Difficult it will be to get that measure passed. But we do have the story covered. Julia chatterley is in brussels. Michelle carusocabrera is in athens. And Steve Liesman. Well have more from the three of them. As higher up on the news. But it looks like a deal is going to be reached. You can see the dow jones up 125 points. S p up close to 15 points. The nasdaq is up by 37. This is all coming as the markets in europe are higher. Dags up 1. 5 in germany. The cac is up 2 . The ftse higher. Italy 1. 5 . Portugal up 2. 75 . And the dollar is up. The euro despite the news it looks like the euro is kept together. Trading higher at 1. 1075. Part of the fact if you deep greek economies in thats going to add pressure over time. Also you can see whats happening to the yields in the european markets. In greece be the fiveyear yielding 17 . If you look to the bund thats the german tenyear thats trading at. 927 . If you check out whats happening with treasuries here in the United States youll see at this point, the tenyear is yielding 2. 45 . Trending on Twitter Twitter thisisacoup. Some people love to see the world burn. This is austerity did you see what krugman wrote yesterday . Who . Krugman. I stopped reading. The iron lady 2. 0, i found out im very german. German pride, just the way that shes leading. Shes iron lady 2. 0. I love it. Saying ive got to pay back the debts. Theres no rule of law, no Property Rights its like socialism spreading across the planet. I knew that would be yours stiglitz people are saying 1950. Were talking 50 years ago. The germans pointed out we stuck to the rules. We didnt change the rule every time we came along. This is five years. Im amazed that Bernie Sanders just hates banks everywhere. As long as heres the banks that got bailed out. Its socialism for everybody. Its really weird. I now wonder if were now finally running up that side. Were going to find out well get to the bottom of what happens but the question is whether they can keep the job and important the government what was the referendum about, all the tough talk . The referendum, had was able to say, look were standing against this a week later hes taking a tougher stand. It probably got a risk deal after it was all said and done. And all along, said this is a big long kabuki dance. I heard the interview with a former irish deputy finance minister involved in all the talks, he pointed out, look the difference in ireland, we owned our problems we owned up to it. As a result, we came into the program after the greeks and things are improving. It doesnt matter if progressives see anything like this happen. They dont want to see anyone pay no one ever goes through i actually was quoting you last week. I saw on twitter. Remember when you didnt buy any new furniture. If you dont expect anything from anyone when you dont have the cash exactly. The meanies. The shes the meanest of the meanies. Were going to go to a place where a thought of people think about theres meanies going on. Michelle carusocabrera has got the details this morning. Does it happen michelle . Rugtight now it looks good. If you have two take ways one is that grexit is off the table. And two is that Alexis Tsipras has capitulated with everything at this point. Whats in the deal . Hes going to have undo legislation that he put in place things like rehiring hundreds of thousands of government workers. Hes going to have to reenact reform laws and pension increases right away. A hammer that came down last night that he didnt expect. An independent fund is going to be established. Theyre going to slide 50 billion worth of greek assets as collateral to recap the banks. And he thought this until 5 00 in the morning, he wanted the imf out of the deal. The imf is included in the deal. Did he get anything . Yes, he did, he was told they would consider a reprofiling of his debt extending the maturities and lowering the Interest Rates but only after greek passes the first review. So that doesnt mean until lets think august. So what happens next . Hes got to pass this legislation by wednesday. And, remember this only a deal to begin discussing a deal. What happens, if he meets all of the commitments, then Angela Merkel can go to her parliament and ask for permission to negotiate a deal. Were talking weeks here. Today, were waiting to see what the ecb does on the ela. The emergency liquidity assistance. And Alexis Tsipras leaving just a few hours ago called this re session father recession father this deal. What he implied without it it could be depressionary guys. One of the questions following the deal is what is the ecb going to do and Steve Liesman joins us in berlin. Andrew thanks very much. Im going to get to the german reaction of this deal in just a second. I do want to talk about the ecb here. What we do know the ecb government accounts will meet today both through teleconference and in person. They will discuss the liquidity crisis here however were not expecting them to increase it today. What the ecb needs is some confidence that these reform programs are in fact going to be adopted in order to increase that ceiling for lending, it is eventually, though if this deal does happen expected to raise that limit. One analyst i talked to said it would be in the single digit billions. Enough perhaps to raise the amount that greeks could get back to say, 60 euros to 200 euros a day. Not very much needed for that. But a big significant move. The ela is like a discount window in the u. S. Where banks have a liquidity problem but are judged to be solvent. Thats the key, ecb has to seate the banks as being solvent. Overall the greeks seeing it too harsh on greece. Thats what youd expect. The conservative side inside of merkels own party saying theyre skeptical about greek reforms. One member of parliament tweeted out greeks and reforms not two words that go together. There was a snap poll only 12 of germans said girl mane is being who harsh on greece. I only bring that up because it very much mirrors the polls that we have here which shows 10 of the public supports additional assistance to greece. For an idea of what merkel dealt with this weekend, heres a copy of a conservative magazine here the title is not one more cent is what it says. When you look at the documents. The tough terms on greece look as it as a political document for merkel to use inside germany to get assistance from the German Parliament. Obviously, germany will take the bulk of that assistance. Joe, andrew. What did that say, kernen not hold that up again oh it says it says no money for kernen. No money for kernen. No more money for kernen, yeah. Remember steve, there are safe guards that were put in place to make sure that germany didnt make all of europe. Do you remember that . I mean that was part of the idea with the eurozone wasnt it . Safe guards and thats not going to happen. What happened . We know whos in charge. One of the criticisms here internally is that the german see berlin now very much at the center. They dont want to be there. The germans i spoke to a german official yesterday whats very deny not to be seen as germany being the one hoisting these tough reforms on the greeks. I think they failed at that Public Relations exercise. Yeah, its pretty clear. I was thinking of dallas. No one can give you power, bobby, jack ewing said that. No one can give you power. I quote jack ewing. You can see it happening here. Merkelle, iron lady 2. 0, right . I think thats right, joe. Shes seen very much very solid here. And being very steadfast on this thing. Remember, plan a and plan b over the weekend. Plan a was create this Privatization Fund or plan b, youre gone. A fiveyear grexit was out there. I dont think germany wanted greece to leave the eurozone. But she said very definitively we do not want greece to stay at any cost. Lets go back to michelle. Do we still have michelle . Yeah. We saw suggesting the comments that germany didnt want greece in there at all. That was always the plan and this was just the plan that didnt work. I would slice it a little finer. I would slice it a little finer. I think Wolfgang Schauble did not want greece to stay. The Prime Minister did want greece to stay. Ultimately, she is the chancellor. If you werent paying attention for the last 48 hours one of the big dramas in the last days was that there was this plan out there that greece could leave temporarily the euro for five years, get their act together and come back. Everybody saw that as a big joke. Thats like temporary divorce, right . Thats just some way to put forward that makes it seem like its not incumbent on the germans, its incumbent on the greeks. Its also a way to get Alexis Tsipras to come to the middle saying look this is your choice. The other choice is youre out of here as a result. By the way we think everything is going to pass with overwhelming support from the parliament. Shes hes going to lose his party. We had one analyst say the looney left thats a big statement in greece the looney left will be pushed out with people who are more moderate. What is amazing about Alexis Tsipras, and even though he has lost tremendously over the european creditor system here he is a tremendous winner. He has amassed political power in a way that no other Prime Minister has done for the last five years. If there is anybody who can pass this legislation, it is him. Hes gotten all the opposition to join him on this. If hes really willing to do it. Even though all of these measures, though contrary in theory to what he believes in. So its a pretty dramatic turn for him. If they actually actually do it. You know steve, lets just talk about the passage in germany as well. This has to go through 19 different parliaments. I heard over the weekend that some of the m. P. In germany were unhappy with Angela Merkel. Then you look at the greens there as well how difficult will this be to pass in germanys own parliament . Well you know i think thats a great way to think about it, becky. Think about tsipras what he can count as victories and then think about merkel. And she has said look we can adopt reforms that theyve been unable to do for the last five years. Remember, she wont even bring it to a parliament until greek adopts the reforms. Thats one. Two is the reform very big for the germans with privatization over a very long time. Now theres this other Privatization Fund 50 billion fund which is in greece which say victory for tsipras but overseen by european institutions. Thats very important. I think the third thing which is very significant is in the writing. There will be no writedown in the debt. That was a big thing for merkel. She can come out and say weve got all of these things. Remember, i think the germans wants greece to stay in the eurozone just without any cost or additional funding. I think she has to come forward, she gives a little bit and gets ace lot. One other on the schauble thing, i think she used the Prime Minister. Weve seen that good cop bad cop. Michelle the looney left rising everywhere. I was thinking if greece had left i wish they would have left to get their own country kind of and they could all go and that would have worked because greece is nice . Get a couple of theyve got their socialistic country give it another shot like cuba. Give it another shot. That is not going to happen now, right . Yeah i guess not. Theyve been held up. Elizabeth warren can be president. Bernie sanders can be vice president. Send them over there. The banks can all be public banks, socialism. Is that too late . So there was one very sarcastic tweet last night thats true. Thats true. There was a very sarcastic tweet last night which i thought spoton a fake quote from the leader of spain but alexis what about paramos, funny he chose fuel and feud over the left so just lets just give it another shot. We tried eight, nine ten times but maybe this time it will work. Thats what archie bunker said about california. Right. Actually, they have their own place already. Thank you, governor mundi. Youre channeling archie bunker. Thanks, michelle. Joining us now on set. Peter brookta chief analyst. Youre disappointed today that everything is not hitting the fan, i guess. Can i give it to you heres your silver lining. Heres your silver lining. Its no excuse now for yellen not to raise in september. They would have used you know, the chaos in greece a frozen grexit to push them back. You want the rates, cant you look at that positively . The second most important thing today is the tenyear yield approaching 2. 5 again and thats being lost. Because of that. So you think september now, that will be a relief for you . I still hold up my hand, i dont know what the feds going to do. Theyre looking for this perfect needle to thread its just not there. There will never be a right time to raise Interest Rates. I think its truly embarrassing over seven years of recovery the rate is at zero. So theyve got to mop this up. And were 60 basis point higher than a few months ago. Does that mean theyre going to have to raise rates more quickly before they start and not do this on slow and measured . No theyll be slow and measured but thats on the short end. On the long end, its not so slow and measured. If was not just cnbc cable but if it was hbo cable youd use that no question i would. So you would use the actual words . So thats code. You wrote a piece last week that actually made me laugh out loud. You were going through the deals with greece and tsipras. In the end, who the hell knows what this guy is going to do. The same with yellen. Shes had so many opportunities its excuse after excuse after excuse. But now and its yellen but the bond market again is tightening for them. So right now were seeing a rise in rates. Whether its going to the short end driven by the fed or the long end driven by the market. Do you think i was saying that our marpgtkets will do this. The markets sort of have what was going to happen here anyway . It wasnt going to be that big of a deal in the u. S. Anyway. Youve got to connect a lot of dots to get the word to hurt our economy more than its already hurt. What do you think of eventually us being stuck at 2 because of all of this other stuff . You see the premium increases for obamacare. Yep. Even slate. Problem with obamacare. Slate . Problem with obamacare. Can we grow faster than 2 ever . Not right now, especially with productivity growth being less than 1 . Rents going up 3. 5 on cpi. Theres a reason why Consumer Spending cant get any traction and its obviously a huge chunk of the u. S. Economy. At this point, youre not sure, but you think finally were going to normalize it at least a little bit. But normal with no growth is not going to be that highway. Exactly. Even if the fed does not raise in september, if they dont raise in september, long rates will continue to be higher. If the fed wants to get control of the curve again they should raise rates. If they want to take time the lock end of the curve is going to do it. Either way, theyre in a slow rising environment. It have been slow and methodical. I thought yellen on friday speaking didnt mention greece at all and only mentioned china in passing. Evans didnt he say its off the table for in his just keep rates just a little bit longer growth all of a sudden is going to accelerate. Right. A little bit longer. All right. So you didnt want it to go that way . No i feel the way you said it though the way you said it, though it looked like no i didnt but okay. Greek economy it would have been much worse. And to distinguish austerity, cutting back on the Public Sector is considered partial austerity. That should be reality because the Public Sector cant afford the private sector anymore. Ba do you do . You got to cut back the Public Sector. When we come back this morning, well be taking a look at oil prices. Theyve been dropping as we wait to see what happened with the iran nuclear deals. Well have the details next. First, though heres a look back at this date in history. [ radio chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Welcome back. Were following the iran talks. Reports say a deal is on the table very close now. Expected to end sanctions. Like more raining oil on to the markets. Once a deal is agreed upon. With the six world powers taking part in the talks, the u. S. Congress would have 60 days to review that. Were back now with oil, 52. If it happens a lot more oil will probably come on the market. But at the same time we were talking on the break, with more demand, we need to pick up that stock. What opec is expected, theyre calling for are what they expect a more balanced market, maybe a more hopeful situation for them. But they expect more demand. This is the came kookukakabuki. They learned the came kabuki distance. Is there any question that kerry is not going to go ahead with the deal . No, its the question of how bad of a deal this is. Best Case Scenario i think youre looking at ten years down the road. Best Case Scenario, ten years down the road where we have a legitimized Nuclear System if iran and every organization is going to want that same thing. And also the people in iran they want this so badly because it matters so much for the economy. So theyll do almost anything for it. Which makes we wonder why arent we at the same time, championing in the streets. That doesnt do much for us. I dont know why we want it so badly. Just to get points on the board but the bar is so low to win a peace prize anyway is it worth anything to win anything with arafat . With that this administration wanted to get points on the board. Well, thats good for them. Look theyve been cheating the whole way through. The iranians the germans, apparently theyve been trying to buy additional equipment for their centrifuge which is illegal at this point. No one is saying anything about that. If youre cheating on the deal i dont know how you sign it. You know you know what changed my life this weekend . Apple music. Apple music. Are you now i am. Youre not a spotify person. You didnt even know what that was. Still dont. Still dont. I know wha