door. the bank must grow to compete with j.p. morgan and wells fargo. oil and metals try to find a bid as commodity carnage continues. west texas intermediate as well below $50 a barrel. and uber -- they stare down the mayor of new york city. there are five suburbans on each and every street quarter. good morning, everyone. this is "bloomberg surveillance." we are live from our world headquarters in new york. with me vonnie quinn and brendan greeley. jpmorgan with that report out 15 minutes ago. his story is not over. brendan: what i think is interesting is that alexis tsipras has actually consolidated control, so what greece has going for it is a functioning democracy. tom: he has to take a victory lap given what was observed over the last -- brendan: oh, i do not know if it is a victory lap. it is not one of the things that the olympic where you wave the

flag. it is like a stroll. tom: ok a greece update their. -- there. we will have other headlines coming out on it. we need to brief you on greece. we begin our top headlines with vonnie quinn. vonnie: i want to mention that earnings are out as well expected to be $1.04. creditors and alexis tsipras are negotiating a third bailout. more than three dozen members of his party abandoned him in the final vote. tsipras warned that the rest of the bell talks will not be easy. pm tsipras: this hard negotiation process is not end here. after the approval of this last package, according to the deal

of july 12, we are obliged to negotiate again with the same persistence and fashion in order to negotiate on the terms of the loan. vonnie: tsipras promise to try to approve the final bailout deal. secretary of state john kerry goes to make his case for the iran deal. kerry and other officials will testify before the senate foreign relations committee. congress has 60 days to review the agreement. obama said if lawmakers reject the deal, he will veto it. ask carter landed early this morning in baghdad. he will hear the army's plans to retake ramadi. the city fell in may. carter also want theys a

progress report. it is his first visit since taking office in february. bank of america ceo brian monahan is kicking bruce thompson the cfo, out at the end of the month. he is being replaced by paul did off real -- paul d'nofrio. lebron james is going hollywood. he is collaborating on projects in the movies, tv, and digital. his company is producing comedies for cable and the web and has an upcoming game show on nbc. those are your top headlines a. tom: we are in the middle of an earnings boost. vonnie: boosting the lower and in particular. $4.25 tpo $4.23.

tom: dunkin' donuts with a to point something percent,. it -- two point something percent comp. if i mentioned dunkin' donuts three times, do they send a donut to savita subramanian "surveillance"? brendan: it is not like "the wizard of oz." tom: equities, bonds, currencies, commodities. the famous michael moore will join us. we will talk about china and commodities here in a moment. onto the second screen, let's blow through this as quickly as we can, the two-year yield is a major number, 7.70 on the housing data yesterday, gold for us to find a bit as well. here is the set up for mike mayo

in the next hour -- michael moore -- we have michael's on bank of america. jpmorgan wells fargo and bank of america citigroup. moynihan does not want to be in this group, he wants to be in this group. brendan: there is a great man theory of history that is all about people, not structural issues. you just subscribe to a great man theory of banking. tom: i believe is about the executives, but it is not about what they do but what they don't do. let's remember that mr. moyhnihan inherited a problem. a little ballet overnight. it was a consolidation revision and power at one of america's too big to fail banks. you do this after 5:00 p.m..

the chief financial officer is out some of these eeo is so very end. michael moore is with bloomberg news in banking where he is acclaimed for reading between press release lines. what do you see between seattle michael: there are a couple of things. bruce thompson has been a job for a long time. it is also about the stress test right now. you saw a number of the changes being made around the stress test process. that has become the most important day for the banks. tom: bank of america -- did they flunk the stress test? michael: they got a conditional pass this year. tom: that describes my whole schooling. brendan: what it does is put it in buyback suspension, right? michael: yes, they could do them

for now, but they have to resubmit its make sure that they get the full approval. last year, they got the approval and said they made a mistake. brendan: that is not buyback suspension, that is buyback detention. michael: right. tom: what does mr. moynihan have to do? if he needs "growthiness," where does he get it? michael: they have and try to get it through cost cuts. michael mayo put out a note that their core earnings power has stayed flat over the last year but i think, you know, they will need revenue growth, they will need help, but the cost cutting has to show some fruit here. tom: michael moore, thank you so much for your we will keep it quick would be news flow. michael moore with us from bloomberg news and michael mayo

will join us at the top of the hour. right now in journalism and newspapers there is a series of headlines. vonnie: the "new york times" reported that pearson may be in talks to discuss a transaction, and we are getting confirmation that there is no certainty that talks will lead to a transaction, but they are in advanced talks of a cell of the financial. tom: ken doctor ripped this apart, and i want to drag in don stressassheim with china. everybody reads the rft. are they a different newspaper than all the other major newspapers? brendan: i think it is asked ordinary, and they have adapted well to the web. they have deep analyses, what they call the deep dive.

aside from this news, why did amazon by the "washington post"? the answer is -- coulter matters. you're are better off buying something where the newsroom exists, where habits exist whether it is a history, where you can turn in a specific direction then you are starting up from scratch. you cannot create a news organization -- tom: we rip up the script of course with evercore, isi he is a managing director you do not think you are going to talk about newspapers and china did you? years ago, i sat in the coffee shop at a mandarin hotel in hong kong with five newspapers and front of me. your china has such a rich newspaper tradition. the ft goes in there -- are the newspapers in china a free market?

are they a discussion points, or are they controlled by the government? donald: they are a discussion point for us foreigners. they do not see the "ft," they do not see "the times," they do not see "the journal." i love the "ft." brendan: there are very few papers where there is the romance of rolling up the paper and sticking it under your arm. it says i think a little. donald: not my idea of romance. [laughter] these are all ideas of the state-controlled press, so what is in the "china daily" is what they want foreigners to see. tom: i want to talk about commodities here, the commodity implosion. how urgent is this for the government invasion? donald: i do not think it is

urgent at all. china wants to be a buyer, not a seller. tom: do you know how much inventory they have? donald: no nobody knows. tom: it is a total mystery. donald: we believe that copper inventories the futures exchange are maybe 1/100th of the inventory is of all those companies that are bending metals and making pipes and so forth. that is a nice story for you guys, but it is a story. tom: donald straszheim with us. brendan: statistics on china, that people actually know about china. are you happy -- vonnie: and i ipo -- ferrari. tom: ferrari files ipo, matt miller given red -- i cannot

read it. brendan: musical chairs at b of a. this is "bloomberg surveillance" on bloomberg television. good morning. ♪

tom: good morning, everyone. "bloomberg surveillance." brendan greeley and vonnie quinn with me this morning. we need updates on headlines. vonnie: a digbig victory for uber in new york city. the mayor has dropped a plan. uber has agreed to provide data for how -- for a study on how cars create traffic congestion and pollution. qualcomm posted its biggest sales declined since 2009. the chipmaker will cut 15% of its work force, reduce

executive pay, and shakeup is lord. and a russian capsule was carrying three new crew makers -- crew members. the mission was nearly two months delayed after the failure of a cargo space race raised questions about a russian rocket. ferrari is raising and i feel, $100 million being raised. -- an ipo, $100 million being raised. vroom, vroom, tom. brendan: [laughs] tom: i cannot get in one. they are too low to the ground. brendan: i cannot get in one because they are too expensive. our own francine lacqua spoke

with the new ceo of switzerland's second-biggest bank just as shares rose. she joins us now from outside their headquarters in zürich. what have you got, fran? francine: well brendan, i was delighted to speak to him 20 days into the job. his work was the result of its predecessor. he said i will unveil a big strategy overhaul. he basically hinted that the result or a blueprint for what he has to address. the weaknesses is what he will be looking at, restructuring more. if you break it down, it is fixed income in the investment banks. he also wants to focus on asia-pacific. >> asia-pacific is unavoidable. it is 70% of the world population so for any strategy,

it is 70% more than two human beings. it will be most important. francine: so there are the closer he wants to focus on asia-pacific, especially on private banks and he will look at investment banks, which look a little weaker especially on a fixed income side. brendan: francine, hold on, we have got donald straszheim with us from ever corecore. what is about managing wealth and china? donald: that will be up to beijing. there is a great prospect for wealth management in china. the whole financial sector still needs it. the question is -- to what extent will they allow foreign organizations really to capitalize on that? brendan: his wealth management right now china, it is the secret of managing to get your wealth out of china. donald: [laughs]

sometimes yes. who is buying houses in new york, london, paris, beverly hills? it is the chinese. tom: francine lacqua, let me bring you back again, i am sure you are up to speed on the reorganization of bank of america. in your london, is there the same panic over finding growth that we see with an american banks? is sense that at barclays, but does it permeate the city? francine: it does. i think it up, tom. do not forget that we are four years, five years behind the restructure and of the banks that you have gone through, so europe is a little bit behind on getting to the right level which is why -- into your guest's points -- here in europe there is more of a race of becoming a wealth manager. taking more risk may be getting less regulation, and going after that wealthy person, especially in the asia-pacific region, not only china but tidjane thiam

put it very clearly, these guys are asset ridden but cash light. tom: francine, thank you so much from zürich. i highly suggest the $14 number two value meal at that mcdonald's from where you are standing -- around the corner from where you're standing. her important conversation with credit suisse's newly minted ceo. we will continue the banking discussion at the top of our next hour. michael mayo is someone's daschle. he has been harshly critical of bank of america's governance policies. mike mayo will join us to discuss a modest changing of the guard at moynihan's bank of america. stay with us worldwide coast-to-coast, this is "bloomberg surveillance." good morning. ♪

tom: it is deceptive. it is all quiet on the market data front for greece. i guess it is all quiet business as usual in front of her limit in athens. brendan greeley tells me flat out it is not all why it in greece. there's a lot going on with mr. tsipras this morning, and we still hear about grexit. brendan: everybody knows a haircut is going to happen so will that happen in the eurozone or club? -- or in the paris club? tom: i thought wolfgang schaeuble said no haircut. brendan: let's take a look at

our morning must-read. my comes from tony barber writing in the "financial times" -- brendan: first of all, i will say i will start using the word "kolotoumba" once a morning with tom. donald straszheim you are a china guy, but china has interest in greece. donald: they do. and china wants to buy interesting assets all over the world, so they would rather buy greece than buy greek assets. strong currency not so much.

it's not like they are rooting for greece to fail. brendan: that is really an interesting way to look at it. we have been looking at the classic economic theory, that says basically you want to lower the interest rate and make your tourism and a sports more competitive. if all greece has to sell is greece itself -- vonnie, we have been looking at the 50 billion euros in assets. vonnie: they will not give away the crown jewels, but there are certainly think they can sell and people will be interested in buying. lesser monuments and maybe parts of islands and so forth. donald: the big ports, they have had an ownership interest in that for some time. that is part of there's no belt road-- their silk belt road. brendan: all the way across asia to that. donald: exactly. brendan: that is a classic geo- strategic theory. tom: breaking news -- eli lilly out with earnings third-biggest the cover of the "ft" this

morning, lead article on alzheimer's. vonnie quinn, help me out here. vonnie: on track to return to growth in 2015, this year obviously. $.90 a share as opposed to the $.74 estimate. tom: one of america's most venerable companies, and what they have been through in the last seven years is remarkable. we will have an informed conversation with their chief executive officer, john, the executive chemist will join us critically on their new all-time alzheimer's drug. ♪

♪ ♪ ♪ 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. tom: good morning, everyone. "bloomberg surveillance." eli lilly, what a struggle over

the last seven years as they lose all sorts of patents and they restructure, restructure. animal health sciences, that should do pretty well. vonnie: 840 $8 million. that is what they are reporting. they will return to profits this year and growth. we are also seeing them raise their forecast for earnings. they have seen -- tom: john lechleiter will join us, of course their ceo. we will speak to dr. lechleit er about alzheimer's and the amazing story of the company. we need to go to top headlines now. vonnie: the greek parliament working overtime today to clear the way for talks on a third bailout. in athens, lawmakers approved another round of creditor demands. prime minister alexis tsipras

needed that legislation to pass so it could begin negotiations for a 93 billion dollar loan. the european commission said those talks should begin soon. it is a deal that will create the largest -- in the u.s. anthem is near an agreement to buy cigna. the price? about $48 billion. that announcement could come later this week. earlier this month, another big taker with aetna agreeing to buy humana. pearson is in advanced talks to sell to the "financial times." pearson said no guarantee that the top slowly to a sale. they started exploring the sale to the "ft" after being approached by several buyers. donald trump has called immigrants who have crossed the border "criminals and rapists." he will be at the border.

his financial disclosure forms as he earns money for more than 150 deals and their more than 500 businesses or entities where trump has a title, usually as event or chairman. alexander graham bell invented the telephone, but lindsey graham is showing how to destroy it. a video posted online shows him trashing his cell phone. he is taking out his anger at donald trump. the south carolina senator got thousands of phone calls after donald trump give up his phone number. we will not be giving out your phone number, tom. brendan: i watched this yesterday and thought, "why did lindsey graham last by a cell phone in 1993?" tom: i was sitting three seats down from a famous nfl owner at the ritz, and he had a cell phone from like -- it was like one michael douglas had. brendan: yeah, exactly. tom: well, we have an esteemed

guest with us this morning. let's get back to china. what they do, not what they say. donald straszheim is head of research at evercore isi. straszheim invented the china watch. he is watching the growth machine turning from an inward vision into a global leader. don, i look at all the themes that we talk about, but you said as he sat down at our sets, the one single profit is to say to foreigners -- you where beware of the china stock market. why is that? donald: a year ago, the shanghai deposit was 2000, it ran up and made 1578. on july 4, big meeting, and trying to break the fall on equity prices. they broke the markets.

the markets in china are not really market -- they are government operations. 19% of all the stocks are still halted her and you cannot trade them. if you are an insider, your frozen -- you are frozen. if you want to sell your stocks you cannot do it. it is over. tom: is this a metaphor for the entire economy? this trust about real estate, about government companies. brendan: i want to go to this henry paulson quotes, and all that he had in the "ft" recently -- the closed financial system miss allocates and miss prices capital. if china is to have a well functioning is stable capital market it needs to allow best in class financial institutions and professionals, irrespective of national origin, to serve chinese investors there. he sees opportunities in china. can that happen? donald: the opportunities in

asia are because there are a lot of people and an asian population overall that is still growing rapidly. they are relatively poor. that is the opportunity. on july 4, they broke the market. president xi was up the top of this took the most visible symbol of any country in the world of market forces the stock market, and basically trashed it. vonnie: when you say they broke the market, what do you mean necessarily? it just a burgeoning market anyway. donald: they broke the market in the sense that they changed the rules. you and i talk about etf's, surprises, competition and monetary policy and all these things. it is now basically government policy. this is crazy. tom: i value the time we have with you.

i want you to speak to the american public about the fears we have with china. a new defense, a new is tension in the pacific region. are our fears correctly founded? donald: your fears are your fears. the two issues that the u.s. and china do not the eye to eye on and will not, one is cyber security and the other one is the south china sea expansion, all of this island building. we are both going to go our own way on these topics. they will meet in washington in september, state visit. they will agree to disagree on these two most important -- brendan: japan's reform allowing it to arm a solution or publication? -- or a complication? donald: complication to china, solution to japan. brendan: for the u.s. that that make our job in the south china sea more easy or difficult? donald: ah i do not know. it will remain very difficult. brendan: that is a good answer.

it is a place where there are no good answers. tom: what drives the most nuts about the way china is covered in the west? you are so good at looking at china. you sent in l.a., when you are in shanghai, what makes you shake when you see western coverage? donald: people taking the data at phrase value -- face value. tom: 7% gdp. donald: the 7% gdp value does not pass the smell test. tom: where is it right now? donald: our index is, i do not know, maybe half of that. there is no chance, no analysis that we have done that any sector of the economy that -- that means gdp is about 7%. tom: is china in recession. you're sitting with lagarde talking new mediocre, is china and recession? donald: i do not think they are in what we think of as recession, but growth does not

look good. there are a lot of structural realities that did not allow the growth. tom: donald straszheim with us this morning. brendan: uber remains on the streets of new york city. find out, however, wide new york is holding off on plans to cap the number of uber vehicles. this is "bloomberg surveillance " and basically uber report on bloomberg television. good morning. ♪

tom: "bloomberg surveillance." this is what we do vonnie and i do this all day. i will give my uber driver $21. $21, i say. let's give him five stars this morning, and we submit that. this is my lifeline. vonnie: you are not in that car? tom: we want to know which child that was. $21. you can go to montauk on that. vonnie: just to be clear -- i do not do this all day. brendan: i want to go to my single best chart, coincidentally, it is on uber -- it is almost as if we planted! new york city is dropping its plan for an uber cap.

that is the subject of today's single best chart. fire it up! tom: very cool chart. brendan: 15000 for over drivers. that is the number of medallions. it is not exactly apples to apples. david jura from bloomberg ubered in. david: i will not reveal how i got in. brendan: where does this leave uber in terms of its pr and legislative outreach? david: they spend a fortune millions of dollars on ads on radio and tv, the internet. they get a big push on reporting on this throughout the week. yesterday you heard people saying things are slowing down you hear governor cuomo urging for them to stop, you heard the comptroller saying the same thing, the brooklyn bureau president as well cured they managed to harness that and get

the slowdown purity mentioned these that he. this is something i think everybody agrees on. the that the taxi drivers, the city government is such a nascent industry. tom: this is coming out of the obama administration. what is their attitude in new york and donald straszheim's los angeles as well? are they nice, touchy-feely when i talked to citi are they lets fly lobbyist? -- when they talk to citi, are they let's buy lobbyists? david: neither side was backing down, but those conversations did continue. brendan: they have follow the strategy of begging for forgiveness rather than asking permission city by city. david: new york in l.a., l.a. embracing the model of ridesharing, new york doing the opposite. uber has followed the letter of

the law. they have set up these bases. based on that, going up to your chart, 26,000 uber drivers now today. the number of black cars have tripled since uber came here. tom: you that a taxicab driver in a beat up yellow card. i am getting picked up in regular ubers that are fancy bmw's, like 700s, and the better mirth 80's. are the drivers making the kind of money to support those fancy cars? david: what uber has said all along as this is a viable job for someone to have. it is a viable part-time job. people could do this to consummate other careers. tom: don, you could do this in l.a. donald: l.a. is a great city for uber, much more than new york. brendan: he is suggesting that you could be an uber

driver. [laughter] tom: what is the number one thing you learned in your research? david: they pursue the regulation -- they know what they need to do in each of these cities. tom: which city is their biggest headache? david: i think that new york was now they will look to europe. tom: photos. vonnie: number three, take a look at this photograph believed to be one of the earliest pieces of the holy book. radiocarbon testing find the documents dates back to between 568 and 648 ad.d., to the time of the prophet muhammad. brendan: this has been in their archives the whole time and just went through and found it and dated it. tom: a little bit of pushback not much. brendan: there are people who do this as a hobby, go through existing archives to see if something incredibly valuable has not revealed -- vonnie: number 2 -- labonte a

breach -- this beach has increased. tom: just to the left of the little thing in the orange, that is jon ferro and a little speedo, isn't it? brendan: you beat me to it because i was just about to where is waldo you wearing your seersucker and hats. and greece, a lot of european money went to sovereign debt in greece. in spain, and went to increasing capacity on the coast. vonnie: they hit a record. top photo -- groups in paris protest over reducing the appeal of the tobacco product. the tobacco industry said it would make it easier to create counterfeit cigarettes with these plain packages. tom: uber this story is not going away.

you get lucky. we booked jim karen of morgan stanley weeks ago. his people talk to our people. we got a big interest rate move yesterday. jim on that 0.70. jim caron on highest interest "bloomberg surveillance rate and janet yellen. stay with us on." -- jim caron on higher interest rates and janet yellen. ♪

tom: good morning, everyone. "bloomberg surveillance." if you are just joining us overnight, bank of america with a redo. michael mayo will join us at the top of the hour. he has been a harsh critic of brian moynihan at bank of america. these cfo out, mr. moynihan consolidates power. we will do that in about 11 minutes. right now, we have about 10 seconds for top headlines. vonnie: president obama is leading washington tonight to start his africa trip. he heads to his father's birthplace of kenya. then he visits the first sitting president of ethiopia. the white house signed a bill that allows some african countries to sell to the u.s. duty-free.

the eu is taking on hollywood. issuing an antitrust complaint against disney and five other hollywood studios. they are accused of illegally limiting cross-border access to their pay-tv content. five british units of also been named. biggest upset in soccer in years, unfortunately for the u.s., it is who was upset. it is the first on the u.s. has not reached the title game since 2003. the loss broke the u.s.'s 233- -game streak. tom: we now go to "surveillance" soccer expert brendan greeley. brendan: the u.s. team was a young team they wanted them to learn the world cup so they can take that experience and then win in future years during here we are. it is not yet working. tom: ok, there we are.

it is a building year, ok, very good. very quickly now, and you get lucky. we are thrilled to bring you jim caron this morning. housing yesterday was better than good. debt markets showed yields moving higher. this is good news for janet yellen as the market somewhat catches up with where the fed would like the market to be. morgan stanley is skeptical of higher rates sooner. a september call versus a december call. there economist, ellen zetner, makes a greater. are you on speaking terms with ellen? jim: absolutely. tom: do you change off of housing data that we saw yesterday? 0.70. jim: i think the housing data was really strong. short-term interest rates are rising to reflect that. what is happening in the yield curve is flattening. tom: here it is, folks, the

two-year, 10-year, good or bad flattening? jim: it is a good flattening, and the reason is because of what janet yellen said last week -- she basically came out of that look it is a possibility that we could go sooner, and if we do go sooner, the good news is that we go slower. so sooner rate hikes mean slower, and that takes inflation pressures away from the long-term, and that actually flattens the yield curve. just because the fed is going to hike rates this not mean we will get an uncontrolled interest rate rise that becomes very destructive for the economy. we are not seeing that. this is all still positive news. brendan: when you look at central bank of the world, do you wonder can anyone here play this game? tom: that is the money question. brendan: who is doing it? jim: nobody. the problem is yes, interest rates could rise, the economy is that her but they probably rise really slowly.

the good news from an investor perspective, what i would say is you can construct a portfolio where you can create income that out carries the pace of the rate rise, something i've been saying for a long time. just because rates are rising does not mean it is negative -- tom: donald straszheim now with evercore isi, central bankers with your hope, that is sort of where we are? carney in the united kingdom is hoping, isn't he? donald: he is hoping. any china case, inflation is not an issue. they are closer, i think to worrying about deflation than they are worrying about inflation. in china. tom: ok. let me bring up this chart, which is jim caron's world. the two-year swap which is a view out, a bet out on where two-year paper will be, almost up to 1%. is that 10,008 hurdle in your world? jim: the term is psychological.

it will measure how fast the fed may go over a period of, say, the next two years. it is a break and what the interest rate might be. what we are seeing is a slow march higher in front and rate. -- front end rates. the rates will eventually start to go higher the market is pricing it in. it is not a surprise, not a shock. it is what is keeping things calm. vonnie: the two camps, the september camp and december cap do they converge at any point? do both camps arrive at the next increase in february or whatever? jim: i think is a good question. do they really matter? i personally do not think it matters. it matters in terms of signaling. things go sooner rather than later. i think they do go at least once

because they want to get off the zero bound. if they go in september, it probably just means he next move is is bond even further out. if they go in december, the next move might be a little sooner. if they go into september or december, the next move might be in march or something like that. it is still a ways out. it is not a race to higher ways, it is really a slow pace. tom: is there a new terminal value? do you agree with john herman and others that were finding new levels that donald straszheim remembers from years ago? jim: yeah i think there is a new terminal value. my will be around 2%, 4%. tom: do you? donald: we are a long way away from a delivery him now. five years on, this is untenable. tom: thank you so much, jim caron, don, thank you, so much

perspective on china with evercore isi. let me do a forex report. it is quiet. we had a 41.$1.24 yen . stay with us. mike mayo next. ♪

>> this is "bloomberg surveillance."

tom: if brian moynihan consolidates power at the bank of america, the chief financial officer is shown the door. oil and metal try to find a bit of the commodity carnage continues. west texas well below $50 a barrel this morning. a conversation with a ceo who knew a third of his revenue was going out the door. eli lilly in the meantime went from $30 to $80 a share. good morning, everyone. this is "bloomberg surveillance." we are live from our world headquarters in new york. i am tom keene. with me brendan greeley and vonnie quinn. our betty liu will speak with the dow ceo. vonnie: sales missed but earnings per sure beating estimates by a big amount. $.91, estimates were $.82 a share. $13 billion the estimate.

comcast also meets estimates on the bottom line, $.84 a share. revenue coming in much better than forecast $18.7 billion as opposed to $18.1 billion. tom: i noticed video subscriptions are down a little bit as the digital stuff -- craig moffett among others talking about the cord cutting as being something front and center. in this hour, we will talk to a number of executive officers. one of them very controversial. andrew liebert of dow chemical. we seek with the ceo of eli lilly as well. we have comcast and dow out with earnings out right now. there is a changing of the garden bank of america. that was the headline overnight for anyone on global wall street. perhaps that is too kind as brian moynihan consolidates power as he moves to catch up

with j.p. morgan and front water -- and front runner wells fargo. michael mayo has been far more vocal and acute about governance issues and the need for brian moynihan to ask. mike, thrilled to have you on set with a spirit you are surprised by this announcement. how do they catch mike mayo by surprise? mike: it looks to me like the cfo got fired at the same time the ceo is the same, no change at the board. actually, over the last eight years, you have had now changes of four chief financers and changes of the growth, the wealth business. it is good to be the boss. tom: michael moore of bloomberg news was talking about this being linked to the stress tests and the pastor for bankamerica to move from her medial issues to being a better bank.

is mr. moynihan this morning weeding bankamerica to being a better-run bank? mike: i think the oversight issues at bank of america are the worst they have been at a big bank since citigroup before the financial crisis. brendan: wow . tom: was this action initiated by the board, or was this mr. moynihan acting alone? mike: i am not sure, but there were many chefs in the kitchen when it comes to their problems. remember last year they had a $4 billion regulatory capital misstatement. in the 500 pages of the proxy the board needs to be held more accountable. tom: gerard cassidy your colleague at rbc capital markets, has enthusiasm about bank of america as a value that could become more like dimon. do you agree with your colleague? mike: i disagree vehemently

because i do not believe they have proper oversight of the board level and at the top of the firm. there is not the right tone set at the top. there is not one forward-looking for financial target. we as investors need something to hold management accountable to. there are not enough financial metrics to save this is what we are trying to achieve under this is a fake timeframe. brendan: we have been talking about oversight and stress test results. is it about confidence or a difference in strategy? mike: we do not know for sure. the press release from brink of america reads like it -- from bank of america reads like it was written from someone at the kremlin. brendan: they usually do. mike: look at the issues bank of america has had. they have had issues with the stress test, they did have a capital missed aikman, they did have an consistent -- capital misstatements, they did have a consistent -- brendan: it sounds like you are

saying confidence. mike: defaults to the cfo but also to the ceo and the board and it sounds like one more person is being shot while those above are being protected. vonnie: any candidate for a replacement? tom: is your name mentioned? mike: they have someone named, whose background looks pretty good i think like a next navy fighter pilots, he has been in the business for a couple of decades. you need to operate within the confines of good oversight starting at the board level. remember what the board did this past year. in 2000 nine shareholders voted to separate the ceo and chairman role, and this year, the ceo said forget would be shareholder said, the issue starts with the board. tom: mike mayo, we perceive jpmorgan as having a past bank of america is a blending of three or four pasts. you have got moynihan and the people from fleetboston, you've

got the carolinas, they can stand in their john oginormous tower in san francisco. is this a turf war between this amalgamation that can lewis -- ken lewis started in mr. moynihan had to pick up? mike: they are still working on integrating the coulters. this move by make of america certainly consolidates more power in the hands of the few. the boston power elite, exactly. tom: he ends up being a vice-chairman, for starters. mike: the new head of brokerage from fleet, two directors from fleet brian moynihan, the ceo is from fleet. boston is running bankamerica more than they had in the past. brendan: this is amazing to hear that when we talk about financials that culture really matters. how much of the culture of merrill lynch been integrated? mike: you know, i think when

people talk about breaking up banks, you have elizabeth warren, bernie sanders now, and this is going to be a topic in the presidential election, i think back to bank of america right now because maybe merrill lynch should be liberated. set merrill lynch free. i think the brokers would be quite happy under that scenario. i think they're working on the case and again, this is by our estimates the fourth head of the brokerage business at merrill lynch. they are trying to find the right format. brendan: michael, you are a radical you are going to go on the streets with a placard saying set merrill free. tom: there are two sets of too big to fail banks, jpmorgan wells fargo, and there is bank of america-citigroup. mr. moynihan has to get from point a to point b. what is the methodology to get something bank to be more like fortress dimon or fortress stop? -- stump? mike: consistent strategy. look at the report from two

decades ago. it looks the same. look at the method from a jamie dimon and jpmorgan a decade ago, it is very similar. tom: is mr. morning and still picking up the pieces from mr. lewis? mike: yes, but let's get over that! yes, he inherited a tough hand yes he had a lot to clean up but after a four-year period of that, let's get on to the next stage of bank of america's evolution. tom: this new cfo, how does he work with mr. moynihan? mike: carefully. [laughter] tom: let's leave it there. michael mayo, thank you so much with cfsa. this entire interview will be out on all of our bloomberg media in a bit. i have pulte homes doing better like 484 companies out today. comcast and out -- vonnie: 65 on the s&p 500.

kicking things off with comcast earnings met estimates, $.84 a share on an adjusted basis. revenue be thanks to its video suppression units. the estimate was down 112,000 so that was better, never the less negative for the video subscription adds. dow chemical is down -- brendan: let me jump in on comcast real quick. more broadband subscribers and video subscribers. tom: that is interesting. brendan: those lines have crossed. vonnie: they are fighting with their own streaming services. alchemical is up about .4%. -- dow chemical is up about .4%. tom: do you watch tv at home, mike mayo? my tv has not been on in like a month. mike: not really. brendan: no, because mike mayo

sits at home reading his charles kander berger. vonnie: he is writing his next book. mike: there you go. vonnie: west bank are you targeting? mike: bank of america would have a chapter if i write a new book. tom: mike mayo, thank you. in this hour, we will speak with the ceo of eli lilly. and dow chemical, the ceo andrew liveris, a restructuring as they look for shareholder returns. dell futures up 14, gold $1101 an ounce. i am watching west texas very carefully. stay with us worldwide. "bloomberg surveillance." good morning. ♪

tom: "bloomberg surveillance good morning, everyone. "bloomberg surveillance -- tom: good morning, everyone. "bloomberg surveillance." greece simmers. commodities do not matter, they never affect other investments. the chief investment officer at deltek did not buy gold at $1800 an ounce. he knows commodities matter. i want you to explain to all of

our viewers and listeners why a commodity implosion matters that they do not own commodities. guest: it matters because there are a lot of derivatives from commodities, it but also we are talking about commodity economies, ostrow you, canada, brazil, -- tom: it does not end until there are margin calls. it is like a scene in mary poppins where they are all going mental. that is still the real of -- the world of commodities. we are nowhere near that, are we? atul: no we are nowhere near it. the markets need to realize that is not only demand from china that matters are u.s. liquidity growth globally is slowing. that is what fun it commodities and all carry trade for the last 15 years. tom: can you buy energy here? we had a guest to said now is the time to buy oil. do you agree? atul: we do not think now is

the time to buy oil. for what it is worth, oil is more economically than other economies as you need the world taking over as opposed to nickel and copper, etc., which you know the world is growing. it is in a better position, but we would not be buying it here. brendan: who is going to get hit the worst? is it brazil? atul: [laughs] brazil is that the intersection of all the carry trade's. it is going to get hit -- tom: do you lump greece and brazil and together? [laughs] brendan: you will find me on the television in são paulo is what will happen. "surveillance is at the intersection -- atul: it is at the intersection of a lot of the world's carry trades, so you add that to the fact that you have a lot of little uncertainty, it is a place we do not want to be right now. vonnie: is there one we can watch for as a leading indicator? atul: the commodities, we find u.s. dollar liquidity is, in a good way, the movement in the u.s. dollar because the slowing

of the u.s. liquidity, the slowing of anything globally what happens to the price? it has to move up. tom: atul lele with us for the hour. coming up this hour, alzheimer's has caused each and everyone of us. john mica later, the organic -- john lechleiter the organic chemist at eli lilly, he and his team or try to slow down the deterioration from alzheimer's. stay with us in new york city. "bloomberg surveillance." ♪

tom: good morning, everyone. in the middle of a new season, a most busy morning again, these eeo of eli lilly and dow chemical coming up. right now, type headlines. vonnie: president obama leaving washington tonight to start a two-nation africa trip. he is visiting his father's birthplace kenya, then visiting the first sitting residents of ethiopia. he signed a bill that will allow some african countries to sell

goods in the u.s. duty-free. -- posting second-quarter profit that beat estimates. lily also reported drug sales that were better than expected. we have the ceo of eli lilly coming up later on on "bloomberg surveillance" so stay tuned to bloomberg television. and the russian capital made into the international space station carrying three crew members from the u.s., russia, and japan. the mission was delayed by nearly two months after the failure of a car goes days graft raised questions about -- a cargo spacecraft raise questions. brendan: we like rockets on "bloomberg surveillance." vonnie: it is phenomenal video. brendan: [laughs] ook, amateurs talk about clearing price, pros talk about market debt. we call this liquidity. in the last few months, we keep reading this word. the central bank reports. atul lele is with us from

deltec. he says a global shortage of liquidity is emerging. a shortage of liquidity in what? atul: u.s. dollar liquidity. for the last 15 or so years, you have had u.s. dollars, which have been pumped her out the world by lower interest rates or outright qe. as that qe program starts to end, as rates start to go up, the dollar of the u.s. globally starts to shrink. a lot of carry trade assets which have been funded by those, as you see the u.s. dollars shrink, you have a shortage of that liquidity. vonnie: shrinking from a very significant amounts, a significantly larger amount than before. at what point do you describe it as a liquidity squeeze? atul: that is a good question. we talk about the stock as a liquidity. a lot of these carry trades -- it is the continual pumping of the liquidity that it matters. and even if we look at something like high-yield credit. if you have got short-term

funding that comes to maturity you need further liquidity to come in to fund it for the next round. i will be ending. it is the flow that starts to matter a lot more. brendan: no one can plug that gap because -- and still have their hands firmly on the pump handle. atul: that is right. you're seeing liquidity outside of the u.s., which is still growing. the bank of japan, people's bank of china, they feel effectively printing money -- if you have u.s. dollar debt and given the fact that the u.s. dollar has appreciated significantly, it is not that easy to slipimply switch it out. tom: phd's at the fed talk about avoiding the tantrum of a jump condition. we are seeing that now in the two-years ace. bring it up. again. -- two-year space. bring it up again here. the two-year swap is getting 1%. do you have confidence in bill dudley and others at the fed

that they can make a smooth transition even with liquidity challenges? "surveillance atul:atul: it could be a smooth transition, but it depends on which asset you are talking about. carry trade sensitive assets will not have that transition. if you look at the growth of the u.s. economy or the growth of the global economy they do not necessarily rely on cheap funding. those parts of the economy could actually do quite well, and they will have quite a smooth transition. it is the liquidity-sensitive assets that will recover. tom: what are those? atul: high-yield credit, commodities, utilities as well. tom: how to those -- given your worries of liquidity? atul: it is a difficult environment you're to the commodities we spoke about earlier, you will see a further downside to commodities. when you look at utilities for long durations, assets, we are

going into a world which has a lot less debt attached. vonnie: do you see severe stress about to happen? d.c. it's freezing, then contagion -- atul: we are not looking for that at all. whether it is asset location perspective moving into equities, it is moving into those places that are more exposed to growth and do not necessarily rely on that liquidity and we are not looking or a catastrophe, but if you are sitting there and just investing in commodities, it will certainly feel that way. brendan: it is such a slippery term, liquidity. how do you nail it down so you can help us figure it out? atul: two different ways. when we look at liquidity, we're talking but excess liquidity that is punt into the system globally. we look at that money supply divided by world industrial production. tom: does china have a money supply? i remember a chart, like, eight months ago. atul: from china's perspective on that, they have got plenty of money supply right now.

the issue for china becomes not the supply of money but demand of credit. it is difficult to get consumers, businesses -- tom: where is the demand for iron ore? i do not see it. brent crude with a $55 handle there it is $55.91 on brent crude. atul: if you look at iron that is a good point, you are right summative slowing in china at the same time that supply is increasing quite rapidly. it is difficult to stay in an environment where iron ore does well from a secular perspective. vonnie: do we see recessions in canada? atul: absolutely. the bank of canada has the most carry trade interest rates quite aggressively. they are tied to the u.s., which puts them in a better perspective. the australia perspective -- tom: the aussie dollar is not funny. brendan: all right atul lele

from deltec will stay with us. we will discuss the fate of the nuclear deal after the break. the 60-day review period has begun. this is "bloomberg surveillance." ♪

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take the roar out of snore. yet another innovation only at a sleep number store. tom: good morning, everyone. "bloomberg surveillance." vonnie quinn, brendan greeley with us. what a morning. let's get to our top headlines. vonnie: a new round of talks on a pillow for greece to start

soon. that is the word from the european commission this morning. the eu is confirming that greece put a second set of austerity measures in place. this coming after greek lawmakers passed tough new cuts this morning. tax increases and pension rollbacks. alexis tsipras says he started the austerity plan creditors want even though he thinks it is wrong. a deal is now the work to create the world face's largest health insurance coverage. anthem is buying cigna for almost $48 billion. it would be the second-biggest takeover this month after aetna agreed to by humana. the "financial times" is in the late stages of sales talks. bloomberg news reported that the paper was opposed by perspective buyers. pearson said no guarantee deal will be reached. donald trump is taking his presidential campaign close to the mexican border. he will be speaking in laredo

texas. he has been criticized for saying many illegal immigrants are criminals. he is more likely to stage an independent campaign if the republican party is unfair to him. he said the party has not been supportive and called the national committee "foolish." brendan: wow. [laughs] that may be the biggest news item we have reported today. vonnie: i will break and because gm is out with adjusted earnings per share of $1.29. that will be the estimate for $.06.1.06. automotive liquidity at $4.9 billion and looking to improve earnings in 25th. revenue is -- in 2015. revenue is close to $40.4 billion. caterpillar -- earnings per share $1.16, adjusted $1.27. that looks like a bear beat on an adjusted basis. tom: i have got a share buyback

going on as well. i like what they say about challenging second half of the year still expected. that dovetails what we heard from donald straszheim earlier where he just flat out says that china gdp numbers are a fiction and that goes to the rest of asia. vonnie: caterpillar is taking market share and at the same time, their revenue -- tom: do you know all ceo's now have team members? i remember being on stage with john stumpf of wells fargo, and he called them his associates. they are employees, everybody. brendan: i was a team member when i was an oyster shuck er. tom: exactly. brendan: gm we are looking at the price of oil. people still buy trucks in america. they want to buy more. vonnie: for gm, america is not a weak spot at all. it is china, europe -- brendan: yeah.

tom: speaking of this as well you wonder what the uber effect is. last night, they were, like some of five suburbans in the middle of the upper east side. brendan: i want atul lele to jump in here. atul: interesting contrast between gm, which is close to the american consumer market and close to a growth story, and caterpillar, commodities in china and emergent markets. that is a great contrast. tom: you can see the trend. we went to chart camp yesterday on caterpillar, and this is really, really quite good. there is the trend the china trend on caterpillar, and there really is a critical support points, brandon, based on the global economy. they can break through like commodities. brendan: i feel i got to explain what chart camp is pure it is when tom said that his terminal and people gather around him.

chart camp, chart camp -- vonnie: and it is free, we do not have to pay to attend. brendan: it is like summer camp except without the cr afts. tom: caterpillar obviously directly impacted by the commodity collapse. atul: significantly impacted. you asked the question earlier -- caterpillar is a prime example because you do not need this much caterpillar equipment when commodity prices are falling, less companies are digging out of the ground as a result of that. tom: mental block -- the analyst at citigroup on gm is hugely optimistic on gm vs. ford right now, getting it right. let me do a data check as we get organized for two ceo interviews. futures flat, i will call it euro-dollar, $1.10 brendan

greeley mentioning that tsipras doing better than good. nymex crude makes a dash. a a new view on oil. gold, $1101 an ounce. brendan: this is "bloomberg surveillance." i am brendan greeley with tom keene. heading to capitol hill on the iran nuclear agreement. secretary of state john kerry charger effect or, energy secretary ernest moniz, phil mattingly joins us. -- treasury secretary jack lew energy secretary ernest moniz. phil mattingly joins us. constituent hearings in their lives. is this like a presidential election right now? phil: you have to keep in mind that 60 days includes the august

recess. there is a lot of nationwide everybody always stops of the fact that lawmakers go home for five weeks in august in the middle of the summer. they are taking a bunch of time off. that is essentially not troop your twin air home, they're doing town halls, constituent meetings, they are out in the district were out in the state. that matters when it comes to the iran deal. you have got groups that are willing to finance a grassroots operations of key lawmakers, get into their town hall meetings. one of the most interesting things about capitol hill that people always dismissed -- phone calls to offices, constituents showing up at meetings have an impact. your they matter. . -- an impact. they matter. if ben cardin's state makes him think they oppose it, that will matter. brendan: is he the only swing? phil: they can afford to lose 12 democratic senators and still be able to block any type of disapproval of this deal.

ben cardin is important because he is considered very close to israel. obviously he is a jewish senator. that is very close to not only benjamin netanyahu in the administration but also the lobby in general. you not only look at charles schumer, chuck schumer from new york, democratic senator slated to begin next leader of the democratic party, i do not think one senator puts it in one direction or another. they did to make sure the ball does not start rolling in the wrong direction. tom: for those of us looking at the calendar, phil mattingly let's look at the drama today. secretary kerry returns. does he get deference because he was once a senator? do they treat him nicer because he is one of them? phil: maybe in his confirmation hearings tom, but not anymore. what you will see -- look, the focus if you care about what will happen with this deal is on the democratic side. that is what you need to pay attention to, where those lawmakers come down. you have to look at the hearings today, tom, under the political lens of things. marco rubio is on this committee, rand paul coming off

the campaign trail is on this committee. they are looking to score political points. i cannot think there is any difference at all. hillary clinton and barack obama came off the campaign trail when general david portray is came -- david petraeus came up to sell the war in iraq. if you want to know what matters to this deal, a attention to democrats. they are all the democrats -- the administration cares about. brendan: james coming, the director of the fbi, said the islamic state is a bigger -- james comey, the director of the fbi, said the islamic state is a bigger threat to the u.s. than al qaeda. what do we need to get a sign up on this deal? phil: this is a delicate portion of this the deal. use of the president try to ease around during his hour-long

press conference. a shiite country pushing back on sunni extremists, it is involved financing, not only financing but delivering weapons and men to shia group that are fighting back against the islamic state. the administration is never going to have direct contact with iran military forces, but what the administration force 11 saying behind the scene and what the president has hinted at is this deal can help pass and corporation between the two in the pushback. the biggest concern on capitol hill is that cooperation allows iran to move in and kind of exploit to the region, and that is what senators, democrat and republican, wants to make sure the administration is not allowing. it is a very delicate balance. a common enemy but on common goals, guys. brendan: all right, phil mattingly in d.c., we will be watching this. tom: coming up, two important conversations. we will speak with eli lilly's

ceo, excuse me, andrew liveris of dow chemical with us in the hour, then an important cover on alzheimer's with eli lilly's ceo john lechleiter. stay with us. "bloomberg surveillance." ♪

tom: good morning, everyone.

"bloomberg surveillance." brendan greeley and vonnie quinn this morning. quick -- what you do as a chief executive if you knew you were going to lose 1/3 of your revenue. panic is clearly the operative world. -- word. in 2008, eli lilly dubbed their revenue plunge "yz." the heritage of indianapolis and the rest of a different pharmaceutical operation, the organic chemist john lechleiter joins us this morning. john, thrilled to have you on. i want to forget about the ceo, financial monarchy right now. i want you to explain the chemistry of your new wonder drug on alzheimer's. i know you have to get it through trials. you are on the cover of the "ft" today with whatever every single person wants to know.

what does that drug do? john: it is an antibody. it is a very large molecule. we have antibodies in our body, but this was an antibody that was physically engineered to essentially capture beta-amyloid which is a peptide, a smaller molecule that aggregates in the brain of people with alzheimer's. so our hope, sort of the scientific hypothesis is that this antibody can capture beta-amyloid it can perhaps have an effect on slowing down the progression of the disease. that is what we are trying to prove in the clinic, and obviously we are, like putting a puzzle together, we are adding pieces to the puzzle all the time and hopefully getting closer to the answer that everybody is hoping for. tom: nicely explained for those of us who did not read morrison and floyd cover to cover. john: [laughs] tom: you never thought you would

hear that, did you? john: no that was a good one. tom: you went through hell for seven years. can you finally grow revenue? john: i believe we can grow revenue. in january with a sort of gave our investors a look out to the next four years, five years, and we said we do aim to return to growth. we grew 1% this year. a lot of our growth was knocks down the first half of the year by the strong dollar, which essentially weakened our results outside of the united states. we also said that we aim to increase our margins over this period as we launch new products and begin to grow that revenue base back again. we are doing that. tom: i want to talk again for all of our listeners and viewers about $80,000 drugs. it is a huge deal in new york city. the cancer hospital is looking at huge there. how much will your all-time are struck cost, and isn't something the american public and our medical system can pay for? --

how much will your alzheimer's drug cost and is it something the american public and our medical system can pay for? john: we will not know that until late next year because we are completing this third study that is underway right now. let me say this about the price of medicine -- first of all, i think it is very important that people who need the medicines that this industry is generating an increasingly larger numbers the people need those medicines, need to have access to those medicines. medicines today, despite some headlines on individual drug prices, still represent a fraction of what we pay for total health care. what we really need is a insurance policies and insurance coverage that enable people to not worry about the cost of medicines anymore than they would worry about the cost of staying in a hospital. i think that is the better way of looking at this. obviously the marketplace is very competitive.

there are a lot of medicines in the same classes and as we work every day with insurance companies and third-party payers it is very competitive to be able to get onto a formulary. we often have to provide discounts to those list prices that make the headlines, so all of these things need to be considered collectively. brendan: john, i will engage in what my cohost calls ceo malarkey. as you are rebuilding eli lilly's pipeline, obviously you are working on more than the alzheimer's drug. will you do this through organic growth or acquisitions? john: mainly through organic growth. the eli lilly that is emerging from this period of acid expirations have a strong presence and diabetes, a strong presence and oncology. we aim to grow a presence in neurology with our alzheimer's molecule. pain is another area we are interested in, then the autoimmune disease. we filed a new medicine for

psoriasis. we have an organic base. we will make acquisitions if we see an opportunity to enhance ou r presence in any one of those areas, so an example was in 2008 we strengthened our oncology business. we acquired narvatis animal health. we now have the second largest animal health business in the space. brendan: all right, eli lilly ceo john lechleiter growing organically rather than through acquisitions. tom: let me do a data check, folks, to keep you abreast of what is going on. interesting trends in the market with the euro stronger. on and it usually, improvement in the euro with a $1.10. brent crude with a $55 print moments ago, $53.06 in gold i

will call it steady at $1100 an ounce. the bloomberg commodity index, the blending of all commodities rather weak this morning. yields higher with the two-year yield, impressive, 0.70%. good morning, everyone. "bloomberg surveillance." vonnie quinn and brendan greeley with me. we need to get to top headlines. vonnie: thanks, tom. a win for the big apple for uber. new york's mayor is limiting his plan to limit cars. the city will study uber's effect on traffic and the environment. hollywood is getting bad reviews. the european union issues and antitrust complaint against disney and five other studios as paramount, nbc, universal, sony warner bros., and 20th century fox theater they're accused of illegally limiting access to their pay-tv content. five british units are also

cited. and a cake in the teeth for american soccer. the u.s. men's defended their gold cup title in atlanta. they have not lost at home to a caribbean team in 46 years. if it has to be any team brendan brendan: -- brendan:[laughs] not trinidadiann? it was unbelievable. dow chemical reported results this hour. we will go straight to betty liu, who had an interview with that ceo. betty: that is right, andrew liveris, ceo of dow chemical, joining me this morning. andrew, great to have you with us on bloomberg television. first off, lower oil prices we know is including profit ability, particularly in your operation let's say in europe. do you excited to continue in the coming quarters?

andrew: hi, yes betty. thank you for having me. for us, it is oil to gas ratio that matters or three quarters ago, we had a lot of people thinking that equity price corrected because they thought low oil would be bad for us. what of course is happening as it is giving us competitor advantage in locations like europe. what is also happening on the demand side, our operating rates is in the 90% range now. that is mostly because demand is picking up as low oil prices go into the economy. there he true in europe and now of course really happening in the united states. it took a while here. the savings rate went up 7%, but the consumer is finally ending some of those low oil price bonuses. so we get on both sides. low import cost, the natural gas advance we have the u.s. and the littlest, -- and the middle east, and we get demand. with a man is that expansion against healthy demand. betty: your margins are

expanding. it seems like a perfect storm for the company for lower prices, andrew. andrew: yes, so, you know, the oil price drop year on year is roughly 42%. the lower plastic prices is 15%, so you can see the expansion. the inputs have gone down way faster than the price of the output. because we have less of a commodity mix, we are not the plastics company we were five years ago. we have sold most of our commodity plastics. today, we have specialty plastics and elastomers. it is not as somatic as the input atrophy. we are going where growth is, not just in plastics, but all of our diversified units. this is where a structurally hedged portfolio changes our company. 11 straight quarters of earnings growth year on year, and in this

economic condition, that is the structure hedge of our portfolio here this quarter, plastics and performance materials, last quarter electronic materials and consumer materials really hummed. our portfolio is playing on an early trajectory going this way with only a little bit of wobble in the earnings versus the big swings we had 10 years ago. betty: seeking about your portfolio, there a lot of buzz about monsanto and the deal to buy syngenta and monsanto saying if they do, they will spin off or sell off the seed business. they say the phone is ringing off the hook from companies who want to buy those assets. are you interested in buying them? andrew: well, as you well know we are a top-five player in agro sciences. we are already in the crop protection products that monsanto is seeking to get

into. our seeds -- we do not have the seed channels. we have the traits. if you like the dna that feeds the seeds, we are a strong trait developer. we have been investors in ag, but organic investors. we have a growing through r&d. we are great partners with the companies you mentioned and others. the consolidation makes sense for our shareholders, then we will be at the table no matter what. with roles and investors in agro sciences, but we will always look at a better deal for our shoulders -- for our shareholders. betty: but are you absolutely looking at these assets? andrew: i do not think anybody could be active because of the nature of what is going on between those two printable players. we are all watching an understanding and like you reading what is going on in the press and of course reports like this, but, look out there

somewhere there could be an opportunity. as i said, we will be at the table. betty: andrew, before we go, i have got to remind our viewers of your greek heritage. you are very proud of that. i am just curious, given what we had just witness in greece, dodging a bullet with the reform plan, how do you feel about that? andrew: well, as all of us do whether you are greek or not it was very acrimonious, and very difficult process. i think it is really a stretch to say a win-win occurred. this is going to be a very painful period but if you put your hook on one little win, it was that at least for a period of time, greece gets to stay in the euro and it has to navigate through all of these reforms it has promised. i would tell you that i still think and all of us who are part of the greek diaspora, we think the better thing is for greece to be attached to the eurozone than to be outside of it.

but it is going to be a very painful few years, and frankly all of us out there in the global community, we have to look at this and say the effect on the greek people in the hardest thing to look at. this is a first world country living under a third world conditions, and there has to be some relief out there somewhere. i am a part of helping provide that relief through some organizations, one called the atlantic initiative, which is putting the food in the mouths of greek people that cannot get access to food today. betty: andrew, thank you so much for joining me today on your earning day. andrew liveris, chairman and ceo of dow chemical. tom, back to you. tom: betty, thank you so much. i would point out in the discussions with eli lilly and dow, two companies that have really struggled for different reasons over the last couple of years, we talk apple computer apple computer, and this is not apple computer.

these are companies in the trenches really trying to turn things around. my agenda today, let me begin with the "financial times." n no announcement yet. pearson is finally coming out. brendan: a paper like that of a trophy in the way the "wall street journal" was for rupert murdoch. and may not make financial sense for someone who just wants to acquire a salmon colored icon. tom: the editorial efforts, john gap, boss thought was particularly smart on china, but you really wonder, you say a trophy property. ken doctor up at harvard calls it "an ego purchase." brendan: i wake up, i start looking at the terminal, and then i flop over to "the ft." president obama is heading to

africa. kenya is looking for resumption of direct flights to nairobi and increased trade between two countries, but kenya is next ordinary story because you have only 1 -- is an extraordinary story because you have terror attacks coming of the border from somalia, but the tech hub developing in nairobi, they are further ahead on mobile payments then anyone else. atul lele, do you want to jump in here? atul: absolutely. it is an integral part. vonnie: i will be looking at mcdonald's earnings. in asia another barometer of how commodity prices are affecting mcdonald's sales there. tom: i agree, this may be the most fascinating release of the day. vonnie: we will get them before next month. they'll be interesting. fx as well. tom: i have a craving for a number two value meal right now. vonnie: no, you don't.

brendan: tom is going to call an uber. tom: atul lele, thank you so much fear and we continue on bloomberg radio. "bloomberg surveillance" worldwide. "market makers" next on television. stay with us. ♪ >> >> live from bloomberg headquarters in new york is "market makers." stephanie: good thursday morning. matt: a very busy morning for earnings. mcdonald's expected any moment. stephanie: it is out right now. olivia sterns has the numbers. olivia: a little better than forecasted. it comes out at one dollar 26 -- $1.26.

6.5 billion dollars versus estimates of $6.43. second u.s., store sales. he needs to turn around the u.s.. we have seen quarterly sales at mcdonald's fall for seven straight quarters. they will bring out the monthly number. that has yet to cross right now. there are a number of things he is trying to do to turn the company around to create what he is calling a modern progressive burger company. they are trying to take antibiotics of the chicken. they are trying to create more customizable food to catch up with chipotle. that slows down the process and takes up a lot of space on the grill. the other news is perhaps their plans to refinance.

mcdonald's wants to increase the number of franchises. about 3500 stores. that would take a percentage of mcdonald's stores that are actually franchisees from 81% to 90%. a lot of things going on with mcdonald's right now. let me see if i can find some of the global numbers for you right now. globally, we were expecting to see comp sales fall by 4/10 of 1%. to be honest, i cannot find it right now. matt: you obviously don't ever be a donald. -- eat at mcdonald's. olivia: i do. they are down by 7/10 of 1% versus estimates that they would fall by 0.4%. the same-store sales