my donkey kong, air k is back. erick is back. erik: hello, stephanie. stephanie: he is back in nyc. while he has been off forever we are now back. and the beginning of august brings the same headlines as the end of july, greek stocks are plunging oil is leaving commodities lower, and puerto rico defaults on a bond payment. erik: the devil is in the details. you are going to hear from blackstone's tim coleman in a moment. advising bond insurer and dia, which is embroiled in this puerto rican embargo. stephanie: let's check the top headline. erik: the president is taking his plan to fight global warming

to the american people and will make a televised address this afternoon. he previewed his proposal by posting a video on twitter. the new climate rules aim to reduce greenhouse gases causing for a reduction by one third in 15 years. republicans are already fighting back. mitch mcconnell is telling all 50 governors not to obey the rules. america accounts for about 1/7 of the world's emissions with half of those from plants releasing carbon into the air. you can see the president's announcement live at 2:15 eastern time. a major insurer turns down one takeover bid and accept another. breaking up a merger partnerre had with xor.

stephanie: at&t is planning to introduce a bundle of tv and wireless phone services, its first appeal to consumers since completing the acquisition of directv. the offer will be available nationwide a week from today and will include the high death tv -- high definition tv and mobile service with unlimited texting and talking and 10 gigabytes of data for four lines. at&t wants to convert its wireless customers into directv subscribers, and persuade directv subscribers into wireless. shares of suzuki jumped today in tokyo on word that third point is taking a stake in the company. third point is run by billionaire dan low. his investment firm -- dan loeb

. the companies accused one another of breaching a previous cooperation agreement. a clear sign that a joe biden residential bid may be more than just talk. a close aide to his late son is joining a political action committee, urging the vice president to run. the longtime democratic operative was a fundraiser for abiding in his 2008 white house run. few democrats have come forward to charles -- challenge hillary clinton but bernie sanders does not think biden would bring anything new to the table. >> i have known joe biden for many years but i think the american people, the middle class as it is disappearing massive wealth inequality, a campaign-finance system that is corrupt and owned by billionaires, want to go beyond conventional establishment politics.

stephanie: the death of joe biden's son prompted an outpouring of support for the president. erik: the men who helped orchestrate the leverage of kohlberg kravis roberts has dried -- died. henry kohlberg formed an investment firm based not on earning commissions but on taking control of companies at crossroads. he later walked away from this firm following a bitter struggle with his partners. he died from cancer in his home in martha's vineyard. he was 90 degrees -- 90 years old. stephanie: he left the firm because he did not want to be part of hostile situations. he wanted to work with companies, to build them bigger and they could not seem to agree. he went on to lead a very private life. erik: he was not associated,

apart from his name, ceased to be associated from the firm. stephanie: but he did read a long and successful life. erik: let's get you started with the five things you need to know. greek equities are plunging after it reopened its stock exchange that had been closed for five weeks. banks given the capital controls in place, declined. benchmarks dropped as much as 19% in trading this morning. it may have been more but some stocks were limited down. hans nichols is at the exchange monitoring the situation. what does it feel like on the ground? when i was in greece, the stock exchange was closed, people were limited to 60 euros a day withdrawal. it is beginning to open up but it is a rocky ride. hans: as you can see, it is a red ride.

not a single stock trading in positive territory. i think there is the sense in athens that this day had to happen, it had to be ugly, but it had to happen. it has been 25 days a stock exchange has been on hiatus. most of them hit that 30% floor. a lot of the trading has been halted. we are seeing slight increases coming off session lows this morning. it is creeping up. we will see where the pricing is at the end of the day. we spoke with the ceo of the athens exchange and he said he did not expect a stock in positive territory until sometime tomorrow. they are trying to figure out the pricing because there are onerous restrictions on who can trade stocks and what they need to do. erik: some people may be wondering what is the point of reopening the exchange if stocks are just going to crater. why is it important to find a clearing price, particularly for

these banks? hans: you needed to take a first step. you do have capital controls in place and the reason you have the restrictions, they are mostly on greek retail buyers. it is so this stock exchange does not become a giant backdoor to circumvent capital controls. they think they have those regulations in place. the victim, the casualty is accurate pricing and market information. the real victim is time, because in a couple of days you will end up having an accurate pricing accounting, but that is what market participants are telling us. the real harm is being done to the market, but eventually this will work out. erik: hans nichols at the athens stock exchange. stephanie: i have to take you straight to number two, a just bc holdings -- hs holdings profits drop as legal expenses

increase. they also agreed to sell its brazilian operations for about $1 billion more than expected. shares are trading higher in london. same story, over and over, legal expenses over shattering everything. we hear this on a constant basis from banks. when you sell your brazilian business unit four $1 billion more than you listed -- erik: number three, julie hyman hasn't. julie: stocks and china fell to the lowest level in three weeks after declines in manufacturing added to our already signs of a deepening economic slowing. china is weighing on commodities globally because china is such a big consumer. we are seeing oil continued slide, falling to a six-year low. metals like copper are also down. it is intriguing here this

morning, coming in this first trading session of august to find that the trends we had seen firmly in place in july are continuing, especially in the commodity market. erik: number four, puerto rico defaulting on one on the issue missing a 58 billion dollar payment -- d8 million-dollar payment -- $58 million payment that was due on saturday. it is among $635 million owed this month, raising the prospect that more of puerto rico's 72 billion dollars in debt or in jeopardy. stephanie: come 2:00 p.m. today eastern, president obama will layout details of his climate plan to cut emissions by 26% by 2025. it is being called the most complex in agency history, and if it survives, legal challenges will transform how electricity is being produced in the united

states. let's bring in brian d it's, who advises the president. clearly waiting for the big drumroll. this is huge for you and your effort. the president is making a huge statement and this will be the biggest we have seen out of the white house in history. given how complex this plant is how realistic is it that we will see anything get done? brian: i think it is very realistic. at its core, this is a simple approach. right now, we placed no limits on the amount of carbon pollution that our power plants can emit into the air. what this will do is for the first time set those limits. it will set a limit for every state and every state will have an opportunity to put forward a plan to meet those targets in a way that works for the state, so it is very flexible and date forward. the upshot is that we will get a cleaner energy mix in the united

states, we will reduce carbon emissions, and create long-term incentives for investment in renewable energy which are creating jobs at a faster rate than the rest of the economy. erik: brian, the response to this proposal that is getting the most attention is that of the republican party. what are the power producers themselves, the utilities, telling you how are they going to contact new regulatory environment, and houston? -- and how soon? brian: what we are hearing uniformly is this rule helps go with a grain of power -- how our energy production is going in the united states. we have seen over the last few years a shift toward cleaner burning natural gas energy across the country. this rule will help put in place long-term incentives to try to encourage that kind of investment.

utilities are going to be looking at the details of the rule and working with other states to try to put together plans, but they will have the time and space to get those plans right. i think what you will see is the only heated political rhetoric, which we often hear whatever regulations like this come up you will see i think increasing understanding that this is a rule that goes with the grain of ready industry is headed. erik: are some of these utilities, particularly the ones that offer -- operate coal-burning plants, are they going to wait for the legal challenges that inevitably will be brought by any number of different states or will they start adapting to the new regulatory environment because they cannot afford the risk that those legal challenges will be defeated? brian: what i can say is that this rule is on very solid legal foundation. the clean air act revised epa with clear authority to set these limits on carbon pollution, and they have done so

in a way that took into account in our miss -- an enormous amount of input from authorities and stakeholders. rather than spending time and money on legal fights, what we will see now is plans to get to work. there is an enormous amount of flexibility, opportunities for states to enter into interstate trading markets. approach is actually very familiar with over the course of the last second test several decades. our hope is that people will get to work and see this is a workable plan. stephanie: i hope so too. thank you for joining us. you can catch a bomb -- president obama's announcement at 2:00 p.m. eastern on bloomberg "market day." erik: puerto rico in crisis, can there get become restructured so that it is sustainable? ♪

♪ stephanie: welcome back to market makers, i'm stephanie ruhle. firefighters in california are calling for thousands of evacuations. wildfires threatening scores of homes. one blaze tripled in size over the weekend to 84 square miles. the rest of the state is having problems. over 9000 firefighters are battling 21 fires across the state. wildfires are also burning in washington and oregon as the west coast and doors the effects of drought -- indoors the effects of drought and summer heat. erik: puerto rico has defaulted on one of its bonds after failing to pay $58 million in interest. now the question is what happens to the rest of the bonds -- of the $72 billion in debt?

tim coleman's blackstone's had of restructuring -- head of restructuring. tam, here is what everybody wants to know. puerto rico defaults, but only on one bond issue. what does that mean? tim: it does not mean a thing. the foundation did not fund that moral obligation bond so they do not have the funds to pay it. prepa is a public corporation. if anybody else defaults, it does not necessarily affect them. erik: at what point did the robert meet the road? tim: they talk a lot about it it is not actually a company in distress. if they were ever to get chapter nine, they would not be able to prove they were insolvent. erik: we are getting a little

ahead of ourselves, because puerto rico does not have a chapter nine provision, unlike detroit or jefferson county. there is no way they can restructure under court supervision right now. tim: correct. erik: you are saying even if they were to get chapter nine, which is something hillary clinton and jeb bush say they should have, a would not qualify? -- they would not qualify? tim: the only public number we have today is $.22. i know other numbers that have gone lower than that. if the rates are coming down substantially, it means they could actually if you will raise rates to meet their debt obligations, which is what the documents say they are supposed to do. if all they did was raise their rates by two cents or three cents, they are bible.

the bond holder had some issues and they will take parts of that plan. what do they need to do? they need to take their power plants and fix them go out for an rfp and seek new financing and opportunities to build these plants. all of that can be done within their business plan. erik: here is perhaps an obvious question. if all they need to do is raise rates to become solvent and meet its interest and principal payments, why does the government refused to do so? tim: we do not understand it. they also need to do some structural reforms. erik: but if you could fix one of your bond problems -- tim: then why wouldn't you do that? erik: it at least shows there is a way. tim: if you look at the history of restructuring, you start taking one off at a time, do not try to do the whole thing at once.

other than politics and hoping to take losses from creditors because it is convenient, we do not understand why they do not take a deal right now. everyone is ready, you name it we are all together in rooms every week. there is no reason why a deal cannot be struck here quite easily. stephanie: didn't the bondholders offer a much lower debt service than they even asked for? tim: they have offered something, the minimum would be a couple years of relief which would help them get through some of the changes they need to make . that was something we did magnanimously. i do not even think they need that, but it would allow them to have a lower rate, do their rfp and ultimately be just fine with no restructure. erik: there is a path forward, we will see if that happens. tim, thank you so much.

we are taking a quick break. we will be back with you in a couple of minutes. ♪

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(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. ♪ vonnie: citigroup filing a thank you in the past few minutes, saying it is being investigated over student loan servicing. it is cooperating, according to the filing and we have more in a few moments on this breaking news. julie hyman? julie: it is time for futures in focus, taking a closer look at oil. it continues to fall. lower for a third consecutive day. oil closed out july with losses of more than 20%, the largest monthly decline since 2008.

my next guest says short oil trade may be getting long. joining me is tom heard -- todd hurwitz. todd, we have seen this enormous downtrend, not only in oil but in other commodities. what are the signs you are looking at that show maybe it is coming to an end? toddl: i think when you take a look at commodities in general we tend to always push the envelope too far. the space is too heavy for the short side. just by the bloomberg index it is down to a low it has not seen since 2001. oil has been extremely volatile coming into this move. a year ago it was $107, went down to $42. here we are at 40 five dollars -- $45. i think you look at this as a building block where we probably will see a bottom, and look for

some retracement back to 50. the biggest thing about the space is we always tend to push the envelope too far. i think they have certainly pushed oil down too far. the trade is very crowded and there are too many shorts here. i think somewhere around here will find a nice taste, and if the economy is improving the way they tell me it is, then oil should also benefit. julie: so you would be outright buying oil at this point? todd: i believe the risk reward model shows we could go lower what there is a much greater chance that we will hold somewhere in this neighborhood and work our way back into the upside. i think we are somewhere near a low. julie: you mentioned you think the stronger economy should helps support oil. there is too much oil.

todd: that goes back to the bigger economy. we know that overall production is terrible throughout the globe so if we do get some better things, there's going to be a bigger demand for oil. i think the iran's toil is a nonstory. they have no real oil to offer. we will be totally, 100% self-sufficient in the next two to three years. there will be a demand for oil because we have not developed and alternative space. forward, there will be a bigger demand and i believe we will see higher prices because i believe demand will come back, because we need oil. it will create a bigger demand going down the road. julie: thank you so much, todd. we will see how that long on oil in the short-term works out. stephanie: i am going to send

you back out to the newsroom or we have breaking numbers. vonnie: we have a big impact from fiat chrysler. a gain of 4.8% adds to some of the other we sell this morning, including from nissan group. they had reported july sales of 7.8%. the estimate was 5.8%. stephanie: thank you. let's take a quick look at the top headlines of the hour. john kerry is on a fencemending swing through the middle east. he will stop today in qatar. he he restarted formal security talks after a gap of six years. now a new u.s. warplanes have been delivered and the u.s. is counting on egypt to help

stabilize the region. secretary kerry: we have is in the can amount of increasing military to military cooperation. our f-16s have just arrived and the president has lifted a hold on other equipment and goods that are very essential in the fight against terrorism. stephanie: the last talks in cairo were in 2009. they were stopped because of the air of unrest and the ouster of mubarak two years later. the reopening of a five-week shutdown was not waiting for and the eu is saying quick economic prospects don't look right. -- greek economic prospects don't look bright. shares of two major banks fell to the maximum amount the market

allows, 30%. trading was stopped in late june when the debt crisis deepens. banks were shut and capital controls were imposed. meanwhile, a european commission spokeswoman is saying that now that the eu sees serious deterioration in the greek economy -- they see it now? what were they looking at for the last five years? erik: those other breaking headlines. vonnie quinn in the newsroom has more on personal income. vonnie: we already have gdp data, so not quite as eliminating as we might want it to be, but we are seeing income in june of 4%, which is better than the 3% forecast. people are not spending. we were looking for 2%, so that was on consensus. the previous month data was revised lower.

let's look quickly at the pce deflator as well because that is what the federal reserve is looking at. core pc is at a measly 1%. back to you. stephanie: thank you. we've got to take a quick right now. much more to cover when we return. credit suisse anticipating robust hedge funds at beginning of -- anticipated robust hedge funds at beginning of 2015. are they right? we will find out next. ♪

erik: right here on bloomberg television performer barnes & noble ceo announcing michael huseby will be on at 10:30 a.m.

eastern time. stephanie: investment appetite for hedge funds remain open -- remain robust. that is the forecast for credit suisse. what has changed from just a few months ago? let's ask bob leonard, the global head of cap introduction services at credit suisse. first of all, those surveyed are already invested. it's not like it's a new universe. they want to put more space in this through 2020? bob: we still have a robust amount of demand from institutional investors, in particular pension funds. they appear to be strongly committed in this space. it is a question that comes up often and at this stage, investors have not been scared off. it is really a tool for the viscous nation -- a tool for

diversification ats stage. stephanie: when you took this snapshot last year and now this year, was the biggest difference? bob: global macro and defense driven strategies remain strong but the biggest change in terms of what we saw in terms of the previous survey commodities and 88 took a big hit. we also saw equity long short continue to move up this curve. from a performance standpoint, we seen a bit more dispersion. managers have been talking more about dispersion stocks. i think institutional investors are finding it easier to differentiate across them. erik: among those who surveyed, what is the typical allocation to hedge funds among the assets

that they oversee? bob: it is difficult to say across pages, but 5% to 15% in alternatives. part of that bucket includes hedge funds. if you look at endowments, and foundations who were early adopters of hedge funds, in some cases they may be 40% to 50% of their overall. erik: and they are increasing funding allocations? is that what you are finding? bob: pension funds are new. endowments have been there for a while. they may swap and trade out of some funds into others but i would also say for a pension standpoint, there's still money to spend. erik: so you don't find that other pension plans on the whole are following calipers out of the hedge fund industry. bob: that is correct, at least

anecdotally in our conversations with institutional investors. there are some who have freaking did it the hedge fund space, but based on our -- who have reconsidered to have reconsidered the hedge fund but based on our conversations with investors, calpers did what they did to do for their own reasons. uncorrelated sources of alpha is what you hear from them most often. stephanie: those new allocations, they going to existing hedge funds, or the big guys the new guy's question mark it is those funds that are bigger than $5 billion and -- or the new guys? it is those funds that are bigger than $5 billion and $10 billion or bigger that people are going to. people don't seem to want to do the due diligence or take the risk. bob: it is a fair point and there are many headwinds to the

start of hedge fund marketplace right now, both from a regulatory and investment standpoint. i would say by far, and some of the independent databases backed this up, most of the asset flows right now are going to the establishment -- established funds. typically, the larger, let's say, $5 billion and more is raising more than money. what we're seeing in the start up space is fewer and far between high-pressure dream -- high pedigree. we are not the has many, but those that are hard quality. stephanie: those that sit down and talk to about raising money, for the most part are you saying, don't try to put a shingle of, join a in existing platform -- an existing platform? bob: there are quite a few existing funds out there right now that are interested in hiring new talent. but from our standpoint, we try to be somewhat consultative.

we try to give them options, but in more cases than not, there are quite a few funds that let's say, five or 10 years ago would not have launched. not without taking some sort of alignment. erik: how would you explain the growing allocation to global macro, but the shrieking a location to the nsa --msa's? bob: these are long-term alligators, looking down -- long-term allocators, looking down the road in greece and china. they may have many tools in their bag, unlike a cca -- cta. many investors are looking at it as a bit more all weather location. stephanie: do you think we will see a lot of funds shut down this year? we are seeing some outperform, but it seems every week we see a

new name pop up that is getting crushed. bob: there are several shutting down for those reasons, and others that are moving to new allegations that template cannot -- new allocations that simply cannot manage more. stephanie: i'm talking about every week we see managers who are really seeing losses. will 2015 be significantly more hedge fund shut down that we've seen since the beginning of the crisis? bob: i would not be surprised if the current environment stays in terms of the landscape for new launches and in terms of the landscape foreclosures. if i had to make a bet, i would say probably flatiss -- flatuish toward the end of the

year. stephanie: it's good to be the rich guy. thank you so much, bob leonard, global head of capital services at credit suisse. erik: where are the customers at though? stephanie: if you work at a state pension fund, they barely give you a pretty them to get a big mac when you come to new york city. erik: we are talking about uber. are the drivers unemployed or just looking for extra cash? ? stephanie: -- extra cash? ♪

stephanie: welcome back to monday morning on market makers. these are the top stories of the hour. police in tennessee are hunting for a suspect in the fatal shooting of a memphis police officer. a 29-year-old man is facing a murder charge in the death of 33-year-old sean bolton. police say the officer was shot several times saturday night while approaching a car where a smalltime marijuana deal was in

progress. bolton was the third memphis officer to be feeling we shot -- to be fatally shot in the last four years. a remark part -- a wing part is being tested, found in a remote island. they've already proven it is from a boeing triple seven. an mh 370 is the only missing plane of that type. three german automakers are buying nokia's digital mapmaking they say will lead to better driving cars. they will pay $3.1 billion for it and will each get an equal share of the unit. the deal is expected to close early 2016. it will provide 80% of cars within a- -- with an in-dash

matp application. vonnie: line for voluntary chapter 11 restructuring. the senior lenders include citigroup, davidson can't and capital management -- davidson can't and capital management. we will bring you more on this story as it happens. erik: thank you. if you book a car in uber, who might you find under the -- behind the wheel? in mi5, it might be -- in atlanta it might be the same man who runs the arts college.

lawrence, welcome. what motivated you to become andrew bird driver? -- and uber driver? lawrence: we teach our students to not be bystanders. you can learn a lot in the classroom, but we also believe you can learn a tremendous amount by doing. stephanie: you did this to learn. lawrence: absolutely. stephanie: what did you learn? lawrence: i learned a lot about the online business. in less than one afternoon, i became a driver. in less than five minutes i got a call that had the over inspector was going to come out and inspect my car. and i have not washed my car. i had gym clothes in the back seat and had to put everything in the drug. of the car got inspected and got approved and 24 hours later i was an new bird driver. -- and uber driver. stephanie: what was your opinion of the company before and after

becoming a driver? lawrence: i was an occasional user. it has always been a convenience. stephanie: how about as an employer? many people who are anti-uber complained they are abusive to his drivers. lawrence: my brother, who is a labor lawyer, would be in that category, probably. my experience as a part-time driver it has never felt abusive. but i also have a good job and i'm not trying to make a living doing it. one of the most interesting things i've discovered had to do with the passengers. i have this perception, this stereotype that all uber writers -- riders are college kids, going out to a bar and coming back to they would not drive drunk. but in reality, in my experience, over half of my

passengers, we are not young we are not the wealthy. i was digging them up in neighborhoods, near nice -- picking them up near nice it was in atlanta that were not big houses, fancy apartments commended were using it to get to work. stephanie: people who may ride the bus? lawrence: the public transit situation in atlanta is pretty miserable. stephanie: does that surprise you? lawrence: it does. erik: what does it teach you about the networking economy? because of a nap, uber functions -- because of an app uber functions as a company. lawrence: it is amazing. i have done maybe two dozen right -- rides. stephanie: how much money did you make?

lawrence: i am of almost $200. it's all going to the oglethorpe scholarship fund. i'm not getting rich. stephanie: do you think they take too big a cut? lawrence: they take 20%. in atlanta, it has never been unreasonable to me. a lot of my drives are five dollars. my biggest one of our -- biggest one was an oglethorpe student. he is sitting in the backseat and he doesn't say anything until we get to the end and he goes, what are you doing after you drive, dr. schall? stephanie: no way! erik: do you think we say companies like uber are transforming the economy do you think that is overstating the experience question mark -- the

experience? lawrence: i think that is true. many business models are being disrupted. stephanie: do you see the political pushback against uber? lawrence: i think it is interesting. it didn't last long. i chat with all of my customers and they love the service. i suspect it is here to stay. erik: you're at a liberal arts college. all the same, do you think that uber is worth $50 billion? lawrence: i have no idea. erik: he is the 16th president of oglethorpe university and as you just heard, a driver for over. stephanie: very cool. he walks the walk and drive -- and toxic talk and drives for over. futures are makes -- he walks

the walk and talk the talk. and writes rupert. julie hyman has what is ahead of the belt. julie: i wanted to her mention one of the earners off the move -- one of the movers off the earnings. higher cattle prices. we've been talking about lower commodity prices, but higher cattle prices have been a problem for tyson foods. they are down in the premarket as a result. we have a telecom company coming in and raising its guidance for the full year and free cash flow. it has to do somewhat with the fundamental business. it says it is growing subscribers, but also has to do with a sense of the from the government. a subsidy from the government. frontier is getting some subsidies from that and raising its forecast partly as a result.

and finally, i want to talk about to analyst calls i should mention. michael kors is out with earnings on thursday, coach tomorrow. michael kors is being cut by piper jaffray and coaches being downgraded a jpmorgan ahead of those earnings. in the case of jpmorgan, she sees inventory building at places like macy's and dillards not a good sign, and also the watch business not doing well in the u.s. and a spokesman at home -- at coach said a handbag inspection overcame problems the last few months. they have done this whole product revamp that maybe customers do not realize. stephanie: a product revamp, but they have saturated the market so much you are just in a sea of product. thank you so much, julie hyman. since eric has not been here for a while, you miss my favorite picture while you were out, which is my man erik.

i hope you saw it, the empire state building. images of endangered species including cecil the lion, were projected onto the side of the empire state building along with the tiger, eagle, and whale. the images covered 33 floors of the building and could be seen for miles away. i was not a new york city, but thanks to instagram i saw it. this is amazing. erik: it is amazing, beautiful and i hope inspires people to do something about these endangered feces. stephanie: so to live. erik: that motivated, everybody. when we come back amount of sales are out all morning long for -- when we come back, auto sales are out all morning long. stay with us. it's only a short break.

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>> live from bloomberg headquarters in new york, this is market makers with erik schatzker and stephanie ruhle. erik: good morning, everybody. i'm erik schatzker. stephanie: and i stephanie ruhle. thrilled to be back with you. we have top headlines this morning. erik: let's begin with the president taking the fight against global warming straight to the american people. he previewed his proposal on climate change by posting a video on twitter. the new epa rules it calls for cutting greenhouse gases from

power plants by almost one third in 15 years. senator majority leader -- senate majority leader mitch mcconnell is telling all 50 senators -- all 50 states to ignore the new rules. you can watch the president's announcement starting at 12:15 p.m. eastern time. stephanie: 2:15 p.m. erik: excuse me. shares of suzuki jumped today on third point taking a stake in the company, the hedge fund fronted by daniel loeb. the companies accused each other of breaching a previous cooperation agreement. stephanie: sales are up at heineken this increased competition and price pressures in the beer business. the world third-largest brewer posted results for the third cap -- for the last half of the year.

>> we didn't see any reason to change our outlook. we still expect this year to grow both in revenues and profit despite the fact that europe remains a tough turf to operate but we are seeing progress. and the majority of our markets are going in the right way. stephanie: sales rose 6.7% to top 10 billion dollars. and the man who orchestrated the creation of a leveraged buyout of a powerhouse has died. he along with henry crawford's -- henry kravitz and others managed by taking equity stakes of companies at crossroads. but he later walked away from the firm following a bitter culture struggle with his younger partners. jerome kohlberg died last week at 90 years old.

in addition to being a pioneer in the private equity business if you think about his philanthropic commitments in the last 40 years to helping veterans find jobs education when they come home from serving, he's worth recognizing. an extraordinary american. erik: moments ago, the suzuki automaker deal by gamble. we are hearing from other automakers. what can we expect from general motors and ford? matt miller, our resident gearhead. stephanie: car expert, but also here to let you know when the president is speaking today. go ahead. matt: i have other talents as well. but let's focus on cars. nissan and the -- and fiat

chrysler beat estimates, but the two automakers are estimated to have sales of more than 5%. the strongest growth of all of the automakers we are expecting today obviously coming from a smaller base. it's a bit easier to grow a bigger number. orton chrysler coming from a bigger base -- ford and chrysler coming from is bigger base and we are expecting smaller growth. both under 2%. they have a struggle that carmakers would rather have, that is, they cannot make enough vehicles to meet demand. stephanie: that's a good problem. matt: and it's especially the." truck. the f1 50 -- the pick up truck. the f1 50, they have not been able to come up with enough inventory to keep them on dealer lots. that's why you don't see sales growing as fast as they could be. erik: what about china?

matt: we will get to the u.s. headlines, but i thought i would look at the chinese market over the weekend to see if it really is slowing down. ward had previous and -- ford had previously estimated sales to slow. it could be the first time auto sales for the maker declined. it had been growing on double-digit pace. last year, growth slowed to go about 7 -- slowed to about 7%. a lot of chinese buyers said, i think i will buy new car no, wait, let me invest in the market because it was on fire. they lost all of that money and won't be buying a car in and half. -- a car in the second half. in beijing, it's very hard to

even a get the allowance from the government to buy a car because of pollution. stephanie: even if you are someone who doesn't necessarily follow the auto industry, this kind of data is the kind that matters for those looking at china. those who doubt the data we get out of the chinese government which is not just the jim chanos's of the world anymore but when you are seeing an actual action step and numbers changing because of it that tells you a lot. matt: if you want to step away from the car vocus and just focus on the chinese economy they want to grow that economy in a can tumor focused way -- in a consumer focused way. stephanie: but our consumers here have significantly more flexibility in what they can do and how they can do it and when. matt: true. in china, it is far less than 60% of the economy.

i looks like that at auto sales versus gdp and they correlate completely. if auto sales falls first, gdp follows, and a gdp comes up, auto sales follow. stephanie: i wish we could have seen a graph on television. matt: i brought it to surveillance. erik: what you are saying is going into a downturn, auto sales could be a leading indicator. matt: that is right, a lot of economists think of out of sales as a leading indicator. the interesting thing is europe european auto registrations were up 15% last month. they are expected to be up 5% for the year. you have economies that you think of as very weak, like spain, leading that. you could see a resurgence in european. stephanie: that would have been

a great chart, too. that as long as you are delivering your best stuff to surveillance and not market makers, you can be on your way matt miller. hopefully you'll be back tomorrow with similar. you are out, finish. erik: he might even be back with a chart or two, perhaps. stephanie: he better have three if he is coming back. but when we return, we will still be here. oil continues to get hammered. more than we just did to matt. how much further can it slide? ♪

stephanie: welcome back. i'm stephanie ruhle with my partner eric schatzker -- erik schatzker who is in the hot seat. will close out july with losses of more than 20%, its largest monthly decline since 2008.

michael whitney winner is here with us now. -- michael whitner is with us now. what is your take? michael: we have a bunch of factors pushing down and we still have a global supply. at this point, we are getting close to the autumn when demand for crude hits a seasonal low point. between now and the autumn, it's hard to you where the uplift will come from. erik: talk about these nongovernmental factors. most have come to view it as an oversupply on one hand and a lack of demand on the other. michael: that is true for the oversupply, but i'm not sure about the demand. we sort of had this trouble whammy of greece, china, and iran a month ago, which was a big catalyst for the downturn.

erik: how so? michael: it just kind of gave a push, you know, risk aversion. no one knew what was going to happen amid the -- a month ago with greece and china. erik: with the selloff of the precipitous value of chinese stocks and also the uncertainty over greece, people were selling oil? michael: that is right, it was getting caught up in his risk aversion that was hitting all asset classes. instead, we have the market looking ahead to rake lift off in the u.s., so a stronger dollar and weaken route. -- and weaker crude. that has also been off liquidation of money, and more recently on brent. stephanie: and it china and greece are sort of this triple threat to push the market down if you look at greece today, just last week we said, oh look, greece is out of the water and we are good shape.

greece stocks are doing poorly. what if china continues to slide? where could it all go? michael: pharrell -- for oil and commodities, it will be the impact on the economy, and the issues are more about china rather than greece. we saw pmi's the other day, which has fanned the flames of concern about china. the coming back onto the fundamentals, demand in our view has an healthy stop -- has been healthy. but the big thing is oversupply. really, a huge oversupply. we have had twice as much crude from opec, from saudi arabia and iraq, and we expect to get from iran. the oversupply has already happened. it is weighing on the markets. erik: is there any reason to expect that the oversupply

which has already enter the market, will not be there when the iranian oil starts to hit in 2016? michael: saudi arabia and iraq are doing what they said going for market share. he will not back off. the gains will be asked her medic them up they will not back off. erik: will we see structured resupply in the u.s.? michael: it is starting to happen. the first few months was increased, but the last few months has flattened out. so far, shale has started to decline and the gulf of mexico is growing. it should happen eventually but the big picture, we think next year is going to be about flat. erik: from a production standpoint. michael: u.s. production, yes. erik: what about prices? michael: i think there is more upside than downside to where we are now. momentum could have us go down further. but again at this point, when you come back to the

fundamentals, i don't see continued weight from the oversupply but also the seasonality. we pick up a little bit when we get into the late autumn and winter. stephanie: it's monday morning and i got dry powder to invest in? oil markets. what do i want to do michael -- what do i want to do -- i have dry powder to invest in oil markets. what do i want to do? michael: short term, go farther out on the curve, because i do think we will recover. stephanie: i thought you were advising eric to get a mullet. i was confused. michael: [laughs] we could revise down to a lower market position. erik: so 43, 42. michael: that could be it. it is hard to call the turn. but fundamentally, i think the bad news is already priced in, or we are getting close. stephanie: that is assuming we

have heard all the bad news. you never know what we could find under another rock. michael: thank you for joining us. michael wittner of socgen. erik: coming up, find out who is causing all of the volatility in the equity market. you might actually blame the government. stephanie: i was going to say who is asked -- was exactly on the witchhunt question mark we will be back -- on the witchhunt? we will be back. ♪

erik: the greek stock market has really been five weeks during which it was closed and the wave of selling his savage indeed. there are some specific conditions and restrictions in place that many in greece have

labeled unfair. hans nichols is at the stock exchange in athens and he's going to explain. why do people say it is unfair? hans: it is not so much unfair as it is going to calibrate the crafting a little bit differently, and the problem is that you only have restrictions on domestic buyers, on what they are able to buy, that could create some pricing discrepancy. we've seen a lot of quick results, a lot of fast drops. the thanks are down pretty uniformly down 30%. that is after the trading has been halted. it is not all that negative. there are a few of their, metta i just saw, which is a greek construction company, it was down earlier and now just down 10%. it is pretty much who has had the least bad day. everything is negative. when we spoke to the ceo of the

athens stock exchange earlier today, he said it would be pretty clear you wouldn't have anything positive until tomorrow. erik: i would love to continue on greece, it's an important story, but the ifn manufacturing -- ism manufacturing number has come out almost 30 minutes early. vonnie quinn has more. vonnie: we need to ensure that these are the correct numbers and they won't be revised later on. it has happened early before, but this is a 40 minute preview if you like, of the numbers. ism manufacturing, the headline number is disappointing. but in growth territory, 52.7. the consensus was looking for 53.5. just a bit below there, but nevertheless, growth. prices paid, that was down to 44

from 49.5 the previous month, and we will looking for 49. that was the consensus of the bloomberg economist we surveyed. once again, the ism manufacturing coming out 40 minutes early. if it is the correct data, it is disappointing in the growth territory. erik: a little bit of caution until we are absolutely certain that is the july number. stephanie: it is so often revisions come later. when we return with a rate hike, china and other uncertainties looming. how should you put your money to work question mark -- to work? christian all money reveals -- christian romani reveals good values. ♪

stephanie: welcome back. i'm stephanie ruhle. we are just a few minutes away from the opening bell here in the u.s., and leave aronowitz is here with the three innings you need to be looking at -- the

three things you need to be looking at today. also, kristin. -- krishna. lisa: number one has to be china on a lot of levels, but i am particularly interested in trading accounts, including one of sit it out, a hedge fund firm in chicago and great, they are going after algorithmic trading and they are going after spoofing which entered the lexicon after 2012 when there was the flash crash in the u.s. basically, the chinese government is saying, look, we know there is someone out there responsible for this volatility. it is not just leverage. it has got to be something else. sit it out, you have got to close that account, shut it down and let bringing back -- the

citadel, you have got to close that account, shut it down and let's bring it back to stability. stephanie: those hedge fund managers, it must be then. krishna: it is a witchhunt. i think it was the idea to intervene because it did not accomplish anything. the economy continues to slow. now that they have a disaster on their hands, they are trying to figure out who to blame. erik: how broken is the chinese stock market? krishna: it was never a free market to begin with. stephanie: thing, dean, dean krishna with the answer. krishna: if you're going to invest in china, you will do it for the long-term, focusing on the consumer section and finding

winners that will do well for the long-term. stephanie: is there such a thing as a long-term investor? krishna: there are lots of them. lisa: it is a little unnerving when your individual investors who have never invested in the stock market before can go buy a stock they don't know anything about. it's a little concerning. number two, manufacturing around the world, getting a lot of data including from the u.s. erik: an early release on ism manufacturing. lisa: exactly, and it doesn't look good. we see lagging manufacturing in the u.k. where there was a fourth fall in recent months. and in china, falling to the lowest level in 15 months. how much is this a factor of the currency wars? should i not say currency wars? the alleged currency crosswinds

were basically, countries with stronger currencies are essentially suffering in their manufacturing. erik: answer the question, how much of this is a factor? [opening bell] krishna: in a deleveraging world where the flows come in and they cannot be absorbed because people are not increasing their leverage level effectively you cannot have growth rates that are very diverse across the world. if the u.s. is going to do much better, if the dollar is going to appreciate, that will get flows into the u.s. we will be able to absorb those flows because we are not leveraging ourselves, so overall growth rate has to come down to make the new equilibrium. this is one of the things i've been talking to people about that in a deleveraging world, there cannot be too many diversion -- too many to divergent economies.

it cannot be that there is growth in the u.s. and the global markets are contracting. that cannot be -- that cannot exist. erik: but if manufacturing is not growing in the industrialized world, where is it going? it has got to be growing somewhere. krishna: manufacturing is growing, but not at the pace we would like. that is the difference. stephanie: number three, david einhorn. i want to point out lisa is delivering today. she is not always a person to come with the three. this is a number one story of knowing your audience and i see that as a gift. lisa: thank you. david einhorn did win in october when he did advise people to buy stake in renewable energy companies. we have barack obama poised to

come out and propose a sweeping set of overhauls in how we consume energy that probably will deliver billions of dollars of gift money to renewable energy companies and probably to the investors who have invested in those companies. it is interesting to watch how policy is dividing the winners from the losers when it comes to energy bets. stephanie: what you think, krishna? krishna: i believe the politics aside for a second, however i think the energy sector cannot catch a break. you have a situation where emerging markets slumming is a negative and developed markets not growing fast enough is a negative. now the energy sector on top of it. when all of those things pile up, those other signs of bottoms. we may not be -- those are the signs of bottoms.

we may not be quite there yet but it is a fantastic opportunity. lisa: people are not complaining about high gas prices. it is an interesting time for obama to come out with this because there is not that pressure on the economy because of higher gas prices. stephanie: there is pressure on our planet which is more important that our economy. lisa: there you go. stephanie: thank you very much. let's go to julie hyman for a look at what is on the move just after the open. julie: we have the earnings to consider isolate the global events we are discussing. let art with sears holding -- let's start with sears holding. the shares are up a little bit. on the one hand, the company reported get another quarter of double-digit declines in its same-store sales, sales down 10.6% including a 13.9% drop at the stores themselves. that would be the bad. but then he sort of good, or less wars, the adjusted loss

before taxes depreciation amortization that would be the loss. but it would be an improvement of smaller losses on a sequential basis. and the company also extended its credit sustainability. one more thing on the puerto rico fallout. the two stocks that we have been watching have been the bond and shores. -- the bond insurers. they are both hired today as mbia says it's not going to make a bond payment. we are seeing the stocks actually go higher. and finally, i want to look at the greek edf -- etf. it is down 1% -- half of 1% as we see the index down by almost

17%. we have this sort of price discovery mechanism even as the athens stock exchange was closed. this is still trading in the u.s. and it fell 17% during the closure so essentially what you are seeing today is the open market increase catching up. it looks like it was a pretty effective price discovery method during that time. stephanie: julie, thank you. still with us, krishna m emani. i have money in my pocket i want to put it to work for five years. krishna: a globally diverse atmosphere, not spectacular growth, but ok growth.

decent valuation. global equities is where you want to be. erik: global equities is where you want to be for long-term investors. the flip -- the flipside is fixed income is a terrible place to be? krishna: it will probably be stable, but not provide the returns you are looking for if you have a five-year investment horizon. fixed income again, i'm not looking to sell fixed income. it will provide decent returns. erik: but not at the beginning as some people say at the bond bear market. krishna: not at all. that is one of the midst of the marketplace. 1.i been making for quite sometime is that rates will remain low for a long time. and clearly, the fed is essentially saying the same thing will stop and given what is -- the same thing. and given what is going on in the rest of the world, it is difficult -- erik: all that means is low

nominal returns and lousy inflation. krishna: exactly. stephanie: what if i'm putting money to work and i needed it to be relatively liquid, which seems to be what most investors need, where my looking to invest? krishna: if you are looking to invest, let's say, for six months, even on the six-month time horizon equities make sense. even if they are not as diversified, their role be certain pockets of the market -- there will be certain because of the market that will do better. i think europe makes a lot of sense as well. away from equities, i think buying credit -- credit is interesting. stephanie: you're not concerned that we are in a credit bubble? all of the sophisticated investors who got involved in issues in the last year? krishna: credit is quite cheap on an historical basis. and let me make one more assertion.

this is probably the longest cycle that we have experienced. it is midcycle now and probably three to five years before it ends. erik: always good to see you. stephanie: we are going to send you to the newsroom where vonnie quinn has breaking news. vonnie: this is news about tom-tom the navigational company that sells gps systems in amsterdam -- based in amsterdam. it is looking at and in crease in sales after what we heard about nokia selling his mapping unit two audi and daimler. that was going to be a 2.8 billion dollar deal. tom-tom, another navigational maker is of 97% year to date, an all-time high. and it is perhaps considering options. although tom-tom itself is not

talking to anyone, according to his spokesman. the spokesman saying they are not running a formal process. and they may not pursue a deal. erik: thank you very much vonnie quinn with the latest on tom-tom. the mavs business all of a sudden -- maps business all of a sudden white-hot. when we come back manufacturing. stephanie: i'm not crying yet. there are always revisions. erik: michael mckee will be here to make sense of the numbers. ♪

erik: if you are making u.s. monetary policy, pretty much nothing matters more than job creation and the jobs report the most important economic indicator. it will be out on friday. michael mckee will be here and

we will be talking about jobs but first, the ism manufacturing data came out about 40 minutes early this morning. that tells us something about the economy. michael: somebody screwed up somewhere, but the headline number is worse. now that the new york mets shortstop cried on the field we know there is crying in baseball. but there is no crying in economics. the topline number falls a little bit to 52 .27 -- 52.27. stephanie: the crying is usually in the stands because the game takes so long. michael: yes, but you like baseball and you would like it longer. the reason this is effective because inventory is declining. the first quarter gdp was propped up a little bit by big inventory build. if inventories are coming down,

that would suggest there is room for more production ahead which could be read as good news. the bad news is what leads into friday's job report. right now, the estimate is able see strength there. the ism is only a small piece of the jobs puzzle. right now between zero to 10,000 jobs, but we are expecting overall 25,000, which would be in line with what we expect it. if we get that, the fed will be on track to raise interest rate in september. erik: why is this particular jobs report important? is it the timing? is it that the fed is going to raise rates in september, knowing where the labor economy stands today or more or less now, that will determine that path? michael: you could have one month that his outline or, so one month of, but if they do come -- that is an outlier, so

one month up or down, but if they do come in as expected, you will probably hear them start laying the groundwork for a rate rates. stephanie: ok, but if you are janet yellen and making a decision is big, does this is a big play that much of a role? or is this just more stage setting question mark michael: more stage --? -- more stage setting? michael: more stage setting but the concern you have seen is about bonuses, or more money for personnel. a lot of people feel anecdotally they are seeing more people getting raises now. and the pc -- the pce report this morning, we saw that raise. if it stays stable or takes up -- ticks up .10% like we saw

today, then jobs are being created and there is only a little bit of inflation. erik: but only a little bit of a pce deflator. even if there is ever so modestly inflate -- accelerating inflation, there is still very little. michael: they think fed will raise rates, so it is pushing up a little, but at the long end they don't worry it will go up a lot. you have a lower growth rate, so that means the fed can stop sooner. erik: anything that might prompt a change for the estimate for friday's jobs number? michael: you will get the adp report on wednesday.

jobless claims were at a 40 year low during the survey week for the july payrolls number. people will be watching jobless claims as well in terms of thinking about what happens with the fed in september. erik: thank you, very much. here's a look at some of our top headlines this morning. a 10% climb in the second quarter profits for hsbc. they posted profits of about $6.6 billion. hsbc also said it is selling his brazilian business a cache the estimate in at $5.2 billion. three german automakers are buying nokia's digital mapping. bmw, audi, and daimler, will they $3.1 billion for here and

each will get a share of the business. it will supply map data for about 80% of cars navigational systems in america north america and europe. software will be available nationwide a week from today from at&t and will include unlimited talking and testing -- texting, and large gigabyte data . it will encourage tv subscribers to add wireless. stephanie: now for a bit of news i know you care about, especially if you follow this hunk of burning love on instagram. for me, after a month of blood sweat, and tears, it is time to announce the winner of the bloomberg television fitness challenge for the month of july.

many companies do teambuilding, morale boosting, maybe a bit of bowling, maybe a bar, some wall street are slight to go golfing. getting your game on. we use the under armour record out to record a month's work of workouts. there is a talkback session where you can abuse your colleagues. there is my friend olivia sterns, who especially likes posting bikini shots of herself. they look really good. me and a colleague, we are not sure how they did that, but they worked out 60 times over the course of 30 days. here is our executive producer. he not only played hockey last night for an hour and a half, which burned many calories, ted fine, you are the winner of the

fitness challenge. look at him in san francisco following a marathon. congratulations to you, ted fine. erik is back from vacation and he will be doing an additional workout on wednesday. and then we will heat up in august. we will be wearing devices. follow us on twitter and instagram. i will see you tomorrow. erik: more market makers, folks. stephanie: ted find congratulations. erik: we will be back after this break. ♪

erik: breaking news, everybody tom hayes, the first person to stand trial for manipulating libor has been

found guilty. again, tom hayes, the first trader to be found guilty by a jury of manipulating the london interbank offered rate. that is a story will bill be -- we will be following. stephanie: now we have to take you back to autos, gm, ford, and chrysler all out with july sales figures. there are some surprises. we have been sifting through the numbers. matt miller, and jamie butters who is in detroit -- i know matt is getting sidetracked. he heard some members of the bloomberg fitness challenge are posting bikini photos and it has overwhelmed. but i will start with jamie butters. gm came in way above estimates. jamie: they really blew the estimates out of the water, even though cap like was down 7% stop luxury sales, suvs, and pickups

are what is driving the market. gm are getting better prices but not great volumes. but they are selling a lot of pickups and suvs. a great surprise today. matt, i will throw out a lot of unscripted questions because i been trying to get a hold of jamie this morning and he has been very busy in detroit. erik: we don't ask scripted questions here on this show. matt: white cadillac down and would you ascribe -- why is cadillac down when lincoln is up? jamie: they have the new games --gains.

we've seen it this morning with the luxury players and lincoln is finally able to get in erik: the game with a sport-utility vehicles. erik:you just thought the station wagon look like a hearse question mark -- a hearse? matt: the numbers are up and i wondered if those things are connected. stephanie: let's pull his chart up, because we've got to get matt credit. matt: it is actually a chart of u.s. auto sales. stephanie: we've got to leave it there. enjoy the chart. market makers, done for the day. ♪

>> it is 11:00 p.m. in tokyo. it is jobs week. today, we are getting big data

on the state of the u.s. manufacturing. erik: greek stocks are in a freefall. greek banks leading that plunge. matt: barnes & noble drops out of college. the bookseller is selling off its education unit. the new stellar starts trading today on the nyse. ♪ matt: good morning, i'm matt miller. erik: i'm erik schatzker everybody. matt: we want to take a look at breaking economic news. erik: not breaking, really. it broke. matt: broken economic news.