you look around, the beating hearts athens of an looks patient and composed to me. nd here, a guy selling -- every day of the week. the one big difference in you will see here is the bank which has its shutters down. people cannot actually got inside to the atm to get 60 euros out. even if it had cast. the bigger problem in some other provinces people going to the airport specifically to get cash out. putting in a card after card to get as much money as they possibly could. it is going to be a paradise. look over here. you have the world's media, a few. satellite trucks. everybody here to get a sense of what the greeks are going through. not all want to speak on camera. i got a quick word at the pharmacy over there. very terrible what is happening. greeks and do not know how it will play out. day one of h rose. the banks will be shut at least a week. we'll have to see. -- day one of capital controls. jonathan: more satellites. thank you. we will be back with morgan stanley's head of asset. a grexit would put a monetary easing in question. my question to you, the last

if you look, you'll see red. and if you, just a high level stat, right now, i have something, 4m video and mobile's growing 40%. which is a huge growth rate compared to what everything is growing. there's $40 billion by 2020 that will transition from tv to mobile video. if things stay on track. 4% of the population in the united states, 96% outside the united states and if you take a big leap back and think about where things are right now basically, those fours are going to be a really significant shift because when there's 4 billion people on emotional machines. >> why do you call them machine machines? >> they're, your kids if you watch how your kids use their phones, they don't talk on the phone. they're basically operating a machine. whether it's a communication machine, video machine. we refer to this as a cable box in my pocket and i think that's an important concept. when there's 4 billion of those floating around and there's lots of high quality video going between cable companies, television companies a

you look at this huge swing and it comes back again. think profit is coming out of the market and then you see the ipo. the government wants to raise 2 billion. i keep asking a question, have you ever seen anything like this? people say the 90's, is that we are -- is that what we're seeing? >> it is human nature. we can't avoid the greed of chinese retail investors. it smells like a bubble. it looks like a bubble. it walks like a bubble. it is a bubble. the main message for people like you are not necessarily investors sitting in front of the computer is this really something we should worry about? i think the asia-pacific in general, in particular, the hong kong chinese market is full of pretty decent companies that are delivering decent margins and margins in emerging markets are important and good evaluations. that is what should worry us. the main message for me is you have a long-term horizon, more than 24 months? that is difficult because we're short-term oriented. chinese hong kong listed stocks are good then. if you don't have th

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how do you respond? >> look we've been able to host the conference calls when we've had a buy rating not had a buy rating. right now we're actually not hosting this quarter's conference call. i think we stand by our independence as the thing that's most important to our franchise historically. we've liked and not liked netflix as well as many other stocks. so i don't know what to say other than the fact of we believe this stock, we believed in october this stock was going to 600 fast. it actually did that. when we upgraded it. it actually had a bumpy road. a lot of people doubted us originally on that call. the stock kind of suffered for like a month and a half after. and it's been a rocket ship ever since. we have a lot of conviction right now that as the media ecosystem breaks down the one clear winner in the space is netflix. >> got it. thank you very much for joining us. rich greenfield from btig. how do we feel about this trade? >> that's an interesting comment. by the way, i just don't understand why a com

equity market, do you think it's in store for a dramatic pullback? >> look do, but i'm not -- i will tell you to me it's a no-brainer. i like to look for no-brainers and the high yield to me is really a no-brainer. 98%. the market, nobody can tell you when a market is going to fall apart. i do think you're going to have a dramatic pullback. i think certain things may happen. the government and the regulators should be looking at the way earnings are reported, earning estimates are reported. in other words companies give guidance. you're looking at a market i think is going higher than 17 times and then to go back to my favorite company, so if you want to be in the market, a company like apple, i mean there, too, it's sort of a no-brainer. apple, you have great difficulty competing with, is going 9.5 to 10 times earnings if you move out the cash. you're buying that for ten times earnings with a company that we think is growing at 20 to 30% growth. and look at the s&p, you look at 17, 18 times earnings, and those earnings are suspect. interestingly apple is on

you are looking at six, 7%. guest: it is almost a shell game that some play if they want to where you announce i'm going to buy back $10 billion of shares. the board has approved that much. then you look back and they didn't really purchase that much. they get an authorization for that. saying, strategists was they are good for the stock, completed buybacks are better for the stock. jump is due the big to a couple of big names. ge announced a plan to buy back as much as $50 billion. for 2015 they are going to buy back 8 billion. he is saying it is not necessarily going to translate into completed buybacks. one of the fascinating data points he pointed out, if you add up dividends and buybacks, they are paying out more than they are earning in profits per that is an unsustainable thing. you can continue to pay out more than you are earning. especially with interest rates cutting off the source of credit a lot of companies are using. guest: one of the things that people have been talking about in the idea that comp

but if you look at where jackson came from, if you look at when he arrived in nashville, what he did once he was there, to me, it seems fairly clear that that was the west. but jackson is not really a westerner per se. he has western characteristics and he considers himself a westerner, but he also is a southerner. and his life exudes that identity. i want to walk you through some of the characteristics. in case you don't know, andrew jackson was born on march 15 1757 along the north carolina-south carolina border. this is an area that if you are familiar with where charlotte, north carolina is, it is about 70 mouse east southeast. there is some dispute about whether jackson was born in north carolina or south carolina because his family and his relatives lived all along the border back-and-forth. jackson believed he was born in south carolina. i have tended to follow him in that. regardless, this area was the backcountry. this was frontier area. it was an area that had been occupied by native americans. white settlers had moved from the east coast into the area, had pushed out for t

have a diverse team, that looks like the diverse population you're pursuing you actuallyd these deals. beef got a pipeline of over 100 companies that we've been looking at so far so there's not a pipeline issue, there's plenty of opportunity we're excited about. >> there's not a pipeline issue at all? or not as much of one as it's made out to be? >> i think the perception is there's zero, right? or there's zero high quality so pattern recognition kicks in and you do what you know, you've proven to be successful. and what i'm seeing you know over the past six months is that there is very high quality. we're announcing four fabulous companies today. in areas like securities and cloud computing and in wearables. so i'm excited about the opportunity and i think we've got a lot more field to plow. >> let's talk broughter for a moment. you just announced this intent to acquire altera, it's a big move, one of the biggest acquisitions in chips, or just the industry in general. and i believe you said in marketing, accounting areas like thaw expect to make some cuts because of that

you say? >> i'm looking at disney -- did you say pete or guy? >> sorry. but you can take turns. >> no, pete. >> go. >> we talk about this stock all the time. we talk about content. now we're looking at where it is. they have owned content. they've got some great library of what they've got in terms of everything from the sports on the espn side to the disney channel obviously to the movies as well. but at these levels right now it does start to get into that rare air type of territory. i think you'd actually wait. and this is one of those stocks i'd have on my list. the market gets sold off on any kind of of grexit. i think that's one of the names i'd be looking at hoping that this name pulls back and giving you an opportunity to get back in. >> guy. >> you've had pullbacks in this name. from 2012 to where we are nowish this is probably a 30d stock pushing up toward 120. and every so often the name, usually around earnings, has been an opportunity to buy. yes, it is expensive, but as long as bob iger stays there you have to stay with disney. i don't know

look at where we are as far as japan is concerned. going back to october-november of last year. back to you. rishaad: a more detailed looks at the market and the australia trade deficit later in the show. don't worry, the great by minister is striking a cheery and optimistic tune after the the latest talk with creditors. they say there will be a deal in the next few days. all leaders had some positive comments after four hours of talks in brussels. the european commission saying the talks were constructive, the president saying the meeting was good. the most positive remark coming from alexis tsipras, saying an agreement was inside. he said people should not worry about the imf payment on friday. that is the payment of $329 million which is the first of four installments. he said they were very close to an agreement on greece's primary surpluses. amid this optimism, there were hints that there were lingering disagreements among the leaders, alexis tsipras saying he thinks the most realistic -- the only realistic proposal on the table came from the greek government, saying that the basis for a

are you going to introduce that? there are ways of lookingt of the advanced markets -- you don't really do that. the market will do whatever it does. but we do allow the introduction of volatility control mechanisms. mistakes,r fixing anything wild that goes wrong. the market is going to crash because of that, we will have a system to build a break in there. but that is not a suspension. there is a five-minute pause where people can continue to trade, giving people in the market the time to think. is this something we want to do? if people still want to trade, everything went wrong, it would be relieved wester, rishaad: that is it for this midweek edition of "trending business." we will recap some of the stories of the day. inclusion the gradual on the futures of asia. t to the chief market strategist at j.p. morgan. a wide-ranging conversation talking about conversations there. what is going on with the global economy, as well. i look at what is going on with china. "asia edge" is next. ♪ john: i'm john heilemann. mark: i'm mark halperin, an

if you look at where he came from, if you look at when he arrived in nashville and what he did when he was there, it seems fairly clear that that was the west but jackson is not a westerner per se. he has western characteristics and he considered himself a westerner. he is also a southerner. his life exudes that identity. i want to walk you through some of those characteristics of jackson's southern identity. in case you don't know, andrew jackson was born on march 15, 1767 along the north carolina-south carolina border. this is an area that if you are familiar where charlotte is, it is about 70 miles east of charlotte. there is some dispute about whether jackson was born in north carolina or south carolina because his family and then his relatives lived all along the border. jackson believed he was born in south carolina. that is what he always said. regardless, this area was the back country. this was frontier area. it was an area that had been occupied by native americans. white settlers had moved from the east coast into the area and pushed out the natives living there and had esta

if you look at, i don't want to talk about the dots and all that nonsense. but you had 15 of the 17 dots or whatever, seeing a rate hike this year. and ten of 17 seeing two. maybe it's time to face the music. >> here's a way to split the baby. i want to go to paul on this. you're calling for an october rate hike. many and i'm one of them think they won't do their first rate hike at a meeting without a press conference. obviously you're seeing otherwise. can you give a little more color on that paul? >> my basic premise on that is that the tapering started in october. the market comes back from labor day and they expect news. the fed knows how to control markets. they know, they don't like the exuberance of markets in my opinion and i think the reason they'll wait until october is that everybody will be revved up after summer saying okay, let's go. in reality i think the fed will say we'll go. we'll go in october. there's plenty of time here, guys. so it's a calmer time to start. you then get another two pieces of economic data in terms of employment until dec

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what we did when we were there, when you look at the walls, you can see they're not straight, they're bowing so we looked for worst case scenarios, to show what was happening, if you look at the survey in front of you, on the easterlily side the two story garage building, below half way up the page, it says below 2 feet clear up. >> if you could put it on the overhead. >> measurement four foot clear, two feet up, that is where the wall is not on the building any more it's in the retaining wall then in the corner here four foot wall, two feet up. the corners are straight. if the wall was straight at one time, that would happen, in the middle, we came over here to that 11 and 31 that they're talking about, and that's where we found the worst of the bow was, that's why we took our measurements there. as far as where the lowest point is um, i mean like as mr. gray said we take our measurements where we feel we can make an accurate measurement, that is convenient for us and shows the picture of what is happening, we wanted to show near the ground it's over the property liep but not at the

john: you want to look like beyoncÉ? lost weight and she says what allowed her to do that is her all vegan diet, and now you too can eat what she eats thanks to her diet plan, which good morning, america plugs shamelessly here. >> and while we all can't be that flawless, now we can eat like her with the launch of the launch with her new very good an nutrition plan. >> it's healthy, it has beyoncÉ, and then the price point is good . john: it costs 9- $16 a meal. and agriculture economist jason tries to keep track of the games, and he keeps finding things like vegetarian and vegan diets. >> i don't care what you give up eating, you and i are not going to look like beyoncÉ. so, unfortunately, the trouble with diets like that is we can probably go on them and lose a little bit of weight, but they're really hard to stick to. so what you see often is people will go on them, lose some weight, and then gain it all back really quickly . john: a lot of vegetarians stay on their diets and have all kinds of arguments for the vegan di

if you look at this picture and we flash forward to 1974. you can see it had no future. they call it one of the great lost landmarks. chicago began to see some of the development patterns described earlier. if we go to central station today and look at it from above, we could see in a way downtown is spread to engulf the old central station property, which is pictured here with the shaded area toward the middle. we have a new development that in effect rejuvenated the area in ways that would have been hard to imagine in the 70's. when there was a debate about whether to save the station. development is called central station, right? the marketers have an easy job with that one. it got a lot of good attention. mayor daley moved down there for a couple of years. we have the museum campus next door. splendid views of millennium park. grant park. chicago will he come it has been redefined as a city because of 100 acres made available by the closing of central station. as we look at it today, the buildout of the vacant parcel, it is almost complete. the community of central st

jonathan: when you look at some of these ipos, they are just a value of bids that you locked up.hey lock up 200 billion worth of bids, do you think the ipo story has drained some of the market? >> absolutely. i think richard is right in saying to support the stock bubble would look like the government is backing up mates. jonathan: is that the physician already? >> i think so. you cannot have the rising like this without a lot being done by people who do not have the money to do it. the tide is going to go up, and there will be people without. jonathan: the big problem in china has been the debt eusebius big ideas they are raising capital through equity markets, do you take a look at credit now? >> i think you are right to raise a point -- that point. if you look at foreign investors, they have taken up half of the equation. they have taken up 100% of the quota of debt securities. i think over the next five-seven years we have an evolving story in what is already the third-largest trade market in the world, becoming the second largest at the same time opens up to proportionally m

let's take a look at the asia-pacific map. this turns yous happening with markets across the region. one clear chance or china saw a big selloff yesterday. kong,of a rebound in hong but the shanghai composite down 1%. it started the day higher. it looks like we are building on these declines. the concerns that investors have with respect to the chinese market underlying economic growth slowing, a huge stockmarket rally, 150% over the past year, but built on the back of novice investors who borrowed money with margin financing. the regulator on friday unveiled new restrictions to taper this massive run in the market and the fear or concern among investors. that's why you see at that the selling. that's what caused the big drop yesterday. these are the stocks moving right now in shanghai. elsewhere, teasing gains in jakarta, 1% move there. singapore is up. .e conti the ceo of will worth retiring. olworthceo of will retiring. rishaad: this adds another piece to the puzzle. the global is not as strong as optimist may think. -- the global economy

you can look at it any way you want.he flag that's only meant anything to me is the united states flag which i served for 33 years as an air force officer. >> i'm curious to get your reaction to what david brooks wrote about robert e. lee. he says my own view is we should preserve most con fed ral memorials as respect of the soldier. we should keep lee's name on institutions that reflect. but we should remove lee's names from most schools, roads and institutions where the name could be an acceptance of what he did and stood for during the war. these debate, senator will be about jefferson davis as well, virginia, very prominent in northern virginia jefferson davis highway. where do you think we should go forward on this? >> if you look back, the goal is to go forward, right? to look back in a way to come to reality about who we are as a nation but to go forward together. i would say to david, who i admire a lot, why would you stop there? the whole country was founded by flavor owners for the most part. here's a question,

carter, what are you looking at? >> fedex. this is a bad area of the market but let's figure it out. fedex looks like it's coming to life. it's a big name in that aggregate. we like the transports as an underweight or short. this name we like on the long side. you can see the trend. no markings. this is what my eye sees, well-defined trend off of the low, off of the low and what you would call a wedge or a triangle, meaning a period of equilibrium, and we're just coming out. the debate of the last six months is being resolved to the up side. put that in context now with this two-panel chart. here's what we just looked at. this bottom panel is fedex juxtaposed against the dow jones transports. even though fedex hasn't made an absolute new high, on a relative basis compared to its peer group it has already broken out to relative new highs. relative strength is one of the most dominant factors in models. here's the spread on an absolute basis. here we have our stock in favor and here we have the aggregate. it's a double in terms o

you can look at the war as the moment in which civil war him inevitable or you can look at it on itswn terms. what i was interested in doing when i wrote this book was to show the impact of the war on individuals and families. the us-mexico war have the highest mortality rate of any american war, 15% of soldiers from the united states died. 78,000 troops served in mexico. it was a war that had a big impact on people at home. i wanted to run a narrative that explored how people in the united states and also in mexico, kobe war impacted them -- how the war impacted them. abraham lincoln who gave his first political speech, a speech that was widely documented and discussed in newspapers, his first major speech in congress is about the us-mexico war condemning the war. lincoln's first stance on the national stage is against the us-mexico war. another person i talk about is drawn to.-- john jay hardin. for a period of time he was the leading whig. it is only his death in the us-mexico war that some of argued makes lincoln's path forward possible because he was under the shadow of john har

at page 2 line 16-21, those seem to be the items that you have concern with and if you look at the further resolve clauses on page 3-lines 18-25 and on page 4 line 1 and 2, it seems as though those are the ones you with willing to support so maybe we can-no. okay. >> i'll explain. the first where asclause where the 15 study [inaudible] average 271 police officers per 100 thousand residence, i believer that is fact i can support that. the next one to meet the average police level [inaudible] that is opinion. san francisco police staffing goal should reflect future and current needs, that is a opinion and can can't support that. we established the 1971 number 20 years ago is a fact but not think because we did it 20 years ago we should establish the numbers we should establish it on other factors. on the first resolve clause if we change it and say in addition to exploring police staffing level the board will look at strategy. you changing out exploring to-from increase to explore and get to what i propose in my amendment as a whole is not commit to increase staffing level but have a multidi

it you take a look at the skyline on the other end. tv and mobile and online, you are watching "first up." intel agrees to bile terra almost $17 billion. the world's largest chipmaker will pay $54 a share. 2015 has already been a record the biggest deal in the industry has ever seen. begunia airlines has restructuring after admitting it is technically bankrupt and struggling to recover from last year's unprecedented disasters. the company is not expected to break even until at least 2018. the future starts right now. >> we have undertaken the first action. [indiscernible] it might not look like the start , but a new legal entity. new shareholders, new strategies. angie: germany has called for a faster pace of change in greece after top-level talks in berlin. the imf and christine lagarde stepped up the intensity of discussions. the extraordinary meeting aim to -- athens is due to make a payment on friday. the first of four. they say they do have money. let's check on markets in asia right now. it was a market holiday yesterday, but new

the broader market when you look down six months from now, you've got to look at higher interest rates little bit of profit taking. >> exactly. >> ben willis thank you very much. brian, over to you. >> wrapping up with no greece deal. the dow down 140, and the top for business is revealed. all coming up with the close"closing bell" right now. >> hi and welcome to the "closing bell," everybody. i'm kelly evans here at the new york stock exchange. >> welcome back. >> good to be back bill. >> i'm bill griffith here at cnbc headquarters. that, of course, means i'll be on nightly business report on pbs. join us check your local listings. they're running for cover today. we have a bit of a selloff in stocks right now. bonds are higher, dollar lower. all caused in part by comments by activist investor carl icahn that he feels the stock market is overheated the junk bond market he thinks is in bubble territory. and then of course we have those concerns about greece as

when you look at profitability i think that's going to be incredible. we'll see when the numbers come out. look for the july 20th week, that's when we'll see most airlines report. and that could be the thing that shift this sentiment that's been so negative. >> i've been pretty constructive here don't think an industry that spent two or three years or maybe a decade getting their act straight is going to throw it out the window overnight. if you look at the charts you see delta at 41, united at 54, these guys are testing back to levels. this is how you should watch this. you have to wait to see the bounce off these levels before you chime in. valuationwise there's a very strong argument for airlines here and i would be taking a look at these. >> time for the highlights of our show. >> what's that? >> pops and drops. the big movers of the day on cnbc. a drop for qualcomm down 3%. guy. >> has not traded well. i think it had some positive headwind, some positive catalysts, some great tailwinds behind it. it has not. stock has traded from 71 after the activi

look at industrials. also down on the year. the xli. so to me i think yous that should be acting better at this stage of the economic recover. >> i they're not. and that's kind of troubling. >> let's just look at what's happening right now with fedex. they missed earnings. i mean, that is essentially a transport. right? then you look at the rails. and i know recently they acted fairly well but the last couple months they've had earnings warnings. they haven't done that well. so whether or not the dow theory's working today or not, the signal coming from it is that is economy has stagnated. again we saw that with the federal reserve today. very, very dovish. i would take it all in a big picture and say things are slowing down, things are not as good as everybody out there -- >> even though they downgraded the 2015 gdp forecast they overall upgraded economic assessment. mind you they haven't had the best track record -- >> exactly. and they will admit they don't have the best track record and if you look at their projection from back in 2011, 2012, they were

you choose to. and i think if i go back and look at your and my conversation you said that y'all had not formerly looked it. you mentioned that you had informally looked into it. but there is in fact a process where there can be a formal process if the fsoc could go through -- treasury could go through that process and recommend to fsoc to change that. and i'm a little confused. there could be a formal process. but i think if you look there are a number of regulators taking a look at this issue to see what they can do with their regulatory flexibility. and i think it's a question of when you raise it to level of formal review. i'll give you an example of the kind of issue we've looked at. the frequency of the examination cycle. there's a reasonable case that the frequency should be different for a small institution and a very large institution. so there are ideas here that could be pursued. the fact that it's not a formal section 115 review doesn't mean that people aren't asking these questions. if you look within the regulatory bodies they are looking at them. and we're obviously looking across the lan

take a look at the auto makers and you may look at this and say they were up 4% and gm up 3%. you need to focus on basically how strong they were relative to expectations. they were better for every auto maker. for the big three, trucks drove the success they had last month. when you look at general motors they were up about 8%. even with limited supply they are selling for an average price of 43,300 up more than $3,000 year over year. look at the sales rate relative to the annual sales pace. going back to 2009. that's for the month of may for the pace of greater than 17.4 million vehicles. that's what we hear from the automakers. that would be a substantial increase only for the month of may relative to where the industry has been over the last six years. unlike the american automakers over the last six months to a year, you have seen momentum for the japanese automakers with the exception of honda. we will get the sales pace for the month coming out within the last couple of hours. it's somewhere in the range of 17.5 to 17.7 million. host of cnbc's the profit. you are a car g

you look at this, and you see that there is a lot left to come. if you look south to florida there is nothing there yet. the florida development has yet to occur. las vegas did not even exist at the time. we will see in 1905, all cities could almost be defined by their position of the railroad system. some cities thrived because they were by the railroads. some died because they were by the railroads. we ended up with five or six transcontinental lines and more to come. the enormity of this and the land devoted to railroads when they start to retrench especially in the heartland, is astounding. let's get a sense for what the inevitable decline has meant for cities around the country. here we are in cincinnati. born in cincinnati. that is not why it is on the slide today. this is the very end of the expectation the railroad will last indefinitely. this is the cincinnati trend will -- terminal. this is a great showpiece. what architecture would you call that? art deco style. 19 3-d33, a little bit like the chrysler building. the reason i show this p

you. we look at thihis as a pereter defense issue. is not it is an issue of how do i prepare mymyself? if my data is usefully encrypypted, you can takit, but it d does you no good. guest 2: the i.t. commity is gettining aroundhe idea of systems you cacan recover followining a cheap -- aa breach. what do you do with a soci security number? there is resesponse. cred monitoring g is not going to address that. vago: the defense dedepartment uniled a cyber strategy, saying they would geget more aggressive. and yet, this kinof stuff continues to keep hapning. at is he right way to respond to an evenent like this? especially sincece we were talking earlier,his is not a new breach these thingsgs are happening continuously over time. what is the riright way to respond? what is a woable deterrent? guest: i t think deterrerence is absolutely critil in this domain. i thk it was a great step and a very necessary step. it is cused on the national ones, that i is whathey a focused on dedeterringng. most of the tacks we arere seeing our espionage att

when you look at the global trade at the end of 2012, there are differences in performance. when you take into account

economy. >> ken, what do you think? >> lookoint, then you have to agree with carl. because rates go up prices go down. it's that simple. >> prices go down of what? >> bonds. >> what about housing? what about stocks? do all prices go down? >> look right now i think the worry about a rate increase is overstated to this extent. how much of a rate increase? i think the first rate increase is going tor more symbolic than a reflection of how it impacts investments. >> that is certainly what the fed has tried to telegraph too. >> impactexactly. >> some have come in and said if the fed waits too long and waits until it sees the whites of inflation's eyes or whatever happens with that situation, they could be in a tougher position. because inflation could be here faster and they could be forced to raise more rapidly than they want to. >> i think janet has said clearly it's going to happen this year. and it's going to happen in a series of measured increments. not designed to create panic, but designed if you will to what brian was sayin

but if you look at where jackson came from, if you look at when he arrived in nashville and what he did, to me it seems fairly clear, yes, if that was the west but jackson is not a westerner per se. he has western characteristics and considered himself a westerner. but he is also a southerner and his life exudes that identity. i'm going to walk you through some of the characteristics of jackson's southern identity. in case you don't know, andrew jackson was born in the waxhaw's region of the north carolina -south carolina border. this is an area where if you are familiar where charlotte, north carolina is, it is about 70 miles-southeast of charlotte. there is some dispute whether jackson was born in north carolina or south carolina because his family and his relatives lived all along the border back-and-forth. jackson believed he was born in south carolina and that is what he always said. i have tended to follow him in that. regardless, this area was the backcountry. this was frontier area. it wasn't area that had been occupied by native americans. white southerners had moved from the e

i know in your previous discussion you made to mention about -- selection. when we look at your portfolio we believe your staff is implementing best practices in their manager selection. i think you all done a good job putting together world-class purse portfolio that you should be proud of. >> all right. is that it? >> that is it to ship any of the questions q >> yes i have a question. will try to work off -- on looking at your page 5. the issue has to do with the dry powder overhanging. with the rapid pace to invest. with a rapid pace that would increase allocation unit this more money coming back. let alone consultants and other people around the world particularly in the united states or recommend more people go into this area to include in the retail level.'s more cash coming in probably two reasons which i think you are identifying. our return is based on us having that full allocation earning well we use 11% were not able to do that back is that a signal about slowdown or another reallocation about acid class. i am looking at this overhang that yes i have been par

secondarily when you look at these financials, a name like voya. it to not only hit 52-week highs but maybe even explode through those highs and establish some highs closer towards $50 a share. keep an eye on these financials. >> i like the overall level of the market between now and the end of the day. you had a pretty good gain going. plus-90 or so. took a little wind out of the sails. is it important to get back to the close? >> it is just as important if we can close black today, judge. even if it is just ten points instead of 90, that's a positive. >> thanks for watching as well. see you tomorrow. power begins now. >>> halftime's over. the second half of your trading day begins now. >> move out of the way there! move out of the way because we're here! welcome, everybody. it's "power lunch" along with mandy drury, i'm tyler mathisen. making it move here! the dire forecast we've heard on growth. expect new numbers from the man, leisman, in 30 seconds. >> he really is the man. isn't he? >>> housing insiders say when interest rates rise as they ha

if you look back over 10 years, you would see pretty strong growth in diamond prices.u look at the medium qualities which most americans are buying on a regular basis for things like bridal or anniversaries, then you will find that the price growth over that period has been pretty good. at the end of last year was a little bit soft on pricing but there was a strong increase in the first part of the and the second part was soft. now we see that prices for those goods have plateaued. interestingly, i just found at the big auctions in the far east in geneva, this past week, they have really large and rare diamonds and you see record prices being paid. people are prepared to pay for rarity. stephanie: isn't that the cost that .01% of wealthy people are becoming exponentially richer right now? stephan: at the very top of the market what people are looking for is to invest more in things which are casual offsets and have it inherit rarity. whether it is the art market as we saw a couple weeks ago and new york or for these really rare and exceptional diamonds people know the

look for good odds. for me that's usually 2-1. you want a quick and dirty way to figure that out? look at the delta of that option that you're selling. if it's below 30, probably a good chance it is not going to be in the money. the other thing is, avoid obvious catalysts. avoid obvious catalysts. the thing here is if there's something coming up that's likely to move the stock a whole lot, make sure you are being rewarded for it before you do a trade like this. netflix, just look up to july 10th. those are weekly options. sell the $6.90 calls for $8.90. that's when you'll call get out of your threnetflix stock. you'd be selling the stock $40 higher than where it currently is. that gives you a little bit of insulation to the downside because we're going to collect that premium. you still going to see losses of course if the stock goes down a whole lot further. but bear in mind that would happen anyway because you already own the stock. that's a great strategy. >> if the stock spiked $30 and it is at your strike, you can always cover that call again. i think a lot of people don't lik

if you look at the last six months, it's very choppy. ring set record highs that time, but this is a market that is getting very long in the tooth. if you back up and look at the market over the last three years, it has been a raging bull market. we think this is a pause to refresh. we think there is some of side but -- some upside, but we will have to see how the market reacts to it. it's not a recession. if the fed tightens, that's because they are data dependent and that means there will be good news. alix: it seems like there are the momentum names really leading. there is no value. we are hitting record highs, so nothing is cheap. -- we areding it fully invested but we are finding it very hard to find value. everything is expensive. p/e ratios are at reasonable levels, but they are at the higher end of the band. as long as we continue to see merger monday, that's a good thing. the key is corporate earnings. we will get the next wave of corporate earnings in july and if you looked at last quarter, they were not all good news. there wa

i look at that more to say, you have got to look at moving averages of these job gains. is the economy onto that solid, mediocre, that would allow corporate earnings -- joe: where do you see the u.s. economy going? carl always comes on and says that we are disappointed. not a strong rebound like last year. michael: i think we are in a steady grind mode. one factor i like to consider is that there is so much interest rate sensitivity embedded into the economy that any increase that you get would re-smother any acceleration. and 2% big inflation round numbers on the 10 year treasury. that big round number is starting to be a multi-your framework. is a little bit of a different kind of jobs report coming out on friday. they wants in play, to keep 2015 in play. june is out of the picture at this point. the thresholds that have to be met are a little bit different. we are watching the unemployment rate and the payroll gain. we have three or four more payroll reports. joe: we can ignore this one? carl: we do not ignore it, what we look at it through a different lens. thanks it

talk about a firewall, but do you think there is something to look at? >> i think the equity fixed income story is more interesting when it comes to greece. you have the same trend in periphery. you had massive outperformance. i think that is the story of valuation. the best way to hedge your greek risk is to sell lower rated debt versus peripheral equity. >> are they just around the corner? >> i would focus on equity. you have growth picking up. even at current yield there is not much value in this peripheral debt. jonathan: you are both going to stay with us. coming up next we will head to mumbai. he has been called the father of british capital. we will be speaking to the lead investor. and what does soil have to do with the euro? we will show you the growing tide of the two. join us after the break. ♪ jonathan: good morning, and welcome back. i am jonathan ferro in the city of london. hsbc is preparing to cut thousands of jobs that may affect 10 to 20,000 people. the bank could enough the plan next week. saudi arabia's oil minister says the market sha

and you are looking at a 3-d model of the bloomberg west set. that is the part i see. e is the part you see. we will talk about the technology that made this possible next. ♪ cory: time for the daily bike --byte one number that means a lot. 120 million, the number of faith users in africa -- the number of facebook users in africa. facebook is hoping to capture more of an african audience by opening an office in johannesburg. the team will be led by the current chair of the south africa office. facebook is already looking to win over users with internet.org which gives free access. they will have a version of the social network that we use limited data. from boutiques to a buddhist temple in myanmar, go inside any building anywhere. many companies are already using the technology to offer property buyers 3-d home tours. matt bell joins me right now. and our guest host is still with us. i have a demo of this, matt. will the technology change a lot from where you are now? matt: we have plans for expansion. what we've already created is the equivalent of photography for 3-d

taking a hard look at it as well art? do youdisagree with hugh? >> i've never disagreed with hugh and i'm not going to start today. one thing is that there is a credible opportunity for us to look at apple as a value stock here. when you think about the fact it's traded below the multiple of the s&p 500 when you back out cash and give it a fair market multiple backing out cash gets it to his $172 target price. i would argue it probably deserves a growth company multiple, something north of that. clearly that's one of the things. the other thing is that they continue to drive demand. you think about a company like apple, they are looking at inventings things we didn't even know we needed two months ago, then we can't live without once they introduce them. >> that's so true. >> that's not happening today. today is an iterative process, incremental improvements and we probably don't have that oh there's one more thing moment today. but that's all right. this company has a lot of runway ahead of it and i think hugh is absolutely rig

. >> when you look at valuations, are you looking at where interest rates are? including interest rates. valuations are allowed to be a little bit higher when you're in this inflation or interest rate safe zone of 1% to 4%. if you're looking at the shiller pe ratio, taking it from an average of 17, you're allowed to be up around 21, 22, we're at 28. that's the highest since two other peaks of 2000, 1920s, there's plenty of other valuation indicators. if you look at the median stock in the u.s. the average stock, price of sales, price to earnings, price to cash flow, highest it's ever been. >> it is in the 95th purcell. goldman sachs has put out notes of late saying similar things. but i don't know you know that that the consensus certainly is looking at a paltry 2% a year over the next decade. >> it doesn't mean that it has to crash. it doesn't mean that we're going to have a 50%, 80% bear market. things could go sideways for a while. >> when you have an s&p that's 20% technology and these other periods of time that we're comparing c.a.p.e. ratio to, maybe tech

you are looking at can you spot the difference? no? you can't see that? alright, let's take a look. on the right just used 1% less fuel than the one on the left. now, to an airline, a 1% difference could save enough fuel to power hundreds of flights around the world. hey, look at that. pyramids. so you see, two things that are exactly the same have never been more different. ge software. get connected. get insights. get optimized. >> double the trouble. what unusual activity has you guys at the telestrator today? >> start off with a financial. aig. one of the stocks are part of the bailout. take a look at year to date. bottom here basically around 49. today trading towards 61. not surprising, they came in and were buying the 61 calls. they have run them all the way up to about 30 sends so far here today. a nice big purchase and it goes higher. they are spinning off the airplane and leasing business. they own 51% of aer and that was unusual activity about a month ago. >>> you in? >> i'm in the calls here. >> for how long? >> probably one week. these are june calls. i am not going to

i think you want to look out to december. you need it company to actually have some time to either figure out what the new manager-s what the new strategy is or get taken over. there's a strategy that makes sense, risk reversal. i was looking out to december when the stock was 36. you can sell the december 32 put for $2.50 and use those proceeds to buy the december 42 call for $2.50. and here's the thing. if you have that stock on december expiration between 32 and 42, no harm no foul. you do not have any losses. mark to market you will have losses as the stock moves closer pop to the put strike and gains as the stock moves koeser to the call strike. but really what you're trying to do here is get leverage to the up side, not buy the stock right where it is right now because you know it's going to be noisy over the next few months and you really wanted to find a very wide range and get leverage to the up side. >> you're not alone, mike, and that is open interest for calls has actually been rising faster than open interest for