and i'm joe weisenthal. alix: it is a summer friday, u.s. market indian lower on earnings. is, but the question "what'd you miss?" they are canceling oil rigs, is the industry taking a hit? alix: and the bone elbow markets that could be dragging down the world economy. and we talked to the economist who tried to save greece. alix: we want to begin with stocks. stocks pretty much flat on the day, but you are looking at the dow lower for two days in a row. it is the last day of the month. volume is off by double digits in the s&p 500 and he will have

rebalancing. joe: the stock market was sleepy, the real action was in commodities. everybody knows this was a terrible month for commodities. thehe end, it was in toilet. oil diving, gold is weak. joe: -- alix: earnings surprises, and the overall sales for the s&p seen a2% and we have revenue surprise for energy companies this quarter. that is shocking. joe: i did not know that and i am surprised. alix: i want to dive into the terminal. we will look at what might plague oil. you are looking at the etf of energy stocks and i want to look at this level where the total assets were around 2013, $8 billion of assets.

it has ballooned to $15 billion and has fallen by about $4 billion. we still have a lot lower to go to get to that 2013 level when oil was $87 a barrel. it is a shakeout and a dangerous situation. joe: for speculators, this is the beginning. i want to look at something painful, a data point that we got this morning. this is unemployment. this is a chart of youth, this is the future. it hit its highest level ever. 44.2% of people under 25 years old are unemployed. this is the future of the economy. it is still getting worse in italy. alix: and they will go to other countries and what does that do for italy? joe: italy re: has demographic has demographic

problems. this is a bad trend for this country. strategist,global then -- ben. and we are looking at capital goods. joe: one thing we have talked about, the weakness of china and other economy. how does that fit into your call? >> we know that people are concerned and looking at the selloffs in the asian market and the contagion from that. ownership in china is not genetic for investors. -- dramatic for investors. rates andbe cutting we see a lot more room for that to come through. we will see a moderate pickup

from here to the end of the year. and weare very cautious think that will their off opportunities. alix: why are you so optimistic when you're looking at the chart? >> the flexibility across the board. will have another 50 basis to take up, we'll have more fiscal policy, more policy about lending. the altogether and we have been cutting rates for some time. there.s a lag put it in with equity evaluations and it will help for cheap investors. you have a currency which, the currency has been week and has stood out there. but it all together and we think that everything is interesting. alix: i thought that chinese ,valuations work quite high compared to hong kong which was less. wereng kong listed shares

half. in a world where valuations have re-rated, this is -- this is an opportunity. joe: what about the overweight call, with easy the other investors do not see? >> you seem surprised this is come out of energy. this is the same thing. investors are underweight. the economy has been week and we are looking for in the second half, -- dramatically so, but everywhere you look whether it is europe or the u.s., you are seeing stronger economies being flashed -- being slashed. also, in a world where we have had massive declines in interest-rate has really helped some segments of the stock market and has not helped other.

commodities has been part of that. provides another tailwind for commodities. this is the biggest underweight out there and we're looking at that. alix: you brought up central-bank e-zine, what easing happens, what happens with that and currencies? >> has been down and quite a lot of it has happened in the past year. people suddenly very afraid of a rerun of 2013. it is qqq people out of emerging markets. that is a big opportunity. this is a triple discount, the currencies offers discounts, em , and on top of that,

you have valuations at a 30% discount. everyone is waiting for the fed. we want to get ahead of that. we think it will be -- fed, youking of the are more optimistic about europe , so is that a differential? joe: -- >> we are not going to downsize the u.s., but people here this noise out of greece and it is scaring the european story. -- extremely depressed and you have cyclical valuations the offer discount to the u.s.. investors who are very underway. you have a turn in the cycle. the labor market is recovering from low levels, very depressed consumption beginning to recover. lending is recovery and he put that altogether and it is a

multifaceted dory in europe -- story in europe. have somedefinitely contrarian calls, what keeps you up at night? we have new lifeboats left. that keeps me up. historically, we are closer to the next recession. we do not know what will drive it. fiscal policy has improved, but it is not great. the u.s. story, you could see the same for europe and other parts of the world. so we are not calling for a crisis, we do not know if it will come. six years on, not much has changed. joe: all right, thank you. up, speaking of commodities, what property was valued at $624 million three

years ago and was just sold for one dollar? ♪

alix: i'm alix steel. before the break we asked what sold for one dollar but was valued at $624 million three years ago. fromit was a steel company australia. alix: get this, the company that is buying this company is going to reopen it.

they will get commitments to restart the mine. they could see profit. joe: one dollar australian, that is actually worse, because it is less in the u.s.. alix: this week we learned that a former great finance minister had been authorized to come up with emergency plan for a payment system, a plan b if greece failed to reach a deal. joe: we also got more on -- ions between is going to exit equip him with sufficient bargaining power. sufficient terrorizing power. alix: a professor worked closely varoufakis.this --

>> these two finance ministers had a good personal relationship. and meted to berlin with them. i think that what jan us -- was what heaying had told him. the reason that they cannot give greece latitude in the economic program was not that he felt that the program was a good economic program, but that if you make concessions to one country that he would lose oftrol of the direction economic policy that was his concern. but the idea of imposing a great exit -- a greek exit was influenced by france. >> you would have to get it from

them. that the issues between germany and france over structural questions of the french economy, so there is tension between those two countries. varoufakisessor, carou has gotten some heat over a phone call from this. what do they have to do? >> one of them is a question of using the existence system -- the existing system to facilitate payments from the government to its suppliers. jan usa matter that spoke about and it was something that it was separate from how to the problems that

would arise if greece was forced out of the euro. i was involves only in the second question, looking into the challenges that would have to be met. it is a separate matter. >> to extend to the plan require accessing systems that they did not have access to? >> we did not do that at all. we were concerned with how you get a payment system working quickly, how to solve the problem of shortage of currency, or paper shortage, those that the government would have to focus on if they were forced into an extreme situation. alix: talking about the deal, aroufakis was- v focused on certain things.

why is it that release so important? >> two major reasons, one of them was short-term. they needed principal repayments to the european central bank, for theated the crisis incoming government in january. the second is if you go down the road to 2022, there is an enormous increase in payments and principal repayments that would come up at that time. there was a grace time, but it was not viable over the longer term. the elections, the greek economy was recovering. not dramatically, but things were on the up. power,e new leader took it pretty much collapsed. given the lack of substantive gains and -- that the negotiating strategy achieved, is there a sense of regret that

a different approach should have been taken? >> two points, the positive growth in 2014 occurred only because prices were falling more rapidly than output, you had a situation where both variables were declining. that is debt deflation, that is not recovery. debt -- the burden of debt was rising. that situation was what brought about the complete collapse of the previous governing coalition. strategy,negotiating the case in fact that the negotiating strategy was set up in the prime minister's office and it was a strategy of making concessions progressively. they conceded on the basic lines of the fiscal program in march. and then i proceeded -- and then

they proceeded on tax issues that were difficult for them to concede on all the way until the end of june. it was at that point that they realized they could not get an accommodation on the most basic questions, which had to do with fragile individuals, and toome elderly people the basics of the labor market, very important questions, they decided they had to go to the referendum. joe: after the referendum, the first thing that happened was that there was a show of good theh, you are saying that negotiating strategy came from the prime minister's office? >> that was well known at the time. the team was designated from the prime minister.

this was from march and april onward. that was the case. the reality is, the greeks had a negotiating strategy and the european strategy was to give nothing. and that became clear at the end of the game. joe: earlier today, greece is prime minister defended his , saying that he acted in the interest of this country. shirt, butis a tacky -- >> i feel like he had to point that out. alix: it is a bad sure. which highly disrupted company has raised $1 billion in new capital, maybe outpacing facebook? ♪

oe: "what'd you miss?" alix: earlier we asked which billion, uber.$1 joe: microsoft is considering investing in new where. -- uber. alix: i wonder why microsoft would want to get in now? joe: people are asking that question with facebook, and it has grown 20x. not growing is wages and salaries, it has grown at the slowest pace on record. it has risen the smallest amount since records began in 1982.

this follows a .7 increase in the first quarter. discuss -- us to what do you make of this? >> it was disappointing, but not as bad as it first appears. particularly in a recession or afterwards, the stock market will re-band and and then you hope to see an increase in wage and salaries. they put pressure on that because the market labor -- the -- but we have had the best job creation in a long time. we are getting to the stage where we would expect to see some pressure on wages. today was disappointing, but if you look past it, on the road thet now, if you look past details, it is not as bad as it

appeared. we had a big jump in q1, the nfl in q2. in q2. it went down it was disappointing because we are hoping that the eci with lead and we would soon see average early -- average earnings pick it up. happen.nk that it will you'll see a sign of that this year. that if you even out q2, q1 was overstated, q2 was understated. of wagee seeing signs growth, but you need to look past the number. alix: but are they coming in in areas where you do not get much money? $10.50 looking at about last year for some companies,

mcdonald's is raising that, but are other places and isn't enough? >> blue-collar workers are benefiting a lot more. i think it will happen. it has been disappointing, we are six years into this. but it will take much longer than a typical recovery does after a less severe recession. joe: what is the topic that keeps you up at night? long-term lot of forecasting, 10-15 years into the future. if you look at long-term trends and the market movements, looking at the u.s. economy, productivity is in a slump. the eurozone, it does not look to moveble and may need towards a fiscal union, or else people leave that zone. asiahe biggest factor is

and china and how it manages the transition to a market economy. that will be the biggest issue. alix: so a lot. joe: everything is bad everywhere. alix: joseph, thank you for being here. ♪

huge economic week next week and lots of asian central banks will be acting. bank of india, bank of japan, a huge week. alix: do not miss tomorrow because time is up for puerto rico. you are looking at the municipal bonds for puerto rico. bonds$58 million worth of

worth tomorrow, including interest by puerto rico's finance bureau. they might not make it. joe: we also have a blue moon. the second blue moon of the month.

emily: uber may have blended microsoft as a backer. we look at the $50 billion valuation. ♪ emily: i'm emily chang and this is bloomberg west. could apple be planning to roll in a cd box seset september? $12 billion wiped off samsung in the last month. shares