reforms from the eurozone. but what happens next? we will find out. ebay,gs on netflix and ebay missed estimates but all eyes are focused on sports tomorrow. meanwhile, netflix stocks reporting greater growth in the number love global suppliers. cory johnson breaks it all down area talk about reporting the expectation, he reveals his financials to the federal election commission and says he is worth more than $10 billion but the information is not public yet. what is he really worth? ♪ brendan: good morning. i'm brendan greeley. pimm: and i'm pimm fox.

let's take a look at where markets are trading right now. u.s. stocks a little higher, s&p 500 gaining half of 1% there, of over 13 points, of course, we are starting to get into the thick of earnings. netflix earnings, ebay earnings and so on, we will be paying attention to market moves. brendan: the only sliver of red in that movement is the materials and paint, things like that. pimm: that's a sliver? brendan: you did know that? that's a measure of the s&p 500. [laughter] pimm: taking a look at the euro there, down 100 902. as we are focused on athens, berlin, brussels, we need to keep in mind that mario draghi is continuing a monetary policy of 60 billion.

be the bigger story as the euro slowly drops this morning. i spent six months reporting on the market. eight handles? pimm: that's impressive. you know what else? david is in athens. as bring him in. david: obviously a big issue here has been the fact that banks have been closed for two weeks here and it is a sign for mario draghi to put a cap on emergency liquidity assistance, a good sign for people here, it could open as early as. an economic animus -- analysts isd to me a few minutes ago that the remaining total deposits in greece banks are 124 billion euros.

think about that from a building perspective. he also talked a lot about debt relief. commercial, debt relief is necessary. no one has disputed that. what is the best form of debt relief within our framework? within our legal institutional framework? i think that we should focus on this point in the coming weeks. it's obviously something that has been on the minds of a lot of people here, especially with reports raising the specter of some sort of debt relief. back to you. you very much, david, reporting from athens there, the acropolis in the bekground brendan: he may the own a person left in europe the doesn't think that restructuring is necessary.

in the news, second -- second-quarter earnings falling 49% from one year ago and the firm had higher legal costs tied to a potential settlement of mortgage related investigations. posted profits that he estimates, selling businesses and getting out of consumer banking in more than one dozen markets. the clash of the retail -- retail giants, paying off walmart with thousands of items last week, yesterday was its a gift they ever for same-day pickup. one analyst estimated that sales were up 80%. mortgage rates in the united states have risen to their highest level since october and janet yellen maybe one reason. the average rate or at asked thirty-year mortgage is just below 4.1%. yesterday janet yellen said again that the fed is likely to raise interest rates this year.

experts say speculation about an increase is helping to boost mortgage rates. got off to a good start in his quest for the third leg of golf's grand slam. speech shot, five under seven, the first round of the british open, two shots behind huston johnson. let's just say it was a bad day for tiger woods, he shot 70. he has still got problems with his wrist, he says, from when he had that tree. i got to say that it was interesting, but i've got to say wasfront nine, i think it 500. brendan: it will be a deeply sad day when we don't even bother to report what he's doing. that they will come. pimm: we are ready for that. brendan: aging every day. coming up in the next hour, netflix posts -- boasts 65 million subscribers thanks in

part to the ladies of litchfield penitentiary. pimm: glenn tilton, the head of patriarch partners, is being accused of fraud, and she is going to war. she's using social media for the fight. brendan: how much is donald trump really worth? his campaign said $10 billion, they wrote it in all caps, but what does the daily -- data actually say? first, greece accepts austerity in exchange for another bailout, a decision to keep the debt ravaged country the euro, but is that the best decision for everyone involved? pimm: joining us for an answer is alberto gallo, from the royal bank of scotland. joining us from london. all right, alberto, give us the answer. what is happening next? alberto: good morning. well, we have very positive news at the moment with the approval

from greece and the bridge financing to greece has been approved in principle by you. there is liquidity. the problem is the solvency. like mario draghi said earlier today, it's very clear that the greek debt level is not sustainable. we have shown that in our analysis. imf as well in its latest analysis as well as the european commission. it's all about discussing what to do with the problem. greek gdp is to percent of the eurozone. it is that equipment for milan. it is the same size as a city. the problem is if you look at the economic cost of restructuring we can show that the cost is between 70 billion and 130 billion. between 0.7% and 1.7% of gdp. the cost of a greek exit is almost twice that. not just all the public debt creditors, the primary creditors would suffer losses.

the problem is solvable and it is creek -- clear that they need debt relief, but it has unfortunately become a political problem and a way to draw the eurozone, upon on the board used by two different blocks to draw the future rules of the eurozone . that's why the negotiation continues. brendan: i have a theory. macro analysts get together once per year to see who can use pop songs the best. you quoted the talking heads today -- on a road to nowhere. the road to nowhere, is that the inability to admit that this that is not sustainable? alberto: yes. if you kick the can forever, you havea point where to stop. debt, youy your own can sustain very high levels of debt at very low interest cost.

greece does not have its own central bank. the ecb cannot buy greek bonds unless they are in the program. they have to follow some rules, including austerity. in other words, if greece deteriorates and covers the controls in the decision with no political action in the last six months, if debt to gdp goes up the programsterity may fail, but the debt language is important because there is no unconditional buying a greek bonds. they have no central bank. interest costs matter if there is growth, but growth drops, austerity kicks in, kicking the can does not work anymore. you need to face the problem of debt restructuring in the next 12. otherwise any slowdown or political issue in greece means job cuts and austerity again.

all of these things would become untenable. you either need a long extension or haircuts. pimm: alberto, the european central bank is your central bank, you are a european. would you be willing to spend real money to try to restructure this? upwards of 120 billion? it is not about spending new money. but earlier you said that this was a political issue, so the idea is that you need to get people to vote for you and some of them in europe say they want to not put more money out for greece. what would you do? imagine that you own a house, have a big mortgage and you know that you are not going to pay the mortgage. there are two options. you can restructure the mortgage with terms that are fair to you and if i am the letter i know that i can get some of your money back. or what is happening now is i am

asking you to borrow more money and bring you more money back in the future, which both me and you know is not going to happen. instead of greece borrowing more money and basically having to pay more money later in the future, there needs to be restructuring so that the deal is better for both hearties and there is a higher likelihood of repayment. it does not necessarily mean cutting the amount that they are extending orbe converting the debt into growth sized bonds, coupons linked to the economic performance of the country. asking greece to borrow more money is not going to work. brendan: just a quick answer, 10 seconds, you said the real fight right now is about truck shoretel reform to the eurozone. will there be another change in the next five years? greece has been used as an instrument to decide what the european rules of the game are

going to be. whether there is flexibility or not. i think that europe needs more solidarity and flexibility. in greece has a problem, you don't kick it out of the u.s.. it should be the same case for greece. we have to leave it there. thank you so much, alberto gallo, joining us from london. day," thed on "market summer of binge watching. netflix subscribers reached 65 million people. but profits are down as the company shops for content.

♪ brendan: good morning. i'm brendan greeley. pimm: and i'm paying fox. let's -- and i'm pimm fox. julie hyman, i noticed that

index systems are showing big movement? julie: let's look at the individual movers, a lot of it is earnings related. one of the ones that has yet to earnings that is after the close of trading is google. shares were up 1%, upgraded over outperform. to an interesting here because analyst said that it didn't have to do with tonight's earnings report. they said that it reflects increased confidence in upwards earnings estimate revisions in the coming quarter as part of that has to do with stabilization in revenue growth underpinned by consistent search growth and youtube's continued push for tv ad dollars. going into that report tonight, even though the car does not have to do with earnings tonight the shares are up i 1%. in terms of the countries that we have heard from, citigroup and goldman sachs are two of them. citigroup's second-quarter net

income jumping ahead of estimates, like we have been seeing at many of the banks operating expenses are cut down 7.2%.to two -- trading revenue is down less than 1%, however old -- over at goldman sachs we saw a larger drop, particularly in fixed income trading. those shares are down about 1%. looking at garmin today, the technology tracking device company, you would call it, coming out and cutting its forecast for a full year of earnings, siding with going on with the u.s. dollar, talking about competitiveness in the fitness market that has led it to be more aggressive with pricing and spend more on advertising. maybe you could wear a fit that and not a garmin device at -- instead.

profit was up in the second quarter, focusing on medical loss issues, the company spent $.81 from every dollar of the premium on patient care. that's the net loss ratio. the number, even though it has come down, as you can see, is still lower than analysts were estimating. brendan: thank you. top stories crossing the terminal right now, president obama is making history this morning, the first sitting president ever to see inside a federal prison outside oklahoma city. part of his perch -- his push for what he calls a fair justice system. breaking -- breaking records, " go set a watchman," the top-selling book in the u.s.. she wrote it before "to kill a mockingbird," and it was never published. something else to cheer about? jerry brown has signed a bill

that recognizes cheerleaders for pros -- pro sports teams as employees, meaning that they are entitled to overtime, higher wage, and sick leave. reportedy better-than-expected results this morning. earnings and $931 million or $.76 per share. ebay also saying that they are selling their enterprise unit to a private equity group led by the start -- sterling partners price group. shares of ebay are up more than a quarter percent on this news. aendan: netflix reported second-quarter revenue of $1.6 billion, topping 65 million subscribers. here to help us break it down as cory johnson. the story is still subscriber growth for netflix. when does that change? cory: i don't know. brendan: 65 million? cory: that's right, 65 million.

pimm: eight dollars or nine dollars per month? brendan: does that include my parents, who use my account? cory: one of the things we will take a look at later, look, when we look at this company netflix says don't look at the revenue growth or our profits and if you have had lunch, maybe a big breakfast, don't look at those results, it won't make you feel good. over $200 in the negative, they say to look at the subscription numbers in particular. they added 2.4 million subscribers in the quarter and the growth rate, i think the this is the most important thing from a positive side, the growth rate has been slowing down but it has picked up again.

that's a good sign. normally you don't know how big the international market will be for them. but they are not a social network, they should not have to reach scale to make money. they should be profitable with each subscriber, right? cory: analysts who understand the business discuss content costs, but they don't, they barely do. it has to be filed in terms of the commitment to contingency. amount that they contractually said that they would spend on sign contracts with warner bros., sony, and original content providers to buy this content, promising at a bare minimum to pay a certain amount, but because the delivery date may not be a certain thing or the delivery date may not be certain -- it may be called accountantser 2, don't put on that balance sheet. -- put that on the balance sheet. brendan: last quarter they hit

$9.8 billion. pimm: we will go into netflix off-camera, the stock is up. i want to get into ebay, tell me what's going on there. cory: the numbers today show me what they know that what we know, ebay the website is thanng much more slowly the paypal business. they know that, that is why they are splitting it off. story underneath it all is not as big a deal, but the separation of these businesses -- about that enterprise business? over $900 million. cory: it is to make the business is more clear for wall street. on ebay?what is still people selling things out of their garages to each other? or has that time passed? there is still a lot of that, but there are also a lot of fixed price sales. think of amazon and walmart.

any sized business can operate othery, whereas there businesses that are trying to steamroll. out of town? out of the house? helping us to understand what happens in silicon valley, cory johnson of silicon valley. coming up, china taking relaxation to another level. workers let their hair down this week. ♪

brendan: all right. forget summer fridays, what about faceless tuesdays? a so-called relaxation day in china, workers are allowed to wear masks to hide their facial expressions. a monthly event with various themes that allows workers to let their hair down, so to speak. this is based on a movie. pimm: i know.

based on a popular japanese movie. this.n: i'm amazed by i don't think i would find it relaxing if i walked around and could not be people's facial cues. but i feel like there is an ancient tradition of mask theatre where you show a motion with your body. if you cannot see my face, but i am still slumping, i can show my emotion through my body. pimm: ok. i had no idea you were going to put on the hockey mask. brendan: you can still tell how i feel. pimm: but i have a feeling that these are workers who are not in an industry where their persona and face is on display. this may allow people to in a sense maintain their individuality in a way that does not compromise themselves in big group settings. if you are in a factory setting or a big office setting, maybe it allows you to not worry about being happy or sad. do you feel like you are obliged to be happy at work? brendan: obliged? pimm: i'm just generally happy.

next to you. brendan: aww. he is mercilessly not letting me forget that i'm low in the financial market. pimm: it's a 2001 japanese movie, bigger in japan than "titanic." no face. brendan: maybe you should keep -- should check it out. i will work on that and practice my body language as i leave. pimm: we still like your face. hang on to it. coming up, donald trump claiming to be worth more than $10 billion. how does he stack up against other gop hopefuls? ♪

welcome back to the "bloomberg market day." taking a look at the top stories right now, european finance

ministers are throwing grease a lifeline. they've agreed in principle to give greece 7.6 ilion dollars in the form of a bridge loan in order to keep the country afloat until there is a new bailout package. this comes hours after greek lawmakers in parliament approved new pension cuts and tax increases. were passedity cuts before they could get the bailout money and meanwhile the issue of debt relief has come up again. this time at the european central bank. >> it's incontrovertible, debt relief is necessary. no one has ever disputed that. the issue is, what is the best form of debt relief within our framework? within our legal institutional framework? that we should focus on this point in the coming weeks.

brendan: -- pimm: this morning the german finance minister was playing hardball, saying the only way with -- dealing with a greece would get a reduction was if they left the eurozone, at least temporarily. blackstone, the world's biggest manager of alternative assets, the firm took a hit when the greek debt crisis only got worse . plus shares of companies that they took public also fell. one day before they split into two businesses, you a is selling one of its units, selling its ebay enterprise, the division that houses warehousing and with just six. $925uying unit is paying million. ebay spins off the business from its online marketplace operations after up proxy fight from carl icahn, who has been pushing for the spin up.

one more reason for taxi drivers to hate huber, it has overtaken taxi as the form of ground transportation that appears most on expense accounts according to a firm called certified, which the second quarter uber accounted for 65% of ground transportation received. those are your top stories at the moment. at the moment, markets are closing in europe. for the latest, let's go to manus greaney in london. that: closing nicely on side, the dax is up and every day you get a building block of good news that lets you move back towards normality, the european central bank with wanted native easing. the greeks getting a bit of extra liquidity to tide them over into next week. the head of the ecb talking about that forgiveness or elongating maturities.

for seven days in a row the longest streak since the start of march. paris, the best streak for them, european stocks up non--- up 9% from their nadir. autos, what a great sent -- what a great number of numbers in june. , bmwregistration up 15% and vw, swatting away the issues by making their numbers in china on that side doing quite nicely. you are seeing them doing quite well when it comes to the swatch on your arm. china mainland, helping them with 5.2%, bolstering them against what is going on in hong kong. at the you with a look euro dollar trade, buying stock at 70.

when you look at the slightly longer term dynamic over the past 30 days you can see that there is a momentum there. he will see if the euro dollar goes back there. dollar strength, as you said, back to you. thank you very much -- pimm: thank you for much, manus. .he gloves are off the security and exchange commission is causing -- is fraud,g lynn tilton with but she is on the warpath, suing the sec. it helps to have friends in high moving 100,000is dollars from goldman sachs executives. wall street wants him in power? we will tell you. city profits rebounded, bank of america profits surging, a monster week for big banks, all of that and more coming up on the bloomberg market day. the donald trump campaign is claiming that his net worth tops

$10 billion. trump and the rest of the candidates file disclosures with regulators yesterday, meanwhile some staffers are disputing reports of his previous claims about his wealth. so, which 2016 hopeful has the most cash to bring in? richard rubin is in washington. joining us from -- joining us from washington is phil mattingly. what is it that trump filed? why is there a disparity between what he said in the past, what he says now, and what people say currently? >> he filed what is known as a federal financial form where you list all of your assets and within ranges show what they are worth. we will see the actual form sometime in the next month when the federal election commission puts it out. so, is he worth $10 million?

you might get some sense of that from the form, but as he pointed out yesterday the top range on the form is over $50 million. if there is a billion dollar worthng but it is only $500 million, he checks the same box. it's hard to know what he's worth. he's had a lot of different claims over the years. claims his brand has value, which is difficult to measure. we will have some sense, but we will just to -- just have to listen to what he says about what he's worth. we heard from donald trump, but what about the other candidates? david: -- phil: in the last way four hours we have a sense of what they have on hand at what they can raise. it is fun to look at big numbers, but it gives you a good sense early on of which candidates are actually real

when you have this many in the field. another one likely to join soon. in great shape. not just the campaign fund-raising, but also the outside groups that support them , jeb bush came in at $114 million raised, more than any candidate ever. then you have someone like ted who brought in 51 million. marco rubio, also considered a top-tier contender. scott walker, who just announced his campaign was able to bring in 25 billion. we went into this campaign knowing that there would be a lot of money donated and spent, but the money that we are seeing this early on, team of ahead of is unprecedented right now, meaning a lot of these candidates will be able to stick around for a long time. pimm: what about the democratic candidates? phil: we all knew that hillary clinton was going to rake in big cash, and she certainly did, not

including outside cash. if you include the super pac that was supportive of her, what was more interesting is the bernie sanders numbers, the vermont senator who is a declared socialist in this race who said that under no grounds will he support a super pac supporting him. on his own he raised $15 million from grassroots supporters, a group that largely shied away from hillary clinton there were some moments on the grassroots front which democrats already declared, like martin o'malley, who already raised $2 million. lincoln chafee, the rhode island governor at 400,000. bernie sanders grassroots momentum matters to him. pimm: why is it so important for donald trump to trump his wealth? well, part of his brand is

his wealth, going around saying that he is incredibly rich. that's part of what made him famous on television. and there is a concrete value to . he put in $1 million in alone to his campaign. deepwe have a sense of how his personal pockets are for real, we will have a sense of how much of that he is willing to spend flying around the country, buying campaign ads, talking to voters. you will have a sense of whether his ilya and's billions, if he is willing to spend them, can match up. indeed. richard, phil, thank you both for joining me. did lynn tilton go from a savior to a target? next. ♪

to theelcome back bloomberg market day. i am pimm fox. i want to begin with stories crossing right now, homebuilders are getting more confident about the housing market, it's at the highest level since november of 2005. there is plenty to make homebuilders cheer. the job market keeps improving, mortgage rates are still at historically low levels. a trial date has been set for the southt in the charleston carolina church massacre. he may face the death penalty. he is accused of gunning down nine people at an historic black church. another big name is leaving espn. the latest, he has anchored fore radio morning program

15 years and has anchored television programs. there is a report that he may be going to fox sports. earlier they have parted ways with keith olbermann and bill simmons. patriarchal partners chief, lynn tilton, is fighting the sec, they were the subject terms ofestigation in defrauding investors over three loan obligation funds. meanwhile, she claimed she has saved 240 companies and over 7000 jobs in the united states, generating $8 billion in annual revenue for her firm. with tilton to find out how she's fighting the sec. on march 40th -- march 30 you were accused of defrauding investors in your funds.

i wanted to start by asking you your reaction when you found out. lynn: it did not come as a surprise when they filed the action. i had chosen to fight rather than settle. needless to say, i was extremely disappointed that they had come forward on this complaint. the claims are meritless and unwarranted. we strongly disagree with the accusations. using the word fraud on things that were this -- word -- were completely disclosed. quite what did they get most wrong in the charges -- >> what did they get most wrong in the charges against you? the: they even admit that contract dispute is a contract dispute. it really comes down to a simple fact which is that once these distressed companies could not pay full interest and should

have defaulted, their liquidity stock had liquidated. frankly when you buy companies left for dead, the notion of a long and winding path of restructuring, that there would never be a moment where they could not pay full interest is contrary to the platform and the business model of the fund structures. >> typically when the sec does something like this they settle or they hire lawyers, higher prices firms and quietly fight. you decided to do something quite unusual, you sued the sec back and have taken this fight into a very public forum. can you explain what drove your decision to do that? lynn: i have always fought for principal and truth. being able to live with myself is probably the most important thing that the for -- that the fines me. that -- that defines me. if you follow that path for

truth and fail, at least you know you have walked that path that was true to the self. i had no choice but to fight for my truth. 415 years i worked tirelessly to save these companies from liquidation, 700,000 jobs associated with those companies. it was not right, it was not correct. i have tens of thousands of employees who depend on me. it would have given fear to my people that i was backing away and that something was wrong. >> this is a risky move.

lynn: look, i think that in anything there is reputational damage. when someone accuses you of thed, especially government, people often believe that the accusations are real, even prior to any kind of proceeding. there is an overhang that comes with such accusations. that said, i expect to win and expect to prove that this is wrong. my hope is that i will make the path easier for others who usually turn away and settle because they feel they have no chance of winning. because of the forms that the choose in gets to terms of due process and federal closure. joining me now, sheila, great to have you here. .ell me a bit about lynn tilton what exactly are these investments? she is an interesting

business woman. she pioneered mechanisms for turning on bulls of loans from companiesustomer -- turning them into securities and putting huge folios of them together and selling the resulting notes to investors. she has used this to build up an that lends money to companies that have no other source of funding. that would basically be in bankruptcy or liquidated. so, when she goes to get investors for patriarch partners, it is because she needs is -- needs to get rid of the debt from these companies? and every month they pay off some portion of what they out and she will help restructure those businesses, nurse them back to help -- health and they will make a profit at the end. pimm: you spoke to investors? sheelah: they have mixed

feelings about this. some of them agree with what the sec has said, even though they admire much of what she is doing to save jobs. it is a complicated situation. pimm: this is an interesting story and lynn tilton is an accomplished individual. thank you very much. you can read the details on the cover of "bloomberg businessweek." we have more of "market day," coming up. ♪

jeb bush has got some big fans and they work on wall street. betty liu is here to explain. lots of campaign donations? of the moste unsurprising developments, wall street has backed these candidates time and time again. jeb bush is at the top of the list and it looks like goldman sachs, their bankers have donated something like 100 or a

$4000 in total so far to the jeb bush campaign, ranging in people from the cohead of investment management to one of their advisors, the former head of the world bank. goldman sachs, jpmorgan, morgan's hanley, all of those banks have supported or arson orting those republican ventures. pimm: not the banks, but the individuals, up to a $2700 limit? betty: $2200, but yes. what are the hot button issues that banks want going into the 2016 election? one of them that could be a bipartisan issue is to roll back the shadow banking industry. we are talking about the peer-to-peer lenders, the

private equity groups. might he be targeted? those firms who are doing what tanks traditionally did before dodd frank, might that be an issue? both sides, clinton -- i don't know about bernie sanders -- but take clinton, bush, or others, that could be one issue for the banks. thank you for bringing this to our attention. see you in a little bit, betty liu. for right now let's go to julie hyman. julie: let's take a look at how the major averages are doing today. the nasdaq is leading gains and netflix is helping matters there after subside -- subscriber growth in the net -- last quarter. joining us now is the equity derivatives strategist at bgc partners. we are talking about the ball, it has dropped off.

if you look at the index of volatility it is down for three straight days. what happened to the return of volatility? >> if you look at the cost of options, they are protecting against higher money calls. there is still: the expectation that we will -- julie: there is still that expectation that we will. >> even though things look like they have been settled for a while, china has stopped following, those calls are still priced in the 85% to 80 percent range. isging of these options still a bit expensive in the near term, but if you do the hedge it has fallen quite a bit. china, things are

stabilizing to some extent. would you be staying away? >> to take advantage of the added risk rhenium, i think it is important to have a strong view before you get into position here. to cut through the noise there is a key story to tell about the last year, that is a surge in new investment individuals. we talked about this, the spring is a region -- a reason to be short, the key indicator being what's still open. the chinese regulator under their english language website the numbers started to stall and we took it among one of the many reasons to get involved in china. the 29th,ame out on no explanation. have not updated it since. we went to a chinese language site, there was not identical data, but comparable numbers

with new investors coming into the market and the data had limited. there had been three correlations between the changes on mainland china and returns. phil: quick -- julie: quickly, your trade estimate? >> september is when the fx i puts in to collect a premium. it's not too bullish. but you will get some profit associated recently with this. thank you so much, really interesting data. do not go anywhere, much more coming up.

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pimm: good afternoon, it is noon here in new york, 9:00 a.m. in san francisco, and midnight in hong kong. betty: and goldman sachs has breaking news. pimm: and we will give you details from both of the earnings from j.p. morgan and goldman sachs. will tell you about a secret that j.p. morgan investors or cap from one health company. ♪ pimm: good afternoon, i am pimm fox. betty: and i am betty liu. it is always great to join you,