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,

pimm. pimm: thank you. we heard everything from jobless claims this morning to the passing greek bailout measure. markets are near the highs of this session as you can see on this chart. in fact, no, it has come down white a bit. -- hasy were trading come down quite a bit. but they were trading at the opening. pimm: the nasdaq is up more than 1%. betty: exactly. let's move over to the oil markets and see how they are trading. even though we are seeing a bit of a gain here, we were trading at a three-month low. that had to do with a stronger dollar. with the news from the ecb with the euro. pimm: and they are going to be

spending a lot of money. let's take a look at the bond market. unchanged for the 10 year and basically unchanged for the 30 year as well. we will have to hear what janet yellen says this afternoon. let's take a look at the dollar currencies. the dollar is strong against the at thend take a look pound sterling. the pound is at a seven-year high against the euro, so a lot of automobile exports are going to the u.k. and very strong you u.k. reports. betty: not good for their exports, either? pimm: let's take a look at the news across the bloomberg terminal at the moment. to terms of aeed third bailout package. this is for an interim loan to cover upcoming debts.

president draghi: the issue is, what is the best form of debt our legalt is within and institutional framework? i think we should focus on this point in the coming weeks. pimm: all right, for more focus on greek politics, let's go to david in athens. billion?t, $7.6 how much of a difference is that when to make for greece? david: mario draghi is saying that greece will be able to make on next payments to the ecb monday. the banks have been closed for a little bit more than two weeks and people are very desperate for those banks to open again. what we're hearing about now is

capital controls, that is what the people are able to withdraw from the atms. while the banks may reopen, those capital controls will remain in place. and i want to focus on politics here. last night, of course, that big had 229d alexis tsipras at members of parliament voting yes, he voted no, and if you arty,at alexis tsipras's p his party did not vote for that particular plan. we are going to see a change from the government. is reporting a cabinet shuffle, but that shuffle is not going to happen today. still, on the horizon, we are looking at what is going to be in the coming days.

david gurat to thank for reporting in athens. and now we will move to politics here in the states, chuck schumer reported that -- requested that puerto rico be able to file for bankruptcy protection. puerto rico has a whopping $72 billion of debt and about 3.5 million people. betty: incredible. goldman sachs reported earnings today and had profits that drop from 49% -- dropped 49% from a year ago. revenue at citibank fell. profits that were , and they were banking and more than a dozen markets. ebay is selling its enterprise

.nit howstors are eager to see even will perform on its own after paypal starts performing as a separate entity on monday. there was a major data breach last year. and walmart says it's counterattack to amazon's prime day sale event paid off. walmart reported its biggest sale day ever. amazon hasn't released details but one prime dale, analyst said that sales were up about 80%. did you do any shopping? pimm: i did not do any shopping, no. s fell, jobs claim

and they often go up and down this time of year because of automakers shutting down their plants in the summer planning to retool for summer -- four new year models. and there is another indication that the residential real estate market is picking up speed and strength. there is a job market that is steadily improving and the economy is strengthening and that makes home prices more attractive. factories are struggling to contribute to the expanding u.s. economy. the federal reserve bank of philadelphia says that its index fell to 5.7 in july, it was 15.2 in june. a reading above zero indicates that manufacturing is expanding. 's newlynd harper lee

released novel is already breaking some records. watchman" is selling record breaking numbers and sets sales records. pimm: never published but now a big hit. betty: now it is number one. pimm: and teachers in the retirement system in the state of california has about 880,000 teachers, but it fell short of its investment goal last year. betty: when the investment says itare in, calstrs fell short. they spoke about that performance, that lower performance, with erik schatzker and matt miller. >> you've got to keep in mind that this is the sixth year of a

bull market, so it is not surprising that we have had a really low, flat return. we didn't outperform our benchmark of 7.5. erik: when are you going to come out with your fiscal year? haven't announced yet, but this is just a pace in a marathon, a one mile pace. and five yearsee are at 12%, and if you look over 20 years, 7.6%. as we come to the tail end of a bull market, many people may conclude and you may agree, that yes, those five and 10 year returns look good, it may be a harbinger of what is to come ur,r the next two, three, fo five years. you know, when you we run

marathons, we hit hills, and there may be a hill in the next couple of years. generally, you guys have been reporting on earnings surprises. matt: we are looking at a chart that is fascinating here with mostly equities here, and i want to ask you about hedge funds. you said a moment ago that you own the market, you own everything in the usa. you don't own a firearm manufacturers to read many getle laud that decision to they say it is an ethical decision. i wonder if a., that has cost is there iand b., divestment for social concern? chris: the challenge with this development is that it is quitting. there are firearms that are illegal in california. there are two companies in the broad market and they impact to us -- and the impact to us is

negligible. people have argued, why do you own the stocks at all? and we want to have control in the market. we have been out of tobacco for 15 years and i can say that he has actually cost us about $4 billion. matt: but i am sure the teachers that are investing in you are happy about that? chris: we are not doing it for social change. we are a big fund, we don't bring about social change, this is really about investment risk. if you look at those industries, they haven't done well. sales are down. obviously, the firearm industry is constantly under attack. so we look at this from a standpoint of risk. erik: what about an issue that is not as controversy but maybe an issue that does not divide

people in the same way. environmentalism, climate change. what about coal for example, what about oil? especially, is not under review in the senate in california, making it illegal to invest in coal companies? chris: not illegal, they're asking us to divest in coal companies, so you are spot on. we are going to meet with the bloomberg finance people. erik: for what? chris: to get research, we want to know about the future of the coal industry in the usa. it does not look good. of coal athe future look like in china but specifically in india? i am looking at it from a risk standpoint but also as an opportunity. pimm: that was the chief investment officer of the california teachers retirement

system. betty: such a big challenge in that job. so much more ahead in the "bloomberg market day." marketnt chinese stock problems and we are going to hear from a long time walmart -- longtime wall street executive, stephanie krawcheck. and we are going to be speaking with robert associatee is the vice chairman of kissing her that's just injure -- of kissinger. ♪

pimm: all right, welcome back to the "bloomberg market day." i am pimm fox. betty: and i am betty liu. let's check out with the market movers and shakers and how they are doing.

let's move over to betty liu -- move over to julie hyman. how is netflix doing? julie: i don't know, but netflix good, i am definitely a netflix user, and 55 million people, that is how many people the company had. -- how many subscribers the company had. "orange is the new black" and couple of" are just a the new shows that the company is offering. it is not just using -- just offering a new subscribers here in the u.s. but also abroad. , that is whate they have been backing. date stockir year to

performance. netflix is at the very to be top -- very tippy top. it is more than double the gains that we have seen for the ,econd-best performer electronic arts. really, just a great performance. they're earning ratio has gone up quite a bit. that is on the top of the s&p 500 not just for today, but for the year to date. sherwin-williams, it was having its worst day in about six years, and now it is having its worst day in about a year. the company cut its forecast, it was hurt by the effects of the stronger dollar and it is also seeing a weaker demand in some of its younger fee. --min is also cutting its weaker demand and some of its markets. garmin is also cutting its

demand and it is going to try to be more aggressive in its pricing. in these shares are having their worst day in almost two years. it seems like competitiveness is on issue -- is an issue. there is a larger offering these days because of this stuff. betty: i guess i am old-fashioned. julie hyman, thank you so much. pimm: you know what is not old-fashioned? amazon prime day. it sold more units on prime day that it did on black friday last year. worldwide order growth was 18 % higher. items,llion units, sku's, were sold. betty: i actually went on the

website, i am an amazon prime member, and to go shopping and see what was going on. pimm: was your money burning a hole in your pocket? hady: some of the items sold out, but i found myself thinking, do i really need this outdoor pizza oven? pimm: of course you do. off, but there0% was also another television, but you end up thinking, do i really need this stuff? pimm: the report from amazon is that they sold more of devices. let me give you some other top stories that we have been looking at right now. another big name is leaving espn. : howard has anchored espn radio's morning show for 15 years, he has also -- colin cowherd hasolin

anchored espn radio's morning show for 15 years. and the network also honored the biggest stars in the world, but caitlyn jenner stole the show, earning the are thrash award for courage -- earning the are ashe award forr courage. others also took top individual espy's. betty: i liked caitlyn jenner's line saying that getting ready for the red carpet was harder than getting ready for a decathlon. no more rocking in the free world. singer-songwriter neil young is removing his you sick from all

streaming services. he said "streaming is the worst audio in history." he writes on his facebook page that eight tracks and other media works better than streaming. pimm: coming up next on "bloomberg market day," the hunt for revenue. betty: we will be right back. ♪

betty: this is the "bloomberg market day." i am betty liu here with pimm fox. big bank, we had earnings rolling through this week. goldman sox its second quarter, sd it fell 14.9 -- goldman

achs reported its second quarter, and it fell 14.9%. betty: and the troubles with greece and china weigh on the markets as well. here is how sally krawcheck puts it. they are trying to get their net earnings up, that is the best kind of earnings that got. -- earnings they've got. betty: joining us now is michael moore, and how do they drive the bottom line? was saying,sallie they are still waiting on the can you get their deposits in the door when rates rise? in the meantime, can you get

-- cut costs? details forittle us, the dow says it's down, but others say not to worry about it? michael: they knew it was going is,ome, but the question how much will be continuing on legal costs, they were a little vague on that on the call. it has been much less from quarter to quarter. i think the biggest concern is the drop of fixed income trading. isty: where do they get -- there anywhere around the world where they are going to drive some revenue? michael: you saw some pockets, you saw equity trading in asia did pretty well this second quarter, we will see the fed here in july, we've got a lot of turbulence. on the consumer side, there seems to be a lot of promise.

there was some growth increase, so that side was a little more optimistic than the investment banking side. i want to thank you very much, bloomberg's michael moore, who knows more than any of us about the banking industry. well, i am going to say goodbye. betty: thank you, pimm. and now we have the vice-chairman of kissinger and associates. the greekigh in on banking system and all of that in a moment. ♪

betty: a beautiful day here in new york city. welcome back to the "bloomberg market day." i'm betty liu.

here is a look at the top stories crossing the bloomberg terminal in the last hour. yellensident janet reiterated that the fed is unlikely to raise rates this year. industry experts say that talk about a hike is likely to have caused mortgage rates to boost the highest since fall. you can watch that 2:30 p.m. alive today at -- today right here. appeared inoof court today, and roof may face the death penalty. the judge also extended a cake order -- gag order last week. gunning down of nine people at a historic black church last month.

and economic sanctions have long prevented carmakers from it doing business in the islamic republic, and german carmakers are eager to return. they could reap an additional $9.4 billion in revenue. and unitedhealth group is raising its for your fault -- for your forecast. wasguest health insurer boosted by awesome technology developments. it was up in shares, and analysts were expecting 1.58. --y are expecting revenue of ais includes the purchase of pharmacy manufacturer. and cheerleading isn't just fun in california. it is now a job. governor jerry brown has now

approved legislation to recognize the national cheerleaders as employees. they are entitled to minimum wage and overtime pay and will also get sick leave. that is a look at some of the top stories at this hour. hour, up in the next half the leverage loan market is wall street's wild, wild west where anything goes, and that includes keeping secrets. that also includes secrets about jpm. and is netflix too reliant on free trials to sign up subscribers? plus, google reports its earnings after the bell. is it investing in too many projects like the self driving car? preserver's toe greece today after the company approved a fiscal reform plan. approved aisters

loan that will help greece make an ecb debt payment on wednesday. remember that greek banks have withdrawed with strict all caps in place for two weeks. ish me to discuss greece the associate, vice president of kissinger. thank you for having me back here on your show. news: finally we have good here on greece, and in the end, do you think it was all worth it? worth it in the sense that it kept the ball rolling, however, it kept kicking the can down the road. greece will have to implement what their parliament just past. that is going to be -- passed. that is going to be tough because there is going to be a

lot of opposition on this. it is going to be very painful. the second point on this is that they are going to need debt relief of some sort, whether it is a restructuring of the debt or a prolonged payment of the debt, something needs to be done. currently sees the current debt as unsustainable. this makes it harder for them to pay off their debt, so there is a disconnect there if they wanted to take tough measures, it is going to be hard to repay the debt and therefore they will have to get some kind of relief of some sort. betty: they are going to need a bigger right down. -- big write down. that's what it is. robert: they will need to write it down. the germans seem willing to do the latter, they want to prolong the payment. for maybe deck -- payment period for maybe decades. potentially beld

longer and more volatile than getting the deal passed? this is going to require a lot of subsidies, including for pensioners to have their pension reduced, so there will be things that will make it very difficult for the greek people. on the other hand, had they not done this, it would have made life even more difficult. the banks would not have been able to reopen and there would have been a huge, catastrophic credit crunch and they would have to probably not go out of the eurozone or go out of the euro or stop using the euro. betty: temporarily, at least? robert: temporarily, at least, and it would take months to put that into place. betty: across europe, there is very little sympathy for the greek people, in particular what is going on, in germany, they were outright angry having to go

through this and having to bail out greece. there were sympathizers for the greek people, and one of them is pick -- tom -- tom the best-selling author. , the best-selling author. "what a huge joke. germany is the country that has never repaid its debts." robert: we have to deal with the current issue, and the current issue is that the greeks have borrowed a lot of money over the past few years, and countries have lent them a lot of money and individuals have lent of

them a lot of money. and people who have been speculating that things have been getting better have given them a lot of money. i don't to the point of dredging up history. betty: is there any value of seeing that in that context? robert: i think there is very little value, if any, it in seeing it in that context. we could go back into the history of all sorts -- by the way, 11 american states defaulted in 1873. shelley go back there? -- shall we go back there? sustain that can't debt and the world has to figure out, including the imf and the european union, how to deal with this. the united states government, if the imf gets involved as it is the leading shareholder in the i'm, have to deal with this as well. u.s., speaking about the

what a huge deal that they got this nuclear settlement pushed through with the iranians. again, was it worth it? republicans say no and do think it will pass congress? robert: i think we were not going to get a perfect to deal from the iranians, they were not going to fully give up their nuclear capacity. but they have really scaled it down dramatically in terms of numbers. they are going to have to lower 2-35 enrichment levels, so it accomplished very important american objectives. did it a couple shawl of them? -- did it accomplish all of them? no. did it accomplish all of the iranian objectives? no. did they get the managed

access? robert: it is hard to do with the reactors, you cannot just slip them on and flip them off. the iaea is going to be very strong on this. this is hardly perfect, but the question is, is it better than letting the iranians continue building with no monitoring at all? betty: with no monitoring at all, right. money, wed with this got a lot more monitoring and transparency that was otherwise the case. and don't forget that this is not just an american deal, as was french, this was the u.k., this was china, and russia, they don't want that as well. there werere we go, companies that had less, and how quickly do you expect that they will go back into the country of iran? question is an

interesting one. what we don't know is what kind of deal was reached between the supreme leader and their factions in iran that didn't like this deal? i don't think the military liked it and i think there were a lot of people on the hard right that didn't want to give up anything on the nuclear side or make a deal with the united states. betty: at all. robert: so the question is, what will this look like for foreign investment? what i have heard is that the iranians have scheduled a conference of senior leaders in september and this is something that at least indicates that some people now feel, in particular the people on the street who were celebrating, they weren't us so much celebrating a victory over the united states, these are young kids, by and large, and they want iran. to be open -- iran to be open. >betty: they want access to the

world. access, thereant are a lot of very bright, highly trained physicist. there are a lot of people who are separate from the government. robert: they don't like going around and having to comply with some of the things of the government imposes. they want to break out. if they had good governance and were open to the world and the world was mostly engaging with them, they would be very entrepreneurial, they would be a not just in the middle east, but around the world. and i am not just talking about a military power, but -- power,-- and economic yes. bob, thank you so much for joining me. robert: thank you. vice: bob hormats, chairman of kissinger. and a look at the winning streak

in today's global market wrap up. ♪

betty: welcome back to the "bloomberg market day." i am betty liu. we are following some breaking news out of chattanooga, tennessee. police arehere says following an active shooter. the u.s. navy said in a tweet that it is investigating the reports of shooting at a navy recruiting the lien. there is also reports at a

chattanooga college that they tweeted reports on their platform that there were reports of shooting on campus and they are asking everyone to remain inside. we are going to bring you any headlines as soon as they come across. in the meantime, we are going to look back on the markets, and the u.s. markets in particular, and they're reaching a high it -- highs of the session. joining us now is julie hyman. up thathe nasdaq is now are than 1%, helped in part by bymer earnings reports netflix and dow jones. let's take a look a little bit more granular early - may, there are i areas of slight red, including materials, but there is a

relatively broad-based rally. it is relatively defensive, interesting enough. it is not the cyclical groups, telecommunication, utilities are helping to lead the gains in the session here. you can see these three groups are helping to lead telecom -- or tech, i should say, and note these earnings between intel and netflix. i also want to look at the commodities markets today. we are seeing a selloff of gold after six straight sessions of declines. gold is trading at its lowest in eight months as well. it was down another three dollars or so today or one third of 1%, excuse me, especially after we heard from janet yellen yesterday that it is likely we will see a rate increase here.

we also will see a short spike in gold, and if you take a close look here, this goes back to the beginning of when the u.s. government began tracking this in 2006. you can see clearly the highest amount of short interest in the gold that we have had since we began tracking it. also, let's look at the movement and oil since we are tracking commodities. aprilat its lowest since 9. it is not off by much, about one third of 1%. betty? betty: thank you, julie. how the a look at european markets closed, here is magnus cranny. every day you have a building block of good news. the greeks are getting a little bit of extra liquidity. just enough to tide them over for next week. debte are talking about

forgiveness or elongated maturities on the debt for greece. the longest winning streak since march, paris is up since the start of the year. in european stocks are up 9% now from their nadir. great set of numbers here for june. upr scene auto registrations 50%, that is the best in five-and-a-half years, bmw is just swatting away their issues by making the numbers go up in china. this is quite nice to get you are seeing the autos do very , thatand as far as swatch to glitter on your arm, china mainland is helping the stop move up 5.2%, and that is going to bolster us of what is going on in hong kong. betty: all right, that was manus

cranny in london for us. and it is fundraising time for the presidential candidate did the data is in for hillary clinton. elon musk is one of the donors as well as stephen spielberg and jeffrey katzenberg, they are among the biggest donors of her campaign. hillary clinton it raised $8.1 million in$8.1 california. her total is $47 million. in the meanwhile, jeb bush has $114 million. we are joined by mark crumpton now. mark: that is interesting, sheryl sandberg said back in april that she would like to see

more women running for president and more women in politics, so i guess we got a hit from her back then. betty: it is not surprising at all. forthe wall street money jeb bush is not surprising. and it is also not surprising that hollywood was supporting her. that is unsurprising as well. more than 50 employees from the talent agency in hollywood donated $80,000, and there was also employees at facebook and google. so they are tapping into that star power again as they usually do. and there has of course been the complaint from republicans that california has a liberal bias, and that money seems to bear that out. betty: this is perfect evidence for them. thatmight also show hillary clinton is out of touch with the public, she mixes in with the hollywood elite.

you can't to get more elite than the hollywood movers and shakers. but look, this is a little bit of fuel, i would say, for her opponents. they could say she is out of touch with the middle class. youus: you know, -- mark: know, that is an interesting thing, when you make money, they say you're out of touch. story, nexther hour. we are going to be talking about greece, as you say, and we mean this with all due respect, but this story about greece is the gift that keeps on giving. we will be speaking with a representative from moody's and they will be talking about passing these anti-austerity measures and they believe they are mortar coney and that the ones they agreed to earlier this year -- they believe they are onian than and -- drac

the ones they agree to earlier this year. betty: and we will tell you about a secret the jp morgan cap from investors. ♪

betty: welcome back to the "bloomberg market day." i am betty liu. is stillet's wild west very much alive in the loan market. a morgan was investigating lab called millennium, but investors were never notified. i want to bring in bloomberg's lauren keller who wrote the story. so jp morgan did not tell investors that this drug company was being investigated? jp morgan didn't say

aboutng, they tell people it, and the company did not disclose this either, and they would obviously have then involved in the marketing, too. betty: what do they say about this? what does millennium say about this? they said that you could google the story, and they said there was an investigation and similar things happening with these lawsuits. but they want to give you a perspective and say, this is how this is going to impact our company. they did not do that. betty: to some extent, they need to do their own research. sure, and it is entirely up to the lender to understand the company, but at the same time, there are things that the company needs to disclose. betty: so jp morgan says what? jp morgan has not

commented on the story at all, but they are under the understanding that they did not have to disclose. betty: very interesting. thank you so much, laura, for joining us. and janet yellen will be back on capitol hill this afternoon. this time she is testifying before the senate banking committee. bluebird will bring you live coverage at 2:30 eastern time right here on bloomberg television. ♪

betty: 10:00 in san francisco, 1:00 in new york and 1:00 a.m. in hong kong. matt: mario draghi says there

was never a question greece would remain in the eurozone as he relieved further 82 briefing thing. the latest from. betty: google talk has been flat for the past year. investors want to eat bigger revenue growth, especially on mobile. came the search giant delivered ? trumpbreaking down donald net worth. if he really worth $10 billion that will bring the analysis of donald trump empire. betty: good afternoon. i am betty liu. crumpton. mark thank you for joining us on bloomberg market day with a look at the markets on this thursday. citigroup, intel, netflix, and even a beating analyst or cast, along with the ease be or cast -- pledge to live the euro