To the American People and will make a televised address this afternoon. He previewed his proposal by posting a video on twitter. The new climate rules aim to reduce Greenhouse Gases causing for a reduction by one third in 15 years. Republicans are already fighting back. Mitch mcconnell is telling all 50 governors not to obey the rules. America accounts for about 1 7 of the worlds emissions with half of those from plants releasing carbon into the air. You can see the president s announcement live at 2 15 eastern time. A major insurer turns down one takeover bid and accept another. Breaking up a merger partnerre had with xor. Stephanie at t is planning to introduce a bundle of tv and Wireless Phone services, its first appeal to consumers since completing the acquisition of directv. The offer will be available nationwide a week from today and will include the high death tv High Definition tv and mobile service with unlimited texting and talking and 10 gigabytes of data for four lines. At t wants to convert its wireless customers into directv subscribers, and persuade directv subscribers into wireless. Shares of suzuki jumped today in tokyo on word that third point is taking a stake in the company. Third point is run by billionaire dan low. His Investment Firm dan loeb. The companies accused one another of breaching a previous cooperation agreement. A clear sign that a joe biden residential bid may be more than just talk. A close aide to his late son is joining a Political Action committee, urging the Vice President to run. The longtime democratic operative was a fundraiser for abiding in his 2008 white house run. Few democrats have come forward to charles challenge Hillary Clinton but Bernie Sanders does not think biden would bring anything new to the table. I have known joe biden for many years but i think the American People, the middle class as it is disappearing massive wealth inequality, a campaignfinance system that is corrupt and owned by billionaires, want to go beyond conventional establishment politics. Stephanie the death of joe bidens son prompted an outpouring of support for the president. Erik the men who helped orchestrate the leverage of Kohlberg Kravis roberts has dried died. Henry kohlberg formed an Investment Firm based not on earning commissions but on taking control of companies at crossroads. He later walked away from this firm following a bitter struggle with his partners. He died from cancer in his home in marthas vineyard. He was 90 degrees 90 years old. Stephanie he left the firm because he did not want to be part of hostile situations. He wanted to work with companies, to build them bigger and they could not seem to agree. He went on to lead a very private life. Erik he was not associated, apart from his name, ceased to be associated from the firm. Stephanie but he did read a long and successful life. Erik lets get you started with the five things you need to know. Greek equities are plunging after it reopened its Stock Exchange that had been closed for five weeks. Banks given the capital controls in place, declined. Benchmarks dropped as much as 19 in trading this morning. It may have been more but some stocks were limited down. Hans nichols is at the Exchange Monitoring the situation. What does it feel like on the ground . When i was in greece, the Stock Exchange was closed, people were limited to 60 euros a day withdrawal. It is beginning to open up but it is a rocky ride. Hans as you can see, it is a red ride. Not a single stock trading in positive territory. I think there is the sense in athens that this day had to happen, it had to be ugly, but it had to happen. It has been 25 days a Stock Exchange has been on hiatus. Most of them hit that 30 floor. A lot of the trading has been halted. We are seeing slight increases coming off session lows this morning. It is creeping up. We will see where the pricing is at the end of the day. We spoke with the ceo of the Athens Exchange and he said he did not expect a stock in positive territory until sometime tomorrow. They are trying to figure out the pricing because there are onerous restrictions on who can trade stocks and what they need to do. Erik some people may be wondering what is the point of reopening the exchange if stocks are just going to crater. Why is it important to find a clearing price, particularly for these banks . Hans you needed to take a first step. You do have capital controls in place and the reason you have the restrictions, they are mostly on greek retail buyers. It is so this Stock Exchange does not become a giant backdoor to circumvent capital controls. They think they have those regulations in place. The victim, the casualty is accurate pricing and market information. The real victim is time, because in a couple of days you will end up having an accurate pricing accounting, but that is what Market Participants are telling us. The real harm is being done to the market, but eventually this will work out. Erik hans nichols at the athens Stock Exchange. Stephanie i have to take you straight to number two, a just bc holdings hs holdings profits drop as Legal Expenses increase. They also agreed to sell its brazilian operations for about 1 billion more than expected. Shares are trading higher in london. Same story, over and over, Legal Expenses over shattering everything. We hear this on a constant basis from banks. When you sell your brazilian Business Unit four 1 billion more than you listed erik number three, julie hyman hasnt. Julie stocks and china fell to the lowest level in three weeks after declines in manufacturing added to our already signs of a deepening economic slowing. China is weighing on commodities globally because china is such a big consumer. We are seeing oil continued slide, falling to a sixyear low. Metals like copper are also down. It is intriguing here this morning, coming in this first trading session of august to find that the trends we had seen firmly in place in july are continuing, especially in the commodity market. Erik number four, puerto rico defaulting on one on the issue missing a 58 billion dollar payment d8 milliondollar payment 58 million payment that was due on saturday. It is among 635 million owed this month, raising the prospect that more of puerto ricos 72 billion dollars in debt or in jeopardy. Stephanie come 2 00 p. M. Today eastern, president obama will layout details of his climate plan to cut emissions by 26 by 2025. It is being called the most complex in agency history, and if it survives, legal challenges will transform how electricity is being produced in the united states. Lets bring in brian d its, who advises the president. Clearly waiting for the big drumroll. This is huge for you and your effort. The president is making a huge statement and this will be the biggest we have seen out of the white house in history. Given how complex this plant is how realistic is it that we will see anything get done . Brian i think it is very realistic. At its core, this is a simple approach. Right now, we placed no limits on the amount of Carbon Pollution that our power plants can emit into the air. What this will do is for the first time set those limits. It will set a limit for every state and every state will have an opportunity to put forward a plan to meet those targets in a way that works for the state, so it is very flexible and date forward. The upshot is that we will get a cleaner energy mix in the united states, we will reduce carbon emissions, and create longterm incentives for investment in Renewable Energy which are creating jobs at a faster rate than the rest of the economy. Erik brian, the response to this proposal that is getting the most attention is that of the republican party. What are the Power Producers themselves, the utilities, telling you how are they going to contact new Regulatory Environment, and houston . And how soon . Brian what we are hearing uniformly is this rule helps go with a grain of power how our Energy Production is going in the united states. We have seen over the last few years a shift toward cleaner burning Natural Gas Energy across the country. This rule will help put in place longterm incentives to try to encourage that kind of investment. Utilities are going to be looking at the details of the rule and working with other states to try to put together plans, but they will have the time and space to get those plans right. I think what you will see is the only heated political rhetoric, which we often hear whatever regulations like this come up you will see i think increasing understanding that this is a rule that goes with the grain of ready industry is headed. Erik are some of these utilities, particularly the ones that offer operate coalburning plants, are they going to wait for the legal challenges that inevitably will be brought by any number of different states or will they start adapting to the new Regulatory Environment because they cannot afford the risk that those legal challenges will be defeated . Brian what i can say is that this rule is on very solid legal foundation. The Clean Air Act revised epa with Clear Authority to set these limits on Carbon Pollution, and they have done so in a way that took into account in our miss an enormous amount of input from authorities and stakeholders. Rather than spending time and money on legal fights, what we will see now is plans to get to work. There is an enormous amount of flexibility, opportunities for states to enter into interstate trading markets. Approach is actually very familiar with over the course of the last second test several decades. Our hope is that people will get to work and see this is a workable plan. Stephanie i hope so too. Thank you for joining us. You can catch a bomb president obamas announcement at 2 00 p. M. Eastern on bloomberg market day. Erik puerto rico in crisis, can there get become restructured so that it is sustainable . Stephanie welcome back to Market Makers, im Stephanie Ruhle. Firefighters in california are calling for thousands of evacuations. Wildfires threatening scores of homes. One blaze tripled in size over the weekend to 84 square miles. The rest of the state is having problems. Over 9000 firefighters are battling 21 fires across the state. Wildfires are also burning in washington and oregon as the west coast and doors the effects of drought indoors the effects of drought and summer heat. Erik puerto rico has defaulted on one of its bonds after failing to pay 58 million in interest. Now the question is what happens to the rest of the bonds of the 72 billion in debt . Tim colemans blackstones had of restructuring head of restructuring. Tam, here is what everybody wants to know. Puerto rico defaults, but only on one bond issue. What does that mean . Tim it does not mean a thing. The foundation did not fund that moral Obligation Bond so they do not have the funds to pay it. Prepa is a public corporation. If anybody else defaults, it does not necessarily affect them. Erik at what point did the robert meet the road . Tim they talk a lot about it it is not actually a company in distress. If they were ever to get chapter nine, they would not be able to prove they were insolvent. Erik we are getting a little ahead of ourselves, because puerto rico does not have a chapter nine provision, unlike detroit or jefferson county. There is no way they can restructure under Court Supervision right now. Tim correct. Erik you are saying even if they were to get chapter nine, which is something Hillary Clinton and jeb bush say they should have, a would not qualify . They would not qualify . Tim the only public number we have today is . 22. I know other numbers that have gone lower than that. If the rates are coming down substantially, it means they could actually if you will raise rates to meet their debt obligations, which is what the documents say they are supposed to do. If all they did was raise their rates by two cents or three cents, they are bible. The bond holder had some issues and they will take parts of that plan. What do they need to do . They need to take their power plants and fix them go out for an rfp and seek new financing and opportunities to build these plants. All of that can be done within their business plan. Erik here is perhaps an obvious question. If all they need to do is raise rates to become solvent and meet its interest and principal payments, why does the government refused to do so . Tim we do not understand it. They also need to do some structural reforms. Erik but if you could fix one of your bond problems tim then why wouldnt you do that . Erik it at least shows there is a way. Tim if you look at the history of restructuring, you start taking one off at a time, do not try to do the whole thing at once. Other than politics and hoping to take losses from creditors because it is convenient, we do not understand why they do not take a deal right now. Everyone is ready, you name it we are all together in rooms every week. There is no reason why a deal cannot be struck here quite easily. Stephanie didnt the bondholders offer a much Lower Debt Service than they even asked for . Tim they have offered something, the minimum would be a couple years of relief which would help them get through some of the changes they need to make. That was something we did magnanimously. I do not even think they need that, but it would allow them to have a lower rate, do their rfp and ultimately be just fine with no restructure. Erik there is a path forward, we will see if that happens. Tim, thank you so much. We are taking a quick break. We will be back with you in a couple of minutes. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Vonnie citigroup filing a thank you in the past few minutes, saying it is being investigated over student loan servicing. It is cooperating, according to the filing and we have more in a few moments on this breaking news. Julie hyman . Julie it is time for futures in focus, taking a closer look at oil. It continues to fall. Lower for a third consecutive day. Oil closed out july with losses of more than 20 , the largest monthly decline since 2008. My next guest says short oil trade may be getting long. Joining me is tom heard todd hurwitz. Todd, we have seen this enormous downtrend, not only in oil but in other commodities. What are the signs you are looking at that show maybe it is coming to an end . Toddl i think when you take a look at commodities in general we tend to always push the envelope too far. The space is too heavy for the short side. Just by the Bloomberg Index it is down to a low it has not seen since 2001. Oil has been extremely volatile coming into this move. A year ago it was 107, went down to 42. Here we are at 40 five dollars 45. I think you look at this as a Building Block where we probably will see a bottom, and look for some retracement back to 50. The biggest thing about the space is we always tend to push the envelope too far. I think they have certainly pushed oil down too far. The trade is very crowded and there are too many shorts here. I think somewhere around here will find a nice taste, and if the economy is improving the way they tell me it is, then oil should also benefit. Julie so you would be outright buying oil at this point . Todd i believe the risk reward model shows we could go lower what there is a much greater chance that we will hold somewhere in this neighborhood and work our way back into the upside. I think we are somewhere near a low. Julie you mentioned you think the stronger economy should helps support oil. There is too much oil. Todd that goes back to the bigger economy. We know that overall production is terrible throughout the globe so if we do get some better things, theres going to be a bigger demand for oil. I think the irans toil is a nonstory. They have no real oil to offer. We will be totally, 100 selfsufficient in the next two to three years. There will be a demand for oil because we have not developed and alternative space. Forward, there will be a bigger demand and i believe we will see higher prices because i believe demand will come back, because we need oil. It will create a bigger demand going down the road. Julie thank you so much, todd. We will see how that long on oil in the shortterm works out. Stephanie i am going to send you back out to the newsroom or we have breaking numbers. Vonnie we have a big impact from Fiat Chrysler. A gain of 4. 8 adds to some of the other we sell this morning, including from nissan group. They had reported july sales of 7. 8 . The estimate was 5. 8 . Stephanie thank you. Lets take a quick look at the top headlines of the hour. John kerry is on a fencemending swing through the middle east. He will stop today in qatar. He he restarted formal security talks after a gap of six years. Now a new u. S. Warplanes have been delivered and the u. S. Is counting on egypt to help stabilize the region. Secretary kerry we have is in the can amount of increasing military to military cooperation. Our f16s have just arrived and the president has lifted a hold on other equipment and goods that are very essential in the fight against terrorism. Stephanie the last talks in cairo were in 2009. They were stopped because of the air of unrest and the ouster of mubarak two years later. The reopening o