at the end of the day. an imflix pointed out bullet point today where they said if greece ails or if greece goes out of the eurozone, it could become an economic problem for germany as well destroy you confidence. do you think the countries in europe could see a failure in greece? minister guttenberg: i do not see a lehman brothers moment, but on the other hand, you have greece in a situation in the eurozone where others could step up and say, "we also have a couple of problems. let's also try to find some extra rules for ourselves." italy, and there are some rumors about france to a

certain extent. those are things we have to think about as well because that could weaken the euro zone an entire body. matt: do you need to fund greece at all costs? minister guttenberg: no, and if they keep behaving the way they did, it will be extremely hard to convince not only germans to go another step and another step and another step. alix: what about the division between the imf and creditors like germany? the imf saying greece will absolutely need a haircut if they are going to survive, something germany has been against? the financetenberg: minister germany said one correct thing -- there is no such thing as a haircut allowed in the european system. but if you look at what has happened now, you see a de facto haircut. the 50 billion euro program is something which we could also call restructuring at the end of the day. what we see is all the debts

that have to be repaid another decade later, another decade later. will we ever see the money again? probably not. i'm quite sure we will not see it again. we might find euphemisms for it, is where we are right now euphemistically restructuring. matt: thank you so much for joining us. great to have you. alix: much more "market day" right after the break. we are watching those violent protests in athens. ♪

matt: welcome back to the

bloomberg "market day." you are looking at live pictures of athens, greece. protests have been going on all day. they did get violent for a brief moment -- 10 or 15 minutes -- at which point equity markets turned slightly down, but it looks like police have taken care of it, and we are back to pretty much unchanged. i guess we are down .2% across the board. relativelyt is a small square, so it looks pretty contained. we do have some news. >> republican presidential candidate donald trump has a net worth of more than $10 billion of 362 as a 2014 income million dollars. this revelation comes after he filed his financial disclosure with regulators at the government. trump claims a network of $8.7 billion just last month, but the campaign said those numbers are

more than a year old. this report was not designed for a man of mr. trump's massive wealth. certaine boxes once a numbers reach that's a certain numbers reach that simply state .50 million or more alix: thank you. matt: still ahead, how much longer will businesses in greece ? rvive capital controls the greek air to the coca-cola hellenic fortune joins us next. ♪

alix: you are looking at a live shot of athens where we did have protesters start to react violently over the last hour. it looks like things have called down a little bit, but overall, you are looking at protests continuing into the evening protesting the bailout. matt: protesting for sure the austerity that they voted

against, which parliament looks like it is going to pass. the outlook for greece is bleak, but what about the businesses trying to survive? alkiore, greek billionaire now. joins us i'm going to guess -- look, if the entire world were about to end, people would still drink coke, so that must at least be surviving there, right? alki: it is a really interesting time for greece. the people of greece --tsipras said it recently -- have been really, really brave and voting against austerity plans. image -- theat amount of times i've seen on television in that square, if i had a hot dinner

for each one, i would never starve again. alix: have you ever seen anything this violent? alki: of course. greece has been the epicenter of change and democracy and arguments since -- matt: the beginning of mankind? alki: since we invented everything. matt: if only you had a patent on democracy or the olympics. changes havend of you noticed in business conditions over the last, say, three months alki:? alki:the economy has been tight for years, not just the last three months. it's been going on for several years. in western europe in particular, salaries have increased -- quadrupled and in the case of the upper echelon, the business leaders, have increased hundreds of times.

you cannot really -- you cannot blame the people or the economy of greece for being in the position that it has been forced to make the vote. it has gotten markedly worse. how do people survive with 25 percent unemployment, 55% youth unemployment, capital controls on what you can take out -- how do people get through their daily lives? the only solution is for greece to go back to its own currency. it cannot afford to be in the euro, and neither can other secondary european countries afford to be in the euro. the loansharking of the eurozone really has to be forced to stop. it's amazing that alexis tsipras did not choose that. he was smart, really, to take the bailout, and

i think it's going to be, like, a three-year plan to get the back intoe drachma the system. you cannot get it overnight. is take more money and say to the governments that have been loansharking this money -- if you want me to go into it, i can, but that is exactly what the reality -- at least from the great -- the greek perspective is. alix: thank you very much. good to have you on the show. i have to say goodbye to you now. which am very sad about. i love sitting next to you during the day. much more coming up on the bloomberg "market day." ♪

alix: we are getting word from the donald trump presidential campaign, reporting that his worth more than 10 in -- $10 million. a national survey shows trump leading the presidential pack. drew 14%. white house candidates have $381 million. a new proposal is in debt helping proto-rico -- puerto rico with its debt. a bill is introduced by chuck schumer and richard blumenthal. there is a takeover in the drug making business. celgene will buy recep toasts

for $7.2 billion. >> this acquisition is not out of any defensive nature. we feel vary good about the pipeline and momentum and opportunities. eceptos went public two years ago. csx says faltering demand for crude oil will slow profit growth this year. the railroad plans to lay off one third of its workers as a result. they say it will be difficult to deliver results no the upper end of its forecast. addicting relative -- is predicting relatively flat quarter profits.

>> this is a win-win. if congress would funded, a lot of americans would go to work and that would improve -- the largest segment of the unemployment is in the building crates. it doesn't quite swear with senate republican leaders. but they have not decided how to pay for it. we are monitoring the situation happening in athens right now. we have had violent protests starting an hour to an hour and a half ago. you see live footage. it looks like the police came out to try to contain the protests. it looks like the police had contained it somewhat. as i left -- ik should point out this is not a live shot but the square is relatively small. we saw anarchists and protests

erecting in the square. you're looking at life footage right now. david, what does it look like that compared to an hour and a half ago? it sounds much quieter than it was an hour to an hour and a half ago. these protests began three or four hours ago. it was nine: 15 local time, 2:15 new york time. the sun had set here and molotov cocktails were thrown to the south side of the square. that sent people racing in every direction. the police stationed in front of the parliament. it is a bit quieter now. vantage still from my on this rooftop close to the square a lot of protesters who are gathered in front of the

parliament building. the parliamentarians are inside an agreement that the prime minister agreed to it the european union leaders. alix: do you know what they are writing about? are they actually trying to influence the parliamentary vote? why the violence? protest here was arranged by members of the party.st they comprise the bulk of the 13,000 people who gathered here in front of the building. they had read signs. they were vary peaceful when we were down there before hand. they were talking amongst eating.es, talking, there are anarchist groups identified by their banners and clothing. it is believed they threw the molotov cocktails. there were a dozen or so explosions that were followed by

teargas by the police. alix: thanks so much. you are going to stick with us. -- alki, hockey david when you see violent protests, do you want the greek parliament to reject this deal? : no. i think it would be the third bailout that greece would have received. i think a greece needs to take the money and run. alix: run where? to building its own economy and remain independent of the european union. prior to your -- prior to joining the eurozone, greece was greece was in

an inexpensive place to visit for tourists. alix: you would prefer to see them accept the deal, accept the us dirty, but really a bridge for them to exit the eurozone money,her -- except the but really a bridge for them to exit the eurozone altogether. arene: the italian people waiting to see how greece reacts and response to this bailout and what they will do thereafter. assuming that greece takes advantage of all of the great resources the country has, both in terms of mineral and tourism and agricultural and so on, manufacturing is vary stronger. if it takes advantage of all of economy, its of its can become a vary stable, vary self-serving place to be.

are you seeing people on the ground wanting an exact from the euro? we know they are against austerity. we know they don't want this kind of reform. but do they want to exit? david: they don't talk about that especially. but i spoke with a fruit seller that said something that struck with me. he said greece is a country that is vary rich with four people. of a down with the owner cafe. he said what greece really needs to focus on his productivity. this is a country that is so rich with resources, rich with people who are willing and wanting to work. anecdotally, i am hearing semi-things on the ground here in athens. alix: whether or not the will is there to do that, you still need some kind of reform.

they still need money to do that. doesn't greece need reform inardless whether they stay the euro? allocate: this is reform. the finance minister, i think he got burnt out over the last few months of the negotiations. the great people have been vary strong in their opinion. alix: they want to stay in the euro. they don't want reforms, but they do want to stay in the euro. polls show at least 70% of greece. alki: pollslse -- are engineered by pollsters, not by the people who vote, particularly in greece. if you gave greece the opportunity to decide whether they could have salaries that match the rest of europe against the value of the euro-dollar,

then perhaps they would say yes. but that's not happening. alix: great conversation. thank you so much for staying with us. ahead on coming bloomberg market day. ♪

alix: time now for a look at the markets.

we did see a market reaction off of greece. all in all, relatively contained. y: looking at the markets in the past trading day, they have been nominally in the positive. the s&p 500 and the dow both down about .10%. this is all happening from earlier, from janet yellen's testimony. but in greece, protesters clashing with police and the greek parliament over the bailout package. let's take a look into the bloomberg terminal. we can see the downturn happening. let me go to the intraday chart good this is the s&p 500. we can see that the downturn happened around 82:30 mark or so. the same goes for the dow industrial.

at the same time, we can see the dip because of what was happening in greece. now let me take you to the bloomberg terminal. that may show you what is happening on the s&p 500 index. out of the 10 sectors, we can see that only two are in the green. eight of them are in the red. laggards are energy as well as materials. energy is down by 1.6%. looking at the dollar, the dollar is trading near the highs of the day your actually, it is trading at its highest since june 1. at about 8:30, you can see the jump right here when they first said remarks trickled out, rate riseinterest this year is appropriate. this is the lowest since july 9.

they had been holding colts to the -- holding close to the yet -- old and close to the baseline until janet yellen began speaking. on gold, the yellow stuff is lower. it is above the session lows. it did touch its lowest level since april 2010. it is now trading at about $1100.47 -- $1147. and oil has fallen now to a three-month low. it is now trading under $52 a barrel, down more than 3%. this is its biggest drop in more than a week. oil inventories in cushing, oklahoma, the biggest u.s. hub, increased since april. alix: thank you very much. now for a look at some of the top stories.

a solar powered plane making its way around the world is grounded. the journey was suspended in hawaii. the solar impulse team says damage caused by overheating batteries cannot be fixed and will remain grounded until april. it broke the record for the world's longest nonstop solo flight. and if you thought tuesday's flyby of the total was big, wait until the newest pictures start rolling in. that is the word from scientists who plan to release the images this afternoon. they are the first ever close-ups. scientists are already getting insights. pluto was thought to just be icn cold, but data from the spacecraft is hinting there is geological activity. nasa staffers cheered last night when their probe finally hope -- finally phone home.

a look at some of the top stories for this wednesday. the white house just announced a new program to connect thousands of public housing residents across the nation to the internet. google and other companies will provide free or low-cost services. the pilot program called connect home and it will start in 27 cities. to megan smithke earlier today about this new program emily chang joins us now from san francisco. a sweeping program from the white house to extend internet access to poor people in low income housing across the country. 27 different areas they are targeting. come as you say, but 200,000 children will be benefiting from this. this is a public and private partnership so companies like google and google fiber playing

a large part here. it is a superfast service and gives some of these people perhaps a significant advantage. take a look at what megan smith, u.s. chief it -- u.s. chief technology officer, told me today. the president has an initiative to get more americans online with high-speed. we are on track to get 99% of our classrooms on the high-speed broadband. today, we are focused on homes and the poorest americans. connect home is 27 cities that we are starting with. there are 275,000 americans who will be affected by this, which turned thousand our children. imagine if you are not online and you go to class and you get

assignments and you come home and you cannot do your homework. that is the kind of programs this is focused on. ofre is a range public-private partnerships that are going into this. there is a group that will be working on some of the modems and upgrading people to get online as well as training. the boys and girls club will be doing training with this. so it is digital divide and learning as well as the equipment. cox and centurylink and other providers are moving today to have a broadband package. these guys are coming in the $10 to $20 entry point. emily: the government is offering free subscriptions to google fiber.

what is the size of google's commitment to this project? how many people are going to get free internet access through google? >> i don't work on google-specific stuff. it is a combination of google fiber and centurylink, and others who are stepping up. some are doing a for free and a couple others are doing it for paid. at a price point that a low-income person can afford. emily: the president will formally announced the rollout of this program in oklahoma later today. there is talk about cyber security concerns. i talked to her little bit about the legacy she wants to leave as she moves out of this position. you can catch it on bloomberg west. alix: thank you so much. you can catch more of this

interview with megan smith on bloomberg west today at 4:30 p.m. eastern close.heading into the netflix will report earnings in just minutes. we will tell you the number one thing you need to watch. ♪

alix: protesters are still gathered outside in central athens. lawmakers debating a new bailout package. see headlines. we saw mr. williams saying that greece is in an unsustainable situation. tell us the latest on the ground. the protests we had here over the last few towers -- few hours have died down.

they were organized by the communist party here in greece. in000 people had gathered front of the parliament building. around 9:15 local time, things started to turn. a few molotov cocktails were exploded on the square. we passed a ban on the north side of the square. there was a guy on top of it on thecamera trained parliament. a few minutes later, that than directed in flames. the van proceeded to burn for several minutes. these violent protests lasted for 30 minutes until riot police began to mood -- to move toward the crowd. tear gas was dispersed. we definitely inhale some of it up here. here we are now, almost an hour later here and things are a bit wider.

we still hear some chanting, some protests from the square, but quieter than they were before. alix: great reporting in athens. reportingd intel second order earnings right after the closing bell in just minutes. let's talk netflix. they tend to have big moves right after earnings, the number one thing you are watching? : [indiscernible] everyone is looking for the number of customers. alix: your mike is not working at the moment. i don't see it on your jacket. it might be in your lap. we are going to take a look at netflix and what we are expecting. we are looking at sales to come in at $1.65 billion for netflix,

an increase of about 23%. in terms of earnings per share are looking at about nine cents to that would be down by about 56%. cory: i do so much radio all day. i don't usually worry about these things. , focus will be on revenue, not profits. but the focus tends to be on the number of customers, particularly streaming customers. my focus is the changing dynamic of this industry were they are paying so much more for content. headline in the numbers. but the number i am looking for is how much they committed to spend in the future for content. and in theheir queue press lately is a number that shows what they promised to pay at a bare minimum for content going forward. that was over $9 billion last

quarter. that was minimal. alix: unbelievable. be back to give us that deep dub analysis. we tend to look at this fiber growth, but it's really what they are willing to pay to get those subscribers. magnet is george going to join us for his thoughts on greece and what the future looks like for the euro. the dow is pretty much flat on the day.

alix: we are moments away from the closing bell.

♪ falling.. stocks -- s and ppping dropping. >> rate rumbling. the market shrugs it off, should you care? julie: -- alix: intel and netflix report. , debating a chaos bailout of $95 million. alix: we will begin with the markets. stocks closing flat on the day, but it was a dramatic afternoon. once the headlines crossed and then protests in athens.