♪ 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.

we were still only off by a quarter of a percent. things are looking contained and then the s&p 500 climbed a bit higher. protesting dramatically makes me think of the flash crash from before. he gives me flashbacks. today was a little lower. huge gains in europe. best rally there since february. they gained $700 billion in market capital in the last few days. it is down, but not a big problem. alix: earnings crossing. cory johnson has more with intel. >> intel is crossing. this is the breaking news desk. , not just a wrapper, that was the estimate. and coming out here, the revenues next quarter, this is the most important thing. $14.3es next quarter,

billion, that is a little bit better than the estimate, which is surprising and good news. stock has been down quite a bit. i promise i will give you guys some major news about what you missed. a lot more than just the top headline, important things going on inside intel. alix: i don't think i can make fun of that tease. that was a great tease. globalook at a strategist, we have protests in , thank stephen is here you for joining us. >> you see these images of

protesters, is that something that should investors should pay attention to? >> short-term investors can take a look at how markets, trillions of dollars of movement over this crisis and sentiments towards a deal increase. in essence, yes, you should watch. -- take a look, you have european policymakers looking at improvement for the situation and the rest of the eurozone. this has moved down a good deal in terms of its ability to influence the world. heldthan 80% of greek debt in accounts. there is dramatic policy changes. it is a terrible situation for the greek people. alix: when you look at markets, despite the s&p

500 going down, what sort of signal is that for the market? we had these protests, but we did not see a huge loss. >> once the market feels that degrees does not have that dramatic overspill, it is comfortable going over the fact that conditions are improving. inhave dramatic improvement the growth of monetary aggregates, we have seen so little pass through of greece to other markets, we still have a depressed situation in the eurozone, we're focused on them, but they still have a significant recovery. janet yellen talks about how close we are to the endpoint of achieving all they want to in the u.s. >> her testimony today was the other huge story, i do not hear that much new news, they are inclined to raise rates,

anything that you heard today during the testimony or questions you thought were important? solve everyr to problem on earth, that is the interesting thing that happens in the house. but she showed a remarkable capacity not to cisapride's -- not too surprised. on it.s things and acts it you have to look at that commentary over the years and you can see how the recognition of certain things -- >> but nothing today that stood out? >> no. alix: i think that traders look at rates, looks like they are favoring a december lift off versus september or november. >> if you have no significant financial shocks that affect the economic outlook on the u.s., we have had 65 months now, if you're looking at evidence -- 55

months now, if you're looking at evidence of the market, you look at that and that is a larger amount than the entire adult population, it is growing each month, this is the time to have nonzero interest rates. they are getting along with that. september seems likely. joe: let's talk about the investment that you like, you like equity everywhere. >> everywhere. alix: we do have netflix earnings just out. we will get back to cory johnson. >> one thing about netflix, they're are giving the spreadsheet and doing the work. right away, you can see it. topline, $1.64 billion in $.06ues, six cents --

per share. these are big numbers. the only lead to $26 million in profit. they have very little profit, they certainly delivered on that. this is from the june quarter. home $.6 billion in revenues. alix: we will be back to cory johnson soon. >> we don't like equities everywhere. brazil, if you look at the developed world, canada and its equities, we want to avoid petroleum-based victims. that component, those that are for mobile to higher interest -- vulnerable to higher interest rates, those who have petroleum surpluses around the world. these are things that we look at. we reduced allocation, that is still overweight oblique -- mobley. this is to focus on the progress we had over six years.

we are deep in their recovery, there is no opposite financial conditions to what we had in 2008 or 2009. alix: today we were looking at the dollar and yen relationship, the dollar looks like a 13 year high in a relationship to the yen. what is your education of this --rt and the correlation what is your interpretation of this chart and the correlation? japanese invest in equities you have a different outcome than over the last 20 years. back of folks say banning -- buyback stocks is not growth. but when they had to repair balance sheets for a couple of decades -- benefits from this are higher earnings and a lot of exporters will improve, that will be in the eurozone as well. there was an article this

week on hedge funds, it seems they are giving more to cash, what do you take from that? >> i would be aware that as you look at the environment through the year, the third quarter is the only quarter of the year where equities have a negative return. the risk of investments like treasuries, they did pretty badly in the second quarter. so, we do not allocate in terms of broader discretionary portfolios based on seasonal weakness, but it wouldn't surprise me if that is a game plan for hedge funds over the short term. joe: thank you. alix: intel and netflix reporting. we will bring you more details after the break. joe: and the prime minister of inin gives a surprise gift congress.

we'll show you what it is after the break. ♪

alix steele. the prime minister of spain was handed a gift today with a personal note inside, that social justice must prevail over justice. alix: a reference to versailles. george: so -- alix: we will get right to top headlines.

president obama defending the nuclear iran deal this afternoon. said that this is the only way to avoid a nuclear arms race in the middle east. congress has 60 days to review it. if it is rejected by connors, he will veto it. george: and helping puerto rico with that. restructure,them using the same measure as detroit used. alix: and the marquis venue for the olympics in tokyo is on track to become the most expensive. is what it will cost. if 55% increase over an estimate earlier. headlines.he top joe: corrie, you have looked at

intel. what did you learn from the earnings? >> this is the most important piece of news out there right now. it is a surprise, because it did not stink. we thought there were problems, potentially with the pc business, but also with the data business. pc sales were not what they thought we were going to be. but what this has showed us is to their growth was not a disaster. wewas not the disaster thought it would be. joe: this is more important man top -- than top line? >> this is about the cloud. videos are run off of data centers. i think this tells us a lot.

it tells us about pricing power in the cloud. they have lowered the guidance for the year. but maybe not as bad as some people had guest. stocks down considerably over the past year, because it out of business might be in worse ispe, but 10% year growth not great. alix: does this change the picture? >> this is still a huge business for them. it is profitable for them. this is saving their bacon. businesses, they got the numbers would be worse. fundamentally what you see is the business is shrinking, they will have 1% decline of revenues every year, even as the cloud is growing. alix: netflix, we are looking at subscriber costs, but we are

also looking at the content costs. what did you wind up looking at? >> i could not find content costs for the longest time. but i think this is important. when the filing happens, the time when it comes out, that off-balance-sheet commitment, they have promised as of last quarter, they have promised to pay content suppliers at least $9.8 billion, there could be more. they will not say. they do not put it on the balance sheet. are you wondering why? they don't put it on, because they do not know the exact cost, or which exact titles they will commit to. account let's them do it. alix: netflix is up 10% in market training -- trading. joe: you have to love stocks

that moved. >> maybe a stock more than a business. alix: ok, thank you for joining us. look at this. better than gold, with its value soaring. what could it be? it is comedy now. the answer after the break. ♪

investment, great between 1980-2013, they were a better investment than gold. joe: very shiny looking.

the value of a medallion has shrunk. the culprit hurting not only cabbies but others like uber. rescue hasreek created political tension in europe. earlier today, former greek pennce minister took a red and annotated the euro summit agreement. aboute made comments greece, in less subject itself to waterboard before any financing is offered. alix: and more tensions earlier this week when we interviewed chief economist george magness, who says that even if temporary, deals could be dangerous. >> the idea that you could float the concept of index it

mechanism in a system that is supposed to be -- in terms of exchange rate commitment, that is a dodgy thing to do, because next time you get a government somewhere that does not agree with the orthodoxy of europe or if there is a crisis in another country or the eurozone, or if even in france, if they were to -- how will the eurozone basically protect itself win a big country threatens or is in danger of going the same route. seems to beeally highlighted in what you say is the risk between berlin and paris. i want to review something, the decision when it boils down is the german-based discipline or the french flexibility and

compromise, is this no longer a eurozone, is this a germany solo eurozone? like the idea of a french flexibility and compromise. they are working out of self interest. that they have a different kind of idea with the southern european countries, then germany and other neighbors. this is it where the rubber meets the road. german type of arrangement, not suitable, we know this now, not necessarily suitable for countries like greece who have a political party that want to paddle in a different direction. german -- they ats before,ent -- sp

france and germany, and they patched them of. this could be a sort of french and german agreement to lead from the front. this potentially looks like a moment in europe's history when bad things could happen if this develops into an open unit. joe: you said earlier that greece would be unlikely to fly if they left the eurozone, but i'm curious how will it ever thrive in the eurozone? how can they actually be a robust economy? >> it's a small economy without manufacturing. they do have terrorism, tourists from turkey and others, but it does not have an economic structure, which i think would stop it from becoming a failed state. bad outcome is, bite the bullet. go along with the next couple of

years, it will be tough. the austerity is --, the pulling of assets. it is not a comfortable thing to swallow. 82 greece will be getting billion euros or so in the next package, they have institutional support, they have friends ishin europe, so my view terrible though it is, it is likely greece will be better off and a greater chance of swinging it around within the euro system, rather than outside. it is difficult to believe that people urge from afar the greeks to plunge into an even greater despair than they have at the moment. alix: you have to love him. joe: we will be right back. ♪

miss?hat did you for more on the great parliamentary vote, we are joined by david. is there any risk tonight that the vote will not go ahead? >> i do not think that there is risk, throughout the day people have told me that this will be voted on tonight. they are looking at this like something that will go through tonight. i cannot give you a definitive time on win the vote will happen, but proceeding that both the prime minister will address parliament. the latest we have heard is that will happen in the next few hours. everyone expecting that this

plan will be agreed to and it will go through. alix: what is the prognosis for executing the terms after it passes? forward of focus going will be on the european central bank, the country is in need of some certain liquidity. they are waiting to take a cue from what happens in parliament tonight before the decision is made. we can look or to that tomorrow. some decision from the central bank after this it's going forward. alix: thank you, david. joe, something you do not want to miss tomorrow is the ecb meeting. the question is, what will they do with the emergency system? ela you have to love decisions. alix: what will it take for them to feel confident to give grace more money -- great banks -- g

reek banks more money? ,nd added subscriber growth with adding 2 million subscribers. alix:

emily: netflix shares are jumping 10% in after-hours trading. we look at the new market and sales pushing the global audience to new life. ♪ i'm emily chang, this is "bloomberg west". intel shares rising thanks to a better than estimated outlook. -- sales evenles better than last year's lack friday. e-commerce team