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tv   Bloomberg Markets  Bloomberg  June 23, 2015 1:00pm-2:01pm EDT

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that story, coming up. a golfer has a chance to win the modern grand slam. we speak with the 21-year-old jordan spieth, masters and u.s. open winner, coming up. mark: aol is officially part of verizon. how will it change the company known for websites like the huffington post? ♪ olivia: good afternoon. i'm olivia sterns. mark: and i'm mark crumpton. let's begin with the markets on this tuesday. investors are waiting to see if greece and its creditors can avoid default. all the major indices are in the red. let lower now by nasdaq, down
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eight points. the dow jones industrial unchanged. the s&p 500 is down about two points at 2120. gold is on the decline on this tuesday, right now gold futures down half a percent, trading it $1177. futures rising for a second day ahead of a government report that might show u.s. inventories fell for it week. oil was trading at $61.19 a barrel, up one and one third percent. on the bond market, yield a little changed. the 10 year yield up by two basis points, trading at 2.39%. it appears the u.s. treasury investors are focused on what's happening in greece. they are looking at the better-than-expected data on the housing market we got out this morning. sales of new u.s. homes rising to the highest level in seven years.
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this after a better-than-expected growth for and previously owned homes yesterday. i want to finally show you what's happening in the currency market. the euro is a little bit weaker again against the u.s. dollar. dollar strengthening on economic reports are just mentioned. pound sterling is little changed against the u.s. dollar, trading at 1.57 right now. let's get a look at the top stories across the bloomberg terminal. a victory for president obama and his trade agenda. the senate voted 60 to 37 to begin full-blown debate on the request for fast-track negotiating authorities. it avoids the filibuster. previous presidents have enjoyed fast-track authority that congress and reject or ratify, but not change. parliament official says lawmakers could vote next week on the rescue agreement if greek lawmakers pave the way by approving bailout measures over the weekend. european leaders say the new economic proposal show the
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company -- the country is finally getting serious about it deal. prime minister alexis tsipras will back any agreement. early we spoke with the former prime minister greece. >> it will be a widespread consensus beyond the confines of the government party. himselfnister tsipras will have to put his full weight behind the agreement where there is opposition, but i think he can do that. olivia: the plan calls for tanks and -- pension plans. mark: homebuyers were out in force last month. home sales rose to the highest level in more than seven years. sales were up 2.2%, beating estimates. april gain was revised upwards to more than a percent. buyers are taking advantage of mortgage rates that are still near record lows. the demand for american-made manufactured goods
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is stabilizing. orders for business equipment rose in may for the second time this year. bookings for nonmilitary capital goods other than aircraft were up .4%. fells for durable goods 1.8%, replacing a drop in the volatile aircraft category. we had fed speak today. the fed governor said chances are about 50-50 the u.s. economy will improve enough for the federal reserve to raise interest rates in september. he said his forecast is seeing stronger growth than in the first half of the year. growth in the labor market and what he calls a greater basis for confidence in inflation returning to 2%. olivia: walmart is hauling down the confederate flag. they will no longer sell confederate flag products in stores or online. last week's church massacre in south carolina renew the debate over the flag. earlier on bloomberg tv, i spoke with walmart's ceo. >> we really don't want to sell
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anything that offends people. i was surprised that we carry some of these items through our marketplace, which is third-party sellers online. we have over 7 million items and when we saw they were out there, we decided to discontinue it. olivia: virginia's governor is moving to have the confederate flag banished from state license plates. just moments ago, we got word that ebay will ban the sale of confederate flags from its online marketplace. they say the image has become a symbol of divisiveness and racism. that is a look at the top stories at this hour. mark: 21-year-old jordan spieth is making history all over the place. he is the youngest u.s. open winner since 1923, thanks to his victory sunday in chambers bay. he is only the sixth golfer in the modern era to win the first few majors of the year. the masters and u.s. open. the question is can he win the elusive grand slam, which no golfer has ever
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done in the modern era. and only bobby jones did once before the current four tournaments were established. jordan spieth joins us from dallas, texas. also joining us this got. jordan, thank you for joining us. we are all big fans. what was going through your head . when dustin johnson, three putted the 18th oh. -- 18th hole? jordan: it was shocking. i thought i had lost the tournament, that he was going to make that but to win. as it sped past the hole, i was glad i had a chance, that i have the chance to maybe go to a playoff the next day. missed, i wasone a little bit delayed from the crowd reaction. tense, i heard the crowd first and said there is no way.
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and i watched on the computer screen inside had missed. shock.ust in i didn't say much for about two minutes. and then i realized we had one. him,initely felt for because on 17, i did the same thing, but i had another holder make from -- to make up for it. rare not since tiger in 2002 has anyone one the masters and u.s. open in the same year. you are now with jack nicholas, arnold palmer, ben hogan twice -- how does that make you feel? jordan: it is amazing. those names are the greatest to ever play our game. fromugh i'm extremely far continuing to be mentioned with them, it is nice to be offered this kind of start and to be in any category with those guys. the best thing i can do is just to stay focused on the open championship coming in four weeks and get prepared and get
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ready to go to the special place to try and get that third one. scott: on the palmer was one of the first take up endorsements. the question i have for you is, do you regret signing a long-term deal with under armour, because you are worth a lot more money right now? jordan: i don't think i am. i don't regret it at all. the terms of our 10 year least the impact that it was made on me was that they expected me to win major championships. that was the trust they took and just went along the lines of the same trust they took when they a firstly signed me as term professional. this is nothing out of the ordinary run expected based on the terms of the deal. i'm just pleased to be helping grow that company and we are doing it together. terms?can you share the if you do when the slam, what
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kind of bonus money is in that for you? jordan: i can't, not allowed to disclose. fair enough. when you look at your players games, many of whom are still living, what do you see in their game and lifestyle you try to incorporate into your own? jordan: a lot of what i look up to, especially looking at the greatest players in the game is i look at their body language in the heat of the moment, i look at how they handle situations. they get frustrated when they , the shop off a shot they want to hit. but the way the rebound and deal with adversity in the heat of a major championship is what allow them to win it. that's what affected me at the masters in 2014 when i wasn't able to close, that's why have improved on. i established a winning formula these last two majors, when there was adversity, when it was thursday, friday, leave in the
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first hole on sunday, tiny bounceback and realizing the links and duration that one major championship round kind of takes on a. that's what happens. olivia: jordan, thank you for joining us. masters and u.s. open champion jordan spieth, and scott. mark: i was adjusting. he has worth a ton more money now. scott: if you signed a deal today it was on the open market, he would be pulling in rory mcilroy type of money. he would be a coveted commodity. even though golf doesn't account for much, maybe 3% of sales at nike, maybe less than that. the key for a guy like jordan is how you build golf? there are these new guns and golf, you have jordan and rory, these guys who are taking up the mantle, if you will, where tiger left off. is that recognized by some of these sponsors?
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scott: it's a meritocracy. you kids want to play? 65-year-oldargeting , it's not a great sign for the future of your game. how do you get young people interested in golf? jordan, rory, adam scott. a player was saying it's fantastic there's a rivalry. jordan versus rory mcilroy, that's great news for the sport. even in his heyday, tiger woods didn't have anybody. scott: the leaderboard was great for golf. now it's what can they do to make kids looking at lacrosse or soccer or baseball -- how to they get them into golf? mark: even more impressive than jordan's win, talk to us about jason day. this is a man who had vertigo, who collapsed on the course and was still in the running. scott: even the doctors who treat those patients say they
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can't believe that a premier athlete was able to go out there and do what he did. you or i would have trouble doing our job, forget about the physical strain of being a pro athlete. a great effort. on the plus side, more people know who he is, and associated with a great effort. olivia: do think jordan has a chance at st. andrews? anything about his style of play? scott: if you performed well on this style of course, you will see a very similar course at st. andrews. the course, a lot of the players were criticizing the course. he did not. he just assumed i missed the putt, regardless of what was going on, i missed. in just those two rounds. he missed a lot of putts. unfortunately for him, it was the last group on 18 come on the final day of the major. mark: scott, thank you. still ahead on the "bloomberg market day," aol goes off-line
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as a public company. we get with ceo tim armstrong about the growth strategy under verizon. ♪
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olivia: welcome back to the "bloomberg market day," i am olivia sterns with mark crumpton. mark: let's go to matt miller with a look at the movers on wall street on this tuesday afternoon. that stocksling us are little changed today. miller -- it's little changed. starting out with a down your story, that's pandora. is a company involved in a lot of drama because of what its competitors are doing. today is no different. google's new free music radio
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service, google play music, is going to debut. coming into this market, pushing pandora down to its lowest level since early april. nearly a three-month low. the stock today only down about 1.6%. stock,ot a very cheap considering all the competition that pandora has with spotify idal, and now t with google and apple, pandora taking a dive. stocks are these taking a dive today. this one off the lows of the day, still falling for a third consecutive day. it's touching his lowest level since august 2012 after news out of macau was released that gaming revenue dropped to less to about $548on
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million. macau revenue weakening there. that's hurting not only when resorts, but other gambling stocks as well that rely on macau for the lion share of the revenue. they don't make the money here on the strip anymore, they make it over in china. i want to touch on the stock that is near and dear to my heart, one of the best takers aboutere, falling today 1.75%. they downgraded the stock because lower volume. some of us aren't doing our part, mark. and also because chances of a further take over from ab inbev's. matt: are you a fan of the silver bullet? mark: i have been known to have one. matt: the mountains on the can turn blue. that way you know it's cold enough to drink.
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sometimes you can tell from your hand. but i like the blue mountains. there's a wide mouth, you can get more beer into faster. olivia: oh dear. great place to leave that conversation. matt miller, thank you. let's show you what is crossing the bloomberg terminal. searchers are scouring new york for two escaped inmates. they are focusing on an area 20 miles west of the prison where inmates david sweat and richard matt escaped on june 6. police say they're looking at evidence found in the hunting cabin and are asking people in the rural area to report any suspicious activity. the tunnel linking france and england was closed after striking workers swarmed the tracks. it was a day of chaos in the port city and began with a predawn ferry strike. truckers who were diverted got snarled in traffic and migrants swarmed the vehicles trying to
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sneak on board. the union is protesting potential job cuts. that is a look at the top stories of this hour. it took six weeks from verizon to complete its $4.4 billion acquisition of aol. as of today, shares of aol will no longer be traded on the new york stock exchange. tim armstrong will continue to run aol is a wholly-owned unit of verizon, reporting to verizon's president of product innovation and new businesses. earlier today i spoke with betty liu about how they plan to turbocharge aol's content business. inwe are big believers content. bailout is to go into significant markets into video, global news. the world isver going by 2020, that will be $40 billion of spending on mobile and $40 billion on video. there are really only a few properties that are the size of huffington post. if you are an advertiser or
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partner, we bring the best of all those platforms, the best of content. from a unique standpoint, we have been able to raise out prices and get global distribution. in a lot of that is because of the content businesses. verizon is going to turbocharge that. you have a combined companies with technology platforms and contents, attacking markets that will essentially be up to $100 billion opportunities over the next four years or so. we have very big plans to integrate and to push that forward. i think it's very exciting. the team is excited. from reading all the people of verizon, i think they are excited. it is a big opportunity. and it's day one. betty: a wall going off-line as a public company. i watched you over the years ,uild this tremendous asset which is one of the reasons why verizon is so excited to merge with the company. i'm looking at the numbers here. sharester says aol
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global online ad business is still 0.75% last year. facebook at% and 7.9%. that is quite a lead. how do you catch up to that and differentiate yourself when you have google at such a big lead ahead of you? >> is exactly why this deal is such a powerful deal. the fact of the matter is our assets in platform and content are much more powerful than our marketshare right now in connecting with verizon will turbocharge us. i would be surprised in the next three years if we don't end up being in the top three market shareholders in this space. number two is there's a whole bunch of added assets that are coming have a talk about obd and some of those other things. this will be a much expanded business over time. ispent 10 years ago will, have a lot of respect for them. they have been great partners with us. but nobody owns the future.
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assets we are putting together today are about the future and if you think about mobile, mobile is a platform shift the same size the internet was. except you are going to add 2 billion more people and hundreds of billions of dollars in revenue. this is probably the best set asset combo to go after that. the team has had a big vision here. we have to. that's why i think a lot of people are excited about this deal. go, how is aolou turbocharging horizons and offerings? >> we have the oil in the ground, we need the rig to break it up and to connect. we believe that all of the capabilities -- by the way, the talent in this organization is unbelievable. it's one of the things we spend a lot of time making sure we got to know the talent and we have a cultural fit. that helps to accelerate. it's putting the assets together, the great ad tech capabilities that tim has assembled, the content, and then the connection with the mobile consumers is how we do this.
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it makes sense for us, gives us a way to monetize above the access network, which is what we are striving to do. we think we have the vision and we can go make this happen. that was betty's with tim armstrong and marty walden on the verizon president of product innovation and new businesses. still to come on the "bloomberg market day," lauren has more revenue and market share than other u.s. companies. more employees than any company in the world. are raising wages for half a million workers. ♪
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the: welcome back to "bloomberg market day," i am mark crumpton with olivia sterns. walmart has been rethinking of labor relations. -- walmart minimum raise wages being raised up to $10 by the end of next year. that's 24% higher than the federal minimum.
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mark: what is the thinking behind the increase? olivia: it's a couple of things. walmart has very visible problems that they have done a good job telegraphing, such as empty shelves and disappointing service. so they are investing in their employees. they are raising the minimum wage and hoping that will produce a return on sales, that it's actually going to drive the number on revenue. mark: olivia, good to see you. coming up in the next half hour of the "bloomberg market day," the latest on when the federal reserve might raise interest rates. what that can mean for investors and also, we take a look at what's going on with the greek debt costs. "bloomberg market day," continues in just a moment. ♪
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mark: welcome back to the "bloomberg market day," i am mark crumpton. let's get you straight to the top headlines at this hour. 3m is buying capital safety from
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private equity firm kkr in a deal worth $2.5 billion. the offer includes $700 million in debt. the deal is excited to close in the third quarter. capital safety is a global provider of fall protection byipment, acquired by kkr $1.2 billion in 2012. mergers and acquisitions this year will be the record in 2007 and the boom is poised to continue through 2017. that's according to blackstone group senior managing director john suzuki. >> the investment cycle and expansions are normally seven or eight years. potentially we are looking at expansion that could be as long as nine years. i actually think you are going to see a record amount of m&a activity beyond 2007 this year. and potentially this year after. the: he named telecommunications health care, and energy sectors most likely to see more deals.
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carnival corp. reported second-quarter product that beat estimates. they also lower the range of its 2015 earnings forecast. carnival says bookings for the next three quarters are running well ahead of last year. carnival another cruise lines have shifted ships to the caribbean from the mediterranean in recent years to counter weakness in european economies. the owner of all of garden will split off about 430 properties and transfer them to a real estate investment trust. it will be publicly traded. they are also selling 75 restaurants under separate deals. more than 30 have already been sold or under contract. proceeds from the real estate deal should help them retire about $1 billion worth of debt. those the top stories of this hour. coming up in the next half hour of the "bloomberg market day," are there problems ahead for fitbit? after the booming ipo, new
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concerns about the google says it will make its own advanced health tracking system. one of the biggest problems for the u.s. housing markets could be a small beetle. the bug is devouring canada's timber supply. we take you to the front lines in the fight to stop it. investors are waiting for the latest clues from the u.s. federal reserve on what it might hike interest rates. they are keeping a close eye on the negotiations over greece. joining me now is the chairman theumberland advisors, and chief monetary economist at cumberland. gentlemen, good to see you both. the fed governor jerome powell making headlines saying chances are 50-50 the u.s. economy will improve enough for the fed to raise interest rates in september. what is your reaction? >> we expect them to raise interest rates before the end of this year.
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there's been so much preparation and build up for it and bob and i both have been writing about it, and we expected that. >> is something that has to happen. if the data justifies it, it's a rational thing for them to do. we have been thinking it would be september for a year and a half. mark: what is the data need to show us? >> it's time to scratch out the. charts and come up with something. issuesink really the key are improvement in the labor market, particularly wages and inflation, getting them closer to their inflation target if they start to see some signs, -- of course, wage inflation i think there's such a thing as wage inflation. that will be a trigger. mark: last week, san francisco fed president says if the fed raises rates sooner rather than
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later, that's going to allow policymakers to tighten gradually and avoid potential headwind. is that your sense? once, weighton act and look around. if they are going to raise the interest rate, which they are going to do, they are going to strengthen the dollar, which will have different types of effects, especially on exporters in the expert industries. there is a trade-off underway, there are forces that are outside of the borders of the united states that apply. how the fed is going to deal with those is an open question? mark: robert, how should the fed deal with those? we are talking about sustained improvements. we looking at six months? robert: we've had pretty good labor job growth for the past few months, even despite the slowdown in the first quarter. , to build oned
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david's point, the real issue is once they essentially make that first change, then they got to let the dust settle and see what happens. we have never been here before. the international side i think is a very important one. it's going to set up a trade, an incentive for dollars to flow in. there's a lot of different moving parts to try and get your arms around. we just need to do it once in weight. mark: let's switch to greece. that's been in the news for the past 4, 6 years. greece is proposing measures worth 9 billion u.s. dollars. these include increases to company in consumer taxes to persuade their creditors to release their new loans they greece needs to avoid default next week. will that be enough to help greece avoid default? enough if there's a deal to extend a little bit of new money, which is a lot to
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greece. it will kick the can down the road, as that cliché has been used 100 times, for another time until there are fundamental changes. cultural reforms, a different approach to doing business in greece. it will be more of the same the next time. robert, the austerity members of the international community demanded so the grease get access to this money, how much damage have they done? the economy isn't kicking along in a very good pace at this point in time. but it is something that has to happen. they have been living beyond their means for a long time, -- mark: didn't everyone say stop? at some point i didn't someone say you were living beyond your means, you can't keep doing this? robert: it doesn't look like anyone did. at least those who had the wherewithal to do something. when the euro was forming, a lot
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of people nominally obeyed by the rules in terms of the debt and structuring. but they got it anyways and some of the people just never follow the rules to start with. david, you said the amount of euros in cash needed to keep greek banks open is equivalent to 10,000 euros for every man, woman, and child in the country. is that the price of a moral hazard? is the current price of a moral hazard in the eurozone, in greece at this minutes. the fact is, this is 10,000 euros per person. 11 million people in greece. there is 110 billion euro roughly in emergency liquidity assistance. completelycollapse were it not for the emergency liquidity assistance. that is 10,000 euros per person to keep the banking system from
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falling apart. it didn't get here in a hurry. will there be official capital controls put in place in greece? we are seeing an official now, $3400 you take out of the atm? robert: if they start to do that, you got a situation like we had in crete on cyprus. some of these other countries. it ends up triggering exactly the thing they are trying to avoid. it's just additional sign of desperation. i hope they don't do it. mark: we have a little less than a minute. janet yellen says this month there could be a spillover here in the u.s. in the event they greece does not reach a deal with its creditors. how does that change the path of u.s. policy?
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david: they may have to wait and see. i'm sure it's a discussion inside the fed. i don't think it's a big deal for our markets. our markets are on much better footing now, our banking system is much better. imark: don't it's a big deal. mark:if this were a headmanned -- a headwind, the effect would be nominal? not on right now, it's the balance sheet of the bank. it's on the balance sheets of the government and the central bank. there's less of a risk in the banking system. david,obert and gentlemen, always a pleasure. when the "bloomberg market day," continues, china's manufacturing is showing signs of stabilizing. we have report from hong kong, next. ♪
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mark: welcome back to the "bloomberg market day," i am margaret and. julie hyman joins me now. good afternoon. julie: you will not see much in the way of definitive action one way or the other right now. nasdaq, all very little change in today's session. let's take a look at the sectors on the bloomberg terminal and figure out exactly why we don't have much change overall. you see an equal amount of red and green on your screen, basically. some of the sectors that are doing the best today include telecom services, energy consumer discretionary telecom up largely on the strength of an upgrade for at&t. on the downside, we got things like materials and consumer staples and agility's.
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a little bit of a push, pull to day. also in part as we had better than estimated economic data, particularly when it comes to new home sales. that is pushing yields higher. we get to that in a minute. utilities are the worst performing group today as we have those yields going higher. you tend to have high dividend yield stocks do worse when yields go up. the s&p utilities index is now down 11% for year to date on the outlook for fed raising interest rates and therefore again rates overall going higher. in the treasury market as well. down 11% in the worst performing group thus far this year. i mentioned what's going on with a 10 year. listing look what we're seeing today. got 2.38%, its little change. but we saw this big spike when new home sales numbers came out in a yield. i wanted to check on the dollar again, economic studies in the u.s. theoretically could mean a higher dollar. that's what you're seeing, rising 1.1% against the basket of currency at a particular
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we've seen a notable move against the euro. this gain in the index earlier today rose as much as it has since 2013. the biggest one-day gain. since then it's come back down a little bit. a notable move in the dollar. as i mentioned, in the euro as well. mark: julie hyman, thank you. to the turmoil in greece, primus alexis -- prime minister alexis and as has 48 hours to five-month standoff over aid the risks splitting the euro. guy johnson reports from athens. guy: as the technocrats worked through the details of the great deal in brussels, here in athens, tension has turned to greek politics. and whether or not alexis tsipras has enough votes to pass a bill here. there are big questions. we still don't know. the left wing of the party may decide to revolt and throw it
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out. we could see a vote on sunday or monday. this is by no means a done deal from a great political perspective. it could still fall foul of the left wing of the party. electoral masses going to be critical to market performance over the next few days. we all have to learn awful lot about greek politics. guy johnson, athens, for bloomberg television. more evidence of the sluggish chinese economy is stabilizing as a mostly private industry manufacturing gauge beat estimates. stephen has details from hong kong. stephen: cinnamon a chinese factories is improving as it came in above estimates at 49.6 for june. manufacturing is still in contraction territory below 50, but this is the third month in a row this has improved if the per number holds true. industrial production in china,
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credit growth, and property sales of all shown signs of stabilizing. measuresand target of target downward pressures in the economy take hold. the survey also showed job cuts were the sharpest in more than six years. many economists expect the central bank to continue their easing cycle. the market for connected health just got a little more crowded. google's life sciences group is working on a health tracking wristband that could be used in critical trials and drug tests. the device is still in the external phase, but it would be able to measure pulse, heart rhythm, and skin temperature. google is saying it will be marketed as a consumer device, but the announcement still 'sises questions about fitbit sustainable advantage against bigger players like apple and google. scarlet fu joins me with more technology, taking another twist here.
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scarlett: the plan is for doctors to provide this for patients because consumer devices are rigorous enough for research. was that i noticed there is a lot of information, and it misread it a lot of the time. fitbitt convert to the wrote about this in the bloomberg view. my lunches quote. he said i have no idea how i am supposed to internalize all of these data points. i find myself pursuing multiple objectives that are highly correlated but frustratingly nonlinear, insufficiently linear, adding to the potential for performance anxiety. what is the point of a device if you can't put together how to use that information? mark: are you supposed to do that or is your doctor supposed to do that? with this google device, they say it's a continuous information your doctor can monitor and then you and your doctor, your medical provider
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can figure out what is the best course of action. the googlearlet: devices for clinical trials. for retail consumer devices, you are stuck try to figure out how much active daily minutes you have versus how may steps you took versus how many calories you reportedly burned when it accurately gauges all of that. it's a little bit of a balance there. mark: i love the quote. that's the economist and him. it's not linear enough. what is coming up next? andret: we talked to agassi rolet, the mbp of the golden state warriors and mbp of the nba finals be joining us to talk about his venture capital investments. he has been very active since joining golden state two years ago. and shaquille o'neill joins us to talk about his investing in a company that is trying to make it easier for people to invest in ipos. mark: scarlet fu, thanks. still ahead on the "bloomberg market day," how a tiny beetle
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is transforming the u.s. timber trade. ♪
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mark: welcome back to the "bloomberg market day," i am margaret in. sales of new homes surged to the most in seven years as he was housing market heats up. basic instruction materials like timber are once again in high demand. while the forests of western canada contain a large amount of high-quality lumber, a small bark eating beetle is threatening the supply. willem marx reports. :: in the canadian province of marx: in thellem canadian province of alberta, colton is preparing for battle. he works as a forest health officer. but recently he has been finding more and more unhealthy trees. is it fair to call this award?
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-- a war? >> it looks like battle planning. marx: is the enemy is tiny, a mountain pine beetle that burrows into the marks of trees. >> in large numbers, the beetle is able to kill mountainsides of pine within several years. willem: from the air, the dead trees appear as flex. in british columbia, is the major industry. -- the beetle's rapid spread has so far killed 60% of the harvestable pine trees there. >> one of the greatest natural disasters that has ever been seen, certainly ever been seen in british colombia. willem: of three giant canadian timber firms, where
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lumber is the biggest single export products. cuthere being more trees through the next 10 years and otherwise would have been, it's been a race to trying get the economic benefits out of the trees. willem: trees helpsharvest the company's sawmill expand into one of the world's largest. local lumber production has fallen more than a quarter in the past decade since the supply of mature trees starts to run out. take 60 to 80 years for a tree to be planted to grow to become large enough to be a saw a lot of. willem: commodity markets won't wait, and so with sawmills closing, the canadian companies have been headed south of the border to buy up dozens of u.s. operations. >> the dependency is very high. willem: bob is mary of quit now. -- they pay a lot of
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our tax rate. they are the largest employer. if they shut their mills down, it it will send a shiver through the committee. willem: is there and happiness when companies -- unhappiness when companies like this move out? >> people feel like money that's being made in british columbia off of a public resource all ended up being invested in the united states. willem: in alberta, forestry officials say their estimates will stop the beatles march and spear their timber industry from a similar fate. willem marx joined the onset. the people you spoke to, how concerned are they about this infestation spreading? willem: it has paid, but they've lost 60% of the harvestable pine.
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in alberta and east, their huge concerns that this beetle is moving to new types of pine, a good spread as far as the atlantic coast because there is an arboreal forest that spreads 3000 miles from alberta to the coastline. mark: what about factors besides the beetle moving to the united states? willem: rushed them into the u.s. because they were running out of mature timber in british columbia. but there are other factors. the u.s. housing market, the demand in areas like atlanta. there's a huge market viable to produce process lumber down in the south east of the u.s., much closer to where they need to be for the market. mark: how do you get rid of them? willem: good question. there's no way of stopping the infestation. they can travel 50 miles a year. in 2006, 2007 the made over the rockies from british colonial. that was unexpected.
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scientists don't have many answers. mark: what does this mean for timber coming to the united states? willem: there are pine beetle infestations in places like colorado and washington state. but nothing like this in canada north of the border. mark: willem marx joining me in studio. thank you. coming up in the next half hour of the "bloomberg market day," andpeak to andre iguodala shaquille o'neal will join us to discuss his latest venture. "bloomberg market day," continues in just a moment. ♪ ♪
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(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. mark: it's 11:00 in san francisco, and 2:00 a.m. in hong kong. scarlet: this is the "bloomberg market day." mark: we hear from andre goodall
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it. withet: aol closes deal verizon. mark: shaquille o'neal on his investments in the trading platform. good afternoon from bloomberg world headquarters in new york, this is the "bloomberg market day," this is scarlet fu. scarlet: much ado about nothing as we are little changed right now. the s&p 500 got within three points of the record high, holding at those levels mccamley gain any traction here. if you look at the data, we had durable


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