reopen, but some restrictions remain in place. betty: we will take a look at funding the nation's highways, just as they take a long vacation. and precious metals hit a five-year low, and when it, it will rise again realbloomberg headquarters, i am mark crumpton, here with scarlet. scarlet: the real story is in commodities. this dipped below in asian trading, and right now about oil. we are currently above $50 a barrel, but the wti did tip below 54 the first time since

march. you can see it is down by 1.7%, and all of this is weighing on index, heavily weighted towards gold, but more important, it is at a 13-year low, so you are seeing declined in commodities. the s&p 500 is still shrugging that off, and that is at an all time high. the nasdaq also making a personal best, 5221. and let's take a look at the euro, with all of the headlines going on in greece. this is all about monetary policy. it was said that the fed should raise interest rate this year, and the euro little changed on the day, but it is at 1.0836. -- let's right, tips take a look at some of the headlines crossing the bloomberg

terminal. john kerry is preparing for a news conference, and the cuban flag was unfurled, and it was raised above the embassy in washington today. of course, we will bring you those headlines as soon as they cross. scarlet, this is one of those things where there is concern about human rights in cuba and about guantanamo bay, which the cuban government wants to have closed, but today, at least for both sides, this is a day when relations are normalized after five decades. yes, it is remarkable. ok, let's get to some other top stories. : in greece, crowds lined up as banks opened, and they were providing routine services, but there are still limits to how much people can withdraw. the time, and greece made more

than $7 billion in debt payments to the imf and other creditors, and german chancellor angela merkel suggested that greece could get some relief. nuclear dealiran went before the security council, unanimously approving the agreement, so now, the spotlight shifts to congress, which has 60 days to review the deal. israeli prime minister benjamin netanyahu says he hates the deal and says he will be making this crystal clear to congress. barclays, they may eliminate one out of four jobs in coming years, that they ousted the ceo anthony jenkins and replaced what he called an encumbered company. scarlet: the biggest maker of military helicopters, sikorsky bought by blocky. they were owned by united

technologies, which were now focus on making jet engines and elevators. mark: a company sounding out valuing aidders, salmon colored newspaper up to $6 billion, the financial times. no formal talks are underway. shiva with their pretax earnings, after an internal accounting probe said they overstated profits under pressure from management, an amount almost triple the right down the tokyo-based company had estimated earlier. they are planning on holding a briefing tomorrow. they have lost market value. ark: an outrage over controversial post. ran is days after gawker and then removed and item about the condé nast cfo, and they

said in a letter to staff that they can no longer guarantee the integrity of the website. they are putting things on hold because of the item, and those are your top stories. scarlet: coming up in the next y,"r on bloomberg "market da the nation's highways and what it could mean for growth. and banning the hiring of new ivy league grads. -- who they with a would like to hire instead. scarlet: and a conversation with emily chang. all of that coming up on the bloomberg market day. mark: and greece is finally getting some relief. and the government has repaid about $7.4 billion to

creditors. a professor at nyu stern's advised the greek government in the past, and he joins us now from fresno, california, and, professor, thank you for speaking with us. the steps towards a possible bailout are only now starting. bailout?t securing a >> this is coming up on .ednesday scarlet: you know what? we are having some problems with the audio. certainly, this conversation is not over. mark: all right, we will join professor economides after the break. more next. ♪

mark: welcome back to bloomberg "market day." i am mark crumpton here with scarlet fu. professoroining us is economides. let me as my question again. things are starting to return to normal in athens.

what is your level of confidence that greece will secure this bailout, this third bailout, without another hiccup in the markets? ides: we are not sure. there is a major piece of legislation that will come up this week in the greek parliament, and there will be defections from the ruling party, and we will see how it will go. it will most likely path with the vote of the opposition, but the ruling party is becoming weaker and weaker, and most likely, we will see elections in september or october. now, remember, this deal is not finalized. all that has been agreed thus far is the framework of the deal, and the negotiations will be ongoing all of the way to the end of august, so we are not done. there are very positive steps that have been taken, but there said,so defections, as i

from the ruling party, which makes the deal less certain. professor, as we mentioned much earlier, the banks in greece have been reopened after being closed for nearly three weeks, but there are still capital controls in a fact. what is this going to mean at what willeen now and it mean for greek finances and for the greek people? : well, capital will remain there. people have lost confidence in the banks, and even if they were -- large amounts of financing, all of the money would be withdrawn. and there are various transactions between businesses, cashing checks in some form. become possible.

things are not normal. we are really far from normal, but there are some steps towards normality. unlessraid though that there will be a grand coalition , and thatopean forces grand coalition creates a government, the solution is not going to be siena. the present government is trying -- it has become a minority government. scarlet: what is your impression of alexis tsipras, as a politician, who can get things done? hugeconomides: he made a u-turn. he said there would be no deals. but he accepted a deal, and he lost about one quarter of his party.

now, in the next party, he may lose another 10%. it creates another possibility for him to become a leader of the centerleft in greece. remember, he came from the far left, but it is also possible that he will deteriorate to, again, the far left. we do not know yet. it is a gamble, and it is difficult to say. it is something i cannot really offer a good prediction on. professor, we have less than a minute left. i have to ask about the greek people and what they are going through. i have asked other guests, as well. new taxes that were demanded by creditors went into a that. goods and shops. we are talking about coffee, taxes, everything. does this mean as international creditors try to put some growth aspect into the greek economy? : well, the high

taxes are going to create a bigger recession. there is no doubt about that. greece excepted that, because the alternative, which was >> it , was much worse. this will lead to lower taxes, more growth, and a better chance for greece to repay its debts. and it is a very big debt. nicholascolas -- economides, professor at nyu stern, thank you. big deal in the solar industry. a company is being taught for about $2.2 billion, and shares are up, as you might think. raform power was created to

own and operate power plants, and it will turn around and sell ,ome of its asset to terraform and it is a little bit of a complex deal. now, the goal of warning to the ceo is to become the largest renewable energy company. take a look at my bloomberg terminal at this function. the past years of m&a activity sunedison, activity has been up. we have seen a germanic pickup in the last couple of years, and the 25th teen, in particular, -- we have seen sunedison and in 2015, in particular, and we have seen sunedison and their super majors by doing this particular acquisition.

sikorsky helicopter making units are going to be bought by lockheed martin. and lockheed has also said it will divest its government information division by a sale and they say they will also be doing a buyback you, 75 million shares, if base this on friday's close, and then also, we are taking a look at the two who have confirmed potential talks. they closed in dutch trading, gaining 14%, pulling back by about 5.6%. they said maybe they would combine some of their units, and analyst today said this merger might not be positive for the broader industry. these are two fertilizer companies, who are concerned with this deal, whatever firm it

might take. it might bring more supply into the u.s. market, and that within put a downward pressure on pricing in this industry, so that could be one of the reasons why we are seeing a little bit of a downside on cf industries. all right, julie hyman, our senior markets correspondent, thank you so much. a historic moment in washington, d.c., the cuban flag raised as cuba reopened its embassy for the first time in 54 years. in the meantime, the united states has opened its embassy in cuba. john kerry will be going there in august. , sepp blatter, and he was interrupted by a comedian who showered him with bills. a record.l sets harpercollins says it has sold

more than 1.1 million copies of watchman," and harper lee wrote it after "to kill a mockingbird," but it was never published. scarlet: congress trying to keep highway money flowing, but they appear to be on a collision course on how to keep transportation projects of look. mark: phil mattingly is in washington. we have seen a lot in the last six years alone. are we any closer to a long-term deal at this time? ofl: if bipartisan groups senators have their way, yes. this is a proposal to extend the highway trust fund and the highway bill in general for two or three years. the original goal was six years. they graduated that back. the house has only passed a five-month pass.

that is what they are go in for, but some light at the end of the title. they want that because they want to work towards a longer-term deal, because if you look at the state level, the impact of these short-term increases, in terms of projects that have been canceled, if you look at georgia, worth more than $715 million. arkansas, 130 projects at risk, worth $161 million. million and, $400 33 projects delayed. we are seeing it from the states, the pressure. lots of short-term solutions, no big long-term solution. funding,is all about scarlet. you would think that it could be one of those issues, raising the gas tax, and very few senators,

very few house members, and even the obama administration will not get behind that, even though it is adjusted for inflation and well below a level that people think it should the. what they are trying to do is change some of the reporting. this could produce the tens of billions of dollars of revenue they are looking for. ' concerns, guys? the sacred cow. lobbying, being hard to solve. who are the biggest on that front? business roundtable, and dow, and dow comical. it is building firms, it is john deere, it is caterpillar. not been able to force lawmakers to coalesce around the deal.

they want a solution. they just cannot quite find a pathway to get to one just yet, guys. right, phil mattingly from bloomberg politics, joining us from washington. everywhere you turn. mark: coming up on the bloomberg " one company is banning the hiring of new ivy league grads. we will tell you, next. ♪

♪ mark: no elite hiring practices

for one law firm, a man who heads up his own law firm says graduates from harvard, yeah, cornell, or other ivy league's rules need not apply -- or other ivy league schools need not apply. he says these others are more ambitious and hungry to excel, and they are also battle tested in one way or another, in part because they grew up in middle or lower income homes. hire and they refuse to clients' sons and donders, so no nepotism, no legacy there. -- sons and daughters. said, we have to rely on grit, because this is a firm who has not been around for 100 years. it is a small firm in manhattan, and he can either they have no interest in

it isng for a job, so kind of like he is preemptively saying, thanks, but no thanks. we want another group of people. and another thing, even though it seems illogical to have a hiring rule like this is that he is looking for undervalued talent, kind of like the oakland a's were looking for undervalued talent. this is another metric for him. hek: and with the open a's, uses another metric, and that metric, it appears to me, appears to be how badly do you want it. scarlet: how badly do you want it, and what is in your background that shows you are takesg to do whatever it to get there, and the ivy league, they kind of rest on their laurels, and he does not want that. no matter how mediocre,

they offer almost all of their interns full-time jobs, one of those things that you may not have work to get it, and it is handed to you. what is that quote that i heard, some people are born on for base, and they act like they hit a triple. good to see you. scarlet: good to see you, and we will be covering the greek debt crisis. we have got much more coming up on the bloomberg "market day," at a split from ebay, any paypal ceo spoke with our emily chang. we will have the highlights, next. ♪

♪ ♪ ♪

get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. scarlet: welcome back to the bloomberg "market day."

i am scarlet fu. let's take a look at something's crossing the bloomberg terminal this hour. governor scott walker signed a and into law today, wisconsin is now the 15th state with such a ban on abortion items. former president george h w bush fell, and doctors say he will fully recover. the former president 91 years old, and in new york, some at restaurants could be in line for a raise. bey are recommending it raised to $15 an hour, and it is a major victory for workers who have been complaining -- campaigning for a pay increase. are in a golf balls playoff at the british open at this hour, but jordan spieth is not among them.

he american shot a three under 69, leaving him just a single serve shy of the playoff. he won the u.s. open last month, which gave him a chance to join ben hogan as the only golfers to win the first three golfers of the year. no one has won all four. so close. and those are your top stories. coming up in the next 30 minutes "n the bloomberg "market day, what you may be did not know about china equity investors, with some surprising news in the last months, and it just keeps going down. we will take a look at what is behind this decline, and the biggest aerospace acquisition in three years. lockheed buys military helicopter maker sikorsky. we would tell you more about that. paypal is surging in its market debut after spending off from ebay. west"r today, "bloomberg

with they chang spoke ceo. >> we have shareholders across the world right now, as you can .he, from our early trading there is a lot of interest in paypal, and i think what we really want to focus on is just creating a great company going forward. focus on customers. focus on what customers need, and if we do that, hopefully it will be a great investment for all shareholders. emily: have you guys talked? >> know, we have not talked. i have been out on a road, talking to tens and tens of different investors right now, getting their feedback, learning what they expect from us, what growth opportunities they have for us, and it has been tremendously valuable. emily: are you worried about potential agitation?

hulman: no, they want great value for customers, and as long as we stay focused on that comment that is the right thing for us to do. emily: oh, alibaba would love to buy it. what do you think is going to happen? an: he is going to lead a fantastic company there, and we were really set up to capitalize on the changing just bored going on in digital changing the chessboard going on in digital payments. trillions of dollars. again, focusing in on that and delivering value for both customers and deliver value as an independent company to shareholders, and we are very focused on that.

see paypal being focused on that? man: i do. and your conversation with him, emily? he is talking about $25 trillion as the market for all payments made everywhere, on and off line. if you are just looking at trillion,, it is $2.5 much smaller, and he says paypal has an opportunity to take all of these off-line payments back on line, and he thinks the biggest opportunity is the in-store experience, revolution those sales. we pull out our credit cards. it is pretty easy, so why should we change? that is the question they will try to answer. scarlet: and paypal once to be part of that experience. emily: they are, but with her

cooking and subway, and it is not just about changing how you pay but giving more benefit. loyalty points, for example. if you doree burger it this way. he is saying you have to offer something else. ok, one thing we noticed in your clip with dan schulman -- the genes and the cowboy boots. he is very relaxed, which is interesting considering his long tenure at american express. he is moving to the bay area. it is the first time he will be living on the west and best coast, but he certainly seems to be embracing the silicon valley mentality. an interesting point, because there is nobody from the so-called paypal mafia on the board, from the original sounding team or the original employees team. talking to people that paypal,

they are not happy about that. they think it is really important to have the founder's like that on the team. i did talk to the now paypal chairman, and he's the, you never know area we always -- and he said, you never know. we always welcome their input. there is a representative of carl's on the board, and he is about $180 made million. theydonahoe told me that were talking every year whether it was better to stay together or separate, and it was only until recently that they got the companies had a better chance separate. we do not know for sure what exactly was happening within and whether the paypal team would have liked to split even earlier. at sometime, it just

became too attractive to split. we will have someone on things that paypal can become a $100 billion company. scarlet: all right, coming up on the bloomberg "market day," slumping to a low, and not showing any signs of reversing. and oil prices dipping below $50 a barrel earlier this afternoon. ♪

scarlet: secretary of state john

cary is holding a press conference, with the beginning of the normalizing of the relations with cuba. we will bring you more headlines as they cross. it has just the. again, john kerry holding a press conference with the cuban foreign minister. let's talk about the china stock market. it has stabilized for now after 1/5 of the companies are halted from trading. the number of companies trading actually slowly down to a trickle. just some context, a total of 576 companies were suspended as of the midday break today, 20% of the total listings, down from 635 at the end of last week area -- of last week. alix steel joins me now, my cohost for the next hour. alix: here is the thing.

they are holding on to their positions. check this out. data from the china household survey finds in the second ofrter of this year, over 8% households invested in that china stock market. ok, that is more than double the participation shown a year richest was china the largest category. scarlet: beijing, shanghai, and guangdong province, those are some of the wealthiest parts of china, and you can see the idea that the people in these places, these cities owning more stock, it really is that a wealthier class of people are investing in equities, and it is interesting as they tried to go from the export-driven model to one that consumption driven,

letting people invest in the stock market, but if you only have rich people doing that, how much more money are they going to spend? alix: it is good for wealthy people, but there is no up to -- scarlet: exactly. gdp numbers. alix: and goldman sachs had a great note over the weekend, saying, hypothetically, with the gdp in china, if we had growth, what would it do to the u.s.? effect,about the wealth it would have an effect that would be pretty much nothing. less inflation by about than 1% because of the commodity knockoff. it may move the needle, but not that bad. scarlet: looking at the this showserminal, the swing in the shanghai

composite, the intraday move, going lower, most recently, last , and we havet really stabilized. that volatility we saw earlier in the month, it has really given way as a government that makes it clear. alix: yes, that is a great chart. scarlet: alix steel, my fan. all right, she is going to stay with me as we get a check of how stocks ended in trading. we wanted to talk about gold, but the wti demands a comment here, because it is below $50 a barrel. alix: gold was this story in the morning, and returned to oil in the afternoon. there was no really any news catalyst, except we are still massively oversupplied, 100 million barrels, above the five-year average for this time of year, and you wind up seeing a let in the product market, and

many analysts are getting worried about it. products,e too many and also, interestingly enough, talking about the importance, the energy aspects, about one million barrels a day of capacity is currently off-line, and we are seeing that would be trickle down. china actually slumped because of this. again, huge demand factor. ok, we will continue to watch that, but let's get back to hold. gold was a big dip in prices are you can see it right there, just before, what, 10:00 p.m. our time, so 9:00 a.m. in china. do we know what was behind that? lix: no, it could be margin calls or a bank liquidation.

fundamentally, there was no trigger. chinand out friday that bought gold reserves. some had been expecting a lot more. pointed out, it was said that the fact that china holds less gold than guesstimated is no reason to be bearish. they could always buy more, so he put it as a fault break in illiquid trading. technical selling, a technical trade. i like it when you said guesstimated, because that is what it really is. there is the government says, which is, as far as we know, just what they want people to take. it is really hard to track supply and demand, because it is only worth what you are willing to pay for it. it does not generate income. all right, looking forward to that. alix steel will be back at the top of the hour to help take you through the close.

let's get to some top stories for you at this hour. mitsubishi said it regrets in prisonerserican during world war ii, and the apology was accepted in los angeles. about 12,000 soldiers were forced to work in japan under brutal conditions. a testing ground for autonomous vehicles opened today at the university of michigan, a city, andite called m major automakers hope to pay for it. those are your top stories. the united nations security council came to a unanimous vote in favor of the iran nuclear deal. asked ian bremmer why they think it is a bad one. prettymmer: the deal is bad, and i think they have talked about that, but i think

others have not recognized the geopolitics of the deal, and while obama is trying to legitimize the plan, they are focusing on what they are weakest at. we are going to stop these guys from developing nuclear weapons green otherwise, we were going to have a war. it is quite to be eight years before they can have that. it has to be driven not by the oneicans but by the p5 plus and by the iaea, the inspectors on the ground. anchor: are they on our side? mer: they would have more bureaucratic inspections on the ground. they have to be driven by all of the signatories that were pushed to get this deal together, so iranians, there will be a lot of countries that will have to make a decision as to whether the iranians are cheating, and the russians, who want to sell arms to them, the chinese who want to buy oil from them, the europeans who want to do a lot

of trading with them -- anchor: am i right? schumer, as one example, support this post to be joe? mr. bremmer: he should, and the reason is that hillary clinton is going to be driving a lot of democrats, because they understand that this deal has to get supported. if the americans are the only ones who do not support the deal, whether or not it is not a dad deal, it is that america is not dealing with iran and everybody else is. that is a horrible situation to the end. i would still say the geopolitics for the americans long-term are so strong. >> will there be a change after this deal and the possibility of in syria and yemen and these other places where we are fighting proxy wars us to mark -- proxy wars?

remmer: not just for the would-be reformists, he is doing that. and, of course, they're going to have a different opinion of their rest of the world. the rest of the world will be investing in them. doing things that the people do not like. anchor: we had to let them in the back door? to overtly say we are meeting with the saudi's? mr. bremmer: i think the relationship with the saudis is much more challenge. withnk it will be closer iran that it will be with saudi arabia. scarlet: that was the eurasia

president speaking on bloomberg veillance" earlier today. the biggest acquisition in the aerospace industry in three years, and we talk more about what this means for the industry. ♪

lockheed martin, the largest supplier to the pentagon, is buying sikorsky, the price tag $9 billion. this will extend the lockheed's status as the largest defense contractor and widen its lead over rolling in the u.s.. and ir, olivia sterns spoke to george ferguson about and we talked about sikorsky and the black hawk helicopters and their overall

strategy. ferguson: they already have a presence, so this sikorsky deal allows them to sell the helicopter. it is a very important helicopter with a lot of revenue, and it likely have a lot of capability of being sold internationally, as well. olivia: they say that the technologies, united technologies, are getting rid of sikorsky because it is a low margin business. helicopters last 20 or 30 years, and then they have to be replaced, so i think there is a demand, just at the defense department, so you can sell the helicopter internationally, as well, it is based on a demand that always has to be refreshed. we came out of iraq and afghanistan. a lot of the equipment is used.

the average age in the fleet is 15 years, so i think it is a rather consistent level of demand at the defense department, and on top of that, the u.s. army is working on the future of vertical flight aogram, which could be replenishment with an all new version. the joint strike fire helicopters. billionld be a $100 program. that could be in the 2025 timeframe, but it could be a lot of revenue. >> and i believe they got the contract for marine one. lockheed martin was going to put a lot of components on that helicopter more to thehis gets manufacturing of helicopters rather than sort of building some of the networks that existing helicopters use.

>> they said at united technologies that they would try to slim down the portfolio. otisw they own elevators and carrier air-conditioning. otiserguson: yes, they own elevators and carrier air-conditioning and pratt & whitney. this portfolio is a little bit challenge. china is hurting the elevator business, so it is probably a hard time to be selling something like that. they will definitely use a lot of this money to buy back shares, so it looks like management is looking for different ways to bolster eps. >> a final question for you, george. what opportunities will this affect? ferguson: i do not think

there is a lot of cost-cutting. they know how to build helicopters. they do not have much overlap in that. i think there is not a lot of redundancy there. the salesforce maybe one of the biggest areas to cut. the big thing is how much of the united technologies salesforce would come over. i do not think it is that much. rgarlet: that was "bloombe intelligence" guess george ferguson speaking to olivia sterns and me. and the risks around when the federal reserve will finally, finally raise interest rate. maybe this year. ♪

betty: it is noon and san francisco. 3:00 and hong kong. >> history in the making. restoring formal diplomatic

relations. the battle over multiple -- mobile payments. how paypal paved the way to a new area of digital commerce. betty: can i be of win over investors once again? once again watching big blue into the close. -- can ibm win over investors once again? stephanie: good afternoon, everyone. i am scarlet fu. here with olivia sterns. the s&p trading around a record high. it was like a l valley. of record rally on stop. overall looking at another record with the nasdaq, the third straight day it has hit a record since we both. scarlet: volume in nasdaq