joe: thank you very much, jeremy siegel.lix: coming up, we are going to talk about puerto rico and other stories you may have missed. ♪ joe: "what'd you miss?" i'm joe weisenthal. alix: i'm alix steel. we have breaking news concerning microsoft. julie hyman is monitoring. julie: microsoft is getting out of the web display advertising business handing it over to a.o.l. according to a person with knowledge of the matter. about 1200 jobs at microsoft will be affected. some will be moved to the other companies. all of this part of the restructuring they have been doing at microsoft the past several years. microsoft has over 100,000 employees. i also want to draw attention to the shares of juno. they have been surging. they will pay about $1 billion and form a collaboration as the companies are studying cures for cancer. celgene will pay the company and get the right to commercialize the therapies. alix: thank you, julie. joe: greece dominated headlines today during the stock selloff. what else did you miss? we begin with puerto

wharton professor jeremy siegel with bloombergs on erik schatzker and stephanie ruhle.arkets in europe closed for the day a few minutes ago. for the very latest, let's go to constant goals in london. you very much. we have a story woman look at equities and currencies. we start with equities. take a look at what is happening in greece at the athens exchange. it down almost 2.5% and we see positive territory in spain and italy. in germany, we are in negative territory. a quick look at some of the movers there. deutsche bank of thomas 1.5%. wasave marched down on 2.5%, timely down 2.5%. let's move over to the bond market, a better sense of what is happening. we clearly see a bit of a risk on scenario. all these yields coming up pretty strong, germany moving the least. we see strong movie -- movement in italy and spain. the story of the euro today, look at the euro go. it was middling along all day and up almost 1.75%. earlier, reports that greece was preparing their proposal and also creditors were preparing their proposal, finishing it up and putting final glasses. you s

i think it is really telling what you have jeremy siegel saying he only sees 10% upside. that really makes a statement as to how stressed we are. yes but a lifetime telling people to invest in the stock market. -- quote you highlight their the term bubble institute is there some rational reasoning behind this behavior, some reason people are acting this way and obviously, valuations are expensive. alix: he did say the 30% increase in valuations before you get worried. is fine.that you have a guy like siegel saying there is 10% more after the market has gone up 250%, are you really going to hold out for that last 10%? the goldman sachs guys saying valuations are in the 90 percentile. the oz are not in your favor. alix: we take -- audit's are not in your favor. stockse likes european being cheaper versus u.s. stocks. what do you think about that call? michael: i would be heavily weighed toward cash. alix: do you mind gold? gold is okthink here. gold has gone down for four straight years but as the dollar has appreciated over the past 10 month, gold has held in and that is a

it is telling when you have jeremy siegel, the quintessential buy and hold advocate, saying he only sees 10% upside. that makes a statement as to how stressed we are, someone who has spent a career telling people to be invested in the stock market. adkins's quote, the one you highlight -- term bubble some rationalis reason behind this behavior, some reason people are acting this way. valuations are expensive. he said you would need to see assets at 30% increase in valuations before he would get worried. michael: if you have a guy like siegel saying it needs 10% more, after the market goes up 250%, are you going to hang on for that last 10%? valuations are in the 98 percentile. that is like going to las vegas and betting on green, you know? the odds are not in your favor. alix: in terms of how to diversify, he likes u.s. bonds, european stocks being cheaper versus u.s. stocks. what you think about that call? michael: personally, i would head toward cash. alix: do you mind gold? michael: i think gold is ok. gold has gone down for four straight years, because it had a little bubble in 2011.

spirit still ahead, jeremy siegel. we will take you back to the city of brotherly love. ations in the stock market. dr. siegel will answer. ♪ >> live, this is market makers with erik schatzker and stephanie ruhle. erik: good morning once again, everybody. it is our new time, 8:00 to 10:00. stephanie: we have had a great hour behind is a great one ahead. a potential stock market bubble. here is a look at the top stories is morning. kris pet -- greece creditors unlock bailout it. bromberg -- bloomberg news reporting they had wrapped up their plans in substance but are still polishing up the document. this comes in the wake of a late-night meeting in berlin. angela merkel hosted that's of the imf ecb and european commission. talks went past midnight. >> when you have so many people so smart, so influential, trying to get a deal, my experience is you normally get a deal. it may be extended to the 11th hour. i think there will be a deal. stephanie: meanwhile, the greek prime minister says his government has come up with their own plan for no word yet what either of those propo

jeremy siegel will join us. he has some what am i saying?s soon as the fed hikes rates, the rally, he says is on. i thought he could change his view. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive? there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsi

goldman sachs pits of economist robert and jeremy siegel and a head-to-head on views is stocks are overvaluedsiegel says stocks have risen and a correction could be coming, in the meantime jimmy siegel takes the opposite view. the current valuation of the market by the current price earnings ratio is higher than i think a average, higher p/e ratio is justified in the world of record low interest rates. even when the fed raises them, they are still going to remain low on the historical standard. in my estimation, and my a lower discount rate means a higher average valuation for the stock market. i do not believe that it is overvalued at current levels. erik: he makes a good point. that is why it is hard to or siegal.th shale siegel agrees with him, there a new neutral for the fed's rate. there's a new concept of the discount rate you have to factor into equity returns. it makes sense. betty: you took the words out of my mouth. this is the guy who wrote the book on staying in stocks for the long run. what else do you expect him to say? erik: he is not about to disagree with himself, but he view

at the top of the hour, jeremy siegel will be with us as we begin our new show with joe weisenthal.l ask what keeps him up at night. all of that and more coming up on "bloomberg market day." angela merkel said greece must compromise with creditors. she said nobody can get 100% of what they want in rescue talks. angela merkel: there needs to be effort and solidarity inextricably linked. if this does not come to fruition, the euro might fail. this is not what we want. we want to work on this. we have made it quite clear anything that can support greece and whatever was suggested is still on the table. sachs wrote that europe's leaders are hiding behind rhetoric. earlier, he spoke about his criticism of european leaders with tom keene. this is one of the circumstances that never should have happened. it shows very poor economic management from the european side. basically, unfortunately, a lot of intransigence, especially from germany. but also from other partners who decided months ago they would not really negotiate with this left-wing government increase. -- in greece. they just wan

goldman sachs published a huge note over the weekend where they had robert shiller and jeremy siegelout whether or not we are in stock market bubble territory. erik: peter lynch? tracy: it is peter lynch 's favored measure. not him personally. erik: we have been talking about valuations for months. is there any reason all of a sudden? here we are. multiples have been climbing. over the past few weeks, they seem to have stabilized. tracy: we could argue it is connected to the economic data that will come out. people are wondering if stocks have divorced from fundamentals. you are watching the economic data, consumer spending for instance. they are not starting to wonder that they are thinking more about it. stephanie: even if people fundamentally agree, they don't want to underperform the index. erik: let's hear from bruno. bruno: our smartest investors, it is a most unanimous they all seem to think the u.s. market is overextended. it has not been anything pivotal. we hear more about valuations going up. we are of the opinion that the markets are overextended. there are better opportu

. >>> let's talk more about the greece impact on your money with professor jeremy siegel senior strategysor. where do you see the u.s. market in 12 months' time from now and how will greece factor in to that? >> i see stock markets up in 12 months. i think we will be past greece. there will be a muddle through some solution. the important thing is that if they do have a credit event in greece i'm very confident that draghi will open the coffers for portugal and spain and everyone that they've considered to have abided by the rules. so we're not going to have a contagion from greece to the rest of europe which would really be serious. i also think that we need to get one increase out of the way by the fed. and i think that is still going to come in september and i think fourth quarter could be the best of the fourth quarters that we have this year in the stock market. >> let's just back up for a second. you said that you think the markets are going to be up in 12 months pea's months' time from now. but you are famous for putting big numbers out there and just being very bold when it comes