nobel laureate paul krugman is with us for the whole half-hour. alix: coming up, hillary clinton took on wall street today vowing tougher oversight on wall street if she makes it to the white house. tougher than what? we will walk you through the numbers after the break. ♪ alix: i'm alix steel. joe: i'm joe weisenthal. alix: we told you about hillary clinton going to be tough on banks if she becomes president, but tougher than what? no wall street bank had pleaded guilty to a felony this year. joe: and there have been record fines. but the main focus was how to grow the middle class. she even took a shot at ronald reagan's legacy of trickle-down economics. >> it explodes the natural -- expose the national that, concentrates wealth even more, and does practically nothing to help hard-working americans. alix: still with us is nobel laureate paul krugman. what do you think about what she said? prof. krugman: what she is reflecting -- there's an emerging consensus, kind of a liberal consensus, that you can do quite a lot to make the distribution of in

alix: still with us is nobel laureate paul krugman.ssor krugman, what do you think about what hillary clinton was saying in terms of increasing employment and helping middle-class earnings? prof. krugman: what she is reflecting -- there's an emerging consensus, kind of a liberal consensus, that you can do quite a lot to make the distribution of income somewhat more equal. that you can do everything from minimum wage changes to enhanced bargaining power, to overtime rules, all of this stuff that , in fact, the economy is more malleable. that wages are something that are more affected by politics and less determined by the invisible hand banned legend has it. than legend has it. i've seen people -- i guess i am, so hillary is that going that, saying i will try to do that. it is interesting that this is a moment of consensus among democrats that is making the belief they can actually do something. it was -- it was not a startling speech, except if you compare it to a democrats used to believe ,here the was a big division where there were

>> paul krugman is not a bad ally to have. >> yes. we have strong supporters and am not sure if they support this particular government or -- it seems like they are criticizing europe more. at these the greek example in the greek government is now speaking -- this is the only voice to be heard at the moment. strongest voice to be heard at the moment. they rally behind it, i think. europe has to decide whether it needs more integration, if it needs to stand still and take a breath and decide what to do next or take the reforms deeper. i don't see us growing in any case. >> have they changed or achieved anything? i was interested in them this week's aim we can't put attacks -- a new tax on the rich because they are not in a position to collect it very efficiently. >> it has been six months. no one in europe would object to the greek government trying to build a new tax administration system. you don't need a memorandum to do that. it you don't need an agreement to do that. and you don't need an agreement to tax the rich in greece. balla

i'm sure paul krugman gets that. i think he was being unfair there.is a clever, pointing out his expertise and trade economy. alix: absolutely. fair point. don't miss this on monday. halliburton earnings coming out. this is an oil services company in the united states worth about $34 billion. we are looking at sales that could decline by 28%. they make their money in the united states, and are exposed to shale. joe: it is a nice clean read on the current state of the oil market. alix: if market pressure hasn't abated, i'm excited. joe: greek banks reopening. that will be interesting. there aren't many examples of banks being closed this long and then reopening. we don't know how that will be. people get nervous, want to pull their money out. that will be an interesting test of how the use of capital controls work. alix: how many days? joe: a couple of days. alix: this should be good. joe: this is a big one. that is all for "what'd you miss?". thank you for watching. >> from our studios in new york city, this is "charlie rose." story this week after mo

it takes more than money to change that. >> ifill: paul krugman?hing to understand is just how much effort greece has put in. greece has achieved an incredible budget adjustment. it has raised taxes, slashed spending to the tune of what would be more than $2 trillion a year if it were happening in the united states. so we're talking about a greek government that has under successive leaders made enormous sacrifices. it's bizarre to say they haven't done anything. they've done structural resources as well. what the leader has been trying to done do, when a country is deep in debt, to try to through austerity, bring that debt under control is an impossible task. what you're doing is bashing the economy so badly that the economy shrinks fast than anything you can do on the budget side. so, you know, essentially, europe has been completely living in a fantasy world on all of this. i don't know what the answer -- i mean i suspect that the answer is going to be greek from the euro. after all the suffering, part of the problem is belief. >> ifill: we've s

minister, thank you for your time this morning. >> thank you, george. >>> let me bring in now paul krugmanecca jarvis. paul let me pick up where the minister has left off. the united states has an interest in this. break it down, what's at stake with this greece financial crisis? >> greece is not a big economy. if you ask how much direct spillover from what happens in greece is not that much. if you ask what it does to the european economy, directly a not that much. but if greece falls out of the eurozone and the european union, god knows what happens, then we're saying the euro, europe which is our main counterpart, an economy as big as america's, is coming apart, that everything was supposed to be irreversible about the movement to a closer union is in fact quite reversible. >> what does that mean, if greece falls out, you're at the threat of spain falling out, portugal falling out? >> that's right. in the end, this is political. you have the european elite. we know what we're doing, trust us, we're leading europe to a future of prosperity and domesticsy. now, it looks like they're under

you have a little more sympathy with paul krugman's views. tter #thisisacoup krugman agrees with that. saker: they are asked to give their own assets as collateral. if this were a normal company [indiscernible] but you are dealing with a country. if you believe in the euro, it must mean that there will come a time when local sovereignty is given up in return for central sovereignty. that is how it works in the united states of america. that is what the central authority is asking of the greek people. anna: great to get your thoughts on this complicated story. saker nusseibeh joining us from hermes. coming up, as the euro become immune to greece's turmoil. we will put that question to our next guest. ♪ anna: welcome back to "countdown ." it is half past 7:00 here in london. these are the stories you need to know. emergency talks to keep greece in the euro have stalled. the greek prime minister rejected calls for the creation of an independent fund to sell state assets and sought to minimize the imf's role in the bailout plans. this comes after

and i confronted paul krugman with this data how do you explain this, paul krugman, that some of these jobs are flowing from states that did exactly what you told them to do and going to states that did exactly what arthur laffer told them to do. what his response was, they were moving because of air-conditioning. that is crazy thing to say. by the way with everything krugman says there are kernels of truth. all things equal people do move to warmer states but the point i'm making here it is irrefutable that tax rates matter on the state level. there is no question about it. there is massive flow. we estimate about 1000 people a day are moving from high tax to low-tax states. my point is people would move from one state to another say 13 percentage point differential in the tax rate they're going to move substantially across capital will move across borders if you have a 20 or 30 point advantage on tax rates that we would have if we had the flat tax. that is number one. number two, the maybe the most important argument in my opinion right now in terms of con striping the american peopl

nobel prize-winning economist and princeton professor paul krugman at 4:00 p.m.e are back with mort zuckerman of boston properties, bill rudin of rudin management and the ceo of wework adam neumann. talking about the project they are going to realize in the brooklyn navy yard. also wework as a company. bill, you and more are investors. what attracted you to this concept? >> two things. one is the concept, which is quite unique. two is the ceo. in my mind, everything depends on the personal or professional talent of the leader. i was impressed. i'm learning to adjust and so is he to my high opinion of him. he's really remarkable. >> i think the same thing. we created the first wired building in new york city. we understood the importance of technology infrastructure. adam's company is not 2.0, it is 10.0. when you walk into their space and you see the excitement, you see the interaction between the different companies and the environment that he has created, it is a very powerful concept. matt: it is a powerful valuation. what do you think about the valuation, it

and i confronted paul krugman with this data about, you know, how do you explain this, paul krugman that so many of these jobs are flowing from states that did exactly what you told them to do and they are going to states that did exactly what arthur laver told them to do and what his response was, they were moving because of air conditioning. now, that's crazy thing to say and by the way, with everything krugman says there's always kernels of truth. it is true, all things equal people do move to warmer states, but the point i'm making here is he that it is irrefutable that tax rates matter on the state level. there's no question about it that there's a massive flow. we estimate about 1,000 people a day are moving from the these high-tax to low-states. my point is people would move from one state to the other say 13-point percentage point rental in the tax rate, they are going to move substantially, cap stall going to move across borders if you have a 20 or 30-point advantage on tax rates that we would have if we had the flat tax. that's number one. number two, maybe the most important a

you want to turn in on what you missed, talking to paul krugman and edmund phelps. the former belgian prime minister slammed alexis tsipras last month in parliament. you can hear some of the anger. >> it is not you and it is not we that should pay the bills. brendan: i am brendan greeley. pimm: i am pimm fox. let's look at what is happening in markets right now. we have an energy deal to begin with. >> first off, i want to talk about oil generally. it is at its lowest price since april 9. it is trading at about $52.22. this is down about 1%. earlier in the day, it was lower, hitting about the $51 mark. powers may come to an agreement on tehran's nuclear program, which could mean that iranian oil could come back on the market. chesapeake energy right now is down by 2%. this is due in part to a barclays note that said the company is not for buying. analysts on driscoll said production stocks are trading at 30% premiums, supporting historical multiples, but would not use weakness as a buying opportunity. take a look at my bloomberg terminal. this is short interest as a

economists like paul krugman and others saying that all those a sterritt he measures did not help greece. it just made the economic situation in greece even worse. if you look at the past 45 years, the situation got worse so it might be better for greece to leave the eurozone. that is what academia is talking about quite a bit these days. ben: a trader told us that the greek problem is not first and foremost on wall street. why is that? >> it is really reacting on the latest news. why trade on it? it was true for most of the american carmakers. and we also got data from the private sector and better than expected. that did help that we had a pretty good start into the second half of the year. ben: the international monetary fund has still yet to make up its mind on greece and there are reports it could take weeks. that leaves everything in limbo including the question of if they can get their money back. 85 billion euros, a staggering amount. the next biggest lender is france with 65 and it could be gone for good. italy stands to lose 57 billion euros. that is money it desperately needs.

paul krugman also talked about donald trump's candidacy with bloomberg's joe weisenthal.not pulling punches. belligerent,it loudmouth, racist with not an amount of compassion for latino people. that is the person that republicans can deal with. brendan: scott walker says america need someone that can stand up for america. he says he plans on bringing his combative style to the white house. >> my record shows that i know how to fight and win, now more than ever. america needs a president who will fight and win for america. brendan: walker's best known for taking on government employees in wisconsin. he is the 15th republican to enter the presidential race. those are your top stories at this hour. let's take a quick look at the markets. we have movement upward slowly. of 22's -- up 22.6%. jpmorgan and wells fargo both beating estimates today. coming up, oil prices have been hovering at the $50 barrel range for months now. his chief energy going to help bake operations -- big corporations? plus, harper lee's new book is blowing away and helping much-needed sales for retailer

not done yet that we did hear some pretty harsh comments, especially from some economists like paul krugman, for example. they called it madness. that is pretty strong wording. they criticize those austerity measures. we also have to wait and see that the deal really gets through parliament. and after that, europe has so much work to do besides greece to get more jobs for the younger people to also see how to deal with england when it comes to the european union. there is a lot to do from here on. >> before we talk about an exit, let's stay with greece for a while. why is greece so important for the u.s. stock market? >> greece is a relatively small country. it is about the size of the state of connecticut. for wall street, if you look at the economic impact that might be minimal it might be about the stability of the eurozone over all. that is of interest. europe and the european union remains the biggest exporting market for the united states. and also, america does not want the dollar to get too strong. today, the dollar gained about 1.5%. we did see strong gains on the stock market but

not done yet that we did hear some pretty harsh comments, especially from some economists like paul krugman, for example. they called it madness. that is pretty strong wording. they criticize those austerity measures. we also have to wait and see that the deal really gets through parliament. and after that, europe has so much work to do besides greece to get more jobs for the younger people to also see how to deal with england when it comes to the european union. there is a lot to do from here on. >> before we talk about an exit, let's stay with greece for a while. why is greece so important for the u.s. stock market? >> greece is a relatively small country. it is about the size of the state of connecticut. for wall street, if you look at the economic impact that might be minimal it might be about the stability of the eurozone over all. that is of interest. europe and the european union remains the biggest exporting market for the united states. and also, america does not want the dollar to get too strong. today, the dollar gained about 1.5%. we did see strong gains on the stock market but

my next guest, paul krugman, called the deal a ritual humiliation.an is a nobel prize winning economist and a columnist for "the new york times." thanks for being on. >> thanks for having me. >> lots of people believe the creek crisisy greek crisis is over. you don't think so. >> no. really nothing has changed in the strategy which is still cut to cut, austerity way back to solvency which was never working, has never worked in this kind of situation and will not work. all that's happened is we've gotten a pause for the moment maybe, not even sure of that. it's amazing. we're by no means out of the woods. >> ken rogue said on last week's show you deserved responsibility in a sense defying the european creditors. the result of that was that he got worse terms. do you think that's fair? >> well it's certainly true that -- i had assumed. it didn't even occur to me that they would be prepared to make a stand without having donny contingency planning. >> this is greece? >> yes. greece had an exit plan from the euro. >> at least something they could hold up

. >>> when we come back -- greece we talk to the greece finance minister paul krugman next. >>> we're now to the crisis in greece banks could run out of cash as early as tomorrow after the country defaulted this week on its massive debt load and voters at the poll right now to decide whether to accept tough conditions tied to the bailout. u.s. and global stocks all at stock. abc's alex marquardt is on the scene. >> reporter: polling stations across greece like this one filling up as the days go on. millions of greeks expected to turn out. the country couldn't be more divided over this historic referendum. impact its standing in the european union, and of course the global economy. the banks were closed this week so they didn't run out of many money. endless lines at atms where customers were only allowed to take out $67 a day. calling the increase austerity measures a humiliation and a form of economic terrorism. a no vote could lead to financial chaos and collapse and might create a ripple effect. there will be a very bumpy road ahead, george. >> alex thanks very much. >>> we're join

economists like paul krugman and others saying that all those a sterritt he measures did not help greece. it just made the economic situation in greece even worse. if you look at the past 45 years, the situation got worse so it might be better for greece to leave the eurozone. that is what academia is talking about quite a bit these days. ben: a trader told us that the greek problem is not first and foremost on wall street. why is that? >> it is really reacting on the latest news. why trade on it? it was true for most of the american carmakers. and we also got data from the private sector and better than expected. that did help that we had a pretty good start into the second half of the year. ben: the international monetary fund has still yet to make up its mind on greece and there are reports it could take weeks. that leaves everything in limbo including the question of if they can get their money back. 85 billion euros, a staggering amount. the next biggest lender is france with 65 and it could be gone for good. italy stands to lose 57 billion euros. that is money it desperately needs.

. >> ken, paul krugman and some others say this is a recipe for total disaster that is more austerity is going to plunge greece into a depression that this is kind of -- this is austerity on steroids and it's bad for europe it's bad for the world. >> let's start with the this referendum and what tsipras did which paul krugman urged them to do was taking the country off a cliff. it was very irresponsible. and on top of that, they spit in the germans' face. they were being offered money. they should have taken it and after they had taken the money, then they ask to renegotiate. you don't default on a debt when somebody's still giving you money. a very important thing to understand about the austerity, there are many mistakes. certainly the debt should have been written down across the euro zone right away. but in greece you could have torn up all their debt and they still had to close a 10% gap of gdp in their deficit. that's like $1.7 trillion in the united states. imagine if we had to do half of that. and most of the austerity earth they felt has been that they had a credit card when

and paul krugman quick to comment on donald trump's lead in the polls. to what krugman says. >> he was a belligerent loud mouth racist without an ounce of compassion for less fortunate people. stuart: that's interesting, a belligerent loud-mouthed racist. melissa. >> when do you call to name calling? he's a nobel prize winning economist and he stoops to name do that when you don't have a real argument. >> unfortunate he demeans that. stuart: i don't think that donald trump should have called all mexicans comes across the border rapists, especially after the death of kate steinle in san francisco, killed allegedly by an illegal immigrant who had five times been deported out and went back to san francisco because it's a sanctuary city. >> right. stuart: donald trump has raised that issue. >> he has raised that issue. by the time paul krugman continues unfortunately to demean himself with name calling, but you're right. we reported earlier 8,145 illegal immigrants criminals, felons, released by 273 jurisdictions that are sankries in 43 states. that's a lot

even paul krugman, who has been on the side of the greeks the whole way through, says "i see an exit as an endgame." if your biggest proponent is saying you will not be able to make it, i guess there are not that many people on your side. i think we learned a lot about how european politics operates in the last few weeks, and it is a sort of ugly truth now, that exit israel. i think -- that exit is real. i think the market needs to go through the process. understand it is not going to be another lehman event because they are going to manage it. then we could move on. then we could have an interesting to me -- interesting qe trade in europe. we call it the by the dax and dollar -- the buy the dax and dollar trade. it gets derailed when you have any kind of risk off sentiment. it could have been isis, china and japan fighting over each other -- fighting with each other over an island. i think it was a difficult period for that trade. alix: what keeps you up at night? for joe, it was greece for, like, five years. david: what keeps me up at night is how central bankers are ultimately goi

at "the new york times," economist paul krugman was a strong critic of germany and the eu in general. he said germany is -- it was not the greeks who did it. that of course is all in the past, but he does mention the pressure on the greek government, which shows the trending #this is a coup. this was exactly right. genie: that #has been trending across europe today. people showing a lot of anger. oliver: hundreds of thousands of tweets were sent using the hash tag. including the leftist leader in spain, an ally of syriza. "all of the support to the greek people." and "even the most loyal are furious with schauble today." no this is not a union, this is a coup. a french tweeter writes about the proposed transfer of greek assets. schauble, convinced of greek corruption, will oversee the sale of 50 billion euros in greek holdings. manuel said earlier on that that will be located in greece now. that is a little bit of thing of the past at this point. there had been some untoward stuff on there as well, with nazi slurs and others being cast towards germany and others. some are also not --

paul krugman was also very critical of the creditor demands, saying the eurogroup massive --ands is madnessoes beyond harsh into vindictiveness. they have been tweeting out those comments on social media. this hashtag has been trending globally. have seen all we morning. people saying that these demands are just humiliating. , in people beyond greece the euro region, are really reacting and saying that the hideous creature called the eu has finally reared its ugly head . another hashtag -- just some things that are trending right now. another one saying this is not democracy or a true union, it is disgusting. a lot of people talking about the goal here was not really just regime change among greece for the european leaders here. not surprising, greece trending on social media. in the show, we are heading to beijing and we will sit through the latest trade data from china -- sift through the latest trade data from china. this is "trending business." we are back after this short break. ♪ rishaad: it is monday, the 13th of july. this is "trending business." ♪ rishaad: live in beijing, brussels

tom: paul krugman wrote on this.ing up, the most important conversation for mario draghi today, a conversation with athanasios orphanides the former governor of cyprus. ♪ with xfinity from comcast you can manage your account anytime, anywhere on any device. just sign into my account to pay bills manage service appointments and find answers to your questions. you can even check your connection status on your phone. now it's easier than ever to manage your account. get started at xfinity.com/myaccount this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointments that work around your schedule. and it takes- done. - about an hour. get reliable internet that's up to five times faster than dsl from the phone company. call 800-501-6000 to switch today. perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. tom: good morning ev

tom: brandon, paul krugman writing on exactly what -- green was torn to shreds on this years ago.nk the dream of the euro was that there was this promise -- i was in the 1990's, too, watching this amazing dream of creating a financial union which never happened. the reason is the same reason we cannot get a good deal now. ian bremmer, germans are not willing to take the bad with the good of the euro. ian: that is exactly right, and i think this will be widely published in china. they really want a week europe. they would love to see the euro fall apart. geopolitically, geo strategically, this is where china is hoping that the world is going to go. a stronger europe is much more important today for the united states than at any point in the last 30 years, and it is much more problematic. in the same way that i had a difficulty with krugman opposing the transatlantic partnership is that there is a complete version or a wanton unwillingness to accept long-term for the united states for the transatlantic relationship to fall apart. tom: what does cameron do? ian: if cameron believes t

nobel prize winner paul krugman along with edmund phelps, joining us for our 4:00 program, "what'd you on astock markets roller coaster ride and there are positive signs about the economy, including a jump in exports. ♪ betty: welcome back to the bloomberg market day. speaking about the markets, let's go straight to ramy inocencio for some of the big stories in the market. right now we are seeing stocks still in the green after those greek developments. the s&p 500 is up .8%, the nasdaq up by 1.25%, all at their highest levels at -- in the last three weeks. the dow is finally positive for the year. the s&psee, nine of plus 10 sectors are gaining today, but utilities are lagging, down .3%. electric utilities in particular. staying in energy, one acquisition to tell you about. has agreed to purchase mark west. they had been up as high as 60% earlier today. is $15 billion in stock and cash. this puts a 32% premium onmarkwe markwest. let's take a look at volatility. right now, we are seeing the worst two-day drop in a year. this is from greece. treasury prices for the 10-year are falling,

mark: coming up, nobel winning prized economist paul krugman willd schultz -- phelps join us to talk about greece at 4:00 eastern time. ♪ betty: welcome back to the bloomberg market day. mark: let's go straight to ramy inocencio who has a look at the markets. as we have been saying all day, it is all about greece. right now still in the green in their intraday highs. the s&p 500 is up more than .8%. the nasdaq is up the most by 1.25%. the dow is up by 1%. these are at their highest levels in the past three weeks. the dow is now positive for the year. in terms of leaders and laggards, the tech sector is now tops. up by 1.3%. on the flipside, the s&p utilities index is the laggard, down by .4%. taking a look further down, utilities are the only laggard on the s&p's nine of 10 sectors. american electric is down a percent. public service down by 1.25%. edison international down by .6%. on the flip side, microsoft and apple are leading tech equities higher. microsoft up nearly 2%. apple up by 1.75%. socgen upgraded their call from buy to hold on apple and stuck to their price target of $1

economist paul krugman said he is not that optimistic about what is ahead for greece. >> as long as youave a debt to gdp ratio that is never growing, when are you going to get people believing that it is time to spend, time to invest? butoes fit together, nothing was resolved except that we learned that this greek government does not have the courage of its own convictions. on retailile, a focus and housing data this week. earnings kick off tomorrow. j.p. morgan chase, wells fargo, and wednesday with intel. a lot of analysts projected earnings to come in a bit, that they have dropped about 6.4% in the second quarter on average. we shall see. well, the deal on greece, the third straight day of gains in china, a sign that markets are perhaps getting back to something more like normal. more companies are expected to return to trade today amid a growing sense of calm. where are we now? >> we just got this headline. 250 companies will be ready to be back on line. that brings the number two less than 800 companies that have halted trading. , ayou do the calculations lot of this market is stil

paul krugman told bloomberg europe wanted to less screen -- to let greece no who is in charge. paul krugman: this is not about how much greece is going to repay, it will be about greece suffering. there is no escape. you do not get away from anything. and greece has made it clear that they are not willing to contemplate leaving the euro and had no bargaining power. it is actually a very sad day. it was a humiliation, kind of a ritual humiliation for greece. vonnie: that showdown with his own party may lead tsipras to reshuffle his cabinet. wisconsin governor scott walker says voters need someone who will stand up for america. in a speech near milwaukee, he announced he is running for the republican presidential nomination. he plans on bringing his combative style to the white house. scott walker: my record shows that i know how to fight and win . now more than ever america needs a president who will fight and win for america. vonnie: walker may be best known for taking on government employee unions. he is the 16th governor to enter the presidential race. bloomberg news is repor

coming up on what you missed -- paul krugman joins us for the whole half hour.iscuss greece, hillary clinton, puerto rico, and so much more. you don't want to miss it. ♪ alix: we are moments away from the closing bell and i'm alix steel. joe: i'm joe weisenthal. [closing bell ringing] u.s. stocks climbing and european equities capping the biggest rally since 2011 on greece's bailout agreement. the euro sliding on speculation the deal may clear the way for higher u.s. interest rates. joe: the question is, what did you miss grexit question mark greece avoids a under very tough terms. was it an agreement among lenders or a brutal cu? alix: we have not one but two nobel laureates here to discuss one of the biggest economic stories and years. clinton had fiery words for wall street. can she really play the role of populist? the: but we begin with stock markets, with a pretty important day for the s&p 500. it closed above the 50 and 100 day moving

nobel economist paul krugman said europe wanted to let greece know who is in charge.ssor krugman: this is not how much greece will we -- greece will repay, which is great little. it's all about sending a message -- there's no escape, you don't get away with anything. greece was not willing to contemplate leaving the euro, so they had no bargaining power. ataxia very sad day. it was a humiliation, kind of a ritual humiliation for greece. mark: that showdown with his own party may lead the prime minister to reshuffle his own cabinet. his energy secretary is calling on him to repudiate the deal. as her krugman talked about his thoughts on the donald trump presidential candidacy and did not pull any punches. professor krugman: he's a belligerent, loudmouth, racist without an ounce of compassion for less fortunate people. in other words, he's exactly the kind of person the republican base consists of and identifies with. governor scott walker says voters need someone who will stand up with america. governor a walk -- governor walker announced he's running for the residenti

we are going to get to paul krugman and his comment about donald trump.e will talk about krugman and donald trump in the next hour. matt: i will continue on was some of the top stories on the bloomberg terminal. honda' unit has agre to settle a loan bias case for $25 million. the justice department accused the company of overcharging minority are worse. be remaining amount will used for consumer education programs. consumer groups are urging the u.s. government to allow temp of pharmaceuticals to buy marlon. the offerrejected saying regulatory approval would be difficult. out all of that spilled ice was for nothing -- funds from the als association blockbuster charity event raised $115 million last summer. some of that money is going to a drug in trials for the first time. the effort rather to millions of views and featured heil -- high-profile people like mark zuckerberg and bill gates all doing it and i'm sure you did as well. are your top stories for now. there's a lot going on today. we are going to talk about getting around new york city -- it's neve

erik: paul krugman is promoting the loss or the serenity of the greek sovereignty to european creditorsnd more directly to germany. is that the way it works out? axel: they can walk away from the deal. personally, i think that might be better for greece in the long run. they are not going to change the culture. you had to impose the sort of lifestyle that northern europe would like to have on southern europe. it is a political question. the have rules right now and they are trying to make it work. ultimately when you subsidize greece this way or that way, it doesn't really matter. as far as financial markets are concerned, we will move on. this is a sideshow and distraction to what is happening. suffering, there pensioners and greek state employees, everyone else knows a way around it. tri-saidthinks it is -- nice they are trying to help them. as far as european markets, greece is overrated because these loans are all socialized now and the market is ready to move on. brendan: kind of a cynical look, but let us look at socialized now. is it sustainable now more than it was 25 years ago?

stiglitz is sort of sympathetic to paul krugman. they have a point, which is that greece is suffering under major austerity. raising taxes now and cutting the budget is only going to exacerbate that problem. the finance minister of greece has been making the point that this austerity is crushing the country. the problem is that alexis tsipras has lost his credibility as a spokesperson. they have flip-flopped so many times. just this week, we have seen examples of that. so many offers and counter offers that nobody wants to listen to them anymore. charlie: bloomberg businessweek with a cover story called "how greece can get past the pain." how can greece save itself? peter: in the article, we try to say, somehow we will get past the crisis stage, and then we will be on to what are the fundamentals of greece that it can use to rebuild the new economy. what are they? their number one moneymaker is shipping. it has to be a key. tourism is another key. it's such a gorgeous country. anyone who has been there loves it. charlie: what with t

lisa: paul krugman does not like that argument because he thinks that the economy is just too weak andhat psychology is to week of an argument. there are many people who play into it.there is the question whether it is proving to be a benefit for the economy at this point. pimm: we will listen to more of the testimony that is scheduled to go on till 1:00 p.m. and they will adjourn at 1:00 p.m. and president obama will speak at 1:00 p.m.. my thanks to michael mckee and lisa abramowitz. this is "the bloomberg market a." ♪ betty: it is 9:00 a.m. in san francisco and 12:00 a.m. in hong kong. pimm: we have been following janet yellen's testimony from congress. she says that she see's a number of encouraging signs that the economy is reviving. if the improvements continue, the said will likely raise interest rates this year. betty: that is why economists we will see see w this rate hike in september. we will get back to the testimony, but let us go to julie hyman for some of the highlights from the yellen testimony coul. julie: yellen has been queuing ofto what she said as late about the sai

. >> sounds like paul krugman and he is wrong and anybody who says that is wrong. here's what happened the state of texas elm we diversified the economy. texas is now the none high-tech exporting state in the nation. the bulk of the jobs are in other areas. half as many percentage-wise jobs are in the oil and gas industry than in 1978 and the only gas industry still about the same percentage of our gross state product. so texas exploded economically, and it happened in a lot of other outside of the oil and gas industry. >> you're talking big tents talking inclusion. you were also asked about donald trump, so of the comments he made and the way he entered the g.o.p. race. one thing that is undeniable he has made an amazing splash, rocketing fun the polls and resonating with a lot of g.o.p. voters. what is he doing wrong? >> i don't think he is reflecting reflecting the republican party with his statement about mexans. that was huge error and it's wrong. when i think about the hispanic in texas, and i think about the individuals who have paid a great price whether th

paul krugman documented she was to barack obama's left on domestic issues.notion that she's a secret moderate has no evidence. but the sanders candidacy will allow people to interpret her sticking with a position she's already had as somehow as you got cruz to acknowledge, a move by her to preempt the socialists. >> great having you on. former congressman barney frank of massachusetts. >>> coming up president obama says his biggest fres raugz has been his inability to pass gun safety laws. this on the same day a gunman opens fire in a louisiana movie theater. this is "hardball," the place for politics. across america people, like basketball hall of famer dominique wilkins, are taking charge of their type 2 diabetes... ...with non-insulin victoza. for a while, i took a pill to lower my blood sugar but it didn't get me to my goal. so i asked my doctor about victoza. he said victoza works differently than pills and comes in a pen. victoza is proven to lower blood sugar and a1c. it's taken once a day, any time. and the needle is thin. victoza is not for weight l

same for paul krugman. same even more so for the kristof and his wife. >> i blog at the huffington post. i think the times, as we all know is the greatest new paper to ever exist. i still applied a lot of your series. i particularly am fond of the justice series in the bronx that was a fabulous series there. but, is that where your audiences? do you always want to go where the audiences? sometimes you have to leave the audience to where they don't want to go, to the bronx. i'm a little nervous about's the emphasis on the video. if the times becoming another form of television? is that a danger, whereas television lettuce? >> a number of questions there we can pick it up. >> i'm an alumni of hunter college, you talked a lot about the use of technology as a presentation tool. my question is, what is your vision of how to leverage technology as an investigative tool using data science and that's a thing? first of all, thank you for the kind comment. by the way i don't know why you feel that people don't natura

anna: paul krugman there. he has not been shy about contributing his thoughts.uy: not a happy camper. we are going to carry on the conversation as well. we will talk more about greece. we're going to be talking about space a little bit later on as well. pluto. not a small dog or a large dog but a planet. anna: nasa's mission called new horizons has trouble 3 billion miles and more than 30,000 miles per hour. it will pass by pluto at 2:49 p.m., u.k. time. what you think? our investments worth doing, or not? ♪ anna: an official announcement is expected from negotiations to curb iran's nuclear program and . oil prices have continued to decline on that news as a deal would mean iran could increase crude exports to an already oversupplied market. guy: the greek prime minister is back in athens. he must sway hardliners to accept strict austerity conditions and returned to -- four 86 billion euros. anna: after a nine and a half year journey across 3 billion miles of space, a nasa spacecraft is set to sweep past pluto at lunchtime today. it was discovered in 1930. pluto

you are definitely not paul krugman.feel about the position republicans are taken about rules-based monetary policy? john: saying that we are not -- we are in a position where everybody is hanging on every word that mrs. yellen utters and it is producing extra volatility. we are paying too much attention to monetary policy. inflation is low and things are good as far as what monopole -- what monetary policy can do. the other things it does -- buying assets, regulating banks, all that stuff. erik: why isn't the message getting through to the politicians, who in some respects carry water for economists like yourself when it comes to these debates with janet yellen? they are talking about monetary policy, not about these other issues, which are very real. john: it is hard for me to explain why the whole world is not always listen to me. matt: what do you think about asset prices. janet yellen has been trying to fight that doubles in some way. people think she may have overstepped her bounds. is it fair for the fed to stay -

everyone continues to adjust to except maybe gary shilling and paul krugman.uggests again that once again they will adjust the dot-plot will some -- in some way mysteriously move. carl: the 2015 dot plot tells you that -- what is more relevant, look at the 2016 dot plot because at the end of this year, one hawk rolls off. next year we get three hawks and one dove. what they are telling us now is that the fed will raise rates by 100 basis points next year. our expectation is actually that will be scaled back because what is happening is, as the fed funds rate gets to 1% to 1.5% the fed will pull the plug on the balance sheet, refers quantitative easing, and that will mean a similar pace of rates. tom: when i look at the complexity of this, i have one basic thing. we know the econometric research as a blue-chip advisors group is pretty darned good. are the dot plots more accurate than the private surveys of economists see ec? carl: the fed has been way off on the on implement rate for this cycle, and they have continually readjusted their interest rate expectati

paul krugman writing on the mit gang. how about bernanke draghi.ed. -- obstfeld. hello mit gang. "being right is not enough to change the world. it is better to be right, than wrong." we go to richard clarida on the third rail of this great debate. what is distinctive about the school down the river from your harvard? richard: honestly, a world-class institution built by paul samuelson 60 years ago p are think m.i.t. is at the intersection of rigorous economics and practicality. you see obtsfeld is a superb choice. tom: my non-phd take is there is a rigor for reality at m.i.t. less theoretical. and much more not mathematics but just let's observe the data. richard: the best mit economists have been at the intersection of doing rigorous economics and policy. you go down the list. mike: are they going to fall into the freshwater or saltwater camp? are they definitely saltwater or down the middle? richard: i think those distinctions are less relevant than they were 30 years ago but if you have to pick you would have to say saltwater. tom: bart chilton