tv Bloomberg Markets Bloomberg June 30, 2015 11:00am-12:01pm EDT
the polls. he is entering the republican race for president anyway. he will announce his campaign in just a few minutes. the finance ministers says it will miss today's payment to the imf and nobody quite knows what happens next. pimm: while there may be the most viable startup ever, that does not mean it is making money. documents obtained by bloomberg show, they are losing nearly half $1 billion per year. olivia: good morning. i am olivia sterns. fox. and i am pimm we are 90 minutes into the trading day so let's take a look at how they are trading. u.s. stocks are gaining and investors came in -- coming in after yesterday. .3 of 1% and s&p
500 index nearly gained about 3/10 of 1% and the nasdaq also higher. any people wondering what will happen with grace and a potential for a bailout. shave what is happening to the u.s. debt markets right now. of action. not a lot yesterday, we did see a yields come down about 10 basis points on the 10 year. note as concern of what is happening in greece is sparking demand for u.s. treasuries as an asset, but for the quarter, everything going on in greece has not been enough to actually curve treasury dropping for the first time since 2013 pimm: for the quarter. and the euro is still strong. nerves despite all the and backdrop story thinking we are heading into a rate hike by the end of the year. pimm: let's take a look at top stories at the hour.
greece is trying to avoid a financial mouse down and asking for a new bailout program. greeks are lined up in front of closed banks where they were allowed to withdraw $66 with the bureau a day from their atms. the government is proposing a two-year bailout and a debt restructuring plan. the current bailout program expires tonight and eurozone officials will hold a conference call a few hours from now. greek finance minister rejected speculation that greece might accept proposals made over the weekend. >> we are the ones who say yes to the euro, but to say yes to the euro, we've got to have a viable solution. the problem with the proposal with the lenders is that it was not viable. thank you very much. pimm: greece is trying to work out whether it will be able to actually access any emergency funds and the finance minister also confirmed that grace would not make the $1.7 billion payment to the international monetary fund do today.
americans are growing more optimistic about the u.s. economy. consumer confidence rose more than expected in june hitting a three month high. index was higher with estimates from all 75 economists surveyed by bloomberg. they give a credit to a stronger stable -- labor market and stronger stable gas prices. olivia: home values in 20 cities rose 4.9% in april from the year economist that missed estimates. the biggest gains were in denver and san francisco where they rose 10%. the biggest decrease was in cleveland, ohio, where they felt but only by .5 -- .05 of 1%. obama administration will raise wages by requiring employers to pay them over time. they will cover about 5 million workers making as little as $455 per week. they are not eligible for overtime because they are
classified as managers. any work in retail or the restaurant business. an error has come to an end on -- they will charge checked luggage and they claimed themselves a holdout on fees checkllowed passengers to one bag for free. southwest airlines is now the only major u.s. carrier not to charge for checked luggage. those are your top stories this morning. pimm: let's take a look at the meanscrisis and what it for u.s. markets and janet yellen's decision-making process. bloomberg intelligence and chief economist carl riccadonna is here with us. let's go through it. let's start with janet yellen. what does the great crisis due to any decision? carl: the u.s. is fairly insulated and this is assuming there was some kind of compromise. something that leads to destabilization, obviously, the risk of trans atlantic contagion is higher and could
the fed to pause but as olivia highlighted coming u.s. economy is doing pretty decent. labor market looks good and consumers are spending. to ask,was just going if the u.s. in the form of janet yellen and the fed raise rates, what does that do to the dollar and everybody in europe? do they say, oh, no, that leaves rates going higher? carl: i don't think they will lead to that in europe, but this is something janet yellen is focused on. watchingpart i will be is the dollar and euro exchange rate. pimm: is the euro as strong against the dollar? carl: there's confidence it will be resolved. pimm: it is really the deutsche market and not the euro in all of this? there are better buffers put in place and not saying the blowout in other peripheral countries and
whatnot. back in march, janet yellen throw -- drove a stake through the heart of the strong dollar in her bed press conference. from that strong dollar and the import and export sector and domestic producers, so did -- so she does not went to see a ravine of the dollar due to the situation in europe, so she will proceed with that rate increase if she is confident there is not a broader tightening of financial conditions that is happening because of credit spreads blowing out, the dollar is getting stronger or the equity market is swimming. olivia: i can't get my head around the fact that grace is priced into the euro when nobody knows what will happen. i guess my question is, what is the key symptom of contagion that janet yellen is looking out for? peripheral-up in bond spreads in europe like we used to see in 2011 with spanish and italian debt? : i thing she is looking for brodeur. if you see corporate confidence faltered, that could put hiring
a soft patch. if you see a swimming multinational corporation equity valuations, if the stock market moves where there is a big move in the currency, then that would be what would cause her to stop. olivia: if we see a big selloff in european equities and a big exposure to europe, that may make her nervous. carl: if that translates into the u.s. markets as well. pimm: thank you very much. carl riccadonna, chief u.s. economist. olivia: coming up, we are waiting on news from governor chris christie in new jersey where he will announce he is running for president any minute now. we will bring you live from that announcement, coming up. ♪
olivia: welcome back. i am olivia sterns. pimm fox.m: i am let's go to julie hyman with a look at what is happening in markets right now. julie: one of the best performers in s and p moving up after nelson management took the staketalking about a 7.2% . it is the state that try on took care and shares moving up about 5.2% and this is a water company that sells things like valves to different kind of industries and different kind of businesses. trying to think that maybe pentair could go out and make an acquisition. if you look at the bloomberg terminal, hopefully this will show up, but they took a look at the revenue growth by segment for the company. you have it over here. you are seeing declining lines, that is the bottom line in the different businesses of flow and filtration with technical solutions with water quality and all of the going downward.
you can see perhaps why somebody like they would want to get in and try and choose the company a little bit. the stock has been trending lower over the past year. at thealso looking casinos. a gentleman named jonathan lit, real estate investor, he had an unsuccessful proxy battle -- these are some underwater stocks, excuse me that are also rising. speculation that pentair might try to acquire them. mgm was unsuccessful proxy battle was waged by lit. now that core krikorian has passed away, lake is renewing his push for restructuring at the company and he said krikorian's estate might want us now -- might want to sell and he thinks may be wynn resorts would be a good target for mgm and both stocks rise on that. lastly, kind i've read, they recently took -- cannot grunt conagrhe stake -- gc conagra says they
will now sell their private brands. which theytion of have been quite critical of. pimm: does this mean that the activist investor in the case of conagra is getting what they want. julie: exactly. pimm: did they say why he wasn't doing quite as well as they thought it would do when they bought it in the first place? julie: what is serious is the stock has risen but maybe not as much as competitors and not as much as the broad market, so there is that issue. in terms of what it will mean for other companies and i have seen analyst commentary that says it might be good for treehouse brands. another consumer product company. someone ifill get you are shareholder i would imagine. julie: we would think so. olivia: julie hyman, thank you so much. pimm: let's take a look at top
stories crossing the terminal. the third-largest broker is merging with -- is merging. willis group will combine with the towers watson consulting business. in $18 billion all stock deal and the company will be called willis towers watson and will have 39,000 employees and more than $8 billion in annual revenue. getting smaller. general electric has sold off a piece of the finance unit two mitsui who has agreed to by the european buyout lending business for 2.2 billion dollars. ge's chief executive's shanking ge capital body tries to refocus the company on industrial operations. flying high ino a milestone for the biofuels industry. united airlines this summer will use field made from farm waste and oil derived from animal fats. 13 -- $30investing
million in biofuel called bioenergy -- fulcrum bioenergy. fulcrum says it can cut carbon commission footprints by 80%. and those are your top stories at the moment. olivia: i want to go back just to what is happening in the markets. we are seeing equities rebounding today after we saw that steep selloff. the dow fell by 350 points by the end of the day and we are seeing a little bit of strength out there. you can see the major benchmark -- .3is up by one point of 1%. i had a few analysts reach out and say perhaps it is the fact that it is the end of the second quarter. pimm: we are awaiting governor chris christie who is getting way to officially announces 2016 presidential bid. let's go to bloomberg politics managing editor. [applause] >> thank you. thank you. [applause] >> welcome to our live coverage
of governor chris christie's announcement. in livingston, new jersey, and he is running for the presidency of the 90 states. -- 14thbecome the 12th presidential candidate on the republican side. owl, from the washington bureau, as christie gets ready to take the stage. what do expect to hear today? al: i think it will be a dynamic presentation. this guy is a burst of energy and has all kinds of problems and that we will discuss but he is getting in this race. this is not george pataki or bobby jindal, however well he does, we are going to know if chris christie is in the race. , 18 monthsristie is ago on the ease or on -- or in the wake of having won a huge reelection victory in the state of new jersey, he was in some ways a de facto republican front runner beloved by the conservative donor class with
high approval ratings in new jersey and a big national reputation. a lot of republicans want him to run in 2012 and then bridge gate hit and it was downhill from there for quite a long time. he is now trying to mount a comeback. he is on the stage in livingston and his old high school, the place from which he graduated, with his wife on stage with them. first lady of new jersey dressed in yellow. kristi surrounded by about 1000 people in that gymnasium. christie surrounded by about 1000 people in that gymnasium. there he is getting ready to speak. let's listen to chris christie. [applause] chris christie: thank you. thank you, new jersey. thank you. livingston.u to you know, lots of people have asked me over the course of the last week why here? why here?
because everything started here for me. everything started here for me. the confidence, the education, and thends, the family, love that i have always felt for and from this community when i decided to make this announcement. there was not any choice. i had to come home and livingston is home for me. [applause] and i want to thank sheila gold clang, a dear friend of my mom's, and a wonderful representative of this town for rep growth -- for welcoming us here today. and i want to thank i friend lynn. listen, some of you may be confused. it may be that you thought she by her highoed school classmates. she was not your reasons that i will not explain, lynn's
nickname in high school was "the juice." [applause] isce, it is not a boo, it the juice. and lynn, thank you for being here. i am also here because this is where my family raised me. you will hear a lot and will hear a lot for me about my mother and father. all of us know that for good and for bad where we come from is from our parents. and so you heard sheila and lynn both talk about my mom today. i've year in livingston because all those years ago, my mother and father became the first of either of their families to leave the city in new work come here and make this home for us. i mom is not with us today, but i feel her and my dad is with me here today and i am really, really privileged to have him. [applause]
they raised my brother and i, brought a two to livingston when we were four year old and two-year old and then our sister dawn joined us a few years later. , these where we grew up are the fields we played on, these are the playgrounds we played on, this is the school we built our friends with and came and learned with, and up until i ,eft to share a room with mary i shared a room with todd the entire time. it was a smooth transition. [laughter] -- and my sister dawn and todd are as big a part of today as anybody else and they are both here and i love them both. thank you. [applause]
everyone thinks i am the politician in the family. we did the coin flip when we got married. i called tales and tales never fails, so i am the guy who ran, but the politician just as good as me in the family is the woman that i met all those years ago at the university of delaware from a family of 10 people. people say, why are you not shy in the crowd? i say, you should see the family i married into. [laughter] my wife has been an indispensable part of everything that i have done with my life over the last 30 years and she for thely responsible four amazing people that you see standing with her. [applause] and ever since i have been governor, i have been happy to use the veto at home, too.
so far, so good. i have not been overridden there either, so i'm glad they are here today. and for andrew and sarah and patrick and bridget, i cannot be prouder of four children than i am of them. [applause] i told you my parents moved to livingston and they moved to livingston to make this part of their fulfillment of their dream. of their version of the american dream. they both lost their fathers at a young age and were raised by extraordinarily strong women. under really difficult circumstances. of the best students in his high school class, admitted to columbia university because his father passed away, he could not go. he did not have the money. he went to work and he got
drafted into the army and came .ome he went to work at the breyers k, neweam plant in newar jersey and then decided after he met my mom, that it was time for him to make more with his wife and he went to school at night at rutgers for six years while working out those jobs during the day to get his degree in accounting. and my mother, one of the proudest pictures that she ever ourwas the one she called first family picture, it was my mom and dad on the day that he graduated from rutgers in june of 1962. the first person in either family to ever get a college was a firstit family picture because she was six months pregnant with me. [laughter] and the smiles on both their faces that they were indicative of not what they had accomplished, but what they saw coming ahead of them.
their smiles were about the fact that they thought nothing was out of reach for them now. they had each other, they were building a family, they worked together, and then with the help of both of those strong women, they gave them $5,000 each, probably all the money they had in the world to put a down payment on a house in this town to give their children a chance to take the dream they had started to build and to make it even bigger and even better. so i'll -- i not only thing about my mom and dad today, i think about my two grandmothers. women who raised children largely on their own, women who knew how to work hard and you that that hard work would deliver something for their children. i know that both of them are watching down today and that part of today is a fulfillment of their dream, too. i am thinking about both of
them. [applause] one of the things my mother always used to say all the time to me was, christopher, if you work hard enough, you can be anything. she said, god has given you so many gifts. if you just work hard enough, you can be anything. and that story is proof. .t is proof parents who came from nearly nothing, except for that hard work. parents who brought little to their marriage except for their love for each other and that hard work. work not only produced a great life for me and my brother and my sister, but think about how amazing this country is. that one generation removed from the guy who was working on the floor of the plant of the breyers ice cream plant, his son is a two-term governor of the state where he was born and raised. [applause]
see -- see, that is not only what my parents had him from ibo in new jersey has done for us. see, this place that represents the most ethnically diverse state in the country, the most densely populated state in the country, we are all different and we are all on top of each other like you are on top of each other in this gym. [laughter] that,at has come from what has come from that is the absolute belief that not only can all of us achieve whatever dream we want to achieve because of the place where we live and opportunities it gives us, but that we can not only do it together but we have to do it together. we have no choice but to work together. this country needs to work together again, not against each other. [applause]
when i became governor six years ago, we had a state that was it economic calamity and $11 billion deficit on a $29 billion budget. estate that had taxes and fees in the eightmes years before i became governor. estate that no longer believed that any one person could make a difference in the lives of the people of this state, so we rolled up our sleeves and we went to work and we balanced six budgets in a row. we refused to raise taxes on the people of this state for six years. [applause] we made the hard decisions that have to be made to improve our education system. we reformed tenure for the first time in 105 years. [applause] decisionse difficult
to reform pensions and health benefits and continued that fight today. we have stood together against each and every person, every cynic who said, why are you wasting your time? this state is not governable, the last six years, we proved that only can you govern this state, you can lead it to a better day and that is what we have done together. [applause] and now we face the country. we face a country that is not angry. when i hear the media say that our country is angry, i know they are wrong. it lasted, i want to 37 different states across this country in one year. i met people in every corner of america, and they are not angry. americans are not in great. americans are filled with anxiety. they are filled with anxiety because they looked to washington, d.c., and they see a government that not only does not work anymore, it does not even talk to each other anymore. it does not even try to pretend
to work anymore. we have a president in the oval office two ignores the congress and a congress that ignores the president. we need a government in washington, d.c., that remembers you went there to work for us and not the other way around. [applause] "christie"] and both parties have led us to believe that in america, a country built on compromise, that somehow now compromise is a dirty word. it washington and jefferson believed compromise was a dirty word, we would still be under the crown of england. [applause] this, this dysfunction, this
lack of leadership has led to an economy that is weak and has not recovered the way it should. it has led to an educational in thethat has us 27th industrialized world in math and 24th in science. it has led us to weak leadership around the world where our friends can no longer trust us and our adversaries no longer fear us. this weakness and indecisiveness in the oval office has sent a wave of anxiety through our country, but i've here today to tell you that anxiety can be swept away by strong leadership and decisiveness to lead america again. [applause] we just need, we just need to have the courage to choose. we just need to have the courage to stand up and say, enough. we need to have the courage to have a new path for america.
america knows that you, knows where we need to go and let's start with this -- we must tell each other the truth about the problems we have and the difficulty of the solution, but if we tell each other the truth, everybody, we recognize that truth and hard decisions today growth and opportunity tomorrow for every american in this country. [applause] what are those truths? ghost truths are that we have to acknowledge -- those truths are that after knowledge of government is not working for us and we have to say it out loud and we have to acknowledge it is the fault of our bickering leaders in washington, d.c., who now -- who no longer listen to us and know that they are supposed to be serving us. we need to acknowledge that all of that anxiety and those years are not the and, they are the beginning. the beginning of what we can do
together. what we need to decide is how we can make a difference. that we can stand up and make a difference in this country. [applause] you see, that is why i love the job i have. that is why i love my job as governor because kids ask me all the time, the fourth graders by to the state house every week, they ask me, the two questions always asked -- one, what is your favorite color? [laughter] always. second, they always ask me, what is the best part of your job? it is that i them wake up every morning knowing i have an opportunity to do something great. i don't do something great every day, i am human. but every morning i wake up with the opportunity to do something great and that is why this job is a great job and that is why president of the united states is an even greater job for greater number of people. [applause]
i have spent the last 13 years of my life as u.s. attorney and governor of this state fighting for fairness and justice and opportunity for the people of the state of new jersey. that fight has not made me more weary, it has made me stronger and i've now ready to fight for the people of the united states of america. [applause] america is tired of handwringing and indecisiveness and weakness in the oval office. we need to have strength and decision-making and authority back in the oval office, and that is why today, i proud to announce my candidacy for the republican nomination for president of the united states of america. [applause]
and now, as livingston and new jersey turns its gaze to the rest of america today, what do we see and what do we have to confront? we need a campaign of the ideas and hard truths and real opportunity for the american people. we need to fix a broken entitlement system that has bankrupted our country. we have candidates that have said we cannot confront this is if we do, we will be lying and stealing from the american people. let me fill everybody else in. the lying and stealing has already happened. the horse is out of the barn. we've got to get it back in and can only do it by force. [applause]
we need to get our economy growing again at 4% or greater and the reason we do is because we have to make this once again the country my mother and father told me it was. work, thatd as you is as hard and high as you will rise. that is not the case anymore. we cannot honestly look at our children and say that to them because we have an economy that is weak and does not present them with the same opportunities that mary pat and i were presented with when we graduated from college. when we graduated from college, we do not worry about getting a job. we worried about picking which job was the best for us. we do not worry about if we would be successful. we knew if we worked hard we would be successful. this country and this leadership owes the same thing to this country and my children and
yours, and i'm ready to give it to you. [applause] we need a tax system that is simplified and will put cpas like my dad out of business. [laughter] we need to get the government off the back of our people and our businesses with regulation and we need to encourage businesses to invest in america again, not overseas. invest in our country, in our people. [applause] and in a world that is as dangerous, as dangerous and frightening as any time i have seen in my lifetime, there is only one indispensable force for good in the world. and eight is a strong, unequivocal america that will lead the world and not be afraid to tell our friends we will be with you no matter what and to tell our adversaries that there
are limits to your conduct and america will enforce the limits to that conduct. [applause] well, here it comes. after seven years -- after seven years, i heard the president of the united states say the other day that the world respects america more because of his leadership. this convinces me -- this convinces me and the final confirmation that president obama lives in his own world, not in our world. [applause] and the fact is this -- after seven years of a week and reckless foreign-policy run by barack obama, we better not turn it over to his second mate, hillary clinton. [applause]
in the end, everybody, leadership matters. it matters for our country. an american leadership matters for the world. if we are going to lead, we have to stop worrying about being loved and start caring about being respected again both at home and around the world. [applause] i am not running for president of the united states as a surrogate for being elected prom king of america. [laughter] i am not looking to be the most popular guy who looks in your eyes every day and tries to figure out what you want to hear , said, and then turn around and do something else. when i stand up on the stage like this in front of all of you, there is one thing you will know for sure. i mean what i say and i say what
i mean and that is what america needs right now. [applause] and unlike some people who offer ofmselves for the presidency 2016, you are not going to have to wonder whether i can do it or not. in new jersey as governor, i have stood up against economic calamity and unprecedented natural disaster. we have brought ourselves together, we have pushed back that economic calamity and we are recovering from that natural disaster, and that is because we have lead and work together to do it. [applause] as governor, i have proven that you can stand up and fight the most powerful special interest this state has to have and stand up and stop them, but at the
same time, reached across the aisle to our friends in the democratic party and say, if you have a good idea, i am willing to work with you because that is what our country needs. [applause] and as governor, i have never wavered from telling you the truth as i see it. and then acting to make sure that you know that it is the truth as i believe it in my heart. you know, as a candidate for president, i want to promise you just a few things -- first, a campaign without spin without pandering or focus group testing . you will get what i think whether you like it or not to whether it makes you cringe every once in a while or not. [applause] campaign when i am asked the question, i'm going to give the answer to the question that is asked and not the answer that my political consultants told me to get backstage. [applause]
a campaign that every day will not worry about what is ocular but what is right because what is right is what will fix america, not what is popular. [applause] campaign that believes. that believes in an america that is as great as the hopes and dreams that we want every one of our children to have. sot a campaign that tear people down but a campaign that rebuilds america to the place where you and i grew up and where we want our children to go up and again and where we want free people around the world to go up and in their countries as well. that is what america has always stood for and that is what this campaign will stand. [applause]
and all the signs of saying, telling it like it is, there is a reason for that. we are going to tell it like it is today said that we can create greater opportunity for every american tomorrow. the truth will set us free, everybody. [applause] all the years, all 52 years that i have spent in this state with our people have prepared me for this moment. we have no idea where and how this journey will end, but we know that it is only in this country, only in america, where someone like me can have the opportunity to seek the highest office the world has offer. only in america could all of you
believe that your voices and your efforts can make a difference to change a country as big and fast and powerful as this one. only in america, only in america have we seen time after time after time the truth of the words that one person can make a difference. trueee, the reason that is is because it is the only thing that has ever made a difference in the history of the world. one person reaching out to another to change their circumstance and to improve the lot of their children and grandchildren. i do not seek the presidency for any other reason than because i believe in my heart that i am ready to work with you, to restore america to its rightful place in the world, and to
totore the american dream each one of our children, whether they live in livingston, camden, patterson, or jersey city, no matter where they live across this country, we need to ofe sure that every one those children believed that they have a president who not only speaks to them, but who hears them. who hears them and understands that their voices, that their voices, is what makes any american president great. if you give me the privilege to be your president, i will wake up every day not only with my heart strong in my mind sharp, but with my ears open and my arms open to welcome the american people no matter what party, no matter what race, or creed, or color to make sure that you know that this is your
country, too, and we are going to go and win this election and i love each and every one of you. thank you very much. [applause] ♪ >> that was christopher james christie. officially announcing he is a candidate for the presidency of the united states becoming the 14th republican to enter the race at the high school from which he graduated, livingston high school in livingston, new jersey. chris christie telling the crowd, about 1000 people, that the truth will set us free promising a campaign of big ideas and hard truths. the campaign without spin or pandering. the campaign in which he promises you will "get what you think whether i like it or not or whether it makes you cringe every once in a while or not." a speech in which he worked without a prepared text
apparently glancing at a note card on a little podium there, but more or less free forming throughout, keeping his family on stage with him throughout the speech. relaxed chris, christie who enters the race and now they decided underdog with poor poll ratings across the country and in the early states. high unfavorable ratings in the republican party, high marks among those who say they would never consider voting for him in the republican party and the relatively narrow path of nomination, one that will focus, as he will for the next few days, on new hampshire trying to in the primary there. trying to raise poll ratings enough to get into the republican debates where he hopes his magnetism and charisma and his appetite for straight talk, for telling it like it is, we'll get him attention and help them to break up into the top tier of the pack. let me go to al hunt real quick. what did you think of that
performance by chris christie? al: i thought it was the full chris christie, john. that is a force. he was dynamic, as you said. it was freeform. he may have had some notes around the stage, but this was all chris christie. he said, tell it like it is. he said, even if it makes you cringe, i look forward to that. i can't think of any more fun as a journalist to cover in a candidate if he really does that. a lot of emphasis on taxes. excuse me, he said i did not increase taxes and i stood up to those pressure groups i wanted to do it and talked about the dysfunction in washington. he is going to try to draw a parallel between what he did in new jersey versus washington. that is where some of the problems begin because new jersey is not in great shape right now. reduced nine straight times, it has got huge unfunded liability and he is very unpopular. he will have a record that will
be tough to defend, but he will make for this -- you will make for a more interesting race. john: thank you for those words. we will toss our viewers back to our friends on bloomberg tv to rejoin "bloomberg markets." for those of you watching this on her website, we will see you there presently. i will be back on the president's press conference just afternoon. thank you for watching. pimm: thank you, john. co. on -- cowen group "all due respect." o" writer, al hunt. chris christie announcing he is not -- candidate for the presidency. we will have more, coming up. ♪
like -- who would like president obama's job. we will hear from the president himself who was holding a news conference at brazilian president who is visiting washington. also in washington and sending by his bloomberg's own phil mattingly. tell us a little bit about what we can expect from this news conference. the same president battling corruption and scandal in brazil. maybe this is a bit of a respite. phil: a lot of problems at home and a willingness or hope to piggyback off the approval in brazil to help her outstanding. this is coming along way from october when president roosa canceled the statement in the united states in the wake of the edward snowden revelation about the u.s. spying on top as a unit leaders including herself. an earlier in 2013 in front of the un's general assembly, she said it may clear that that u.s. filing a basic human right, so obviously the countries have had
a lot of damage to repair here and i think the white house, according to officials, have made clear that that is the primary goal. i think he saw the president yesterday to resident rousseff to the martin luther king memorial with what he did with prime indian -- indian prime minister and that has been his go to, if you will, to work with world leaders. there was a lot president rousseff has again. the approval in brazil is 63%. president rousseff's is 10%. there is hope that he can take it and point to it back home to improved standing amid allegations. pimm: after the president was granted the fast track authority for the asian trade agreement, will trade be a topic the tween the president and president& from brazil? hil: trade between the u.s. and brazil has increased more than $100 billion, but still, i think there is an expectation amongst u.s. officials and amongst brazilian officials that we have
heard from that more could be done there, so i think that is high on their agenda. the other top thing is climate change. the present looks at president rousseff and her agenda as a key ally as they were when it comes to climate change. they have already announced that brazil has committed to increase its share of the use of renewable energy and its mix of up to 33% of its total energy use by 2030, so giving commitments there. i would say trade, climate change as two of the four items on the agenda. pimm: any idea about the chemistry between the president and obama? has been high school for a number of years but both realize there are benefits and they are more focused on that it may be how they feel about one another behind-the-scenes. pimm: thank you very much, phil mattingly, awaiting president obama's news conference with brazilian president dilma rousseff.
let's go to julie hyman. julie: thank you, penn. let's take a look at stocks. they are coming up to some degree but rebounding from yesterday. for the s&p 500 and the worst day since last april, april 2014, that is. joining us today is kevin kelly, chief investment officer for recon capital partners. kevin, i was a just looking at this which is interesting because it is not down today even though a stocks are higher. right now it is going flat if you will. interesting that it is not selling off, is there an expectation of volatility is now here to stick around and yesterday was just a one-day event? kevin: there is that expectation and one of the biggest indicators that it will stay here or possibly even more is the volatility of the fix. the average, historically, is 86 level. yesterday, when we were down 2%, at 117.d at once .17 --
one of the reasons is we have not seen any real consensus coming out of greece. there was still that uncertainty, so that is by you are seeing it stay elevated to the v vicks is saying, hey, it is going to vacillate between 15, 20, 18, maybe 14 and will not behold, where it stuck around 13 or 12 handle. julie: volatility is getting more expensive to buy protection in this environment, so is there any way to do it where you are for thatof paying up protection right now? kevin: there is a lot of great ways to not pay up for protection and when we could do it is through strides. what we were seen yesterday in the options market is people were starting to trade a lot around the 20-50 level and then also excel lower ones because they do not think there would be a broad correction down 10%, but they are really nervous it will hit that 20-50 level and they were doing it over the next dr. weeks, so you have the weeklies
going out for the next month that they are exercising in that strike price. julie: talking about the s&p 500 in particular. i also want to talk about another store we are following and that is china. fascinating couple of days, huge swing on it intraday basis today. you are looking at the nas hr, which is the a shares etf that trades here in the u.s. you are not thinking china will continue to rally like we saw today? kevin: no, and what is great about the options market is you can put on cheap hedges or get insurance or just take a bearish stance, but it does not have to cost a lot. we talked about chad came out last week with an inverse with a 10% cost to carry. what you can do is go into asr -- a hr and by the 44 strike put out in august, so the 38 and will only cost you two dollars but it is protecting you on that spread and you do not have to worry about the kerry cost and will protect yourself.
it is a cheap way to do it and there is liquidity because there is that volatility as well. julie: why do think we are going to see more downsides for that? kevin: it is cussing of capitalism at its finest over there. reports cannot that only 60% of the actual individual investors have high school educations in china. it is really a parlor with triple digit pe levels, so it is really uncertain and the margin levels are extremely high over in china, so there is a lot of uncertainty. immersing billionaires be made overnight and destroyed overnight in those markets. china fromimism in kevin kelly of recon. thank you so much. do not go anywhere. ♪ we live in a pick and choose world.
matt: finance ministers will hold yet another emergency meeting to consider the greek government's request for a new bailout program. the new development coming hours before the country faces of financial meltdown. pimm: president obama and present president rousseff are scheduled to hold a joint news conference at the white house in just a few moments from now. we will have live coverage of that meeting. matt: we will look at the dramatic rise and fall in the price of rare earth metals. molycorp's pushed into bankruptcy. pimm: good afternoon. i'm pimm fox. matt: i'm matt miller. let's take a look at the markets. take a look at the equities market, games with a rebound from yesterday with s&p 500 up about four points