discuss all of aulse things, we have p christopher, a wells fargo chief international strategist and tracy alloway. thanks for coming on. so, what do you make of greece? >> i'm tired of greece. they only a vacation. i think it is a combination of complacency and simply the anticipation that the europeans had this one covered. i don't think that is really accurate. mr. dimon said it better, we all the stress tests our portfolios. we need to think about how this could impact. we think the international markets will be more adversely affected than the u.s. so we, again, this is part of our theme this year that we think the u.s. will lead the way once again. so we prefer the u.s. all year. alix: does that mean it is about the fed moving the u.s. markets and not really euro area? is that our takeaway? tracy: that is fair to say for today, but i am on your side. i think markets are underpricing the risk in greece. it feels everyone has gotten sick of the story that they are not paying attention anymore. it's really, finally -- i'm sure i will get in trouble -- it is coming to a head. maybe i'm wrong. jo

tracy alloway is here and so is julianna manual. of day, tracy tells us three things that are moving markets. what is number one? tracy: bond market volatility again. take a look at this 30 year portuguese government bond. it was sold for the first time in january. the price went up by 40% once europe announced qe and now is down below par. the greece fears and over rising inflation -- that is the kind of all to leave that we are talking about. if you are an investor, how are you targeting that in your portfolio? volatility, we have more that today. we has finished bonds down as well. spreads against the german bonds are the highest since october. stephanie: what you make of all this? julian: the answer is to cut your risk and reduce positions. that is what we have seen in both the currency market and the fixed income markets over these last few weeks. when you think about it, it is a wonder that that has not blood over into the equity markets more considering the uncertainties that we have got over the next month. we think that is

. ♪ erik: tracy alloway. good morning. tracy: this large on market selloff.not familiar with that. tracy: we had mario draghi saying yesterday, investors better get used to volatility in the bond market. we are also starting to see moves in the equity margins. european markets are down based on the bond selloff. we have seen wild swings in chinese stocks. we said yesterday they changed directions like 15 times. in fact i wanted to tell you the story of a hong kong listed's not called m ie. this is an oil and gas producer. on monday when we started trading, this company was worth something like $2 billion. as of thursday, is worth 4 billion. the company put out a statement saying it does not know why shares are rising so much. stephanie: the founder just bought six megayacht's. tracy: these wild swings in the chinese stock market everyone is trying to decipher them. erik: is there a line to be drawn between wild swings in the chinese bond market and german bunds? stephanie: or fraud? tracy: i think what we can say are government bonds are the benchmarks of glo

i want to bring in tracy alloway who joins us now. tracy: european stocks are up.are up. guess what's down. the euro. we have had this massive market optimism about greece striking a deal with eu leaders. the euro starts weakening against major global currencies down about 1% against the u.s. dollar. there is a theory that greece is out of the way that investors can read focus on one of the big trends of global financial markets, the ecb going one way and the u.s., the federal reserve, going the other way. olivia: a fundamental backdrop of policy convergence which makes sense because why all these calls for parity came out. tracy: it is still weird to see the euro weakening when things are going pretty well. matt: things are not going pretty well are they? greece may be able to get by for another couple of weeks or months but in the long run, they are still -- in the short-term there are serious problems. olivia: today cost move in the euro is a story of dollar strength. we have strong sales of existing homes. yesterday was the best. the housing market scenes on tr

thank you so much, tracy alloway. stephanie: we have to move on.at means the bell has just rung. i want to bring back our senior markets correspondent julie hyman. talk about a different kind of drink green -- green. julie: they are higher which is a unit of williams which is trading lower. this is all about a joliet rejection. energy transfer made it an offer for williams company. williams companies rejected it. it has been a big consolidator already. the industry has argued in acquisitive. this is one of the lay just -- latest and largest deals. william says that deal is not high enough. at the same time, it is in the process of buying the shares of williams partners that it does not already own. energy transfer wants to stop that process. it is consultative here. speaking a couple katy, what is going on in the health industry is what anthem reiterating its offer of $180 a share for cigna d and that is a deal that cigna was already rejecting. they said it was too low. it is unclear whether anthem will come back with a higher offer price or if som

tracy alloway is with us. also with us is reggie. what is moving in the markets? alk about bond market moves. we have this greece meeting. a good story out from bloomberg news saying that black rots -- rock is tweaking its models on how to value its risks and its bond portfolios to take into account those wild swings that we have seen in the market. erik: reggie, you have a window into the bond market. what do you see? reggie: opportunity. we are seeing participants readjust because of rising great expectations. we are also seeing some players come in and putting a floor. we are seeing two-sided action actually. you look at the bond market and it is in a trillion dollar corporate bond market. etf is 2% of that marketplace. it is a window on how folks are thinking right now. olivia: people are concerned about the death and liquidity. it is supposed to be the safest asset class, but how liquid are etfs? tracy: can you put a liquid wrapper around and air liquide -- and on liquid asset? reggie: the bond market is actually very liquid. what you are seeing are pockets of

tracy alloway, thank you very much. julie hyman in the newsroom what is the story?alking deals again this morning. one of them we have been waiting for is intel agreeing to buy altera. we have been talking about the victim this morning. $16.7 billion. altera shares are rising even though the price has been talked about at $54 a share, shares were not trading at that level. they are rising toward that level now. $54 a share is what intel will be paying for altera. we have a deal in the specialty chemical industry. it is omg. it is a specialty chemicals maker bought by apollo global management for $34 a share $1 billion. issa platform specialty products buying -- u.c. platform specialty products buying another business persisting billion dollars. citigroup is being upgraded to buy at goldman sachs. goldman sachs thinks the market is being too pessimistic. the bar is set low for results and citigroup has been doing well in terms of growing earnings and slowing deleveraging. for that reason it might be able to beat estimates and boost shares. stephanie: thanks, julie hy

here are a few things to look at with tracy alloway on set and bill nichols head of u.s. acy: all that drama in greece do you think it matters for the euro zone economy? there are some people who say it does not and that all of that stress is contained. there is a data point out that suggests maybe they should rethink that business confidence in germany fell to a four-month low and it was worse than expected by a lot of economists. obviously, this is one data point. people are saying it had more to do with weakness in asia which is the key export market for europe rather than grace. but still, people are still picking about the contagion effect. matt: that is a weird indicator. tracy: the confidence survey. matt: it seems pretty volatile. bill: it is one day at a point and adds it to things that matter and something to keep an eye on, as you said, but one number does not the market make. tracy: number two, ikea is raising their hourly minimum wage by 2% to $11.87 an hour. they say it helps retain employees. obviously, this is interesting in the context of the minimum wage

tracy alloway and komal sri-kumar:.s here to bring us up to speed about what is happening in the stock market. fedex is a name we have our eyes on. they reported earlier and it was disappointing. julie: stock is down the most since march. it is the worst performer as stocks begin trading. trailing analyst estimates. got lower fuel surcharges. the irony of fuel improving. fedex express has been declining. another big deal in the farm industry. the maker of botox is buying a company for $2.1 billion. it makes an injection that is the only approved nonsurgical treatment for double chin. you can see shares are up by 22%. finally, david's tea is down 11% after reporting earnings. it is based in canada. it's all loss in the second quarter -- it saw a loss in the second quarter. we get the fitbit pricing later today. olivia: the only company that makes a nonsurgical procedure? julie: there are other ways of losing the double chin. olivia: the ceo had a sales conference when they bought botox. he went on stage and got the talks