Deadline of missed another deadline. Its too late to conclude. Thats the last opportunity to qualify for a 30 day review in congress. An agreement after today would be subject to two months of scrutiny. The talks cant be openended. We are here because we believe we are making Real Progress toward a comprehensive deal. As i have said many times, as i have discussed the president last night we are not going to sit at the negotiating table forever. Stephanie the latest disagreement is on the arms embargo. The u. S. As opposed to a wholesale of things. Stephanie negotiations cant be that bad. They are in a luxury hotel. Erik stocks have bounce back from that selloff. They saved the biggest rally since 2008. The composite rose 4 . It was up almost 6 yesterday. The Chinese Government has intervened with a series of unprecedented measures. Staterun companies were ordered to ride stocks. It is hard to reach the heights of minions which opens today. This is one of the biggest Marketing Campaigns ever. They are partnering with me else and General Mills. They have delivered 600 million in ads and promotions. Kids watch tv. Those are your headlines. Erik these are the five things you to know this morning. The first thing is greece. Creditors, they are making their first assessment of that proposal. Hans nichols is following all of the details. This was characterized as credible. What are you hearing from germany . Hans we havent heard anything from germany it. We have heard from slovakia. They are a harder sell than germany or austria. He remained skeptical. He says there may be an opportunity for progress. He had a nice quote on twitter. He is unconvinced how a caterpillar can turn into a butterfly so quickly. There may be problems in latvia as well. There does need to be some affirmative sign from these outlier countries, let alone germany that they believe he means what he says. He just urges voters and his populist to reject this same proposal. Now he has embraced it. People are trying to figure out that you turn. They are confused. The french of been habitually optimistic on this. I would take the optimism and discounted a little bit. They have always been the most optimistic people in the room. Erik we understand the proposals are essentially the same to what the europeans offered greece a couple of weeks ago. If greece is willing to go that far and if the ecb and imf give a nod of approval hans one of my colleagues spoke to one person familiar with the matter in the person says the German Government is going to demand further concessions beyond that june 26 offer. The germans want more. They want more concessions. They need to have more revenues to make up for the fact that youve got an economy in free fall. The germans are going to continue to drive a hard bargain. Merkel still has to take this. Erik weve got much more coming up on greece this morning. The parliament is considering the offer. That is hans nichols in berlin. Stephanie i would have chosen slightly goofy hair. I am going to go with number two. Oil prices may fall further before the market tightens next year. The International Energy agency says the world is massively oversupplied. Next year, it will grind to a halt. We were just talking. He thinks prices are going to 45 a barrel. We would argue selling oil right now. It still elevated above 60 a barrel. We have these higher prices these markets have too much cash flow. Stephanie there you go. That is a bold call. Erik i admire his consistency. Oil rallied in may and he stuck to his guns. He is proving to be right for the time being. Julie hyman has number three. Is my hair poof he today . Julie slightly. I dont have my glasses on today. As i saw you early this morning i couldnt see. Its higher. Stephanie we can all agree on higher. Julie equities in china rallied again today. They rallied 4. 5 adding to yesterdays surge of 6 . Trading is limited to 53 of the market. Investments oversee the largest china funds is joining goldman sachs. We talked yesterday saying that chinese stocks they are trading. What are you going to buy is the question . Stephanie what you going to buy . Its north of 50. It was interesting. Those other days we talked about stocks being limited. There was suspension in trading. Erik its not really a free market. Stephanie even if you are a would be participant, when you see this act giving an intervention, you dont want to play. I have to give you number four. China again. They are having an impact on apple. Shares of apple been falling for five straight days. They wiped out 38 billion in market value. Senate is pointing to those losses in chinese equity that good leave consumers with less money to buy gadgets. This puts his shares to the brink of a 10 correction. Im not that worried about apple. If nothing else, carl icahn credit pick up that slack. Erik its friday. For number five on a friday, how about some sports. Matches at wimbledon are underway for the legendary tennis tournament. Mark barton is outside. Remind us who is in the tournament. Mark its mens semifinals day. My lips are salivating. Roger federer the 17 time grand slam champion. He has won wimbledon seven times. Andy murray won wimbledon in 2013. He ended 77 years of hurt. It has taken that long for a brent to win the title. The last time they played was 2012 when federer beat him. Murray cried afterwards. The other semi final, Novak Djokovic one wimbledon last year. He takes on the frenchman. He is seated 21 of the world. He got to the semis in 2007. You would expect Novak Djokovic to win that. There is an american to cheer for. Serena williams, the 20 time grand slam champion has one wimbledon five times. She takes on the woman from spain. If she wins tomorrow, she will win the serena slam winning all four tournaments at once. This is 24 hours of perfect tennis. Stephanie i dont know who is more excited, you or these tennis champions. Talk to us reflate. We know who is playing. Who makes the most dough . Who is the big dog out there . Roger federer according to forbes made 56 million. Where is andy murray . Hes languishing at number seven. He only goes for endorsements if he believes in it. What is interesting is he likes to invest in u. S. Property. He bought a hotel. That is a luxury venue. He invests in crowdfunding. He has put money into startups. He has invested in 40 startups. He does the dude chill gents. He loves tech. He is a sports investor. He likes to do it himself. He is on court today against fedor. You will never shut me up. Stephanie are there brands out there that want to work with andy murray . Roger federer has been on Credit Suisse billboards for years. Hes got rolex. I spoke with a branding expert earlier. Roger is the king. He hasnt won a grand slam in three years. He still top of the earnings. Guess who is third . Maria sharapova is endorsed more than andy murray. She is endorsed more than serena williams. Stephanie were going to move on. We are going to get back inside. Erik we will be coming back after a short break talking about the greek Prime Minister. Has he blinked . We will try to get you a perspective. Stephanie it is friday. The Boston Federal Reserve Bank president will join market day at 2 30 p. M. Eastern. They are reacting positively after the greek Prime Minister agreed to most of the demands made by creditors and exchange for bailout funds. European stocks are up 2 . Equity 500 is up 1 . For more on the greek proposal we have a fellow with the brookings institute. Thomas what you make of the latest . Thomas its a positive development. He blinked. He hoped he would be in a stronger position to be able to negotiate and get some additional concessions. It became clear to him that not only would he not get additional concessions, he would get a tougher deal then was offered before because the grexit was really on the table. There was no more time for brinkmanship or games plane. There was a poll that showed 85 of those who voted no last weekend did so to get a stronger negotiating position. They did not want to go back to drachma. There was the proposal yesterday that accepted many from last week. Erik our International Correspondent hans nichols raised this possibility given the erosion of trust between the greeks and the europeans, in particular the germans. The pressure the Greek Economy has been under for the past couple of weeks with capital controls in place, the germans might want more than what was put on the table previously. Michael i think thats right. The situation has deteriorated. The bill they photos on last week is no longer an offer. So many germans, that is no longer sufficient. They simply dont trust them to deliver on what they are saying. The third thing is it has to be on the table that the economy is going to go into total collapse over the next couple of years. I would say that there is one force on germany. For the first time, greece is not isolated. Greece has friends who want to see the deal go through, france in particular. Germany for the first time in this feels on the receiving and of some external. Erik debt relief is a potentially confusing term. Under what circumstances might they extend debt relief to greece . Is that possible . It seems like Angela Merkel ruled out haircut altogether. Michael she left open the other possibility of extensions and other ways to ease the burden on greece. I think most observers believed that the Greek Economy cannot recover without some easing of the debt burden. Other countries in europe have said that. The real issue is germany they have had a theological resistance to that. The dynamic inside the German Government between merkel, those are things to watch over the weekend that will this could fall apart. This does not mean we wont get an accident going into the weekend. I think chances of a deal are 65 . If you are asking over a two or three day time, the fact that greece has linked and put this on the table is a positive. It has to be better than 5050. Stephanie weve got to leave it there. Thank you for joining us. We will be back with more Market Makers. Stick with us. This is a great place to work. Not because they have yoga meetings and a juice bar. Because theyre 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 thats up to five times faster than dsl from the phone company. Call 8005016000 to switch today. Perks are nice. But the best thing you can give your business is comcast business. Comcast business. Built for business. Erik janet yellen will be speaking in cleveland. You can watch her remarks on bloomberg television. Also happening, the Rocky Mountains summit in idaho. That continues. Michael mckee is there. Youve been talking with central bankers. Talk to us about what youve heard. Michael of course, greece is a big topic. Everybody wants to know what happens next. To the Business Leaders here the busiest biggest topic is what is the fed going to do. Thats going to affect their business more than anything else. He thinks they are going to raise Interest Rates this year. The fundamentals are good. The labor markets are strong. The Balance Sheets are much better than they were. I think there are a lot of fundamentals that are good for the economy. Things will happen and things wont be smooth every month or quarter. I think there is a lot of reason to be positive about steady growth in the u. S. Economy. Michael its certainly possible the fed will move in september. He is not making a prediction. He is the former head of the he is her bit surveying what is going on in the rest of the world. A weakness in europe could be for the u. S. Economy. Given the weakness in the rest of the economy its harder for the u. S. To move. We had to rate hikes. This is like being stat. The market is pushed out. We continue to see news in the market. That is less likely to be happening soon. Michael that is what you get when you get a couple of central bankers together. You get some different opinions. Well be talking with the boston fed president at 2 45 p. M. Eastern. Erik do any of those central bankers have views on greece or china . Michael on greece, both of them think things are going to work out in the end. Greece was going to blink. Theyd wont leave the eurozone. The consequences would be bad. They do a lot of business in china. He is optimistic in the long run. A lot of this comes about because the chinese are trying to move through a more consumer ended oriented market. That is something they need to do. Erik it looks like youre having a good time and some fine weather in idaho. He is at the Rocky Mountain economic summit be sure to stay with numbered television and radio. Stephanie france is praising the new greek puzzle. Germany says it will wait until after the creditors make their judgments. The great Prime Minister has given into most of the creditors demands. He has offered a plan of spending cuts and tax acts. He has asked for 59 billion in a lot. The Greek Parliament is taking up the plan. Voters rejected a similar proposal. The fbi says it disrupted a number of terrorist lots tied to the fourth of july holiday. In the past four weeks, agents arrested at least 10 people suspected of having ties to isis. He warned that terrorists are communicating over encrypted applications that cannot be deciphered. Erik the Confederate Flag will longer fly in South Carolina. It has been there for more than a halfcentury. Legislature voted to take it down in the wake of the church shooting. The governor signed the bill yesterday afternoon. I saw passions get high. I sought commitment never ending. What we saw was another action. That action is the Confederate Flag is coming off the grounds of the South Carolina statehouse. Erik erik the flag will be taken down at 10 00 eastern time and will eventually be housed in a shrine. The Hollywood Chamber of commerce says it has never remove the star from the walk of fame and is not starting with bill cosby. Black civil rights leaders have called for it to be removed. Court documents show cosby admitted he obtained quaaludes so he could give them to a woman he wanted to have sex with. Those are your top headlines for the moment. I know we are not supposed to, on this, but you are bill cosby in the heyday of your career and the quaaludes . I dont get it. When we return, dumping the donald. That is something we are allowed to talk about. The list of businesses distancing themselves from donald trump is getting longer. We will see what is left of the trunk brand trump brand. It is friday. The sweetest haircut. Lets walk you through this. Here he is, and on jupiter who graduated from Lowell High School in massachusetts he he graduated from Lowell High School in massachusetts. Erik is that a scarf or short . Stephanie the whole thing is amazing. I see your weekend gear. Dont say you dont have Something Like that. You can tweet us your guesses. That guy is so amazing. Not only do i need you to tell us who it is, we need a story about him. Somebody who went to Lowell High School, please call and tell me was he a singer . Clearly, this dude was in a band. You are watching bloomberg. Stephanie when when you are talking about politics, you are going to have conversations about race and things like abortion and Sexual Orientation and immigration and the huge topics. Forget what you were saying about them. Brands dont like to be associate with the opinions of other people with polarizing topics. Its no surprise that this has happened. He has said some pretty combative things. Stephanie what about the brand of the Republican Party . They are struggling to connect with a younger generation, a more central voter when you have someone like donald trump making these kinds of statements . If you are the gop strategy team, what do you do . Phil you wish that he would stop. They are working behind the scenes. Stephanie you wish that he would stop. Phil this is the problem they are facing. They worked to try to get him to tone it down. They had of rival phone call with him. He ended up talking about the phone call publicly and turn it into another pr push for himself. The problem they face is twofold. What he is saying taps into a real vein in the publican party. It 63 of republicans said that immigrants are a burden based on the country. Stephanie there is a vein within the Republican Party that says yes, is it big enough to win him and election . Phil no. Thats where the republicans have the biggest problem. They recognize that they had a major problem when it came to hispanic voters. Everything donald trump is saying right now is setting them back. The bigger issue is everything he says is immediately taken to the other 15 candidates and they are asked to comment. Everybody is dealing with his comments on a daily basis. That is driving the news coverage. That is driving the polling. That is making democrats sit back and smiled. Erik if you were building a campaign, wouldnt you be doubling down on everything that trump is and even exaggerated . Hes been remarkably consistent. As a candidate and as a brand, i dont see much separation of. To be a successful candidate he has to find middle ground. It that is a huge question. It like a fireball, he has a lot of things to do. Erik he may not be president , but he may exit the nomination race more famous and popular than he has ever been before. Stephanie he represents a luxury highend brand. He is on some of the corniest tv in the last 15 years. This is one of his ties. He has a big licensing business. None of it its not associated with the best brands in the world in terms of luxury goods. Moving forward, this is going to stick to him for a long time. He says everyone will back the back and i doubt that. If he doubles down and is controversial and speaks what he thinks. Its going to hurt his licensing business moving the word. I dont think he sees that. Stephanie a this is a fascinating conversation. Erik Phil Mattingly is with us from d. C. Have a great weekend. Ever want to take your trades and throw them out the window . The origins of the tickertape parade and those streaming strips of white paper. We will go back in time with none other than tom keene. Erik coming up, fed chair janet yellen. We will have in life for you starting at 12 30 p. M. Eastern time this afternoon. Stephanie futures are pointing to another strong open for u. S. Stocks. I want to ring in julie hyman for look at what stocks are on the move ahead of the open. Julie thats what i think about when getting dressed in the morning. How can i motivate the markets today . Lets start with netflix. Morgan stanley is raising estimates for the company. They are expecting . 35. It is . 31 if you look at the average we surveyed. This is driven by higher pricing, particularly in the United States. They are raising the price target to 750. The ideal scenario would be 940. We havent had a lot of pieinthesky price targets for netflix as of late. It is nearly 690 right now. Weve got the second Oilfield Service call. This is coming from oppenheimer. These stocks are getting some positive commentary. Jeffries is raising its recommendations. The oppenheimer analysts should take care of recent weaknesses. They could benefit from rising commodities prices. You can actually see a lot of illicit sentiments. Take advantage of weakness. Yesterday was morgan stanley. These stocks have not performed well to say the least. If you look at the Philadelphia Oil service index, there have been the clock. We have had various analysts come in during this up and down arc. They may have been a little early. Also if you look at my bloomberg terminal, you can see the rig cap. That is the white line. We have had analysts come in here. That would be good news. You can go in in re frack. That requires different materials. It would benefit some of these Oilfield Services. Erik the parade kicks off shortly. The celebration got us thinking when did these tickertape parades start . We have the specifics of the event and look who has just darkened the door. Tom keene it, a man who has actually seen tickertape. Tom i fondest memories are my grandfather dragging me down. I never saw anyone spit in this pertains. Iran were sitting there with the old geezer with the tickertape going through and my grandfather looking. The tickertape would go through your hands. I remember this ages ago talking to mark haynes. We talked about how that was something tangible and visceral. You knew where the street was then. Today with the terminal and all the toys, its not as visceral today as it was when everybody had this thing and the noise going through your hands. Stephanie is giving us the history. How did this end up getting thrown out windows in the center of new york city . It started in 1986 when they camera my and the statue of liberty. Its been around for a long time. That was the first and the parade route has remained the same. It was throw whatever you have at your window. Its paper. Erik it sat in coils on the floor . Tom they were a mess. There was food and cigars. Stephanie there may not be dancing girls, lets be honest a Trading Floor is not hermetically sealed. Tom amelia ehrhardt. She had to in her honor. Astronauts of been honored. Its interesting to look at the trajectory of this. There used to be a lot of these. There have been 130 of these. Stephanie where to the tickertape from . City hall has been cagey about that. There will be some confetti. They are not saying what you can or cannot throw. There is still a lot of paper in these trade rooms. Tom fiona rule, a tickertape parade. Stephanie there you go. I wish i knew her. Tom cole and there were a lot more back then. We associate them with sports teams now. They used to be for any visiting dignitaries. Erik is there any controversy here . Is the cost controversial . Is the mess controversy all . There are 36 million tons of paper. Tom im fascinated to see who will show up. I wonder. I wonder. How may people will show up . Its going to cost 2 million. There are private sponsorships. are you going downtown for this . Stephanie i am moving today. Tom i will warn the ladies of the upper east side. Stephanie what is that book that just came out . I needed to get myself into that groove. Downtown just wasnt enough. I need to take a deep dive. Too much tickertape. Are you going . Tom i am not going. Stephanie i know are going to thank them, i want your reactions. These are some of those compelling images out there today. It doesnt we were just talking about his wife. David beckham stole the show at the mens doubles semifinals yesterday. He caught a rope all like it was nothing. Then he threw it back onto the court casually. Can he get anything wrong . We knew he could kick a ball. Erik he played cricket one point in his career. Stephanie we were talking about the marketability of women soccer and i talked about the marketability of david beckham. Erik weve been playing the yearbook game. This gentleman is an entrepreneur who made his name in sports and graduated in massachusetts. That is all we are told. Do you have a gas . I have no idea. Stefan stephanie he was the alternate in queen. Tom this is called early spinal tap. Erik were not sure if thats a sport or or and ascot. Stephanie youve got to tweet us your answers. They have to head down to the parade. Are going to let them go. We will be back after the break. Youre watching Market Makers on bloomberg. This is Market Makers with Erik Schatzker and stephanie ruhle. Erik schatzker you are watching Market Makers on bloomberg television. Stephanie i often say that commercial breaks are my favorite time. Fridays also. Fridays are very special here. Guess what happens in 30 minutes . Were not just going to talk about sports and movies and sports owners with unbelievable hair. Were going to talk about stocks. The opening bell is in 30 minutes. Before that, how about top stories . The Prime Minister of greece has a given into most of the demands from creditors. That may make it tough to sell his plan on athens. There is a package of spending cuts and tax hikes. He wants a 59 billion bailout. He also wants longterm debt to be made more manageable. The french president praised the proposal. The greeks of showing determination to want to stay in the eurozone. The program they are presenting is serious and credible. They are going to submit it to parliament which shows power, commitment and her age. Stephanie greek lawmakers may not be quite so enthusiastic. They are debating the measure today. These the same proposals greek voters rejected last week. Less than one week ago, greek voters said no. Erik schatzker everything is not as it seems. That has become abundantly clear to me. There is stuff happening. There are undercurrents we cant see. Stephanie the greeks dont pay taxes. Should they be worried about tax heights . Erik schatzker tax evasion is an art. Stephanie janet yellen will speak today. Erik schatzker the Confederate Flag will be taken down. The Obama Administration says hackers stole so screwed numbers and other data from 22 million people. The thieves broke into the office of perp personal management. The u. S. Has blamed the Chinese Government. Universals minions opens in north america today. This is what the biggest Marketing Campaigns ever. Mcdonalds and General Mills are taking part. This may be the third animated movie to make 1 million overseas. Stephanie processed food and animated films go handinhand. That is gold if your markets children. Im not going to see the movie because i dont go to the movies that often. I like them. Weve got to move on. Great proposals been submitted. France calls the lannett credible in serious. This is what hans nichols has to say. He is joining us from berlin. Eric and i were just arguing about it. We were debating. Erik schatzker we never argue. Ever. Hans you quarrel. Stephanie when we disagree almost always i end up siding with him. Usually we do agree. The deadline is sunday. Many of the things in this proposal are the exact things that the great people voted last sunday they did not want. Something like 60 40 this thing goes through. What you think . Hans i think we need to win here from the germans. That has been my view all along. Its the same proposal, one think it shifted and thats the assumptions. If the germans want the old numbers to match up to the new reality, they are going to have to be harsher with cuts. The germans are going to ask for more from the greeks. We could have a bit of a breakdown. All of the euro ministers meet on saturday. The leaders get together. I am not convinced. We just heard from jacqueline. Until we hear from the germans im not sure. Erik schatzker lets remind everybody that you know these characters having covered the white house. To what degree are the europeans and the greeks listening . The americans have power . Do they have any influence . Hans very little. You could talk to white house officials and they were frustrated. That was mostly with the germans. They were doing it too little too late. The bazooka would arrive but not be enough. The u. S. Was not able to exert any influence. I am suspect whether anybody has leverage through the imf. He needed debt restructuring. You can do it without a haircut. Thats true as far as it goes. The question remains what are the prior actions greece needs to commit to that will convince them to unlock the money. Were not sure if hes prepared to do that. Stephanie how much of this is smoke and mirrors . Tax hikes are in this proposal. Tax evasion is an art form in greece. Are the greeks going to be ok with a tax hike. Hans its us its a art in the states as well. They want to see actions in parliament. They want to see methods. Erik schatzker i would clarify. I am with you in spirit. In america, tax avoidance is the art form. One is legal, one is illegal. Hans fair point. I would ask him much you deducted in your mortgage. Stephanie we did not have candidate in this makes you we did not have time for canada. Hans nichols is our International Correspondence joining us from brussels. We will be back in a few. Erik schatzker its time to turn your attention back to europe. Greece has submitted its bailout proposal. France says its serious and credible. Germany has withheld judgment. We go to london. He is the former ec president. You put yourself back in the shoes you once occupied. He is one of the three people who decides whether the proposal is credible. The ecb in the imf also need to chime in. Do you think he will throw his sport support behind it . He has been much more favorable to the greeks than the germans have been. I think greece is excepted the demands. The big difference is the referendum, this was for a threeyear deal. Secondly, the discussion has gone mainstream. The imf and the french government and the European Council president are saying that relief is necessary. At least. Erik schatzker people are trying to figure out why this has played out the way that it did. Why did the greeks take the proposal to a referendum to get a no vote only to go back with the same proposal . Did they want to buy time to get more people on side with this idea that debt restructuring was critical . You would have to ask the greek government. My sources in greece say at the time, there was a majority within the party for the bailout proposal. Politics for stem to do so. At the same time, i think the greeks expected they would have a better negotiating position. They are doubling down on that hardline position. Its either you accept our terms or its grexit. The greeks of believed that threat. Economically, the situation has deteriorated. That will give them a justification for the germans to demand more tax hikes and spending cuts. Politically Erik Schatzker you have seen the chart. As far as the lines are concerned, it doesnt feel like what the depression looked like. What is your sense . The extents of the suffering in greece is massive. It might not be immediately apparent. Certainly the suffering is very real. Whether its in terms of one in four unemployed and one into young people and hospitals running short of medicine. Malaria is making a return. They pay pensions. Whole families depend on a single pension. There hasnt been a starving you saw during the great depression. Erik schatzker we thank you very much. Stephanie talk about sending a message. Fords bold move before contract talks with autoworkers. Stay with us. You are watching Market Makers on bloomberg. Erik schatzker ford plans to move production of two cars from michigan to an undisclosed location outside the United States. The decision comes two weeks before contract talks begin with autoworkers. It seems aggressive. Aggressive why . We expect them to be relatively soft on the uaw. This move before the negotiation starts seems to be sending a message that there are issues they want to get accomplished. Erik schatzker is this a threat . They do have the right to change factory locations. They have to deal with the severance issues. It makes a lot of sense if this were to go to mexico. Its a lowercost environment and its one where you have much more flexibility in the workforce. You also have the ability to export into south america. Stephanie what are we expecting the reaction to be . Lets talk about what else goes into plants. Maybe the edge or the escape that leaves the discussion about tier two wages or tier one wages. Erik schatzker when ford be making this decision of gas prices were not where they are . Definitely not. When they brought the focus over from europe, that is part of the strategy of making sure that they had a fuelefficient lineup, particularly where it had suffered for years. Now we are with three dollar gas and americans would rather have see you these than sedans. Erik schatzker does this Say Something about the folly of the strategy . Does this Say Something about mark feels that we didnt know about before . He is taking a very tough look at the market. We would like to see more flexibility. There just isnt enough of that in the u. S. Industry. Erik where do you think this plan is going to end up . Mexico, given the lower costs. Erik schatzker are there other options . Possibly. That is bringing some of them in from europe. The focus is a top seller. Stephanie when you say hes taking a hard look, how difficult is it for someone to make a business decision and be nimble as far strategy goes given we are talking about the production of automobiles . They are talking about 2018. There is a lot of lead time to implement this. Erik schatzker will we ever see one of the big three make the decision that bmw has made in put a nonunionized plant in the United States . With right to work going to weigh away in michigan, that will be interesting. The big three have plants in right to work states. They remain 90 uaw represented. Stephanie ive got to get the yearbook game. He made a big name for himself in a sports. Who is this guy . Stephanie look at that beautiful skyline. We are it bloomberg headquarters. It is 9 26 a. M. We are four minutes away from the market opening. These are the three things you need to look at. Tracy joins us. Kick us off. Tracy number one has got to be volatility or the lack of it. We have all of this drama in markets. We had china and greece and the outage. The fix is supposed to be the gauge, it never broke 20. That is so interesting. Erik schatzker commodities there is the possibility of a fed hike, how is it possible it could be so contained . It surpassed 30 four day. When you look at greece, everybody is expecting a deal in the 11th hour. Unlike 2011 when there was a problem with the banks owning the great debt the problem has been institutionalized. Its now the ecbs problem. If you look at the proposal and trying to write time, what you have now is the introduction of the imf, specifically you see the treasury secretary stop worrying about putting taylor swift on the 10 bill. This is a problem. This is a problem that comes from the political perspective. The imf is now willing to jump into this. That has a very political element to the sentiment. Something will get done. The economic story is completely different. When you read the proposal that the greek government put forth you can stop at the second paragraph. The premise is that gdp growth is going to be 3. 5 for the next three years. Impossible. Erik schatzker how do you justify it . What you have to look at is the template for whats happening in ukraine, where the imf has played a significant role. You are looking at a 40 haircut to ukraine debt. Its not a quintons in my opinion that the same day that the Defense Department opens its Risk Assessment naming russia as the number one nation threat to the United States is when the imf its a tool of the United States, the Treasury Department gets involved and this has a broader connotations. The economics will drive the conversation. Stephanie speaking of coincidences i didnt even know these were around anymore. The teletubbies at the nasdaq. I love me some yoga have a gala some yo gabba gabba. Chinese stocks had a massive rebound. Stopping the stock market rout extreme would be a massive understatement. They banned chinese inside some Corporate Executives from selling shares for six months. The Financial Times reports that students graduating from one of chinas most elite universities have to stand up on stage. I dont think i can say this without laughing. I have to stand on stage and say they had to loudly revive the a shares. Chinese students have been instructed at an elite university. You could make the market that the communist party is out of Economic Growth recently. A lot of that is through cheap funding and they have to do everything including making shareprice slogans. It is beyond comprehension. You could basically play the stock basically play the chinese stock market. We have had a correction. What led to the 150 rise, the central bank of china having raised them to years ago. They reduced margin requirements. The transmission mechanism doesnt necessarily have to go into the underlying economy and could go straight into financial assets. We have the replacement of f o mo which is the fear of missing out in the chinese equity market. The powers of the stock market. The economics do rule. Lets take a look at the u. S. Where the Kansas City Fed president gave a speech yesterday about why the fed should not wait to hike Interest Rates. Their Critical Role of rising risk and allocating capital area may be the hike isnt on the table this year. Out in idaho at 2 30. Lets start to see markets priced appropriately. The fed is raising Interest Rates back in 2012. You have competing forces and dialogue within the federal governors with raise rates leaving them as is. What the Federal Reserve is terribly afraid of is we emerge from this unexciting recovery straight into the next downturn of recession. With no bullets left in the gun. The fed will start raising rates in september if nothing but to give a few bullets of ammunition. They have the ability to at least use Monetary Policy tools to their benefit. Stephanie how do you think markets will react to that . Have thegiven that in theory we have all the stuff going on here go going on . You wanted to look like some kind of honeybee. I will answer the questions. Thank you very much for the three things. Dont miss janet yellen, resulting the debate on Market Makers. Comments on bloomberg television. Julie is it bad i have to learn to say that an chinese. I will be back later in the program with an update. Take a look at u. S. Stocks. We having our best start to a session since july 17. It has been gaining steam since the bell rang. Optimism over greece as we had that set as we had that rally. Finally after two days of declines apple is rising after almost entering a correction, down 7. 5 from its highs. There has been a lot of concern and a lot of analysts commentary recent days about the apple watch. Bml lowering their watch estimates that are raising their phone estimates for the company. An interesting thing as we see the shares rebound today. Apple almost fell below its 200 day moving average. Apple shares closing less than 1 above that level. Something interesting thing Something Interesting to watch. There has been a lot of concern for Capacity Growth cutting its domestic seating capacity. It will be up 1 through 2 this year. The company is keeping steady. That is going to fall 6 to 8 . The companys cfo of berkeley resigning. Chad will stay through the companys fiscal quarter. Why the implications for zillow. Stephanie james, you are helping us on topics we think is the most important today. What is most important to you . James it has been the significant disconnect between what topdown strategists and economists are expecting versus what you are seeing from a bottoms up perspective. This is the biggest divide i have seen since late 1999. I would be surprised if we have seen a significant correction in the stock market at some point in the near term. What you are seeing bottomup is unlike any other business and Economic Cycle than anybody who is alive has experienced. We are in the second if you look at companies in terms of what they do it their cash flow spend, the vast majority of cash flow spend is going toward sherry purchases and paying out dividends. That is can chew beating 2. 5 percent of growth of earnings per share, which is telling you that companies are resorting to a high degree of engineering to people to maintain a net profit margin. That is what the incentive structure is. If you look at big pillars of economic u. S. Power if you go back they historically spend around . 65 of every dollar on new capacity additions. They are putting . 80 in teixeira repurchases and buybacks. Essentially that tells you there stock is basically a better place to invest in. Theyre basically buying back stock. You said in the incentive structure that basically leads toward ceos that have to maximize their own, but patient. We tried to find a that create shareholder wealth. You can grow the business or you can shrink the business. At this point in the Economic Cycle i have never seen so Many Companies that we are identifying as being in this contractor remote. Stephanie does that mean you Like Companies that are run by founders . James leave me believe me, i live and breathe every single dollar that goes out. Bureaucratic managers typically have a shortterm horizon, which if you look at history, they are incentivized to grow the business, not so much worry about wealth creation. Erik we are taking a quick break. We will be right back. Erik lets bring you some of our top headlines. Negotiators are moving past their selfimposed deadline to reach a nuclear deal with iran. Diplomats wont be in agreement today, which means they have two months instead of 30 days. The International Energy agency said there is a massive crude oversupply of oversight oversupply worldwide. Any moment now a halfcentury of controversial history will come to an end as the Confederate Flag is brought down on the grounds of the South Carolina state legislature. It has been there over a half century. Legislature voted to take it down following the murder of nine church members. Those are the top headlines for the moment. Stephanie in sun valley we have been bringing you the sum of bringing you some of the biggest names in business. We spoke with legendary iconic designer at a shop there. She began by topping what it by talking about what aspect of her business occupies most of her time. My major priority was to be a ceo. Now it really is about structuring and the product is most important. Marketing super important and social media as part of what we do all the time. The priorities of the new ceo what i love about him is he loves this i will be curious to watch him. How strong is the retail environment . Some time at some point it is available. The most important thing is to really create products and environments that people want. It is not easy to come up with all the time. At the end you dont buy numbers, you buy product. My role in the fashion world is to give the woman what they need in order to be the woman they want to be. I dont look at other brands. I just focus on that. Them a lot of retailers are trying to chase this new trend. A lot of growth and women wearing leggings. I think part of what we wanted to do was cover the wardrobe all the time. They come to us with dresses and accessories. Why not . How about technology . I am very close to technology. We will have something very interesting at christmas. You cant disconnect and say fashion and technology it is all about solution driven. If it makes your life easier or helps you then it is right. Would you like to get into wearable tech . You want separate and use these words. What are you most excited about right now . The most exciting thing is i found my ceo. I can now sleep that night and i look forward to watching the third moment of my career. Stephanie the iconic and ferocious diana i love she is one of the biggest names in the industry and in sun valley guess what it is time for. We have to reveal the winner of the yearbook game and who this man is. Former aol executive and now ceo of the monumental sports and entertainment company, which owns the washington sports teams and the verizon center. Writing and over bloomberg im assuming he cant tweet. Twitter is where we reward added values. Lisa plays every week. This is not the first time she has one. I love this game. He looks nothing like that today. That commitment back in 1973. Erik im sorry, you didnt have the added value, lisa wins. John ledger, incredible. Stephanie john would wear that shirt today. If he grew it out a little it has that. Im not going to see you monday because im going to be out. I promise i will be watching because we will have an extraordinary day. I got to take you to monday. Allstar guest roundtable. It has gone from this Community Center for startups. It is real estate playing out. They will be discussing the projects in brooklyns navy yard. For now, have a great weekend. Demos we are near the top of the hour and the end of the week. Even though china is helping diminishing stocks, u. S. Etf is tracking those two countries despite big spikes and volatilities. Here is bloombergs etf analyst. This is very timely. Grek is when we have been checking frequently. There was this disconnect. How can the etf trading when the underlying shares are not trading. These single country etfs live for these moments. They live for a regime change or stock market closing. Its almost like a futures contract in a way a lot of people do you do like to use it to speculate. The index is still using those old prices from two the etf will move away from what the index value is. I think people expect that at this point. About 17 away from its index. Those prices become fresh. The index value will catch up. Basically seeing a volume with about trouble average. If you want to know what people demo what about the a share etf. The Chinese Students being able to support the gay shares right now. Support the gay shares right now support the a shares. This thing is a portal for you to get that exposure. It is seeing a volume of 500 million or 600 million per day. That is how much walmart trades. This etf is seeing heavy volatility. It is about 100 1 used in the last 10 days. That is triple leveraged etf. They dont mess with single country etfs anyway. These things are being moved around all of the place. Thank you so much, we will be right back. You are watching market today on this friday. Prime minister tsipras offers more undercut 10 pension reform. It may be enough to satisfy european creditors in the full on rally mode. We will get reaction from former Philadelphia Fed president. Geeks around the world are counting down the days until the reese until the release of star wars. We will take you live to comic con in san diego, where disney is pulling out all of the stops. Erik we need to bring gary larson