will it turn around china slowing economy? google announces a sweeping reorganization right out of the war in buffett playbook. -- the warren buffett playbook. we detail alphabet. termsgreece reaches the of a new bailout deal. while the greek parliament follow-through with the package of economic reforms? ♪ betty: good afternoon. i am betty liu. mark: i am mark crumpton. betty: welcome back. mark: thank you. let's start with china. it was a little today and it is a way right now and it's going all over the markets. both the dow and s&p down to

session lows because chinese evaluation sparking concerns around the world. the dow jones industrial average now down to 32 points. the s&p 500 is down 1.1% right now and trading at 2080. the automakers among those companies that rely on exports to china have taken a hit today. 3.3% at 3088s down and four down 2% at 1467. tiffany and apple are down as well on tuesday. apple shares are down 4% and tiffany down 2.3% at 93.38. all this coming on the heels of that china currency move. let us move to oil right now. it is at its lowest level in five months. iranian production pushing opec supplies higher. nymex crude is down 3.8%. taking a look at the chart there

from march of 2015. right now, down about 14%. brent crude is also down on this tuesday. a lot of concerns about china. markets, andrging currencies all feeling it today because of that action could betty. betty: oil is in a big bear market. the choice of safe haven for investors if the bond market and you can see bond markets rallying, treasuries in particular. the 10 year yield at 2.12% on all this china news. we are also seeing the commodity index being weighed down by china. take a look at this. is down about 29% since the end of last year. just a straight shootdown. the emerging markets index got clobbered as well. finally, the currency markets -- let us take a look at the drop today in the chinese yuan.

the drop today -- you can see a sharp drop and that evaluation. the biggest one-day drop since 1994, but before that, i wanted to show the dollar is strengthening on this news because if everybody is devaluing their currency, it is really did dollar that is the holdout. mark: it is interesting that we are seeing this ripple affect. some people were caught by surprise. we will be interviewing somebody in a few minutes who has been negative on china for a while. we will be going more into the story as the day goes on. betty: looking at the top stories this hour and it is being called a new front in cybercrime. u.s. authorities broke up in insider trading link that relied on computer hackers to steal corporate press announcements. have beene identified and five have been arrested. authorities detailed the bust a short time ago and were busted on computer fraud and conspiracy to commit money laundering. of fivethe course

years, the 32 defendants named in this complaint are charged with carrying out a brazen scheme to steal nonpublic earnings information for hundreds of publicly traded companies and then placing thousands of trades through a network of u.s. and overseas traders. ofty: the group consisted two people described as ukrainian computer hackers, six stock traders, all but one of them in the u.s., and one u.s. real estate developer. mark: symantec is selling its data storage unit to carlyle group you they've bought veritas four $8 billion in 2000 five. it would be the largest private equity takeover announce this year. that is according to data compiled by bloomberg. the deal is expected to be completed around december. betty: there is no signed the oil glut is done at all.

iran pumped the most oil since 2012. opec accounts for 40% of the world oil supplied. its lowestrading at level since march 2009, a six year low. that is a look at the top stories this hour. mark: coming up in the next half hour, shake shack and will open -- says it will open 12 new restaurants. revenue rose in the second quarter, but investors are concerned about the lofty valuation. betty: google shares soaring after the announcement of reorganization. how the new structure will work under the company, alphabet. china shocked the world markets overnight devaluing its currency , causing it to drop markedly. it is leading investors to wonder if china is done or for the yuan to be cheaper compared to its investors. john of dialectic capital has short positions on iran and the

chinese box. he says he anticipated this kind of move for a about a year and joins us from connecticut. mark: john, thank you so much for your time. you have anticipated this for about a year. what were the warning signs that you have seen that others have not? looking at the always right sometimes early clause. there was a lot of pressure in the chinese economy. the fact that you say it is rippling over global stocks today -- if you have been listening to any earnings call like a european automaker or semi conductors as of late, you have including -- have been hearing loud and clear from multiple teams over several quarters, but pressure built five or six quarters ago when china let inflows turned into outflows. you have seen five quarters of outflows that have total according to goldman up $800 billion. this is a long-term shift in

trend that has taken place for a while now. betty: if we are now at the beginning of what you say is this shaking out and this long-term trend, what will it look like in the next 6-12 months? think this is maybe the most important fundamental factor that we are going to see in the next 6-12 months. you see it in the us army's calls if you are listening to them and hear from bmw or from semi conductor any fractures or the commodity guys. is negative now. their gdp is not growing anywhere close to 7% if you look at the fundamental data. betty: where is it going than? john: tom performing loans are growing. growing in fastest the chinese economy. there are insurers growing, but we see slowing there. bip stocks that in today with their slowdown in their topline forecast. betty: you were saying that this

is a big debate. really where is china's ddp ?rowth -- gdp growth where do you think it is actually growing? john: i see a minus. i challenge people to show me where it is growing. you do not see it in any of the fundamental data that you can believe. we just do not see it. we see tons of things that are shrinking. i do not think it is growing. how they deal with it is up to them. they can actually go through bankruptcy and a fault, which we expected a year ago, and we started to see, but they decided to manifest it through a recapitalization by using a stock market bubble. i certainly do not call that. it is very difficult. they used a currency devaluation before in the 1990's. i do not think that would be inappropriate now. i were speaking at half hour ago about the situation with the devaluation. i mentioned and heard that there were tools schools of thought.

one was the economic situation in china. talk about the government action as well with the president and with the austerity and anticorruption measures and how that fold into this whole debate. john: she came into a government t by is ruled not by one bu a politburo and he has taken over every aspect of that government. i think close to mal as we have seen. a corruption crackdown is nothing more than a purge with a nice name on it. she has gone in and taken over the government and he has put himself in a really risky position. there are a lot of spinning plates with the chinese economy and it is not so easy to command as it once was. board andn he came on when he was appointed president, people were saying, look, he is rooting out corruption and he is a reformist. maybe what we are seeing, john,

is the outcome of that, which is not great for the country. it is kind of ugly. give him a little credit perhaps that he is trying to root out that corruption? john: a chinese politician told me when we were walking down the sidewalk that corruption is inherent in the chinese political structure. you cannot get anywhere without being corrupted the first thing you're asked to do is to commit a corrupt act so your boss has something over you. the higher the move up the system, the more corrupt you definitionally are. i believe that and i never thought that a corruption crackdown, which you see at the beginning of every government transition, is anything more than purging your enemy. i will not give him the credit for that in this case. to read you something from mohamed el-erian and he made some sense of china's devaluation. he says that the chinese policy decision is one of the largest

economies is no longer in position to play the locomotive of global growth. what do you think about that? this china now in that position have they abdicated that? john: that position was gone. this is not a preemptive response. you can listen to the global company conference calls. you can look at copper. you can look at anything that points at china and it's down. they lost that engine of growth. this is a response and reaction to that. if this is a way to reinvigorate their labor market, 2-5% is not going to do it because this currency has been pegged to the dollar that has appreciated vastly more than that with her impeding currencies. -- competing currencies. there is a long way to go. betty: mohammed also mentioned in that piece that mark talk about that in the short term this is going to be very ugly and china will be very volatile. but in the long term, john, these are the right moves that china needs to make to become a

more market oriented economic system. john: i mean -- i would love to see that thing that you just reference -- that market system. betty: let me read the entire quote. can you bring that quote back up on the screen? " in time, china's currency move will be viewed as an important step in the country's multi-your journey to a more efficient and responsive market determine system." john: i do not see how a manipulated 2% move in a , shape, is in any way or form a step and metrics. if they had a bankruptcy process or prices being set -- i would argue that their freedom of deposit rate, that is that. is notement in the yuan good the freedom and the loan rate is a little bit of that. i still just don't see it in their economy. i do not see any kind of free market principle happening.

you have a $17 trillion misallocation of credit bubble that has to be worked through. that is going to be really hard for them. i'm not sure a free market forces -- if you let free markets rain on that, it is when result in a lot of bankruptcy. if they do that, then i would agree. that would be an important step for them moving to a more market-driven economy. fichthorn joining us from connecticut. that is a lot to think about it john, as we mentioned, and his fund -- they have been negative on china for a wild. this did catch some people by surprise. betty: i think it is a situation when you're taking away the punch bowl. search for agoogle new structure has ended. mark: it has created a new holding company called alphabet. and how ithe plan

will attempt to mold google after warren buffett's berkshire hathaway. ♪

betty: welcome back. i'm betty liu here with mark crumpton. mark: let us go to remy with a look at the markets. starting with the automakers, they are having a tough day in the news out of china did not help. ramy: gm and ford both falling today. that is because of china. chinese consumers turn out bought the fewest passenger vehicles as well dating back to november 2014 when they last saw this happen. to 1.3 million units. taking a look at the stock prices. in all motors down 3.3% and four

down 2.1%. mccrea says that u.s. automakers most stand to yo lose the off of that devaluation. let's take a look at a couple of stocks. alcoa trading in the red. freeport down nearly 14%. this is the world biggest trading copper producer. it is seen the largest date drop since december 2012 to freeport is also the biggest laggard on the s&p 500 today and is down 57% this year alone. today is not helping at all. i'll tell also suffering -- of lcoa suffering sharp declines. shake shack shares were up earlier, but now they are burning out. that was because of revenue and profit all blowing past expectations. right now, they are down about 3.2%. $68.41 a share.

the good news is that revenue jumped 75% to 48 million. ups was nine cents versus a three cent estimate. same-store sales were up 13% versus an estimated 8.5% or so. shares have touch highest level since june 15th. that was nearly a two month high of four and give it all back and then some. take a look at how the stock has onformed since the ipo back january 29. the stock on its first day jumped 118%. you can see that right here. since then, shares have a gained 227% of shares are down now and i want to take you to bind bloomberg terminal -- my bloomberg terminal for one possible reason could these are aimless recommendations. this fight all the good news, not one analyst -- no greens could not one analyst has a buy rating. the reds and the yellows -- the yellows mean holds. there are no buys. this could mean that analyst

think that shake shack shares may be to have going -- toppling out. the average price target on the stock is $46.50. it is way off from where the stock is currently traded right now. you may be seeing something maybe turning red. betty: no love for shake shack. mark: he is just showing off. have you heard anybody say shake shack shares as quickly as he does? ramy: i put that there on purpose. mark: stay with us. continues market day" in just a moment. ♪

♪

mark: welcome back. i am mark crumpton here with betty liu. betty: investors are cheering the creation of the alphabet, google's new parent company. it will house the search giant along with a flock of endeavors like google x and calico, which seeks to extend human lives. larry page will be the ceo of alphabet and his longtime deputy will become the ceo of google. mark: an exclusive interview, emily chang spoke with hugo borrow who work with both page and pinchai. >> i think the technology community is enthusiastic about this, very enthusiastic about it. i think what larry is building is the most amazing business platform that has ever existed given its potential to invest and especially given their ambition. there is no one in the world

today, or maybe there is a handful of people in the world today, who are as ambitious as larry. very very excited about this. that sundarld me should be running the day-to-day operations so larry could focus on the future of humanity. take me inside the mind of larry page and sergey rim. why are they doing this? hugo: i think they are doing this for reasons they stated in the very beginning in the first investor letter of the company. they are sealed to build a technology company that can change people's lives. i think they are best at that. they are better at that and running day-to-day operations with any business because simply with them in particular, there are few people like them in the world. taking someone who is a product guide and one of the best technology executives in the world and who is also business

savvy, very operational and humble, and patient and a good way and have them run the operation, someone who knows google deeply so they can focus, particularly larry, can focus on things that can change the world. emily: is it because they want to work on moonshot and google is just plain old google and gotten a little boring? hugo: i do not think so. one of the ways to look at this is that larry is probably the world's most sophisticated investor. he has invested google's profits into projects that beer further into the future than any both -- veer further into the future than anyone else can see. i'm sure his investments will always be number one.

his vision is equally important and completely unique. emily: he has not shied away big being making investments in companies. can we see more acquisitions like that in the future? what does that mean for potential acquisitions? probably early: it is to say, but alphabet gives google an option for which they can exercise at any point in time to do this. there is not very many of those out there. but with this organization structure and a company structure, they can think of more interesting ways to attract and retain people. they can come up with different compensation schemes that probably were impossible and traditional google. they can do anything in terms of defining how these companies operate. then it also comes with a much higher degree of reporting and

responsibility and accountability. that probably did not exist in the way that google is run today. i think it will be great for vision and ambition, but it is also great for the investors frankly. betty: that was bloombergs emily chang speaking with hugo barra. on that note, i'm signing off. mark: we will continue with the google theme. more of the big changes at the coupling. we will discuss how out of that could help the ceo move forward and in still more difference one -- and still more difference in the tech giant. more in a moment. ♪

mark: welcome back to the "bloomberg market day." i am margaret did in new york.

white house chief economist martin goolsbee has a message for the federal reserve -- take your time. he was asked if the fed would start raising interest rates next month. martin: the fed wants to raise the rates. they have wanted to raise the rates for a long time. they're going to try and find a way to do it. i don't think it is warranted. i think the economy is not growing that fast, china's slowing down, europe is a disaster. so what is the big race to speed up? being --icymakers of have been saying they will raise interest rates for the first time in nine years. a lawyer for bobby donald says he will appear -- appeal his corruption decision to the u.s. supreme court after a federal supreme court says it wants -- won't review mcdonald's case. last year mcdonald and his wife were found guilty of doing clinical favors for a multivitamin executive in exchange for $165,000 loan and

gifts. sentencesved prison but both are free as they pursue appeals. rick perry staffers in early primary state in south carolina are no longer being paid. the republican presidential candidate does not have the cash. on the democratic side of the sanders getsbernie an endorsement from a little nurses union. lawrence lessig is beginning a crowdfunding campaign for the democratic nomination today. he plans to run on a single issue -- money in politics. if he raises at least $1 million at labor day and doesn't believe the other candidates are sufficiently focused on the subject, he says he will resign his position at harvard and run for president full-time. the largest milk processor in the united states won't say why it's chairman suddenly resigned. dean foods is keeping quiet about the departure of chairman

tom davis. the new york times reports securities and exchange commission is moving forward with an insider trading case involving their shares. and you etiquette dilemma for diners. should you tip the waiter at mcdonald's? the company is testing table service at 50 u.s. restaurants, but the server won't take your order. you have to ask for your food at a kiosk. those are your top stories of this hour. coming up in the next half hour of the bloomberg market day, greece reaches a deal with creditors for a third bailout. now the greek parliament face the deadline for implement in a package of economic reforms. we will have the latest on china's decision to devalue its currency in an effort to turn around the country slowing economy. wu,et insight from david head of currency's research at merrill lynch. to improveanning transparency google. the cfo has been pushing for the financial disclosures and

discipline that investors expect from such a large diversified business. will the creation of googles any help her -- googles new tech company with the company into shape? and pauls cory johnson sweeney who runs u.s. research for bloomberg intelligence. thank you for being here. paul, before we get into what they were pledging to do, talk to me about the timing of this announcement. why yesterday? it's clearly response to concerns that have been raised over the last year or so by a lot of googles large investors. pressinghey have been for some transparency, particularly as it relates to the capital investments and operating expenses they see being allocated to some of the moon shots that larry page is talked about since the ipo. the reality is those deals, there's a lot of them and they are piling up.

billions of dollars being allocated to some of those investments are starting to become real numbers for investors and they wanted to see some transparency. i think ruth was one of the catalysts for pushing this forward to bring it to the market place in response to investor concerns. cory johnson, will this be enough to give investors the transparency they have been clamoring for? cory: that's a great question. we don't know what they are going to give us. we don't know if they're going to give us revenues from all of these business units that are part of alphabet, and get several revenues for all the different parts of google, one part of the master alphabet? will begin operating profits from each of those divisions? expenses resulted in cars versus r&d expenses for google x compared to r&d expenses for part of google which is search. these are all things that investors would like to know. we would like to know about customer account and customer churn.

there all caps of transparency they can offer. numbers they certainly know. we still don't know how much they're going to tell us. a internale of organization as opposed to being transparent to wall street but how the business works. imitation being the sincerest form of flattery, they want to model this like berkshire hathaway, the way warren buffett does business. paul: at the comment we have heard, how they admire warren buffett and the corporate structure he created a berkshire hathaway which disparate businesses in some cases can be managed separately by separate ceos with separate accountability and separate capital structures. that is the thing they admire. it's also reflective of what we are seeing in technology. we are starting to see big technology companies try and provide more transparency for some of their big growing businesses. a good example would the amazon, which recently started disposing -- disclosing information about their cloud business. that was well received by investors. cory: in the case of amazon they

were going to be compelled to because it rose to a certain percentage of revenues. they were going to have to. the notion it was a kind thing for investors to help them understand the business is not honest for amazon. similarly, we will see google really wants to run things and let these businesses run themselves. i kind of reject the comparison to berkshire. at its heart, an investment vehicle. yes they make stock investments as well to make those returns to the company. but i think google is a product company. they make stuff and try and sell it. i think we might want more clarity there. but it's a very different beast than berkshire hathaway. mark: larry page says the goal isn't to make alphabetic consumer brand. what is it? cory: i think the consumer brand might be cars were google search and the consumer brand might be android phones or the consumer brand might be nest cameras and thermostats.

but i think they recognize they might need more brands if they're going to grow the business. it such an incredibly large business. we all take inspiration some way from warren buffett and from his wallet. i think these guys are very different kind of business. they want to create stuff and invent stuff and sell it for more than a cost. a,k: you mentioned risk for is this move going to give her the discipline that she wants? paul: it's one step. the first step was to weeks ago when they announced their results, she got on the call and was trying to calm investors and give them some confidence that the company is focused on expense growth, will manage the expense growth. investors walked away saying a new sheriff is in town here and ruth will be perhaps able to dial back some of the high-level expense growth the company has

exhibited over the last several quarters. that was a big catalyst for the stock following the earnings. us --cory johnson, tom to talk to us about what this will mean for tech companies. because google has gotten to a certain size, it has gone from being a top line growth amazing story to a free cash flow generating grown-up stock and grown-up company. they've had to embrace different ideas about segment reporting at how they explain their business to wall street. particularly when they look at other stocks that have higher pes. they are doing better and creating more cash. i think this is an individual response to the desire to sort of explain their business better and trying get a higher multiple on their stocks through better segment reporting. paul, cory just said something that resonated with me. explain this to wall street. does wall street like the explanation? the early reading is yes.

the stock had a good move coming out of the less earnings. driven primarily by the consensus that there should be tighter expense management. box, we reallyt do need to see some greater transparency on some of these businesses. if you continue to want to get shareholder support for ever-increasing capital allocations for some of these moonshot businesses that larry page really likes to focus on. we haven't seen it yet. they still have since planning to do. cory johnson and paul sweeney, gentlemen, thank you. stay with us as "bloomberg market day," continues. quarterback tom brady and the nfl commissioner roger goodell will face off in court tomorrow, where brady's four-game suspense might be changed. ♪

mark: welcome back to the "bloomberg market day," i am mark crumpton. good afternoon. ramy: stocks, basically all the majors are at or near session lows. getting back most of the nice gains we did see monday. this is due to china's shot currency valuation we welcome to. it seeing the biggest drop, down by 1.3%. the nasdaq down by 1.5%. the s&p is down by 1.1%. for the dow, it's lower eight of the past nine sessions. interestingly, there's a sign today that the dow may be headed for a long-term slide.

come with me into the bloomberg terminal. this is the gpo function. you're looking at the dow over the past year. what you are seeing over here to the right is the so-called death cross. take a look at the aligned. this is the 50 day moving average. the pink line is that you hundred day moving average. the death cross is when the 50 day moves below a 200 day moving average. the last time this happened is december 2011. the dow fell 6%. it happened in 2007, the dow fell 50% over the next 14 months. we'll be watching to see if past is still president for this latest so-called death cross. let's move to commodities and take a look at oil. oil is increasing his losses down 4.14%. $43 and $.10 a barrel. this is the lowest price since march 2009 as a recovery in iranian oil production comes to the four. opec supplies your their highest in more than three years.

crude also declining as china devalued its currency. the fear is that the world's second-biggest oil user may slow as import costs rise. copper is also falling to its lowest level since 2009. treating nearly 3% down at $233. this after china's hand evaluation. its own exports cheaper but more extensive import those goods including moderates. china is the world's biggest producer as well as consumer of metals. to the 10-year note, investors are racing to the safety of bonds after china's yuan move. the 10 year yield dropping to its lowest level in three months following the fall and stocks and commodities. right now it is down by .0 nine cents. 2.14% is where it's at. let's finish off with the mix. fear is back because of china's evaluation. now, thisly 15% right after falling 8.7% yesterday.

vix rose.ask -- is the biggest rise since july 8. definitely fear and loss hanging over the markets and commodities a very present in the volatility index. mark: ramy, thank you. genoork jets quarterback smith will be sidelined at least six to 10 weeks after being by one in the job -- jaw of his teammates, and outside linebacker in his second season. he was released by the team right after the incident. and the linebacker got into an altercation and smith was sucker punched. he required surgery to repair his job. -- jaw. fitzpatrick will

assume the starting job. millionaire donald sterling is suing celebrity website tmz and a next girlfriend very the suit deals with the recording of his off-color remarks that cost him ownership of the l.a. clippers. ,terling is also suing his wife the nba, and to doctors who examined him claiming in federal court that they conspired to remove him from the team. nbc will keep the rights to showing the soccer in the u.s. for six more years. no word on the terms. nbc is in the final season of a three-year $250 million deal. the english premier league is the world's richest soccer league. that is a look at some of the top stories and the toughest for announcers at this hour. staying with sports, patriots quarterback tom brady nfl commissioner robert udell -- roger goodell will face each other in court. the judges forcing them to show bid to shamen a them into a settlement in the battle over brady's four-game suspension. scarlet fu joins me here in

studio. we have been talking about this for months. is this a big deal? scarlet: it could be. the judge has a repetition of not being shy about forcing litigants to make peace. mark: why waste the court's time? scarlet: in the past he called jay-z to court, he is not above calling in celebrity's. really reflects how determined he is to get a settlement. a busy preseason for the new england patriots, when i'm sure they would rather not have to deal with and want to put behind them. but the twists and turns of this have been fascinating. we have been talking about this is the playoffs earlier this year. deflategate happened during the playoffs and of course, the patriots went on to win the super bowl. but tom brady was to spend it for four games and he appealed. the commissioner rejected that because of what he said was evidence that tom brady

destroyed his mobile phone before meeting with investigators. the nfl players association filed an appeal. the union in the league are suing one another. mark: we're at a point where tom brady and the patriots have decided that they are not going to take this lying down. tom brady is insisted that nothing was done wrong. the patriots organization is insistent that weather was the determining factor in what happened to these footballs during a playoff game at. a blowout win, by the way, patriots over the indianapolis colts. scarlet: you could wonder about suspicious remarks and texts that came from equipment people for the new england patriots. he did nots saying intentionally do anything or he was not involved in any of this. the big question is whether he will get to play in the season opener. the nfl season opens one month from now. time is getting tough. mark: that is a home opener against the pittsburgh steelers. what is next?

scarlet: claire mccaskill who just released a new book -- "plenty ladylike." comments from her about her book and the state of politics. her thoughts on the gop candidates, namely, donald trump. mark: a great interview. eddie lu talk to her. she was one of the few women in the united states senate. scarlet: after she has much to talk about. fu, season.t stocks rebound in greece as a nation we just an agreement with creditors for a third bailout. german lawmakers have problems with this deal. we will have the latest after the break. ♪

mark: welcome back to the "bloomberg market day." i am margaret. after two weeks of intensive talks, greece's reach a deal with creditors of a third bailout. it will unlock $94 billion in funds for greece. the prime minister is called for an emergency session of congress to vote on the deal on thursday. the new fed chair is higher on stock exchange general index which is been on the rebound after falling to a

three-year low last week. his nichols interrupting travels to come here. german lawmakers have a problem with this, mainly that there's not enough time to look over the details. hans: it's a problem. there's great reporting out of our colleagues in berlin. it may not be a dealbreaker. the could figure out some way to gloss over this. right now it does not look like this could get past as easily. what we have is a technical agreement. we still don't have a political agreement. it has to come in the next 42 to 78 hours. you do have something in place you can disburse the funds. it takes about 35 votes. the technical term, prior actions, forget that. just think things they need to vote on. changes on early retirement, energy and pharmaceutical market, opens up here it more taxes for shipping firms. creditors gave

up. it's a compromise. they did what athens run from their creditors, more money. it's about $20 billion over a three-year period. mark: a delay, could that not disrupt or derail the agreement? hans: it could derail the agreement and terms of will you have the $86 million aid for your august 20 debt deadline to the ecb? if you do have a heck up in one of the parliaments, even though everyone think she were on the right path, you can always have bridge financing. having cover this for a while, it seems to me as long as there is a political will to get this done, the technicalities of the practical side get washed away. what we don't know about this potential delay is how much of it is practical and the calendar. bringing these guys back from vacation and how much of it is actually political opposition, wanting and needing more time.

mark: is there the political will in athens? people feel the prime minister tsipras used up his capital. he made promises the international committee was convinced he could not keep. ons: there's a vote thursday, which usually means friday morning. i have to take a lot of votes, difficult votes. it does seem in a 300 seat parliament in athens, that there is a bunch of wobbly center that just want to get this done. 250 vote was a high a lot ofk, he can have -- in athens, there's going to be a party conference. there could be a collapse of government. we will go to athens together. mark: is there any sense that germany does not want to help greece? hans: yes. is a very public station last

statement that the best option may be a temporary default and then you have a lot of few monetary and aid for greece while they default temporarily. they would leave the eurozone and outside of the eurozone you could write down a lot of their debt and there would be a path to bring them back into the eurozone. within germany, especially within her party, there's a great deal of interest in having them leave. mark: hans nichols joining us in studio. good to see you. coming up on the "bloomberg market day," we are talking with we askedtrachan jim, him if talk of liquidity prices in the bond market is real. stay with us, "bloomberg market day," continues in just a moment. ♪

mark: welcome to "bloomberg market day," i am margaret to with scarlet fu. scarlet: it's 2:00 a.m. in beijing. shot as have a moving

the government values the yuan by the most in 20 years. it's the biggest economic slowdown in a generation. the effects are being felt around the globe. google shares soaring after a corporate structure reorganization. we hear from a former google executive. mark: a new chapter for mail-order music giant columbia house. the dvd club owners just filed for bankruptcy. good day from bloomberg world headquarters in new york. i am mark crumpton here with scarlet fu. it is all about china. scarlet: today at the risk off across the financial markets because of china. let's start with stocks. the dodu