over to hans nichols. pecting a very steep plunge but this is exacerbated by the restrictions. hans: friends saying, it may be exacerbated but we do not quite know yet. you can see behind me nothing but a read. i am in the athens stock exchange. the most important question and data point is what will the market close at? the restrictions may be impeding the actual pricing. we need to wait. we have been talking to various of market participants and we have to wait for the other day in to see how far things are down. the aggregate exchange is down. many of the banks hit 30% drop limit within the first four or five minutes of trading. in some ways come the main number i'm focused on is the pmi number all the way down at 30%. the expectations was 40%. we know greece is in recession but we do not know how much. these numbers are not good indicate greece may have a much deeper economic hold to dig out off. in terms of investors and get accurate pricing. it is the story of the day and in a few minutes, we will spe

hans nichols in athens with more. the mood on the ground, i imagine it is not a very happy one. eryone is looking at this exchange behind me, wondering how accurate it is. how precise are these was with the restrictions that are in place? ,he guest we were talking to they were saying it is going to impede the market from accurately pricing shares. greek banks are down. most of them have hit that 30% limit. many of them up here to have stopped trading. not sure if that is an official halt. they appear to have stopped trading. the latest numbers we have, at the stock -- athens stock exchange down 22%. initially, it was down 11 percent. there is going to be a lot of volatility. that is what the experts, the traders that were behind me are saying. even at the end of the day, this market may not be priced accurately. we may have to wait a couple more days. so far, this does not look like a pretty great story. jonathan: just to follow up, talk me through the restrictions. i listened to your last guest and he mentioned that perhaps some of these restrictions might amplify the move lower

i am olivia sterns, here with tom keene and hans nichols. rse of presidential candidates, the iowa state fair. our own bloomberg's politics mark halperin is enjoying the cornucopia. he asked jeb bush a very davos question, how will china's currency devaluation affect american workers? -- hans: mark, if my jealousy is not coming through, there is no other place i would rather be than the iowa state fair. mark: this fair is a big deal for iowans, so you have to come here if you are running for president. you get to meet people from all over the state who come here. if you do not come, you are snubbing one of their great traditions, and lots of great media. they will mix with voters, most of them will stand on the des moines register soapbox and take questions from fairgoers, which is an unusual moment. who is getting the most crowds? aside from the press pack, which is one indicator, who is getting the most crowds out there at the state fair question mark -- state fair? mark: it started yesterday, and my cup of the and -- mike huckabee was here

tom: hans nichols, thanks so much. oil is the lead story this morning, but first, the international monetary fund changing their tune late last week, within the troika and with tsipras. that is the most interesting story. dr. weinberg is with the high frequency economics. you have been so right about what they need to do. why are we waiting? dr. weinberg: the german view is that german taxpayer money should not go to give greek pensioners better deals than german workers get. that is the obstacle. it would be like me saying i am in new york and i pay taxes, and it is helping people in arkansas. that is the spirit of it. that is where the german head is right now, and the imf the say you cannot do that.

i also want to go to hans nichols in berlin. he's following the vote in the bundestag closely. the parliament beginning to debate. we're expecting a vote later the smarty. hans, you have been following this closely -- we're expecting a vote later this morning. merkelhat you see from is preppinguble everyone for the idea of how and when the international monetary fund will be involved.mr. vitalble just said it is that the international monetary fund stay involved. we heard two things. one, not an insignificant amount of doubt that this plan will work. he said there is no guarantee, but the other part is that it is morally incumbent to get greece a fresh start. and this is a finance minister that seems willing to trust the greek government, willing to trust the government he opposed for much of this past year is going to implement the reforms they said they are going to do. the money will get sent out the door. you will recapitalize the greek tags. -- the greek banks. it is going to be a difficult path but not guaranteed path. spain, austria and estonia all past the bailout yester

greece acted to preserve its -- hans nichols is standing by with more. good morning to you. talk about the exchange behind eu. hans -- behind you. hans: the restrictions are numerous, but they only apply to domestic buyers. that tells you a little bit about the goals they want to achieve. they want prevent outflow of capital from greece outside of this country. capital controls are still in effect here. other restrictions are pretty a sick. you will need to come up with new money. rush money from outside the country or something that can prove was indeed new. none of these apply to international sellers as long as they are coming in with fresh money as well. what is going to happen to the stock exchange? how much will it collapsed? those are 25 trading days. it is linked to this market. the fact of the matter is, no one really knows. we'll have to wait to see what happens when trading starts here. i believe it is about two and half hours time. it isn't about to a half hours time. anna: it is still very early. what did they have to say about these restrictions? hans: they are

hans nichols has been covering the story. it has two weeks. r crucial date in the greek calendar. hans: and yet it seems like everyone is pretty confident and positive that they are heading in the right direction. creditors and the government in athens say they will have an agreement, then a vote in parliament august 12, 14. most of them are in their summer holiday. a couple sticking points, one, this mess in a position fund. some of the numbers don't add up. how quickly can you get cash from that and how quickly can you draw it down? the other question is, what do you do about nonperforming loans? you look at what is happening on the exchange right now, all the bank stocks down more than 20%. most of them are hovering close to -30%. that would be the third day of 30% drops if that is the way it continues to go. francine: hans, thank you so much. our next guest says that greece's real economy is a long way from normalization. alberto, great to have you on the program. when you look at banks, you are one of the few out there that is so strongly

hans nichols is in athens. what are they expecting from today's session? rely not another 30% drop down. posco the banks could -- hans: the banks could drop again. that was about eight minutes from now. we open at about five minutes. we'll see how long the bank stocks trade until they are halted. some stocks could start creeping up in the positive territory today. we do not know. the prices are inaccurate because of the restrictions there were put on greek retail investors. they have certain restrictions. they have to come up with new money. we are going to have to wait and see what happens. remember, 30% drop halted a lot of the trading. that is no longer in place. you can trade this morning. we do not have a bad bank set up. we don't have any clarification on what they're going to do. jonathan: hans nichols, thank you very much. what is in store today? find out in two. we're back after this break. ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your expe

hans nichols is that the athens stock exchange. what is it like there?see the entrance early exit behind you? are there a lot of people trading on the floor? or is that a calm, frankfurt type situation. where there are four or five guys having a beer. calm her then frankfurt. most of the activity takes place elsewhere. we are at the exchange, but it is mainly an administrative hub. we see read all around. most of the bank stock is down. we see some of the other ones, coca-cola, the local bottling companies. that is down just 5%. the only question is, what is going to be the very first stock, bank to trade in positive territory. i don't expect it will be a bank. it does look like tomorrow we could have something in the green. that was the prediction from the ceo of the athens stock exchange. why: hans, we talk about anybody would want to be buying greek stocks. happening with seem to be an equalization. the greek etf continue to change while the greek stock exchange was closed. are you getting any sense -- for every buyer, there has to be a seller. what a

hans nichols, thank you so much.att: when you originally moved to berlin, because you were a white house correspondent, were you dreaming you would have a crisis like this to cover 24-7 question mark -- 24-7? were, i did not have a crystal ball. betty: still ahead, looking at the movers in the market today. matt: shares are down after the chairman of the company abruptly resigned. we will tell you why. ♪ betty: welcome back. i'm betty liu here with matt miller. matt: i have the honor of standing in for mark crumpton. a look attraight to the markets. some under the radar movers this afternoon. >> before we get to those movers, let's take a look at how the market indices are performing. the s&p 500 is up by 1.25%. the nasdaq of more than one. the dow is up three -- 1.13%. -- 1.3%. seven-daye breaking a losing streak. now to some of the individual stocks, let's go to food as less commodities and industrials. .ood first, dean foods it is down by nearly six point -- 6% right now. it makes milk and ice cream and cheeses. o

we also have with is on set, hans nichols. ery time there is a width of a deal in europe, we go to you. there is a whiff of a deal this morning. there is gekko hans: -- here is my take on reading through all the papers this morning. to beis no actual reason optimistic, but there is no reason to be pessimistic this morning. we still have not heard from the germans. ministery finance seems to call for a little cold water, deal directly but not hastily. until we hear from the germans, i will not be convinced. heard, andir voices they do not think the deal will be successful, but they will support it anyway. the fact that the finns do not have -- hans: to get to something through the civilian mechanism, 85%, things do not have a blocking coalition there. they are offering support a little bit the way your own mother would. i think it will work out, sweetheart, and i love all of you. one of the problems we are looking at in europe is this pattern that we have seen so many times, where the greeks say we almost have a deal, it turned

we have hans nuckols -- hans nichols with us. is he in political control of greece? ily in control of the timing of the schedule. the speaker of the house may delay the start of the vote which means you actually have a vote on friday. the most important thing happening right now in germany is that he has confirmed that merkel and tsipras spoke yesterday and that they exchanged arguments. i would not take that to mean there was an argument but rather they exchanged opinions. more importantly, they are insisting the international monetary fund stay part of this agreement. what we had in the last 24 hours is a technical agreement and we are far from a political agreement. this conversation gives me an indication that we might not be all on the same page. brendan: do we have a with count in the to start -- do we have a whip count in the bundestag? hans: that doesn't matter. merkel will get this through. she has a pretty firm majority. i am not concerned about her losing this in the bundestag. i am concerned about her finance minister demanding a tougher deal. and going ba

hans nichols was talking about our london reporters. story about the 15 major central banks that have hiked rates -- they had to reverse the decision. the ecb was one of the central banks. people look at that as a ridiculous move. now they think, what is the policy response if they have to do more? what can they do? >> they have to continue with quantitative easing, what they have got in their favor is the euro that is undervalued quite significantly. they have reasonable equity valuations as well. europe is now being perceived as a reasonably safe haven when you look at what markets have done. jonathan: i was told go long for dax and we will stand it. dax down. how busy have you been in the last three trading days, the last week? yogesh: we have been extremely busy in the way we have been communicating with clients and holding their hands. but in terms of trading, we have been watching. the key thing here is not to panic. markets are down 6% year to date, we have volatility fixed at levels we last saw in the neiman brothers crashed in

erik: coming up, hans nichols hence -- happens to be in new york.will talk about the never-ending greek debt crisis. ♪ matt: good morning. welcome back to betty: bloombeg "market day." are we going to go straight to remy? digitw looking at triple gains. a look at the market and what is pushing stocks higher. >> taking a look at the major markets. the dow is rising. now up by a little more than 1%. you will remember over the past week the dow had been falling for street seven sessions. we are looking to snap that today. the nasdaq up by 1%. part of this is because warren buffett acquisition or attempted precisionn of castparts for $37 billion and a rally in china. taking a look at one individual stock, and that is apple. apple right now is seeing a good pump, 2%. after falling nearly 12% since july 21 when it reported less than stellar iphones sales. besides this little bump right here and the fall, let me take you to the bloomberg terminal. i want to show you analyst ratings. what we're talking about is despite the fall, all the analysts we're talki

hans nichols has the story. many focusing on wednesday in germany. vote that we are going to have in parliament. they had 60 defections last time from merkel's party. about five abstentions. the magic number seems to the 100. if merkel loses 100 votes, she could be in trouble. last night, her annual summer interview, she talked about how there was no pressure on individual lawmakers, but she says she can't force individual lawmakers to vote for it. she did get a vote from wolfgang schaeuble, her finance minister. he gave an interview. here's what he told. after truly arduous negotiations in greece, they now know the country cannot get around real and far-reaching reforms. in some ways, you see this in athens and here in berlin, they are pointing back to how difficult these negotiations are. it passed athens. it will likely pass here in berlin. it has a couple other parliaments before that first tranche can be put out the door to repay that ecb loan on august 20. caroline: hans nichols in berlin. thank you very much indeed. guy: data as well coming ou

ourcine: let's be to international correspondent, hans nichols, in berlin. how was angela merkel's tone? hans: she was defensive. she knows she has a difficult challenge with the bundestag. she lost about 60 votes when they were authorizing her to proceed with these talks. we will see where that number comes in. what she's talking about here is a leap of faith. she has not guaranteed the idea that mr. tsipras will continue to reform, will continue on what they say is a positive path. way to go out of her praise mr. tsipras, talk about how he's changed things around since they came to the brink. she has a little bit of give in terms of her finance minister, mr. wolfgang schaeuble. pass, 26 billion gets released pretty quickly. 10 billion goes to bank recapitalization. then we start having a conversation about whether the international monetary fund is going to stay involved. all they say is there needs to be substantial debt relief. in germany, they continue to pretend this is an easy thing to get even though they are only talking about extending maturities. t

hans nichols has the latest from berlin. the bar was set quite high. e expectation was for a big profit. profit came in just one million short. not a huge miss. stock is trading up this morning in part because they had good overall revenues but also they are talking about a plan for tailor-made. this has been leading some of their losses. when you look at their brand, you see just what a problem golf is for adidas. you have id, the actual brand, even reebok has had its struggles, but then you have the tailor-made unit down 26% on the year. they are talking to an investment bank, exploring options about what to do possibly sell that unit. the question is, how much is it worth and what do investors think? this is a company that is in transition. they want bigger market share in the states. you look at where they are in the states. they are clearly in second place. they are in danger of falling to a third-place in some categories. their strategy, they do want to focus on six trendsetting cities. we are a couple months in. it is almost too early to tell. th

brendan: hans nichols in berlin, thank you.ve troy gayeski on the desk from sky bridge capital. i will pose the same question to you that i did to hans nichols a second ago. profoundlyems undramatic. are we passed this? the: we are passed it from point of market chaos, but not from opportunity. greece's sovereign debt should trade up nicely. there will be more drama around the election, but compared to the january election victory, syriza, or some of the chaos with capital controls, volatility has come down dramatically. brendan: i am thinking back to that last blog. if you wantedas to put your arm around his shoulder and say it is tough for an asset manager out there right now. troy: it is a challenging environment. interest rates are extremely low. a rich- this is not environment. trying to make 2% to 4% is challenging. 4% is big picture, 2% to better than a crisis or a collapse. vonnie: internally, give us the lowdown. what are hedge funds telling us? troy: the majority of opportunities we are pursuing, we hope to make 6% to

let's go to hans nichols in athens. ets are closed here in europe, and also here in athens after the first day that the exchange was open in 25 trading days. that is five weeks. what we saw was an overall decline of about six -- 16.2%. it's not that bad when you compared to earlier lows of 23% stop -- of 23%. banks led the decline. most are down about 30%. but the stoxx 600 across europe was not that affected. we saw it was up mostly on the and hsbcing the gains can which of course is the biggest bank in europe. they were up ever so slightly. and heineken had a strong report that said heineken up 5%. see the ruble really getting hammered, down almost 2% against the dollar. and looking at the story in government debt, germany trading mostly flat. the yield was down ever so slightly. it looks like the cost of borrowing from their german government will continue to remain low. hans nichols reporting from athens. coming up, president obama will lay out his plans to combat climate change. that is at 2:00 p.m. eastern. we will

slow i think that is continuing for number of years. >> i want hans nichols to join us.he euro talk talks about will consumers feel richer? what time do you see this affect consumers and have them start spending? one data point is that the german consumers are actually spending. is there a trickle-down effect? this wealth effect is surprisingly small. one of the reasons is we have had this income polarization. income has moved to higher income hands. those people do not adjust their spending that much in relation to their assets. this hope for a real wealth effect has been surprisingly small. scarlet: that was gary shilling on bloomberg surveillance this morning. look at how other commodities are moving as we settle -- look at the settling in new york. for its biggest itkly gain in two months and was relatively neglected during an greek debt crisis languishing you're a five-year low rate there is news that it boosted its reserve. you are looking at week. it is set for a second straight week of gains. forecasty trimmed its by 6/10 of 1%. that is your commodities close on

francine: let's get more on that with hans nichols. re the key takeaways from the finance minister yesterday? hans: he did two things. he wrote a letter to parliament backing this. he said that greece is on a sustainable path. he insists the imf will stay involved. we've not heard anything definitive from the imf. here is what he told public television and interview last night and he said "i am very sure the imf will conjure to the program just as we declared this to be indispensable." that gets added, because the german government is saying the participation is indispensable, yet what you have nothing unqualified from the says they will participate. all we have is a place to review the program in october to see a, if greece is abiding by reforms and b whether or not the creditors and europe will reduce the debt burden. here is the european from the european stability mechanism laying out what the bundestag has. these are the only assurances the german government has ahead of the vote tomorrow. not a whole lot. contribution to the finan

we will get much more on these breaking numbers with hans nichols. it looks as though the insurance side of things, hans, is missing a combined ratio, that we are seeing better than expected numbers from a revenue perspective. hans: yeah. this that income is a big beat. it is coming in north of 2 billion euros. on that front it is a big beat. when you look at what's happening in insurance, there haven't been many natural asasters, so they could have little upside, although it looks like the insurance number is down on the property and casualty. life insurance is dealing with low interest rates and that could be weighing on it. what we don't have from these numbers yet is just what net outgrowths from pemco have been. is there still a gross effect? when you look at the last quarter, bill gross announced he was leaving is a temper, 2014. 2014.september, the net profit declined 14%. in the good old days, they got about 25%, caroline, of their mco,income from pe which had a much smaller percentage. it drew a lot of income -- not much higher in terms of ca

to get the take on this, i'm going to bring in a former white house correspondent, hans nichols. watching. is that a threat? hans: it is a very clear threat. it changes how the debate will move forward. ontoump continues to hold this possibility that he will run as a third-party candidate. they all will be taking shots. the donor class, the established republicans, they are going to get concerned about what a third-party can -- third-party candidacy will mean. listen to how he repeated some of his service attacks on immigrants. >> our leaders are stupid, our politicians are stupid. the mexican government is much smarter, much sharper, much more cutting, and they send the bad ones over, as they don't want to pay for them. and want to take care of them. why should they? when the stupid leaders of the united states will do it for them. that is what is happening whether you like it or not. the rhetoric of the statement is very clear. there is a great undercurrent for the concern about immigration. whoever taps into that good when the nomination. the question is d do that at the risk

let's bring in hans nichols from berlin. first to you, hans. what are we expected today from this german parliamentary vote? hans: we are expecting 56 defections. there was a straw poll last night -- that is less than the 60 folks that voted against the actual authorization. it looks like it will pass the bundestag. introductions will start in a little bit and voting will continue through the morning. it should be wrapped up before noon. we will also be looking at the vote in the netherlands -- that could be slightly tighter. if it passes as it is expected, the money will be disbursed in greece will be able to start the process of rebuilding, starting with greek capitalizing their banks. mark: paul, what is the latest on the ela degrees? how significant was the ecb pasta and to reduce greek emergency liquidity assistance? paul: caroline mentioned earlier the marathon towards the greek bailout. i suppose you could say that this is a signal that they have hit the wall, but there is still a long way to go. we had a small reduction of 700 million e

matt: joining us to discuss, hans nichols who is ane -- both as much pain as much as anybody could outsideope. you have been working night and day. hans: stylish -- scarlet said finishing touches. matt: they are close but do not have total number or concessions that need to be made. the initial number 86 billion. reporting 96 billion. on top of the 97 bridge loan. when you look at the debt out there, most of it is publicly held. imf.a little bit by the when you look at the numbers thursday, we will get new gdp numbers. we will see how much the greek economy has contracted. we're -- they had a cup -- tough couple of months. the blue portion shows the bond principal. you can see it decreases as time sideon area the far right shows term loan outstanding, basically bailout after bailout. exactly. that is 2045 and on. all the years beyond as well. scarlet: can kick down the road. this is an argument you here in germany that the debt is not that burdensome right now. they are servicing the debt. this were all traded on the private market, their actual payments would be much higher. that is one w

joining us now is hans nichols. what did both sides up getting?y will actually be allowed to have a deficit of 0.5, so nothing small from the creditor side in terms of concessions. the greeks have to do some work, passing 35 specific measures. there are difficult things in there. certain pension reforms, they will be difficult and they all have to pass by thursday. then you could have some potential votes on friday in here more from european parliament next week. we still haven't heard anything affirmative from the germans. they could be an indication that this is not yet done. scarlet: is there a reason it could not? hans: all of them. these are all sacred cows. greece has known what they have needed to do. they have been clear they just have been bent over in these negotiations. according to two people familiar with the matter they may not be able to get this through parliament next week. that could be for political reasons or practical reasons as well. we are trying to figure out whether it is expressly political or practical. bringing this bac

manus: for those of you watching the rest of the day, we're joined by hans nichols. sion. 1,000 point yanked off the market yesterday. we have a better reprieve in the market, hans, what are the drivers? hans: we'll be looking to see whether or not -- futures are indicating a higher open in the states. we have seen some resilience, up in the german market up all throughout europe. we see green across the screen. the question is will this continue in north america? i think that is the question everyone is asking themselves this morning. no one has particularly new information. really the only new data we had coming out is that g.d.p. was as we confirmed in germany at 0.4%. and then the i.f.o. number moves them a little bit, gauging german business expectations was much stronger than expected. so i take those two sides and say maybe the u.s. will continue this relief, this rally we have seen in germany and we'll see positive territory in the major independence sis in the states as well. that is -- indices in the states as well. that is just a guess. manus, you probably

hans nichols is with me. can this be sustained?concerns about whether this can be sustained. this is a late-night vote. debates happening in parliament right now. the former finance minister has said he will oppose this deal because the debt is simply not sustainable. he says that is the line the imf will come up with. we do not have any sort of agreement, it could go back to square one. it does look like the new democracy and opposition party will support it. then the question is, does on july merkel's government support it yet that that is an open restaurant. are german lawmakers may vote on this tuesday. between now and tuesday, what is the trading going on to push this thing through? hans: of finance ministers summit in brussels tuesday. we still have yet to hear from the german monetary fund. german officials are insisting you need to have the imf on berd to have the agreement viable. the imf is insisting something be done on the debt. there may be some way to ask the end of the deck. angela merkel leaves for brazil wednesday.

hans nichols has more. what form does this increased aggression take? hans: aggression, i like it.are never aggressive this early in the morning. the ecb is now reaching out directly to investors. before they were just going to the banks. it really marks a shift, they are going to investor holding companies. some great reporting out of our frank for bureau. it is really an attempt to bring back lending. the you look at it, part of problem is there isn't that much of this debt available. it makes sense for the ecb to fromoffers directly investors. this is way down from its peak in 2006. they are up to 55 billion euros right now, but for some perspective, in 2006 it was 255 billion euros. look at this program, how they are doing, it is a much smaller percentage of the covered bonds. coveredabout 10% of the bonds program. i will be kind and give you the opportunity to go to frankfurt. i was sure you were to keep warm. anna: fun, fun, fun. coming up, china isn't only battling a slowdown in its stock market oil majors reporting today. ♪ anna: welcome back, you are watching "countdown."

hans nichols has been covering the greek debt crisis for years and is here in new york after spending little time on the athens stock exchange. hans: a greek years it has been years. the stock exchange, the markets like this news. we have a technical agreement, we do not have a political agreement. we will get that when the leaders meet in brussels. both sides appear to be giving some. creditors' side, they have a loosening in terms of the primary budget surpluses. they will come down a little bit. overall in three years, there is $20 billion they have given on. side, there are prior actions, things they have to vote on. remember, the did six prior actions before. you see some of them clamps down on early retirement, changes in taxes for shipping firms. every single one of these votes -- matt: a bunch of things have been demanded by the international audience. hans: that is why they will be difficult for syriza to vote. in september there will be the series a party can't -- the syriza party conference. there will always be a crisis. thereyou will get thursday. great restaurants for yo

hans nichols has been covering the story and joins us now from berlin. >> where do we stand in talks another question why is it so quiet. >> where's the greek noise hans: it is quite because it is summer and also because there is positive movement and no one once the poison that. what we have is nice noises coming out of brussels just moment to go jean-claude juncker and the commission of the european commission had positive things to say. so against guess all this positive sentiment we have this timeline which should cause some concern. august 20 is the date for that bond payment to the ecb to take place. to get that done you need to have a political agreement. perhaps this week or early next week but then you need to have all the national parliaments work on it. an official in athens said they wanted to see our limits outside of greece vote august 12 or august 14 everyone in germany would have to come back from holiday. so what you do about the privatization fun. how quickly you will plus it up and how quickly will drain that privatization fun and we use it to recapitalize the banks

the report hans nichols just told us about, the reopening of the athens stock exchange and the beatingcks took, that was not unexpected, was it? guest: not at all. when you have the exchange closed for this many weeks, there's a lot of pent up eagerness to get money out of the market. i suspect once the markets are open at a regular basis, things will even out. mark: i mentioned that you recently returned from greece. you got back yesterday and spoke to a lot of people on the ground. what did they tell you about how their life is right now in greece? guest: it varies a lot. those who are using plastic and credit cards and whose earnings are not linked to bank accounts, that is they are linked to credit cards, they are coping ok. people largely older more used to using cash. they are hurting because the credit controls are severely limiting the amount you can withdraw. also business people -- i have a close friend who imports a lot and he's hurting because there are controls on transfers of money overseas. some people are surviving quite well, others are hurting. the tourism industry is

pimm: hans nichols reporting from berlin.a big day in the housing industry -- new home sales rose 5.4% last month, a sign the housing market is continuing to recover. according to they case-shiller price index, a climbed 5% last month. here to talk more about what is in store for the housing market professor joining us from philadelphia. we got some housing news according to the case schiller index, prices climbing 5%. nationally, prices up 4.5% and new home sales higher. could you give us a little perspective -- will this gross -- will this growth in the housing market continue? susan: yes, it will. this has been a rebounding market on the price side for a number of years. sales and construction starts have been up for the last two months. this is both start and sales and prices. they are on pace to continue to a recovery.ding to housing is a bright spot in the economic recovery. is this because of low ?evels of mortgage interest susan: yes. mortgage rates are a driver and key to the economics drinks housing is bringing to t

find hans nichols in germany.will be leading this charge and the efforts of the government. there are only 56 defections. party has 311el's seats. she will rely on her junior coalition partner. the overall outcome of this vote is not necessarily in doubt. yesterday, it passed in spain 297-20. it passed in austria. today they be the biggest challenge with the vote in the netherlands. we do not know how that is going to turn out. we expect it will pass. then, we have what is happening in rank for. the european interbank has lowered the amount -- the european central bank has lowered the amount. io eight has been dropped down to 89.7 billion. before, the number was 90.4. this shows that banks could be going in the right direction. they will get 10 billion in terms of recapitalization if this passes. it's interesting to see who bears the burden. thatine: sticking with story, joining us for more is valdis dombrosvskis. he is vice president of the european commission. thank you for joining us. good morning. valdis: good

here is hans nichols from berlin. nothing but negativity and red in the major european equities. they are down more than 2%. the cac 40 down 2.4% last i checked. the ftse is down 2.47%. the cac was down 2.7%. is a negative territory down 2.4% today. you look at them over the last two weeks, they are down was 12%. today, lufthansa led declines down 5.5% on the day. in the morning, they were rated by goldman from cut to sell to neutral. that could have affected their price. the german utility also down 2.5%. in 10 year bonds, it is a mixed picture. we saw german factory growth numbers may have influenced things. they came in better than expected. that lifted the european composite to 54.1. it had been 53.9 in july. that is closely four-year high reached in june. the business index is at a four-month low. take a look at german yields. they were down a little bit, up and down throughout the day. down less than 1%. we saw the u.k. yields down about 6%. the u.k. clearly had the biggest rally in their bonds. a 17-basis point

hans nichols is in berlin. bring us up to speed. this is a fairly agnostic selloff. s the board. dax was down 2.5% last time i checked. volumes are up, this is not light summer's trading. i looked at the three-month average, 174% in terms of a three-month average. you've seen that be the story for six or seven days. especially at the end of days, volume spiking up. seventh day of decline, that comes close to the record, in november 2011, which was nine straight days of decline. it is bad across the board. take a look at some auto mler, bmw,-- dai volkswagen -- all in negative territory. own.ave the utility rwe d it really looks to be across the board. even the best-performing stock, henkel, consumer products manufacturing company, they are down 1%. negative across the board. we will see what volumes do throughout the day. an important part of the story. francine: hans nichols in berlin kongnda curran in. hong today's twitter question, where do you put the money? manus: my best response has been "mattress asset management." of hermes the head equities. is the worst pas

and hans nichols is here as well. matt: 4/10 a percent. we would not be happy in america. be seen inction to ages stock markets. china's currency stabilized. the unexpected devaluation earlier this week rattled world markets. the currency is studying the second straight day, easing some of the uncertainties. the un's reference rate with china's central bank rose for the first time since the evaluation tuesday. just 1/10 of 1%. japanese prime minister shinzo other -- abe express profound grief for all who died in world war ii. seven --s after the the 70th anniversary of the country's surrender. he also expressed apologies for japan's actions. erik: a surprise for the football field. tom brady in uniform. the patriots quarterback was the starter in new england's preseason loss last night. he has been in and out of courtrooms fighting the deflate it suspension. -- deflategate suspension. matt: we start with the five things you need to know this morning. i get to talk about autos. its stock offering to 2.7 million shares to 2.1. it is looking to raise 250 million. it was only

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

hans nichols is standing by with details over in berlin. e running shoes you're wearing hans. the high bar they have set for themselves. hans: their set a high bar because it was set by the market. it was an income miss only just a million euros. they came in at 3.91. the bigger news i suspect is the market -- adidas has hired an investment bank to look at their trouble. when you look at the revenue after currency the ducted, you see just why it is a problem. their sales up a percent. reebok up 6%. the tailor-made unit up -- the tailor-made unit down 26%. adidas has its challenges. they want to increase their market share in the united states. they want to take it to the industry leader. when you look at the market share, they are going down year on year. they are looking -- they are using -- they are losing market share. they have a strategy. the strategy is a city strategy. not berlin? we'll have our own beef with that later. hire some big stars and big sponsorships. jane cardin, there talking to him about a $20 million contract over 13 ye

for the latest, let us go to hans nichols.ing but negativity and red and all the european equities. the indices are down more than 2%. down 2.4% the last time i checked. the ftse 100 down 2.54 percent. and the dax is down 2.4% today. you look at them of the last two weeks and they are down almost 12%. went down 5.5% on the day. earlier, they were raided by goldman from cut to sell to neutral. that could affected their share price. also down about 2.5%. bonds, it is a mixed picture. we saw german post those pmi numbers influencing things that little bit. that led to the european composite pmi with 54.1. that is close to a four-year-that was reached in june. the french business index continues to disappoint and at a four-month low. you take a look at german yields and they were down just a little bit up and down throughout the day. yield down the u.k. about six percent. the u.k. clearly had the biggest rally in their bonds. points, they dropped for greek debt. a big move at greece as everyone is looking at uncertainty there and

hans nichols reporting from berlin.dent biden will have a major factor in his corner if he joins the presidential race. ,edge fund manager jim chanos what does this say about his willingness to jump in? that's next. ♪ mark: welcome back to "bloomberg mark crumpton.am as vice president biden considers whether to run the presidency. he would have a big name in his corner if he chooses to challenge hillary clinton. jim chanos says he would donate it binds campaign and raise money for him, as many democrats remain uneasy about mrs. clinton, has questions about her use of a private e-mail server well secretary of state don't seem to be going away. jen epstein joins me here in the studio. in washington, bloomberg politics reporter phil mattingly, thank you both. let me start with you this news about mr. chain us willing to give to a biden presidential campaign, should that materialize, does that change the balance of what we are seeing on the democratic side at all? phil: it's important. joe biden, as he goes through this pro

hans nichols is with us in the studio. s got to go to europe's parliaments where the power lies. can this get to the bundestag? hans: the optics out of berlin overnight, seems willing to sign off. there is a phone call between jean-claude juncker and angela merkel later today. then we will have an answer. brandan: we are learning all sorts of new terminology. one thing we've been talking about over the last month's prior actions. do we know what they are, how many there are? is reportingress 35 prior actions. pension reforms, a lot of things, 35 individual votes in the parliament. we will do our best kevin spacey "house of cards" and do a whip count. we want to see if they get above 40 no votes. -- 39 no votes. the second ones, 36 no votes. the question is, will this lead to a collapse of the party conference? that is why will be county votes. julie: we continue to talk about the leaders making these decisions. now now that we have seen the banks open again. now that we have seen the stock market open again. what is the sit

brendan: hans nichols and berlin. yesterday, a drop in the dax looking at germany's exports to china. bad news on the gdp numbers. give us the good news first. we basically had gdp numbers that confirm what we thought, 0.4. and then we have ifo, that is real time. for august, an assessment of german business executives. it came at 108.3. 107.6 was the estimate. looks like business leaders are looking through china, just like last month, they looked through greece. theyet the expert story on gdp numbers and we got, it was largely export driven. i'm having a hard time reconciling these two numbers. if the economy is so reliant on exports for growth and we look around the world and there is not optimism, why is the ifo survey so optimistic? maybe you have a theory on it. brendan: can you give us a data check on whether or not germany is any closer to its long-awaited rebalancing towards consumption? this is something the u.s. treasury has been begging germany today. hans: no. when you look at their current account surplu

let's go to hans nichols. go -- hans: that is what the greece bank is saying.sed from the mechanism. most of that is for the banks to recapitalize. the bank stocks are being hit in athens. 3 billion chance of a at the end of november. at that point, we could have some clarity on whether or not the monetary fund is going to dissipate. we could have clarity on whether or not there is going to be a new government in athens. there may be early elections, early october. none of that is firm yet. that is the next issue that need to happen. all the political stuff from the creditors have been resolved. manus: thank you very much. up next, a record number of refugees are expected in germany this year. stay with a pulse. ♪ francine: welcome back to the polls. where live from bloomberg's european headquarters. manus: here are our top headlines. minutes from the meeting. janet yellen and other officials are concerned about lowering inflation. indications that an improving job market is bringing in -- is bringing us closer to the rate increase. this comes through weeks bef

hans nichols. important that the economy appears not to be stalling, but faltering. that is a cause for concern. hans: it is a cause for concern for mario draghi. stand up a little bit. in germany, they were there. , they came inth with consumer spending. they spent a lot in the second quarter. we will have to see what happens in the third quarter. the craziness, capital controls, everything that happened increase, that was the third quarter. have any idea how that will affect the numbers. i suspect we will have a decline in france and a slowdown in germany. olivia: you cannot take into account the instability in greece. you can take into account a full quarter of quantitative easing. is an economy on steroids. erik: i get combativeness? hans: that is what happens when you do not wear socks. a below the belt shot, i agree. erik: we can make it a below the i am not wearing socks. it is august. quantitative easing took a long time to produce economic growth. helped revive it the economy at all. what it did do was -- financial markets almost immediately. hans: if your go

francine: former white house correspondent hans nichols was watching for bloomberg. actually enjoyed it. it was more like a reality tv show. trump.ame out hans: there were theatrics. it was fun to watch. it was compelling television. a big win for fox news. their moderators are getting praise. in part, no one really made any big mistakes. none of those viable candidates made big mistakes. you saw mr. trump talk about you potentially go -- about how he would potentially go run as a third-party candidate. that could come back to haunt him. what some of the candidates are doing is turn this into more who is best suited to challenge hillary clinton. marco rubio, here was his answer. be ais election cannot resume come edition. it is important to be qualified, but if this election is a resume competition, then hillary clinton will be the next president, because she has been in government longer than anyone running tonight. the selection better be about -- this election better be about the future. the irony is that there -- that they are important in primary politics, when y

hans nichols gracing us with his presence..t is 86 billion erik: -- stephanie: why are we having the conversation in english? s: everyone says we are any positive place to proceedings -- negative in a proceedings or any positive environment and we have to be clear we have not heard anything from the germans. until we hear from the germans -- stabilitye european mechanism. we have the international monetary fund, the european civilian mechanism. we have someone from the european commission and someone from the european central bank. the new entrant is the european stability fund. hans: we will talk about that later. i can see what is on your screen. the camera can't. erik: by shouldn't we be -- why shouldn't we be optimistic? in theory, the hardest part is done. that was getting the greeks to agree to the demands. structurally, you have the german saying they will not do a deal unless the i.m.f. is on board. the i.m.f. says we will not do a deal until later in the year. ask anyone who follows this in athens. can there be a deal

let's go to hans nichols in berlin. hans: we see the equity markets turning red. it is a light red. in the red territory. we're having some doubt about the stocks 600. if you look at the ftse 100, that is down 1.25%. -- also -- and then it would negative again. the biggest gainer, the mover what is happened in paddy power. you saw both of them really jump. paddy power jumped 18%. 20%.ir increase to that with a 14.8 billion euro deal. we saw some jumps on aker. going up 6%.rofeck on up agerman 10 year little bit. the yield down about two basis points. yield the greek 10 year all the way down 23 basis points to about 8.8%. still pretty substantial. points. down for basis italy pretty much flat, down about one basis point. back to you. pimm: thank you very much. black monday, tough tuesday, wobbly wednesday. that is how this week is playing out in the chinese stock markets. they extended deepest five-day drop since 1996 as lower interest rates failed to hold a $5 trillion route. is it time to take a deep breath and sell or are we raising false alarms in china? nicholas lardy is from th

let's check in with hans nichols from berlin. en we talk about what is at risk in germany, let's get specific. hans: specifically the auto company. more macro speaking, what we see in these trade numbers, we get a sense of how export driven they are. some of it was trade related. some of the numbers came back negative for inventory. exports were up by 2.2%. private consumption was up by 0.2% capital investment was down by 0.4%. indication, a strong indication that the second quarter of the economy in germany was very export driven and was not relying on capital investment. if you look at what the world looks like now in the third july, you saw all kinds of uncertainty in greece and august has been even greater uncertainty in china. in some ways, i am looking forward to the number we get later on today to get a sense of where business optimism is. economy.export driven we saw that clearly with these numbers. most of the growth in the second quarter was export driven. on the trade deficit with china, in 2014 we saw a drop to the low