it is a thursday in new york city, i am erik schatzker. matt: another busy hour at 8:30 eastern, mario draghi will host a news conference in frank for how will the ecb support the reopening of greek banks. eric: we have breaking news citigroup has reported earnings of $1.45 a share. julie has details. citigroup's revenue appears to be slightly ahead of analyst expectations. julie: very slightly. $19.2 billion on adjusted basis, very slightly ahead of what analyst had been estimating. if you look at on an adjusted basis at earnings per $1.45 $1.34 is what they had been anticipating.

other numbers, assets $116 billion, down 22%. the company stays on track to reach its financial targets for the year. continue to look through here, fixed income markets revenue, a number that has been weak in many of the banks, $3.06 billion, roughly in line with what analyst anticipated. the company said its net interest margin came in above estimates 2.95%, the estimate for 2.88% for a big group like citigroup. interest margin will be an important part of the overall numbers. that is what we have so far as we look at these numbers. one other number -- the equity markets trading revenue, which was expected to be in the area

of strength for citigroup looks to be the low estimates, $653 million, the estimate was $739 million, that number, expected to offset some of the declines in fixed income trading, perhaps it would do that as we look through these numbers. eric: julie hyman with headlines on citigroup. good morning. we have seen everybody but morgan stanley, which reports on monday. getting a sense of where the strengths and weaknesses are in the u.s. banking industry. citigroup as these other banks have, reporting a surprisingly strong net interest margin. it tells us something about the lending business. >> the reason why people are investing in stocks is because they expect that with interest rates rising, all of these firms

, bfa, jpmorgan, even citigroup, will be more profitable when interest rates rise and you are seeing that begin to happen. eric: one thing julie noted, which i will pick up on, the equity markets revenue, i know you have not had a chance to look at all the numbers, but a decline of more than $200 million in equity trading from the first quarter to the second quarter is not good to begin with. combine that with the fact that citigroup's equity market franchise, equities trading business, has been declining over time. it puts me in a position of questioning the viability in the long run against their larger competitors. hugh: big fellow who runs that business -- i would imagine he is under pressure. if you look at jpmorgan, the of a, up in equities, they underperformed so badly, that tells me something.

eric: city is down 25% quarter over quarter. hugh: they have to decide what kind of business it will be in do you have to be in everything? you see that more in europe. maybe they should decide that. eric: one thing that julie did not hit on yet, but i will mention the efficiency ratio, effectively what they spend not operating -- operating expenses against revenue. is 55%, more less last quarter not as good as some of the other banks on wall street. hugh: the story of it be of a and jpmorgan, they have cut costs faster than revenues have dropped. if you will not grow revenues you have to cut costs faster. if they are not doing that, they should focus on that. eric: how difficult should -- when you have -- we are six

years out of the financial crisis and citigroup still seems to be at a point where they are trying to figure out who they want to be, decide how large their global footprint needs to be, whereas other banks that started off in a stronger position like jpmorgan or a goldman sachs, are not having to worry about those decisions. they are plotting for the future. hugh: you have the has and the have-nots, jpmorgan, wells fargo know they want to be. you have citi and bofa who have decisions they do make. you can invest in those bank stocks and make more money potentially been dust depending on how well they perform. that is the challenge of being brian moynihan. matt: the story with the other banks of this quarter has been with the exception of goldman sachs, the legal expenses, they are dropping and therefore they

are making more money. or goldman it was a huge expense in the last quarter. citigroup had $360 million in legal related expenses, are they going to see that fall? hugh: if legal experts is have not already paid for citigroup and bank of america and others everybody would be hugely surprised. eric: i want to point out that it is in the eye of the older and the beholder in this case are investors and people trading the stock, people see something they like in citigroup's nubbers, the stock is up almost two dollars and goldman sachs had a good quarter, was trading down and is still trading down versus yesterday here at goldman sachs had a strong quarter in equities, investment management and asset management, and yet, citigroup starting off a lower base and investors finding more of what they like. thank you for joining us.

we will figure out what people like about citigroup. matt: on the eps side -- they did better than estimates. i am trying to look for light. ebay, speaking of earnings, coming out, the breaking headlines. vonnie: ebay will sell its enterprise unit for about $925 million, this has been speculated that it might happen. the private equity firm -- the enterprise unit does things like help power online retail sales for companies like ikea. it makes up 7% of the total of ebay's business. ebay is completing a spinoff tomorrow that will be a separate

entity from paypal. we got earnings earlier on and that is how we are getting confirmation of this deal. earnings at ebay coming in early this morning and we had a conference call beginning, second quarter earnings missed analyst estimates. matt: thank you for that. the top five things you need to know this morning. in greece lawmakers passed a bailout agreement last night. let's head out to david in athens. an overwhelming majority past this. david: a long and dramatic day, in the end, alexis tsipras was able to get members to back the plan. the drama in the chamber heightened by the drama outside the chamber as the night went on, 13,000 people turned when an

artist begin throwing molotov cocktails, people fleet in every direction. the square has been cleaned up, it is quite are, and alexis tsipras will decide what has becoming of his government. cap never said they will be willing to resign if they are asked to and what happens to the government overall, one of the national unity government, a minority government, that is what we will figure out. eric: is it possible that alexis tsiprasmight have more of a political mandate at least in the short run, now that he has found such overwhelming support for this measures from the opposition parties? david: there is hope that will be the case. if you look at how members of his party voted, 32 voted no six abstentions, a fracturing there, but those i talked to that expressed optimism say he

has consolidated power. they will have to see how the -- how those go going forward. eric: he remains a charismatic and popular politician. david, thank you very much, live in athens. let's move on to number two. we learned that euro area finance ministers agreed in principle to extend a 7 billion euro bridge loan to greece that has been confirmed by the irish prime minister. matt, this is critical to greece , because it has a big loan payment due to the ecb on july 20. it does not have enough money to make that payment, if they would miss it they would find themselves in a world of trouble, more so when it missed the imf loan. matt: the lion share of the 7 billion euro bridge loan would go immediately back to the emf

-- imf and ecb. the 19 member euro court -- euro members that use the currency had agreed to this, now up to 28 to agree and that means you will have people chipping in who do not use the currency. eric: they are trying to figure out how to firewall those nine members of the european union from potential losses on this bridge loan. i would point out that greece needs to make government salary and pension payments toward the end of the month. we still have yet to hear from the european central bank as far as liquidity for greek banks. we may get news on that at 8:30 this morning when mario draghi holds a news conference. we will be having it live on bloomberg. matt: assume we will hear from mario draghi. eric: it will be difficult for him not to talk about greece. matt: if that is not extended,

you will see greek banks closed for longer, economic situations longer and they will be much more than $100 billion. eric: julie hyman has number three. julie: day two of janet yellen's testimony. she delivered an upbeat message, though she always says her hedges. she repeated the fed will likely raise interest rates by careful to call it a projection, not an intention in her comments. there were a little bit of fireworks between she and some members of the house financial services committee yesterday. about a leak investigation of fed minute. we will see if that repeats. on balance, it was relatively polite. matt: today we will hear a

polite discussion as well, that a more informed discussion because she will take questions from the senate. eric: i thought some of the questions were pretty good yesterday. matt: did he was later? eric: i said some. matt: it did not seem they were particularly interested in her answers, more in soundbites for their own self. netflix is up in premarket trading, earnings report yesterday said a group 65.6 million subscribers in the second quarter, the strongest growth was an international markets. because those are the markets that have been underserved. they are opening up new markets and will add people who have been waiting for years to get this leading streaming movie service. people love these subscriber numbers appeared investors care more than anything else about netflix. you can see in the reaction that

they have been pleased over the last year. eric: they continue to be pleased, look at the premarket quote on netflix, up a most 12%. can you imagine what a painful short this is, david einhorn shorted netflix. matt: a pretty expensive stock. eric: top hedge fund managers -- matt: 220 times earning for netflix. eric: world top hedge fund managers have deep concern about china, they say their equity market crash may have larger implications than the subprime mortgage crisis in america and 2007. bill ackman call the chinese stock market frightening. matt: it is amazing the difference in opinion you hear about this. matt: there are some that say --

on the effect of the crash of the whatever you want to call it -- a lot of people who are pro-china will say is not the retail investor who got hit the hardest, they are able to sell the big investors, the only ones locked in and a lot of stocks that would be sold would be suspended. on the other hand, people say 80% of the market is owned by retail investors, the question is how much? i have heard single percentage of family incomes are invested in stocks. eric: what i would like to know more of from bill ackman and bill singer, is how they see this unfolding. what are the implications. matt: how could any more of your wealth be in the stock market that your house. eric: kris allen when we come back. ♪

matt: at the british open, jordan spieth off to a good start in his bid for the third leg of the grand slam. at negative five under -- after 14 holes, two shots behind the leader. that will be an interesting pair to watch. i will be doing that starting at 10:00 a.m. this is exciting stuff come a great way to spend the weekend. eric: i will be on bloomberg television. u.s. public pension funds under pressure to deliver higher returns, earlier this week, the california public retirement system reported a return of 2.4% of its fiscal year. we will find out how the second pension fund did. chris ailman is the cfo of calstrs managing more than $191

billion. it has been a tough investing environment, what is it like your fund? chris: this is the sixth year of a bull market. not surprising everybody has had a low, flat return. we beat pers but did not outperform our benchmark of 7.5. we will probably be about 4.5. the one-year number is the pace in a marathon. we look at 3, 5 years, both of us are 12% net. when you look at the returns over 10 and 20 years talking about 7%, over 20 years, 7.6%. eric: as we come to detail and unable market many people -- a bull market, many people will conclude that while they five and 10 year returns a good, 4.2% or 4.5% may be a harbinger of

what is to come over the next 2 3, 4, 5 years. chris: when you run a marathon, you hit hills, and we may have a slower pace for a couple of years. the key to the u.s. market is quarterly earnings. you guys have been reporting on earnings. matt: what about obligations. you are running a marathon for teachers who need to get paid in the end and those obligations are drastically underfunded will you make it all 26 miles? chris: i think so and i like that analogy, because california teachers run more often, they are living longer than anybody you cannot believe the number of 100-year-old birthday cards we have to send out. 72% are female. non-smokers, healthier lifestyles. you have to hang out in california beautiful place candidate is lovely but not as cold. eric: i live in new york city.

we continue the conversation and mario draghi coming at 8:30. ♪

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visit philipslifeline.com/caregiver today or call this number for your free brochure and ask about free activation. matt: check out a banker earnings this morning, goldman sachs out with profits that was 49% lower than the same quarter a year ago. that was because of legal fees. if you take those one-time costs out, they look better. however, goldman sachs down 8/10 of 1%. citigroup, equally interesting, you were talking about this morning, their equity trading revenue got crushed this quarter , especially when you look at the gains that rivals have seen. it does not look good, and yet investors seem to like it. eric: diversified institutions

am i have to go into their earnings statements a little more detailed. matt: we had a discussion, while they be, what does that mean -- it is silly to say they beat the s&p 500 companies always beat almost -- that is what i will ask chris ailman. you say it is more important to look at year-over-year growth and beating analyst estimates, because we know that financial engineering and the way analysts lowball company earnings mean that 76% of the time they will beat it. chris: exactly, anna analyst -- and was no they get paid for surprises, that is good for them. you see those lowball, do not see that is beating the estimates, the year-over-year growth. eric: the analysts -- what i want to know is what is the

message to the chief financial officers out there who continue to lowball the analysts with guidance only to be able to report earnings per share consistently one or two or three pennies ahead of contentment. chris: i do not have a problem with the cfos interaction with analysts. i like goldman sachs, they are a great organization, but we hold the market, everything in the usa. they have done some egregious stuff in private equity, and in other areas with air pushing the envelope. i would like them to be ethical. that is true through wall street, be ethical. they need to be ethical about their books and honest about their business operations. matt: we are looking at a chart that is fascinating. mostly equities but tempers and private equity, i want to ask you about hedge funds.

you said you own everything in the usa, you do not own a firearm manufacturers that are not legal in california. i wonder, has that cost you? are there other areas you think are right for divestment -- ripe for divestment due to social concerns? chris: the challenge is investment it is like quitting, so we divested firearms illegal in california. there were two companies in the broad market. the impact to us is negligible. it is because we own the market. people have argued white you will need stocks at all, because we want to own the market and if we chip away then i am concerned we limited industries, it has an effect. we have been out of tobacco for 15 years. that has caused is about $4 billion.

the other challenges have we changed the social -- matt: i am sure the teachers are happy about that. chris: they are, but we are not doing it for social change. we are a big fund, but we do not make laws and bring social change, it is about investment risk, we would rather not own the companies. the industries have not done well, sales are down. the firearm industry is constantly under attack. we do it from a standpoint of risk. eric: something just as controversial, not a social issue that divides people the same way, sustainability in climate of climate change impact as california is. what about coal for example or oil? matt: coal especially, isn't it under review and just passed the senate in california and thinking about making it illegal?

chris: not illegal but they are challenging. you are spot on. in fact, as much as i like you guys, and that is the reason i am here today, i will go downstairs and meet with the bloomberg finance people -- to get research. we have a good idea about the future of the coal industry in the usa, it is not good. we are really concerned about what is the future of coal in china but specifically india? i am looking at it from a risk standpoint and opportunity. erik: can the vesting for the sake of sustainability, you guys have a socially responsible attitude toward investing. do you believe it could be ultimately a good thing for your pensioners? chris: because we think that that industry has a higher risk and it is headed downward and a reduction shipped away, so the answer is yes. that shift we would make is that we would change the coal

industry, we will not, but we will take that risk out of the portfolio. there is a tough line between the vesting and not owning something and then in gauging. we have a lot of criticism from people who sake on one hand i'm saying we cannot change society but at least we are there to argue with these companies. we are going to go to virginia st. louis and meet with these companies and say, look, you are in this business and their heading straight down. all the general energy is generated by natural gas in the u.s. as majority, what will they do today for supply? if they do not diversify, then they should not be in the portfolio but if they do in other areas, maybe the mining companies are worthwhile. matt: i think you underestimate a bald man managing. we appreciate you joining us. erik: breaking news on the u.s. economy, initial jobless claims are out. vonnie: down 15,000 last week,

the exact number 281,000 which was far better than the estimate from economist in the survey. the previous week we had seen a big pause because it included the fourth of july holiday and oil factories or shutting down for retooling. nevertheless, 19 weeks now that we are under 300,000. in terms of continuing claims which is maybe a less volatile number to the previous week, we saw 2.2 one million continuing claims and that was better than the 2.3 million that analysts were looking for. a better read on that labor economy and we are seeing the market react. treasury selling and the two-year yield at six point sent -- at 6%. erik: thank you very much. latest on the u.s. economy. we are about to hear something important on the european economy, and there is mario draghi. chris ailman you are still sitting here, how closely will you be listening to what he is saying and why?

chris: first, i will look at janet yellen but second, he made the statement that he could do whatever it takes to support the euro and that is important. we have a part of the portfolio in europe and we are worried about northern europe and the euro and the fluctuation against the dollar. erik: do you think greece gets too much attention? chris: that is tough to describe. you guys need to fill time, to be honest. he said earlier on the prior showed that it is a human disaster, so, yes, it needs attention. erik: let's listen in. mario draghi: the outcome of today -- >> today's meeting is in the council and by the vice president mr. barb roski. they on a regular economic and monetary analysis in line with our guidance, we decided to keep

the key ecb interest rates unchanged. regarding the standard monetary measures, we ask that purchase programs continue to concede smoothly. as explained on previous occasions, we will match 60 billion euros and are intended to run until september 2016 and in any case until we see a sustained adjustment in the path of inflation. that is consistent with our aim of achieving inflation rates below the close to 2% over the medium term. when carving out the assessment, the council will follow its monetary policy strategy and concentrate on trains and the outlook for price stability. the information that has become available since the council

meeting in early june has been broadly aligned with our expectations. recent developments and financial markets, which hotly reflect greater uncertainty, have not changed the governing council assessment of a broadening of the euro area's economic recovery and a gradual increase in inflation rates over the coming years. the ecb monetary policy stands and remains the commented to and market-based inflation expectations have unbalanced since i meeting in early june. the latest information also remains consistent with a continued past of our monetary policy measures to the cost and availability of credit for firms and councils. our measures continue to contribute to economic growth

reaction and economic slack, and money and credit expansion. the full implementation of all our monetary policy measures will lead to a sustained return on inflation rates toward a level below but close to 2% in the medium term and we will under pine from medium to long-term inflation expectations. looking ahead, we will continue to closely monitor the situation in financial markets as well as the potentially -- the potential implications for the monetary policy stance and for the outlook or price stability. if any factors were to lead to an unwarranted tightening of monetary policy or if the outlook for price stability work to materially change the governing council will respond -- would respond to such a situation by using all the

instruments available within its mandate. let me now explain our assessment of the available information in greater detail starting with economic analysis. euro area orderly gdp growth was confirmed at 0.4% in the first quarter of 2015, supported by contributions for private consumption and investment. the latest survey data available at june remained consistent with the continuation of the modern growth trend in the second quarter. looking ahead, we expect economic recovery to grow further. domestically should be first or supported by a monetary policy measures and their favorable impact on financial conditions

as well as -- erik: that is mario draghi beginning a news conference. at the moment, he is telling us things we already know so we will take this opportunity to converse briefly with chris ailman the chief investment officer of callister's. as i mentioned before, we are kind of rating for mr. draghi to talk about grace. matt: more than kind of. erik: because he could give us hints and to everybody why it is selig's important -- and we are expanding by it is so important but he could give us hands on what the european central bank will do with the greek banks which have effectively run out of cash. matt: what do you think, by the way, if somebody oh to $300 and you knew without a doubt, that person would never pay you back would you give them another $100? erik: no, of course not. matt: doesn't make any sense at all?

chris: no, but now you are on the seventh, eighth, 10th, 12 and the money they will get in the bailout will go right back to the imf. it just goes in and out. but it is important to bring the banks back open. erik: i.t. super earlier bought so much attention but it is about the euro. chris: the historic event of the euro. they cannot print the drop,, it would take them two years. erik: my next question, from the perspective of a global investor, which is what you are, how important is it or not to maintain the eurozone in the current form? chris: the question of whether greece is in or out, as everybody said, it is not so much grease but where they are geographically that matters to nato and it is for real country, what about italy, what about spain, what about portugal? the trading side of the euro,

people have to realize it has been around for 50 years, the common currency that benefits the germans. which is the fourth most important part of our portfolio. erik: if you felt as though the solidarity, if you will, of the eurozone were at risk, with that inspire you to make a different investment decision about europe? chris: it would inspire us to tilt the portfolio and it inspires us now when it comes to long-term investments. we have been selling those down. we think there will be unique opportunities but we do not want to go until he no doubt some of the euro and particularly greece in the situation. we think it is an opportunity to tilt portfolios, like i said before. we are overweight in the u.s. a little bit and we think there are more interesting opportunities to the west of us right now and to the east of us. erik: chris, thank you again for spending time. chief investment officer at callister's.

mario draghi, president of the ecb, continues to speak and reviewing current economic conditions in europe. not exactly making use but we do want to hear what he says about greece so we will go back as soon as we need to. what a moment, we are taking a short commercial break. ♪

erik: matt: environmental engineering that allowed it to build a business empire by buying and restructuring companies that were close to collapse. she says she is saving distressed companies but that fcc says she is cheating investors. tilton is fighting back. >> this investigation has been going on for more than five years, so it did not come as a surprise when they filed the back to because i had chosen to fight rather than to settle but needless to say, i was extremely disappointed that they had come forward on this complaint

because i feel like the claims are meritless and unwarranted, and we strongly disagree with the accusations and certainly with using the word fraud on things that were completely disclosed. matt: tilton is launching a massive social media campaign and suing the etsy's -- the sec. the investigation is the topic of this week's bloomberg businessweek cover story. sheila wrote that and joins us now. i thought it was a fantastic story, first of all. i read it start to finish very quickly, but it is interesting to me that this woman is on the one hand so, at least according to client you interviewed, so intelligent and obviously so successful financially, and on the other hand, has been very unique sort of non-conformist look. i don't know how else to put it. erik: sheila before you answer

we are back to mario draghi's press conference. >> whether we need further guarantees or a signature on a third a lot deal with clarity of potential bank and my second question refers -- mario draghi: what is the first question exactly? >> is the short-term financing being discussed efficient for the ecb to raise the liquidity today? mario draghi: yeah. >> the second question regarding the high amounts on the eurozone and that could temporarily corrected that has been talked about in the last week and a half? and it seemed the potential exit was a possibility, i just wondered whether using that terminology is opening pandora's box on the perception of the eurozone membership and by inference, the euro? thank you. mario draghi: thank you. the decision to raise the game today is -- the gain to today is

symmetrical to the decision we took a few days ago. as you know, ela goes to solving banks with collateral. after the breakdown of negotiations and the likely default to the imf consequently, the ecb decided to freeze the ela at that level. applying what we call the proportionality criteria. in other words, there were some that were calling for a droping of ela to zero which would have caused the banking system. the going council decided to keep ela at that level. things have changed now. we had a series of news with the approval of the bridge financing

package with the various faults in various parliaments to begin in the greek parliament which should now restore the conditions for the race in ela. -- for that raise in ela. the second point is about whether this should be the pronounced or not? [indiscernible] let me tell you what i said in the course of the summit meetings that we had in brussels last weekend, the various meetings, the euro summit meetings and various meetings. especially it was addressed to the several observers and policymakers and public opinion scholars that have suggested we should have talked about italy

with grace a long time ago. -- about ela with greece long time ago. i said that basically, it is not up to the ecb to decide who is numbers and who is not. they said the ecb has acted within its mandate and will continue to do so. and under the assumption that greece will remain a member of the euro area, whether this assumption proves right is entirely within the responsibility both of the greek government and of the member states represented. so the ecb continues to act on the assumption that greece is of course and will remain, a member of the euro area. ui. -- thank you.

>> brian blackstone with the wall street journal. there is this big greek repayment due to the ecb on monday. they did not pay the imf, what happens if monday comes and goes and they do not pay you back? what would the ecb's response be? because basically the money does not seem to be there. i second question is, you have said before that the ecb is the central bank of greece, having let the people of greece down by freezing ela forcing the closures of banks, people have to line up for however long it is to take a little bit of money out of the atm -- what you say to those people who might say that the ecb let them down? thank you. mario draghi: thank you, brian. i should be to the eurogroup statement that just came out.

the eurogroup welcomes the adoption by the greek parliament of all the commitments specified in euro summit statement 2012 on the basis of of -- an assessment which concludes authorities have implemented the foreseeable measures and in a satisfactory manner and confirms the euro summit statement has been included in the preamble to the implementing law adopted by the greek parliament. the decision today to grant a principal and support the greece subject to the completion of relevant national procedures. upon the completion of the relevant national procedures and the formal decision by the assembly of governors expected by the end of this week institutions would be in transit with the task of sweetly rica -- read -- of sweetly renegotiating the conditionality attached to the financial assistance facility. the eurogroup calls on greek authorities to quickly adopt the second set of measures by july 22 as forcing in the euro summit statement.

and it is consistent with the recommendations made by the institutions in the compliance regards. several positive gains have happened that justify as to increase the ela that we improved today. incidentally, i did not say by how much. we accommodated the rest put forward by the bank of greece recalibrated over one week, so the increase of the 900 million over one week. tier second point, let me say -- to your second and, let me say that the liquidity provision according to our rules was never meant to be unlimited and unconditional. here it is just one good opportunity to clarify some confusion. by the way, let me preface by saying we take this sort of criticism. very seriously and --

criticism very, very seriously and i don't want underplayed ecb and the governing council the ecb had over the last few weeks of having to take decisions between making sure the payments system continued to work and the liquidity provision, the monetary policy not to a massive success in greece for the euro system at the same time, all at the same time. just let me make one legal point -- first of all, the payment system that some people have preferred to does not have to do it liquidity provisions. there is an article in the treaty that says basically the ecb is responsible for promoting this repayment of the payment system -- promoting smooth movement of the payment system. the distribution of coins, notes, and not with the provision of liquidity which is actually regulated by a different provision in the article 18.1 in ecb statute

first of all. in order to achieve the object is of the ecb and the national central banks they may conduct credit operations with credit institutions and other market participants, with lending based on collateral. this is the tree provision. our alterations were not monetary policy operations but ela operations, so they are subsequently regulated by a separate agreement. which makes explicit reference to the necessity to have sufficient collateral so all in all, liquidity provisions would be on permission -- unlimited and unconditional. is it true that we did not provide the quiddity enough to greece throughout this time? -- provide liquidity enough to greece throughout this time?

let me give you one piece of data. the amount of positive applet was january 2015, this was the monthly deposit was $13.3 billion. the increase in euro system landed in ela was $35.2 billion. the amount of the second-highest deposit was last month, children gain -- june 2015 uncertainty related to the breakdown of the negotiations at the announcement of the referendum. the monthly flows were $8.1 billion. the increase in euro system lending degrees banks and sectors was $10.3 billion. as i said several times, ela has increased from zero to almost 90 billion euros and now the euro

system has a total exposure to $130 billion, which makes the euro system the largest depositor in greece because if you take top deposits in greece they are $120 billion while the euro system exposure to greece now is $130 billion. i find these sort of observations that there wasn't enough liquidity assistance or actually there was a bank that was closed by the ecb quite unwarranted and unfounded. incidentally, each time we announce the liquidity and ela operation we actually say, and i think i said it explicitly in april and emergency will

continue. liquidity assistance will continue, so even communication lies, there was always an open stance. however, when a solvency and the collateral prosperity deteriorated, we had to calibrate the provision of the liquidity according to these developments and that is how it went to the reasons i mentioned before. and we did it however as i said, always acting on the assumption that greece will be a member of the euro area. there was never a question and that is what makes this difference from the ones who said, you should up cut ela a long time ago -- have cut ela a long time ago.

deciding who should be a member of the euro area and who should not. >> alessandro,, mr. president. what is your assessment of the agreement that has been reached with greece and you think it might lead to conditions that will reduce the haircuts on the collateral reach you have had recently? another question on the discussion of the exit. the option of the exit of the euro country has been put on the table on negotiations in the past few days and you have said in the past that one country leaving the current union would put at risk the whole of the currency union and would put the

contribution of money from the nation itself. so, it was discussed openly on the table, do you think it would have an impact of the strength on the euro in the long-term? thank you very much. mario draghi: thank you. to speak to the first question, i frankly hesitate in commanding all the program asks such. in part because -- we basically had a mandate to negotiate the institution, so there will be follow-up. let me say one thing. i believe for the first time the text that circulated at the level of heads of state, was not generic. it was quite specific. it in pain -- it contained impressive policy measures prior actions and restructured reforms for which it was asked that either the greek parliament

would take a boat or endorse the measures. without commenting specifically on that, let me say that all in all purpose of that document is to ensure that greece will become a thriving economy in the euro area. quite a considerable space in the document was even the structural reforms, so it was not the usual budget-based document only. that is one thing. the second thing is that -- and it is something i said a long time ago many times -- the problem -- the program had to be a strong program which promotes growth, which ensures social fairness which is also fiscally sustainable and which addresses the financial stability problems. i believe that by and large that

problem has these features -- that program has these features. and finally, that -- it has been discussed it debt relief is necessary? it is not controversial that debt relief is necessary and i think nobody has ever disputed that. the issue is what is the best form of debt relief within our framework? within our legal institution of framework? i think we should focus on this point in the coming weeks. the second point is about whether to have the simple fact of having discussed the possibility that would weaken the union. if you phrase it this way, you can say that is not an issue. discussions were there and i

think discussions by themselves do not necessarily weaken, but they have shown something that i have said many times, that this union is imperfect and it has been imperfect, it is fragile, it is vulnerable and it does not deliver all the benefits that it could if it were to be completed. the future now should see the sidesteps on further integration . you are. -- thank you. >> you have raised ela today but

by quite an incremental amount, how is that going to change the situation in greece? so will we still have deposit withdrawals limited to 66? for instance today, will foreign payments remain in place and if that is the case, what needs to happen before we see some of the control lifted? just returning to brian's question on the decision to freeze ela -- a lot of those criticisms are focused around the refusal to provide additional lender of last resort support to banks at your own regulators or solvent. you mentioned it was an issue in answer to brian's question on eligibility of collateral, i don't understand how you can have a situation where there is a lack of eligible collateral but banks can still be just solvent by regulation at the

ssn. mario draghi: thank you. your first question -- today, we have accommodated the bank of greece's request, completely and fully. this is understandable because we want to see how the situation will involve. in so doing, we have accepted the assessment of the bank of greece in terms of the immediate needs of liquidity's at the greek economy has. --. the greek economy has. if things continue to proceed in a positive way as they have done in the past two days, we will have a phase during which the bank of greece and ecb, which are working very actively monitoring the situation will look at exactly the needs of the

greek economy. how can they gradually satisfy? what are the general conditions so as to make sure we are always there ready to provide the greek economy with liquidity and at the same time, we do not risk a bank run again? in the meantime, all these developments are improving the quality of collaterals that the greek banks can post. each time we have an improvement in the quality of the government paper, of the greek government paper, we have an improvement in the quality of the collateral of the banks. not only in that, because as you know much of the equity more than 50% of the equity of the greek largest banks, is followed by credits to the state. the quality of these credits

improves our war since according -- or worsens according to the dialogue of the greek government and the euro members. the second point is -- there are two assessments that are being given on the solvency of a bank. the point in time assessment which is given by supervisors looks at common equity tier one at 4.5% on top of capital ratio at 8% and the tier one capital percent of 8%. if you take these numbers, big banks are solvent. and that is what the supervisor the chair of the supervisory board, has said several times. however, if you look at it prospectively and just on the

basis of what i said that the quality of the government paper has on the solvency of the banks , well, you question their solvency in perspective because you look at how things go. how the policy dialogue develops and therefore how the quality of the government paper changes according to these developments. therefore, you give some assessments. now, it is on the basis of this perspective assessment that looks at what i said the quality of the government paper, but also at the quality of the overall bank balances after such a protracted procession and therefore with the foreseeable increase in nonperforming loans. it is on the base of these two considerations and also others but these are the two most important.

then in overall of 25 million euros was earmarked out of a program between 82 and 86 billion and it was earmarked for the greek banking system. >> hi, mr. doggett. a central banker of europe with a different question, do you think it is a good idea to suggest the vulnerability of europe is on the table as german finance minister has done in the past few days? mario draghi: as i said before, because the used in several ways. i will not comment on politician statements. i only know what our mandate is and our mandate is to act based on the assumption that greece is

and will be and of course will be a member of the euro area. >> could you try and give us an assessment or a prediction of when the banking situation will normalize and maybe the banks could have no limits to withdrawals and capital controls could be removed? could you also tell us why the total lack of transparency in about -- you have given us a number today but normally we are left to chase every time what is the increase have you decided it or not? is there a haircut, and by how much? why is it not possible just to

announce simply every time you make a decision what the decision is? which then comes out in a very turnaround way and in the end comes out anyway. mario draghi: yeah, i never got your investigative capacities. [laughter] the answer to the first point is it is hard to predict. clearly we are all aware that it is in interest of the greek economy to have these capital controls last as little as possible. by the way, the responsibility to lift controls and impose them is with the greek government, so that is something that in a sense the greek government has to decide. we have to be doing this in a way that we do not run the opposite risk which we were about to run before the position of capital trust, namely bank

run which would lead -- which would leave all the depositors be basically hit. the capital controls have protected the depositors which by the way, to a great extent are now there are more depositors. the awareness, the capital controls are hampering the recovery of the greek economy is there. the idea is to move as fast as we can but also with a due degree of caution. on the ela -- europe once the usual -- they want a pact, in fact. in the past, there was a sense of reticence to publish the numbers of ela because the whole ela was more. as to address liquidity shortages of individual banks, so if you have individual banks

that are solvent and have collateral, so the idea or the situation that was addressed by the old yearly agreement was one where a bank was solvent -- a bank which was solvent with collateral and in spite of this was experiencing a liquidity shortage of some kind would be protected by this facility. it was quite understandable if you had that situation and the ela and the amounts of ela were to be made public this could have -- this could worsen the situation of that bank at the time. here we are facing a completely different set up where we are not talking about individual banks that we are talking about country capacity as linking systems -- country's banking

systems. it is not any longer about an individual bank or individual and -- institution short of collateral. we are revising the communication legality regarding ela and there is absolutely no reason to keep the secret when we are addressing a massive systemic problem and macro economic problem. >> erik: that is mario draghi, president of the european central bank speaking at a news conference. making plenty of news. we hope you would and he did suddenly drop the bomb early in the going of the q&a that the ecb had raised the amount of liquidity assistance be provided on an emergency basis to greek banks and subsequently slashed it out and race divide hundred million euros, so they are right at approximately the 90 billion euro mark. also shedding much like on the

deliberations that took place inside the european central bank as to whether to freeze ela, which is what they did, the liquidity system is forcing temporary closure of greek banks and capital controls, or as he said, some wanted to reduce it to zero which would have precipitated an immediate banking collapse in greece. the chief market strategist of the jefferies group is here, david, i cannot think of anybody i would rather have sitting next to me and math right now than you, david. quite seriously. you have been writing prolifically about greece most recently, not just in yourclients but also most recently on twitter. david: we are finally coming to the social media world. erik: lets the with what draghi had to say. what do you think? david: i think the ela stuff is fascinating. i think the grease discussion is always very interesting but i

stay with my original thinking on greece which i think i put forth with a few of you guys back in january when i was in athens for the election which is still very much a greece problem and very containable within the euro. i think what mario said is important. he said that the ecb is not here to choose coup is in and out of the euro and there are some people on the committee that would like to use the ecb for that and i think we know who he is directing that too. erik: the germans. david: yes, and maybe some of the fans and the northern europeans. erik: those are the people on the governing council who he said wanted to reduce emergency assistance to zero. david kong which is to use the ecb -- david: which is to use basically to disregard greece from the euro zone and he said rightly so, the ecb is not a

political institution. they take as their mandate that every eurozone country is staying in the euro. erik: so many of the things that comes out of his mouth have lived go to applications. for example, the euro area needs further integration. david: that is somewhat self-serving as well because i think mario draghi is trying to wrestle control of the banking systems inside the euro area and this is something we wrote a lot about in 2011 and 2012. when you have this problem when the state and financial systems are mixed together. if the state of new york or puerto rico goes bankrupt tomorrow, you can submit to an atm in puerto rico and get your money out of the perspective puerto rico. we have a national system structured so that the financial highways cannot break down because one state breaks down. europe does not have that and i think mario is trying to get there. matt: although he did say that he has put on hundred 30 billion euros in two in 250 billion euro system, so he is effectively the biggest depositor. david: creditor. matt: the greeks have 120

billion euro and less money than the ecb. david: i think when he is trying to say that based on the rules of the game that he is presented and to run the ecb, this is what he asked to do in the liquidity environment. matt: he realizes that money will not be paid back. he says, everyone realizes that. it is uncontroversial. david: there are plenty of other creditors to greece that will probably not get paid back in the question is, who are they? it is probably not the ecb that loses. erik: david, we are fortunate to have you here and we are also fortunate to have david gore in athens who has on the ground reaction to what we have just heard from mr. drawdy. david? -- mr. draghi. david? david: we will talk a bit about what mario draghi had to say. he mentioned he is very confident that greece will be able to make its payment on monday.

do you agree that that will happen? >> yes, because finance is in place and being provided by the european commission. it is any part of commission and it essentially comes to the creditor in the institution on the 20th and the payment will be made. david: will he -- we have learned that the liquidity has been boosted. what do you see the next few weeks looking like in light of that? thanks here have been closed and capital control in place, what difference could this make? >> it makes a whole lot of a difference. it releases at level of uncertainty that they can output to their banks and not only pay their bills but withdraw money. that is is important in terms of capacity. this has come to a stop completely. we need the liquidity and we need banks to lend. david: mario draghi understands

affect this has on the greece economy. what are those of fax? -- what are the effects? >> all the capital flight. people do not pay their taxes. banks cannot provide credit and an economy cannot survive like that. we were cash economy. we need to return that level of confidence of trust good to greek citizens and businesses that they can actually go to the bank branch. david: i wanted to ask about the late news we got that kremlin did vote for this plan. let's talk about the politics. you are mentioning you had heard there were calls for elections in the next few months. what is the latest on the political situation in greece? >> we essentially now have a government within a minority position, but we have a parliament that is the hitting like it is a national unity parliament. but we do not have any experience in greece about minority government. in many ways, it cannot muddle through. stump state speculation of early

elections will come but do the homework first. make an agreement with international creditors and then continued speculation sometime in the fall about when to hold early elections. david: you mentioned making that timetable we have that all the creditors and fault and we have the report. let's go to the imf indicating that this country needs more debt relief and perhaps need a haircut, one of the options on the table. how realistic is that? >> dimon is going to continue pushing forward -- the imf is going to continue pushing forward. then you element of the imf position is not that basically unless you are more flexible on debt relief, we will not be part anymore as imf with a future program with greece. david: let me ask about the vulnerability of the european union. mario draghi in knowledge and saying it is not the ecb's job to decide who stays in and who

stays out. you have lived here about 17 years, how does the future of the euro and the european economy look? >> the vision that the euro zone can unify has been damaged fundamentally over the course of the past weekend. the apa work starts -- stops here and stops circulation. david: ian fast can thank you. back to you matt. matt: thank you. i went to get back to david about something they just mentioned. if they cannot take money out that it is impossible to grow and economy in a situation like this, even with the ela boosted amazing 900 million euros and it will not make it easy, but mario draghi said "the overall purpose of that document is that greece will become a thriving economy." he is talking about the agreement voted on last night

and he says it will promote growth. is that at all true? david: look, i think it is probably the only way forward. it is a very nasty way forward and requires a lot of austerity to get to the difficult period. but privatizing these state-owned enterprises that greece has come back on, fixing the system, stopping the cronyism fixing and paying taxes, in the long run these are great. erik: that is not austerity that is institutional reform. it may in the short run the structural reform -- david: structural reform to me is a guy who comes along and says you will work longer retire later and work less and have -- and you will vote for me. back i usually does not win elections. that guy is tsipras. he can along and said you do not have to work harder and you will retire earlier and have smaller hours and everything else and they voted and he has delivered

structural reform that europe has been trying -- erik: as the german find -- finance minister seems to think supply them with humanitarian aid to get them back to whatever they need, the drachsma, that way they don't have to pay the debt. david: i think the in or out debate for greece or europe is a purely political decision on this desire to build a european project. erik: that is a very good point. david: we take it from -- we take advanced -- we forget that we are american. erik: david brooks stay with us but we will take a quick break on "market makers" and we will be back. ♪

matt: we are a few minutes away from the opening bell in the u.s. of a. tracy executive editor is here with the three things, living markets. we also have david servos still

with us. a lot going on with banks today especially the attention to goldman sachs and erik is still with us. erik: you fancy that. matt: tracy, you could get off. tracy: we start with canada. i want to start with currency movements because we are getting all bunch today. the canadian dollar sinking, the new zealand dollar sinking and the pound at a new year high. amazingly enough, we are getting some movement in the euro. the euro is at the lowest since may. why do is say that is unusual, because we have seen for the past few months that the euro has been really range found. to go to the chart. kelly bring that up on the screen? this is the monthly trading range of the euro. you can see it narrowing for the past few months, even though we

have had all this drama in greece which ostensibly one might think would make the euro a bit more volatile but i guess we still have draghi and -- matt: everybody i speak to about this says it is christ in already -- look, david was in here january telling us what would happen in and it is now july. david, but it has been quite a papal ride. we had to see people take off positions related to the euro qe story and that cost a euro to stop in its tracks. what were the three positions? everybody but stocks, bonds, and sold the euro. all those positions got unwound in europe in the last two or three months and what you are seeing is that greece goes off into the sunset and we go on vacation in europe and everybody forgets about it after the bridge on which will hopefully happen and we can live another day in europe with integrity.

then the euro will go back to going down and the stock markets will go back to going up and probably people are going to buy european government bonds even though i don't think that is a good trade. erik: that is a great chart, by the way, tracy. does this help to expire why we saw such a decline in fixed income trading revenue which includes commodities and currencies in the second quarter for some of the biggest banks on wall street? >> currencies were definitely a part this corridor and i think the trend tends to be the banks friend. in this quarter there was not much of a trend. if we can reach out to that trend, if it has been down or up in the euro, i think that will begin news for trading. we did not really have that in the past quarter and that hurt a little bit. matt: goldman sachs thinks he will go below, right? should be down. tracy erik:: a quite a few banks thinking. let's move to number two. tracy: they said they would take a 2.8 billion dollar write-down on the u.s. business.

few analysts are saying that is not enough. they want to see a much larger write-down. to give you a better perspective, chb currently values the business at 24 billion and jpmorgan thinks it should be closer to $17 billion. citi thinks it could be something like $12 billion, so they want to see more action. why do we care about what that hb bulletin is doing? accounting is always interesting but beyond that it is illustrative of the big pressures that are now facing u.s. shale and specifically u.s. shale if oil prices stay below $60 a barrel. erik: ok. thoughts? devin: the energy stored for me -- erik: there is a huge macroeconomic. david: look i think we have had discussion before. the idea that we are seeing growth in develop markets, eurozone, u.s. japan are

leading the growth charts after aggressive easing's in the last five years. the euro is going forward where the u.s. left off and that leaves emerging markets in the dust. emergency markets are the biggest commodity users and they will use less and demand falls. all these guys -- all the commodity guys have to come to grips with the fact that the emerging world is not the leading growth anymore and it will be developed market leading growth and you will have to suffer. people put too much money. you've got to restructure. matt: when the oil price started coming down drastically, bank stocks were taking some of the biggest hits. how they fared in the second quarter? deivin: better. matt: in relation with commodities. devon: a lot of the banks the wrist in the second quarter -- de risked in the second quarter and it did not help trading or heard it. moving forward, some of the things we could look for -- you

have increased financing activities to some of the energy companies. is there a restructuring way to be spending energy prices? there are implications from lower commodity prices but it was not a big story into q3 for the big banks. erik: tracy, jumped to number three because it is interesting. tracy: they are threatening to downgrade the credit ratings of about $40 billion worth of bonds back by u.s. student loans. those bonds at the moment are aaa rated which means they are basically as safe as possible when credit ratings. agencies are threatening to downgrade those two as low as chunk which is a big deal for an investor. if you thought you are buying a aaa rated bond and suddenly it becomes junk you will get a lot of turmoil in the market. matt: and it is a guaranteed so it will definitely get paid back. tracy: the reason they are threatening to downgrade is because there was so much debt relief for students right now

that the length of the loan underlined the bonds are actually been extended the odd maturity date of the bond. that is the reason for the downgrade. it is not because people will lose money but it is a really weird mismatch. matt: it will take 100 years to get it back. erik: increase, they call that extended sovereign. matt: they will pretend that get the money back. i want to make that clear. erik: the ecb will be a lot, hopefully. matt: somebody said earlier with regards to the suggestion that greece get a 100 year maturity with a zero -- that is only extent, there was no pretense because any country in europe can take back their debt over 100 years with zero coupons. david: i don't know. the greeks may still have trouble. if anything, the last 200 years. erik: tracy, thank you. david, you are staying here. devin, we need to talk about more detail, specifically about

goldman sachs. a lot of people consider goldman sachs to be the trail blazer along with jpmorgan in investment banking. what do we learn today? devin: very height litigation expense, something we were not looking for and i don't think the market was and that impacted the have my number. if you take a litigation which is related to mortgages, they did beat so that was good news but if you go back -- if you peel back the onion, it was a mixed quarter. very strong equity trades in -- sales in trading. strong thinking results good news. their fixed income trading was a little bit softer, down about 35%. erik: more than bank of america and jpmorgan. devin: exactly. trying to dig into that, i suspect june was a tough month with all the market volatility. goldman was also more toward the micro programs like credit and mortgage moved to softer areas,

so i think it was product mix this quarter. erik: why does that business for golden sachs, fixed income and commodities, appeared to be less resilient now been a used to be? it seemed, for a long period of time, even during the crisis corridor in a quarter out, goldman always had one of the best revenue lines on wall street and now it is all over the shop. devin: great question. every quarter there is a different story. this quarter, you had still a pretty good story at rates and treasury market, so bigger banks with more exposure there really outperformed. i think that the credit has been softer areas for the past quarter and goldman has more exposure. i do think it is mixed. goldman is gaining market in a lot of products and they are still there with their balance sheet and one of the few firms that i think is in the market every day.

longer-term, they will gain market share but you do have some of that quarter to quarter volatility. erik: one of the things that gets overlooked is management. they had a great quarter and asset management, kelly extrapolate anything as far as goldman insult or perhaps what we might hear from morgan and family? -- morgan stanley? devin: it is capitalized, study so they understand the importance of driving more revenues into that business. if it was a good story, the benefit was income and it is tied to performance and can be lumpy but the read through his we had a choppy market in the second quarter so a lot of firms have up we will not be see big -- see big asset q1 growth but for morgan stanley as suspect the same. a pretty strong quarter and wealth management should also have a good result. morgan stanley wealth management is its own unique animal. erik: not long ago, i asked ceo

of blackrock who we consider to be his biggest competitors and at that he was going to say pimco, i was fishing for pimco and he said no, i didn't jpmorgan asset management and goldman sachs asset management are my biggest competitors. i think he is thinking more institutional than retail. what does that imply as far as the future of the relationship between a buy side firm -- an exquisite buy side firm like lackroc -- like blackrock and jpmorgan and sachs while providing massive asset management division? devin: an interesting conversation. i think jpmorgan -- all the big banks really have quite a big emphasis on expanding the asset management platforms. coming back to that aim of these are capital and very recurrent businesses that keep the lights on when trading is volatile and they are below what they need to

see, so longer-term asset managers are evolving into a similar box you have the alternative asset managers like blackstone and kkr and the big institutional money managers that are more products going in the same direction. i think the big banks under see the importance of being there. erik: thank you very much. he is the managing director and banking analyst here for goldman day. matt: later today, someone who could seriously affect all bank earnings is fed chair janet yellen yellen. she will be testifying before the senate for her second of her today semiannual testimony. we used to call it humphrey hawkins but i don't think we anymore but we will cover it live at 2:30 p.m. ♪

matt: google outside in new york city. look at that. after two days of rain and some

kind of smoggy, wet, humid karen business. erik: in other words, the summer in new york. matt: we have actual clear sunlight and it is wonderful. i will go to my desk and watch golf as soon as we are done here on television, but for right now, we are paying attention to julie hyman. joins us with a look at soaring stock in netflix and everything else that has happened in the last 12 minutes and market trading. julie: i like how you are going to take advantage of good weather by watching golf on television rather than going out. matt: it is good weather there, too. julie: all right, i will try to go outside at some point. in the meantime netflix trading at a record after the stock split took effect yesterday and after they reported a surge in subscribers in the second quarter. it now has 65.6 million subscribers. last quarter released the highest number of original programming and the new shows

and that is attracting new subscribers. also notable is the growth in international markets. an area that analysts have been looking to growth from netflix. international subscribers account for 31% of the company's extreme in revenue. as we see the game today, the stock at the bold year to date. the top performer in the s&p 500 and just about double the next best performer in the s&p 500. let me say that again, its performance is twice as good as the second-best performer this year in the s&p 500 which happens to be electronic arts so we have seen killer performance -- stock performance from netflix and it is continuing. that figure look at the banks. you guys were talking about goldman sachs and citigroup out with earnings of this morning. earnings did beat estimates. i know there is skepticism about earnings but trades do tend -- but they do tend to trade.

citigroup has been cutting costs down 7.2 percent to about $11 billion at citigroup. if you look at what is happening in the market business, we have been watching trading revenue and a lot of the banks with revenue down less and 1%. goldman sachs we saw a fixed income currency commodity fall by a bigger percentage there we have seen at other banks, said that maybe what is weighing on those shares of this morning. a quick check on ebay as well. the company making a formal agreement to sell its enterprise unit to a group led by premier for 920 $5 million. second quarter sales beat analyst estimates and you can see paypal it has not spun off till monday and this is the tracking stop thus far but you can see it is higher as well. when it doesn't separate it will go into the s&p 500. erik: thank you for the update. let's move on and talk about top headlines. we are going to lead with the

european central bank doing its part. first of all, mario draghi believes that greece will ultimately prepay its that's. he said ecb is doing its part to prop up the banks and here's an excerpt of his news conference. mario draghi: the decision to raise yearly gain to today -- ela gain to today is symmetrical to the decision we took a few days ago to freeze ela's. erik: greek banks have been closed for 18 straight days. mario draghi said outflows in june totaled almost a billion dollars. the death toll from flash flooding in eastern kentucky could rise to eight. five people remain missing after a wall of water surged through the town and appellations earlier this week. three deaths have been confirmed. uber has been hit with the finding california. a judge in san francisco said they were withholding information from the government and leaders want to know when uber drivers turned down car

request and if there are accessible to the disabled. harper lee's newly released level is setting records. the have set of barnes & noble mark for first a sales and the book is amazon's top seller in america. lee wrote it before "to kill a mockingbird" but it was never published. for the moment those are your top headlines. matt: the biggest seller of smartphones in china and the vice president of global operations sat down with bloomberg's emily chang. one question he addressed, whether the company will build its own operating system independent of android? >> we would not build our own operating system for smart phones, tvs, or these products simply because it does not make sense to do that. we would much rather use that engineering horsepower building interesting services on top of android that add value versus starting again. there is no real reason to do

that. if you think about it and build an operating system and have to build a developing system, and that is pretty much one of the hardest things to do. everyone has tried and completely failed despite having many times more resources than we would have asked the startup which we kind of still are. we would not. matt: that was siaomi's -- xiam omi's vice president with emily chang and you can watch it tonight at 7:00 eastern and pacific. erik: 21-year-old jordan spieth is a star in the world of garth -- of golf. to make sure everybody was not talking about the younger mr. jordan spieth. before all that happened -- ♪

matt: jordan spieth got off to a pretty good start in the british open at st. andrews. he fired a five under at 67 and two shots back of the leader dustin johnson. he is going for the third leg of the grand slam. it has been a rough day for tiger. he was at four over after 16 holes. while. as jordan spieth rises, so does his profile on social media. cofounder of npv index.com that analyzes million of data points to help identify who is top on social. he joins us from dallas. kyle, you can call it jordan spieth kind of your friend almost kind of like a client. he was your first, like a guinea pig because of you started the company with his father, right? kyle: that is right. that is -- thank you for having me on. i'm glad you have me on. sean would be the better guide

to interview today but he is at the british open. i have watched jordan grow up in fact, i played with him many times at the cave and country club right down the street. sean and i ironically meant on the golf course playing around with a couple of buddies, so called is a center point our relationship and it is great to see jordan doing so well. he is off to a good start. matt: he is number two in the world in golf. he is number four, as i understand it, in your social media rankings. what does that mean and why is that? kyle: well, the number four in our social media ranking is not bad considering he entered the pga tour 2.5 years ago. many that are on or in our top 10 have been outplaying golf on -- out playing golf on the pga

tour for several years, so he has been a phenomenal rising star on the course and off the course -- from a digital perspective. and wins at the master and u.s. open has skyrocketed his popularity and fans are engaging on a regular basis with jordan. he takes social media very, very seriously and handles all of his own social and does a fabulous job of it. erik: you knew you would be talking to matt and me, but david, cheap at it -- strategist at jefferies is with us and an avid golfer and newly arrived to twitter, so i will hand you to david for a second. david: you are an expert on this, what is the driving force behind the move to twitter? how do you guys see that as a business model for jordan or any of the golfers you are working with?

kyle: twitter in sports in general, twitter is one of the most engaged platforms by athletes. the short form, 140 characters athletes are driven toward it as well as instagram and predominantly they are -- there are more athletes on twitter then any other platform. second would be instagram and third would be facebook. engagement on facebook is very high, but the posting volume where athletes right to engage the most is on twitter. -- where athletes write to engage the most is on twitter. it is a great platform to talk about their experience on the course. in fact, i talked to dale junior, a nascar driver, i think we all know who is very passionate about engaging with his fans and other athletes over

twitter. an easy way to communicate. matt: i know football players like to go to the offices and try to boost their madden score, that is important to them. when someone like dale junior comes over to talk to you, does he try and boost his m.v.p. score? does he ask for tips on how to do it better? kyle: actually, i did a webinar with they'll about two months or three months ago and -- with dale about two months or three months ago and he is the number 14 many of the brands he represents and he takes it very seriously how he supports those friends. he goes to social media across and a great chance for him to show his authentic louis around the brands he works for. absolutely, number one in our index from a nascar perspective compared to his peers. he is number one from a digital brand perspective representing

brands like nascar and does a great job for his team hendrick motorsports. matt: thank you so much for joining us. kyle nelson, cofounder and david, thank you. erik: david had a perfectly timed visit to "market makers." from mario draghi's press conference. david: those are scorpions on your type. those are pretty cool. matt: i'm a november baby. erik: that doesn't for "market makers." ♪

>> it is 10:00 in new york, 7:00 in san francisco.

the eurozone agrees to vote greece more money after it passed painful austerity measures that set off protests overnight. erik: it is day three of the bank earnings parade. citigroup's earnings topped estimates. goldman sachs profits decline due to litigation expenses. investment banking, asset management, which is a bank look like in 2015? brendan: bankers knew the federal government was testing the largest bank in america. but it did not say anything to the people that were about to london $2 billion, so is that a conflict of interest or is that just the way that things are done?