alix: we are moments away from the closing bell. i am alix steel. joe: and i'm joe weisenthal. alix: it is a summer friday, friday, u.s. market ending lower on earnings. joe: but the question is, "what'd you miss?" oil in crisis. producers are canceling oil rigs, is the industry taking a hit? alix: and the vulnerable markets

that could be dragging down the world economy. joe: and we talked to the economist who tried to save greece. his take on the ongoing crisis. 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. trimming gains for july. 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. by the end, it was in the toilet. oil diving, gold is weak. very ugly all around. alix: earnings surprises, and the overall sales for the s&p 500 is 1.2% and we have seen a revenue surprise for energy companies this quarter. that is shocking.

considering the rollover. 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. what that tells me is we still have a lot lower to go to get to that 2013 level when oil was $87 a barrel. if it is a shakeout, that is 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. eurozone 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 already has demographic problems. it has a slowing population growth. this is a bad trend for this country. ben is a global equity strategist. you are overweight emerging markets and europe. less so u.s. equities. welcome. joe: one thing we have talked about, the weakness of china and other economy. how does that fit into your call?

ben: we know that people are concerned and looking at the selloffs in the asian market and the contagion from that. we do not see a lot of contagion. ownership in china is not dramatic for investors. have a authorities stimulus to the economy. they will be cutting rates and we see a lot more room for that to come through. we are seeing a trough in the economy. we will see a moderate pickup from here to the end of the year. people are very cautious and we think that will throw up opportunities. alix: why are you so optimistic when you're looking at the chart? ben: the flexibility across the board. we will have another 50 basis points to take up, we'll have more fiscal policy, more policy about lending.

put that altogether and we have been cutting rates for some time. there is a lag there. put it in with equity evaluations and it will help for cheap investors. you have a currency which, the currency has been weak and has stood out there. put it all together and we think that everything is interesting. alix: i thought that chinese evaluations work quite high, compared to hong kong which was less. ben: hong kong listed shares were half. in a world where valuations have re-rated, this is an opportunity. joe: what about the overweight called. what do you see that other investors do not see? ben: you seem surprised this is come out of energy. this is the same thing. investors are underweight.

the economy has been weak and we are looking for in the second half. not dramatically so, but everywhere you look whether it is europe or the u.s., you are seeing stronger economies being slashed. earning estimates have been cut so much. also, in a world where we have had massive declines in interest rates have really helped some segments of the stock market and has not helped other. commodities has been part of that. at least it provides another tailwind for commodities. this is the biggest underweight out there and we like that. you brought up central-bank easing. what happens with that and currencies?

ben: has been down and quite a lot of it has happened in the past year. people suddenly very afraid of a rerun of 2013. another taper tantrum. it is keeping people out of emerging markets. currencies has a lot of discounts on it. em earnings are extremely depressed. that, off loads are very low. everyone is waiting for the fed. we want to get ahead of that. we think it will be a catharsis. joe: speaking of the fed, you are more optimistic about europe, so is that a differential? the fed is going to hike relatively soon? ben: we are not going to downsize the u.s., but people hear this noise out of greece

and it is up securing -- obscuring the european story. it is 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 recovering and you put that altogether and it is a multifaceted story in europe. alix: you definitely have some contrarian calls, what keeps you up at night? ben: lots. we have no lifeboats left. six years on to the recession. historically, we are closer to the next recession. we do not know what will drive it.

we never do. fiscal policy has improved, but it is not great. that level is still high. it is not just 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. alix: coming 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. joe: it was a steel company from australia. ithas dropped to so sharply is close to worthless. alix: get this, the company that is buying this company is going to reopen it. it has been able to get commitments to restart the mine. they're going to try to squeeze some profit. joe: one dollar australian, that worse, it is about $.77 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 .ensions

>> the greek exit is going to equip him with sufficient bargaining power. sufficient terrorizing power. alix: a professor worked closely with varoufakis. they did the contingency planning for the government. >> these two finance ministers had a good personal relationship. i traveled to berlin and met with them. i think that what yannis was saying was what he 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 control of the direction of economic policy that was his concern. >> but the idea of imposing a greek exit was influenced by france. what is the idea there? >> you would have to get it from them. it was clear that the issues between germany and france over structural questions of the french economy, so there is tension between those two countries. alix: professor, varoufakis has gotten some heat over a phone call from this. what do they have to do?

>> they are separate things. one of them is the question of using the existing system to facilitate payments from the government to its suppliers. it was a matter that yannis spoke about and it was something that it was separate from how to deal with the problems that would arise if greece was forced out of the euro. i was involved only in the second question, looking into the challenges that would have to be met. it is a separate matter. >> to what extent did 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, varoufakis was focused on debt relief. tf we take a look at debe servicing, it is less than other members. why is it so important? >> two major reasons, one of them was short-term. they needed principal repayments to the european central bank, what created the crisis for the 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 period, but it was not viable over the longer term. joe: before the elections, the greek economy was recovering. not dramatically, but things were on the up. once the new leader took power, it pretty much collapsed. given the lack of substantive gains 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. the burden of debt was rising. that situation was what brought about the complete collapse of the previous governing coalition.

as far as negotiating strategy, 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 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 pensions to fragile individuals, low income elderly people and to 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 faith, you are saying that the 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's prime minister defended his former minister, saying that he acted in the interest of this country. alix: this is a tacky shirt, but --

joe: i feel like he had to point that out. it was in the media. alix: it is a bad shirt. which highly disrupted company has raised $1 billion in new capital, maybe outpacing facebook? ♪

joe: "what'd you miss?" alix: earlier we asked which company raised $1 billion, uber. joe: microsoft is considering investing in uber. it would value the company at

$50 billion. alix: i wonder why microsoft would want to get in now? joe: people are asking that question with facebook, and it has grown 20x. who knows. alix: what is not growing is wages and salaries, it has grown at the slowest pace on record. the labor department's index has risen the smallest amount since records began in 1982. this follows a .7 increase in the first quarter. joe: joining us to discuss -- , an economist. what do you make of this? >> it was disappointing, but not as bad as it first appears. typically in a recession or afterwards, the stock market will rebound and then you hope to see an increase in wage and salaries. they put pressure on that

because the labor market tightens. yearyear we have the best of job creation in the u.s. since we are getting to the 1999. stage where we would expect to see some pressure on wages. today was disappointing, but if you look past it, on the road right now, if you look past the details, it is not as bad as it appeared. we had a big jump in q1, then it went down in q2. actually if you look through the numbers, you should level those out. joe: it was disappointing because we are hoping that the eci with lead and we would soon see average earnings pick it up. joseph: i think that it will happen. you'll see a sign of that this year.

i think that if you even out with q1 and q2, q1 was overstated, q2 was understated. so we are seeing signs of wage growth, but you need to look past the number. alix: but are they coming in in areas where you do not get much money? you are looking at about $10.50 last year for some companies, mcdonald's is raising that, but are other places and isn't enough? joseph: 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?

joseph: we do a lot of long-term forecasting, 10-15 years into the future. if you look at long-term trends and move away from the market movements, looking at the u.s. economy, productivity is in a slump. the eurozone, it does not look sustainable and may need to move towards a fiscal union, or else people leave that zone. and the biggest factor is asia 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. ♪

,"e: "what'd you miss? something you don't want to miss, a huge week next week. a lot of economic data and a lot of asian central banks are going to be exiting. a huge week. alix: don't miss tomorrow because time is up for puerto rico. you are looking at the municipal bond index. take a look at the dive. it has $58 million with of bonds

due tomorrow, including interest. they might not make it. joe: and we have a blue moon. the second of the month. alix: will it look blue? joe:

from our studios in new york city, this is "charlie rose." charlie: we begin with the discovery of debris which could be from flight mh370. the boeing triple seven vanished in march of 2014. 239 passengers and crew went missing. the object was found on the indian ocean and appears to be a torn wing flap and will be shipped to france for examination. joining me now from washington is stephen ganyard, a