alix: we are moments away from the closing bell. i am alix steel. joe: and i am joe weisenthal. ♪ alix: stocks rising in the u.s. as the s&p 500 plummeted to within-- s&p 500 came to a fraction of a point near an all-time high. joe: but the question is, "what'd you miss?" just somearnings are

of the things you have to keep an eye on in just a minute. a new zealander is creating big ripples worldwide and why it matters. joe: plus, we hear from a top china watcher as the markets continue to fall. alix: first, when we continue with the stock markets, we are closing at a record here with the nasdaq, and the s&p is a stones throw away with that record high, with virtually no take catalyst today with stocks -- no big catalyst today with stocks. stillheless, we are looking at the weakest quarter for earnings since the financial crisis. we are looking at revenue down about 4.5 percent. the last time we saw that kind of decline was a while back. joe: did we talk about this a while back? alix: yes, analysts don't always

get it right. 47 of the s&p 500 companies have reported earnings and there is a revenue,% earnings meaning that yes, the estimates are not correct. joe: so with the little sample that we have already gotten, it means that this quarter will not be as bad as people were thinking? alix: definitely, we were seen revisions up, and it will outpace that versus revenue, so we will see. joe: that is the thing that we will watch. alix: and joe, we are looking at this, and julie hyman is looking at the numbers, and julie, give us some of the headlines. i am trying to click on the actual release, and i am getting an error message. there we go. and you guys were just talking estimates, and we

also see revenue numbers of $17.7 billion. go, traffic acquisition costs, and this is a little bit better than estimated . we are looking at the cost per click a number, and that is down. that is an important number there. what is google saying? what are google's expenses to get those clicks up? by both of those measures, cost per click is down more than estimated, and pay clicks up more than estimated. it looks like the company is coming and better than it had been estimated here. i am just sort of scrolling through the statement right now as we look at the numbers. we are seeing strong second-quarter results and the cfo said the core search is doing well and youtube and programmatic advertising are areas of strength and she is

also saying, this is interesting here, given that we are talking a little bit about google's cost, she says "we are looking ing businessesgui and we will do so with great care regarding allocation of resources." this is about how google will ,pend moon shots, for example so some interesting commentary there as the numbers look relatively strong here out of the gate. i am not sure we have checked the stock, and it is up 8% here so a strong react -- 8% here, so a strong reaction to those numbers. alix: for now, i want to take a deep dive into my terminal on something that you might have looked at in the last few days, and that is the mexican peso. it is down 2% in just the last

couple of days, but this is also about a failed oil sale in mexico yesterday. joe: you were really excited about this. alix: i was so pumped about this. i didn't get to talk about this. left theompletely room, chevron, exxon, they were not interested even though they already were prequalified. the reason why this is important and we are seeing the peso dive is because the president really president of mexico is trying to revamp the economy. get $60 billion of revenue in the next few years and it did not work. joe: there is going to be another round in this auction? alix: that's right, but off the bat, his reforms were not working. there is not enough confidence to invest in mexico. bam goes the peso. joe: and do you know where greece is in these next few days?

alix: no, where? a chart of the new zealand dollar, and why is it collapsing? one word: milk. white gold. it has been falling, there is a more demand, ireland is flooding the market, but here is an one of thewhich most important economic indicators is the milk that they have. it has been off kilter and you can see it plunging pretty dramatically to a six-year low there. alix: i love that, i love talking about milk. anding us now is jonathan looking at the earnings season that is in full see -- full swing. what is your take on google for the s&p, for the nasdaq when we see this kind of resonant -- kind of revenue growth? jonathan: these are countries that can win not because they

are better but because they are innovating. they have really been the companies that can win not because they are better but because they are innovating. --e really been a winners been the winners this year. google is the heart of that. joe: what is your milk forecast? just kidding. alix: do you have one? we get a lot of questions on the impact of oil on the s&p 500 earnings, and when most people think the oil goes up, they think that is a drag on earnings. in fact, the energy sector does so well on a rising oil that for every 10% move up in oil, you get a 1% increase on earnings. is downtunately, oil about 10% so there is a really big drag. move on theo a 10% companies are.

less competitive. unfortunately, the dollar is transit, and so that is a drag on this quarter as well. there are about 600 basis points, and about 600 basis points of that is weakening the dollar. joe: do you agree with analysts that this is likely to be the weakest quarter? jonathan: we are probably going to see an earnings increase at about 4%, google beat its numbers so far, last quarter was seven, so i inc. we are going to see a second beat, and the this so skews of the overall result that it makes the trend look much worse than it does -- it is. number, you have about 3.5%-4% growth in revenue, and that is what revenue -- that is what analysts are focused on.

muche keep saying, how longer can margins keep going higher and higher? the answer is longer than you think. it is a little bit of everything. joe: on that market expansion question, where is that room to grow? how does it keep growing them? jonathan: it is really simple, if you are growing your revenue by 3.5%-4%, companies are really managing their expenses i about 2.5%-3%, it really is about prudent expense management. what if you have a single point, or is interest expense that is at less of a drag than it normally would be because interest rates are low and they are carrying less than normal. alix: we are talking about crises here, we talked about china and we talked about greece, what is the crisis we are not talking about? jonathan: [indiscernible] listen, if the market

didn't correct by 3% on either china or greece, i am not seeing something that would be really concerning. one thing that makes me most concerned is if inflation moves up faster than people think, especially on wages, that could force the fed to take a more aggressive posture, and that would be bad for the market. i don't see it out there but it is a single thing that we would be concerned about. joe: so if there is one thing you are going to be concerned about, it is wage inflation? jonathan: yes, that is what i would put my call on. joe: thank you so much for joining us. and in just a few moments we will look at google, so stay with us. joe: and the one thing that europe did write during the greek crisis. ♪

alix: i am alix steel. joe: and i'm joe weisenthal. "what'd you miss?" alix: i want to check out this chart here that shows the monthly swing of the euro's value in this year alone, and the ranges are getting now or oh -- narrower and narrower. euro traders decided they couldn't care less. joe: this probably speaks to why alexis tsipras couldn't get a deal. when there is no ripple effect, it is hard to get any extractions. alix: good point, and let's get to one of the top headlines. five people and a gunman are -- dead after a

barrage of bullets at a military base in chattanooga, tennessee today. this is an act of domestic terrorism and president obama has been briefed by his national security team on the violence. joe: another day of testimony day by janet yellen. s --n told lawmakers told lawmakers that raising rates could happen too late and wants to move things to "a more normal state." alix: and a puerto rican government agency has failed to send funds needed to relax bond payments because the puerto rican legislature hasn't approved the money. they're also trying to apply for chapter nine bankruptcy just like u.s. cities. puerto rico is $72 billion in the red. and those are your top headlines. google's second-quarter earnings

or topping headlines. large coryditor at johnson has more. ory: first of all, the quarter looks really strong and business is growing at a really nice haze and getting more and more profitable. a lot of the numbers look really good and one of the numbers that really demonstrate how much people are using google and how good it is to be google is that cost per click number, so the click growth. so the this is increasing at a pretty dramatic pace, actually. cliques have been increasing in cks have been increasing in the 26% rate, but this quarter shows an 18% growth in clicks. joe: and another news -- and in other news.

♪ and they are getting worse, a lot worse. when we shifted from desktop to mobile, the value of the clicks would go down, that once we had been a mobile for a while, we saw the degradation of the value of the click. look at that number. it broke our charts. it is hanging on top of the label. [laughter] so bad it broke our charts. can you imagine? so 11% loss, can you imagine? that is a very bad number. we are going so far in the opposite direction. joe: this is a long-term, potentially exit essential threat for -- assistant -- ex

existential threat for google? cory: yes, and this is potentially bad news. alix: good stuff. cory: there is a new cfo -- -- yes, in the first quarter there is a new cfo. joe: did we learn anything? first quarterher there, so hopefully she is not ruffling any feathers there. increase their headcount again, but yes, there they haveople -- increased their headcount again, and yes, there is more people at

google than ever before. this is the steadiest increase year over year, but it is at the slowest rate of increase. good stuff, cory johnson, editor at large. cory: i am here to help. alix: and revenue came in at about $9 billion and there was a 25% decline with year on year, and the other clue that caught my eye was that spending in north america should be down by about 35% in 2015, that of course is due to the fall in oil prices and the effect on shale. but also international spending is going to drop more than 50%. it held of a lot better in north america because there is not that shale. joe: this is when we are talking about earnings and she'll weakness, this is where we are talking about. alix: this is where you feel the pain. when you hear about a drop,

this is where you see it. alix: investment is down 35% in of america. joe: huge. drizzle's currency took a plunge today. we will tell you why -- drizzle's currency took a plunge today, we will tell you why -- took a plungency today. we will tell you why after the break. ♪

alix: i am alix steel. joe: and i am joe weisenthal. "what'd you miss?" brazil's currency took a dive. they cannot get a break. joe: it is unbelievable. alix: reform? what reform?

at $20 trillion, that proves a huge risk. joe: and chinese stocks have lost 20%, and that has had the government take drastic steps to prevent the fall. alix: i spoke with george magnus about whether these moves will work or not. regime, ais is a party, that basically runs the country, it owns the banks, it has huge holdings in state enterprises, pretty much what it says it goes, so having unleashed market forces in the a more kind of vibrant stock market over a year or maybe 18 months ago, i think that they have been spooked, to be honest, by what markets do.

markets withging chinese characteristics into the chinese economy is clearly one of the objectives that leadership set a couple of years ago. i just all think they like the results. alix: well, george, what is the risk of it not working if the government can't actually prop up the spark market -- stock market? george: i think it is important from the view of the chinese economy -- it is not really important from the view of the chinese economy as to what is going on in the stock market. that i think it is quite revealing about the chinese government's approach to managing markets in a modern economy did the objective at which they have set themselves in bringing markets into the process of economic reform -- i mean, what i mean by reveals is that it is not very encouraging that this process is going to go very far or a very effective. joe: what do you see as the ultimate way that this plays out

if they continue to try to guide at the markets so aggressively? george: i think we are going back to where we came from, i think the shanghai composite is 2500, 2800.back to but i don't have a strong sense as to whether that will happen in the next week or the next month or the next year. i suspect it will take a bit longer and the tools and which the authority can wheel out to prop up the market are not exhausted. they have got a lot of money that they can throw at it to -- throw at it. 25 hundred or 2800 is a huge call, is there a catalyst 2800you can see -- 2500 or is a huge call, is there a catalyst that you can see? george: if you can see this through the spring of 2014 , yough the spring of 2015

can remember that the economy was slowing down and generally the negative issues were associated with an important economic transition. it is really been coming through. bull phase had nothing to do with the economy. what i'm really starting to worry about here as when we look over the next 12 months, as this process continues and the economy will continue to decelerate. joe: george, you talked about the moves at that the chinese regulators are trying to do, you wrote about the new silk road, china's take a trading ambitions, really quickly, what do you see as china's long-term economic strategy? george: here we have one classic example of how that strategy, mighthought-out though it

be, and certainly will be profitable for companies that can build the if a structure that china wants, but we do have a problem here, which is the internationalization that they do not want it to proceed as they wanted it to proceed -- internationalization will not proceed as they wanted it to proceed, that will mean that the capital market, the stock market, the attraction of collateral into the economy, it will seem very heavy-handed as management, as we have just seen. then i think the approach of the internationalization will be -- it'sor slow down slowed down and some of these objectives will not be as dramatic as the hyperbole would have us believe. alix: that is george magnus. joe: we will be right back. ♪

alix: i am alix steel. .oe: and i am joe weisenthal "what'd you miss?? " alix: coco philip to boost its dividends, that's what you missed. joe: another thing you don't want to miss, germany will vote

on that greek bow out -- greek bailout. alix: they are going to revolt. joe: that is "what'd you miss?" alix:

♪ from our studios in new york city, this is "charlie rose." charlie: six world powers reached a deal he yesterday -- deal yesterday with iran to power sections. congress plans to unravel the deal. this has attracted opposition from america's middle east allies. they worry that item