The a package is for 94 billion. Approval was expected. Merkel Closing Party holds a majority in parliament. The head of the vote, she said it was their duty to help greece. Chancellor merkel i know many have doubts and worries about whether thisll be successful whether greece has the strength to criminally go down this road and nobody can wipe beside those worries, but i am convinced of one thing we would be grossly negligent, even irresponsible, if we did not at least try this road. Erik with the promise of help on the way greek Officials Say banks will reopen on monday. They have enclosed for 20 days. As if this fiscal crisis were not hard enough on the greece, a large brush fire erupted near athens and push clouds of smoke into the capital city. Matt federal authorities are not yet pinpointing a motive in the attack that killed four marines in tennessee. Investigators are checking social media and questioning funds of the friends of the alleged shooter, mondelez Mohammad Youssuf abdulazeez. The suspect was the name was not listed on any federal watch list. The attacks left a Police Officer and another u. S. Military member wounded. The shooter attacks a pair of military targets, a recruiting office, and training center. The suspect had no criminal history. And the iranian deal will be the first order of business when president obama sits down with the high raking saudi of fishy highranking Saudi Arabian official. The saudis are not happy about the agreement with iran. Saudi arabia and other sunni nations question whether irans shiite readers will live up to the deal. The and calls for easing sanctions on iran if it promises not to build nuclear weapons. Erik ebay and paypal are slitting up today, and they will have different challenges individually than they did as a combined company. Ebay, for example, is a facing stiff competition from amazon and other online retailers. Aol will face off with mobile wallets like apple and android pay. Paypal will face off with mobile wallets like apple and android pay. Carl icahn first lobby for the move. Groupons purges of the on demand, online, and mobile food marketplace signals it is likely to take on the likes of grubhub. Most of the 40 u. S. Markets are outside top metropolitan areas. Matt the world of the top golfers are coping with puddles in the british open. Heavy rain temporarily stop secondround play. Workers needed squeegees and cons to get rid of the water and pumps to get rid of the water. Jordan spieth has not started his second round. He is at 5 under. Tiger was hoping for Better Weather because he was hoping it will help him make the cut. Erik he had a disastrous first round will stop tiger has not won the british open since what, 2006 . Matt i have not seen tiger when much of anything, i only started watching a few years ago. Erik we need to get you started with the five things you need to know this morning. It will not surprising the number one has to do with greece. It is still a big story. Germanys parliament backed the bella package. That is the news. Lets take you to berlin where bloombergs hans nichols is standing by. We knew or we had a pretty good idea anyway that germany was going to go ahead, the bundesbank was going to pass this package. What is important about what we heard from Angela Merkel, from the likes of Wolfgang Schaeuble . Howard well, Angela Merkel hans well, Angela Merkel and Wolfgang Schaeuble the fact that people defended his idea of a plan b, a bailout, also a gregsgrexit, is important. Also, the sound of german mps packing their excuse parachute because if negotiations go south, there is a third bailout. They are very willing to pull the chords on those parachute, drift down, and not have a bailout for greece. Erik to that point, the numbers, overwhelmingly passed suggests that there is a lot of support. It sounds by some what we knew going in that the germans are effectively closing their eyes and holding their noses while they has to this package. Hans they are doing more. Theyre closing their eyes, holding their noses, and they are telling the other side that whenever they come up with is going to be very, very. Remember, this is just a vote to start the negotiating process. He will have 3, 4, maybe 5, 6 weeks of tough negotiations not just between the germans and the greeks but between the germans and the imf because they are clearly on a different page. The overwhelming takeaway i have from this is the germans are prepared for these negotiations to fail. They have an escape path, a plan, a temporary exit of greece from the eurozone. It is clearly in the german public conscious. Matt did mrs. Merkel hans promise or parliament that she would not allow any Debt Reduction for greece . Hans that is what i heard. Debt reduction, not debt relief so the question is how can you finesse that . Is a 30year extension of maturity, a backdoor haircut, as mr. Schaeuble said yesterday, we do not know of germany will abide any sort call them accounting, not gimmicks accounting methods to elongate the debt and not have it show up as a nominal cut. Erik Financial Engineering is what we call that. Matt hans thanks so much, hans nichols and berlin. Number two, around the world, central bankers are moving market, signs that britain is getting closer to raising Interest Rates, sending the pound to a sevenyear high. Stimulus for the eurozone spurred again in bonds. The chair janet yellen also made the case for raising rates sooner in her testimony before congress, so it looks like the pound is getting much stronger and the dollar will also gain strength, although a lot of that dollar move has kind of price d in. Erik now we are back to where we were before when the only thing that matters is what the central bankers do and say. Matt i am not sure that is the only thing that matters, but hey erik if you have been an investor for the past five years, what else has mattered . Matt say you are a greek citizen erik if you are investing markets matt what if you are chinese . A lot of people are putting their money and safer assets and they will do that regardless of what the central bank is doing. I just want to preserve their capital, right . If you are holding argentinian wealth, you will do anything to put an end dollars, regardless of what janet yellen says. Erik yeah, but that is if you are argentine. What if you are long the chinese yuan the yen . Matt so first world westerners are making decisions erik listen to the central bankers matt there are billions of other people julie i have something on number three that has also affected, you did make the decision, erik, between investing in markets of a whole, and investing in individual stocks, but earnings have continued. They are never unimportant, certainly not in my world, but lets stop by number three and general election and general electric. It has been accelerating its efforts to shrink that Capital Finance unit, and indeed in the quarter got a lot of its profits from some of its industrial units, so the stock is up in early trading. Erik i know you have followed the shrinking of ge capital as a company, and it seems like the strategy has worked to sort of get out of that business and refocus on what ge has a was been known for. Erik working. Working, i would say. It is not like tearing the cover off the ball either in the terms of earnings or the stock price, which will be of a little more in total once the premarket trade get factored in to the official stock price, but there you have an idea of what ge has done since the beginning of the year. Julie industrial is not glamorous, and you do not have the sort of fireworks that you had when she capital was a more successful investment, right . Matt i feel like industrial is pretty glamorous. Alloy wind turbines. Julie turbines, are they glamorous . Matt julie, you had number four, definitely a glamorous stock. Especially if you are long. Julie you could argue that. Google the shares are up sharply, 13 you see there. Better than expected sales, up by 13 , and googles cfo has plans to rein in spending, to focus on cost controls. That had been a concern of investors here. The expensive moonshot that google, are they investing in anything that make money gekko in her statement and the conference call, she definitely signaled that she was aware that cost is something that the company has to focus on tears she said also, that the priority as Revenue Growth, and that makes the 13 Revenue Growth. Matt i wonder if they will pitch her at all against larry page because it seems like he would be all for trying to invest in a commerciallyviable flying car and she would say no, larry, we cannot do that. erik remember sergey and larry control the company. They decided to bring ruth porat in and for that matter eric schmidt, because they need somebody who knows how to rein in expensive. They are growth guys. They do not know how to matt they may want a counterweight. Erik dont you think it is fascinating how much small words matter . All she said is it is not obviously consistent, and that is enough to send a signal to the world that google is a changed enterprise. Julie it is also a situation where people can read into it what they want. Investors are desperate to hear something about expense management, and she dropped a little mention of it, and that is something they seized on. Matt let me get to subject number five, dish talks with tmobile have stalled. The slowmoving negotiations from dish to acquire tmobile have come to a standstill over concerns related to valuation and structure. Do you know why i care about this . Erik tell me. Matt i went to seattle in 2001 when Deutsche Telekom bought tmobile from clear stream, so i was there when former ceo ron sommer throughout the first pitch. Erik for you it is all about nostalgia. Matt i have seen them biased and now i am seeing them sell it, so i have followed the life of tmobile from birth to death erik hardly matt it is not death, but for u. S. Mobile ambition, it is. Erik coming up, the bailout between europe and greece will not work in another hell. We will get details on what plan the imfs will work up next. Matt imf erik imf managing director Christine Lagarde said the bill agreement is categorically not viable. Imfs first deputy managing director david lipton is with us this morning. David, can you explain in a bit more detail what adam lagarde means when she speaks about relief for greek debt . Issue talking but a haircut or relief in any number of other terms is she talking about a haircut or relief in any number of other terms . David what it calls for is a combination of other policies that will fix greeces problems and a financing path, new financing and Payment Terms that would go along with that, that would leave greece in a sustainable situation. That combination is what we always seek. We think there is a narrow path forward here, and we are trying to help greece and europe chart that path. What we need is greeces payments to be success to be consistent with what greece can pay. We structured our suggestions in terms of a maturity period grace periods and Interest Rates because we know europe is more inclined to consider that and other ways to reduce debt burden. Erik in other words, david, it is not a haircut or no haircut there are ways of relieving the debt burden upon greece, like you said, grace periods on interest, extending maturities that could work, and if implemented, you believe would work. David yeah, we have put out a debt sustainability analysis. We have done the math, and we think it would work. Matt how would you do it . David what we have suggested is what we prefer because we understand that in europes legal structure, haircuts are not envisioned, so we proposed an approach that we think is a practical one. Erik of the 320 billion euros in debt that greece owes to its creditors david, how much i mean, again, i do not want to phrase it in terms of reductions because then it sounds like we are talking but a haircut. What is manageable . Lets put it that way. What is manageable for greece . If you think about it and mortgage terms come everybody has a monthly amount of money that they oh in Service Costs on their money if you think about it in mortgage terms, everybody has a monthly amount of money that they owe in Service Costs on their mortgage. David we are focused on, as you would put it, the annual debt service bill the interest and principal, so we think there have to be many of years of breaks where there is not a principle retained, and then a long, quite possibly 60year lon g period of a retainer. We think there is a way to match the annual repayment requirements with greeces ability to regenerate those payments. Erik are you optimistic, david . Angela merkel and her finance minister Wolfgang Schaeuble have ruled out haircuts. What sense have you gotten that they are prepared the honey scenes to consider behind the scenes to consider some of these . David there is confusion about the terminology. They have made clear they do not consider haircut something envisioned under european law. I think we can have a discussion about debt rePayment Terms. In fact, we had a discussion about this in 2012 where europe provided assurances to the imf that greeces debt would be made sustainable. It was not a specific commitment, but now there will be a need to be more specific. Matt what is it, david, that Wolfgang Schaeubles idea that greece needs a timeout . That it needs to leave the eurozone and european currency for a short while before you come back in. With that be a possibility . David if europe and greece set together and decided not to go that route matt yet schaeuble continues to float up alone. David if he floats that balloon, i am not sure what he is intended given there is an agreement here to go forward. Many advocate exit grexit either temporarily or permanently. They advocate that because there was no they know there would be a bigot depreciation and greek wages will continue to fall. What really matters are greek policies. If there were a grexit, and greece granted wage increases you would still end up in a messy situation. What really matters is whether greece adopts the policy to fix its problems or not, not in or out, and they have chosen in. That is the routes they have chosen, and we will help them work on that approach. Erik david, thank you very much, have a good weekend. David lipton is the first deputy manager at the International Monetary fund. Matt google searches for growth, while larry page wants self driving cars. The new cfo, ruth porat, says it is time to rein in spending. Details next. This is a great place to work. Not because they have yoga meetings and a juice bar. Because theyre getting comcast business internet. Comcast business offers convenient installation appointments that work around your schedule. And it takes done. About an hour. Get reliable internet thats up to five times faster than dsl from the phone company. Call 8005016000 to switch today. Perks are nice. But the best thing you can give your business is comcast business. Comcast business. Built for business. Matt google shares are up about 13 in premarket trading after the company signaled plans to rein in spending. Google reported earnings yesterday, it has been looking for ways to produce growth including projects that could sometimes be very expensive to r d like driverless cars. Bloombergs cory johnson joins us now. What you think about this . Ruth porat is looking to rein in spending. How serious is she about that . Cory it was only words. That is so unfair. It actually happened this quarter, they boosted revenue enough better than what wall street was expecting. Spending has been coming down matt hang on, do you think the analysts could have possibly lowballed the numbers . Cory i think they did not expect expenses to be cut as much as they were. I think we saw a continuation of two important trends, one really good, one really bad. So the number of cliques that they got continue to increase. Think about the world as the will goes from desktop to mobile. We are getting more and more ads more and more computing on our tablets, particularly our phones. It is on 18 yearoveryear increase on the number of cliques on ads. That is good news. The bad news really bad news in the prices. The people at google really think someday we will see a value of cliques stop falling, even though we have gone from desktop to mobile. It looks like suddenly we were at least going to flat line. Matt i think that is interesting. Cory it is getting worse. Matt clearly they are directing ads at consumers better, so i get asked that are more relevant to me. Erik when is the last time you clicked on a global a on a google ad . Matt yesterday. Erik really . Matt i usually click on things that are geared toward my interests. And the other thing cory they are not blatantly highlighted. Matt i think it is easier to go from click to spend than it was years ago. Why is that nothing . Cory this is one of the great conundrums of our modern age. Advertising has gotten more direct, more traceable, more customizable erik more valuable in terms of what it generates. Cory you would think so, but that trend from going desktop to mobile, that value of the click falling is not the beginning of the trend. The beginning is going from tv ads with burping frogs talking about budweiser to yahoo display ads. Prices fell dramatically. Pick up a copy of Sports Illustrated it is tragic because ads went from widely displayed to online. We see the epms falling across the industry. Erik made the world now that we have a marketplace for ads, a realtime marketplace, people are recognizing that the ad does not really work. Cory headcount has been going up at google for a long time, but the rate of increase has been going down for a long time. Hard numbers, 57,142 people were employed at google this last quarter, and while that is more than the last quarter, it is only a 3. 1 increased, the slowest rate of headcount increase seen in years at google. Back to the original points spending is coming down, hiring a slowing, so the things that they hoped for our already happening. Matt all right, cory thank you very much. We have breaking news at 1100 lets say 1. 1 one million on an annualized basis for the month of june. The previous month, 1. 03 6 million 1. 036 million for the month of may. Erik it dropped 11 . Vonnie it is definitely true we are expecting a rebound from the 11. 1 drop. There are future indicators we are expecting those to drop, so that is interesting. We have the data. Housing starts month over not month over month 9. 8 , that are than forecast. The drop was 10. 2 . Building prevents Building Permits continuing the strong trend. We have a twomonth gain of 9. 6 , 7. 4 for Building Permits. Lets go to cpi, an important indicator of inflation. Month over month coming in at forecast, up. 3 . The cool rate rises. 2 . We will see how much shelter is an impact when it comes to inflation, picking up a little steam here. We are not seeing Much Movement in futures, and the 10year yield is. 67 . Erik and matt . Erik this is a monster month for Building Permits. We have not seen anything this strong since july of 2007. Matt it is the biggest since the financial crisis. Erik before the beginning of the recession, yes. Matt i am looking at your chart and cannot see anything like that before 2005. Erik kelly show everybody what i am talking about yakima this is my blimp can we show everybody what i am talking about . This is my bloomberg terminal going back to august 2007. Vonnie it is multifamily as well, we re are seeing gains. If you look at multifamily, they were up much more than singlefamily. Tracking down if you look at a four month average. Multifamily month over month up 29. 4 . Erik the latest on housing, Building Permits and Housing Starts coming out well ahead of economists forecasts. Matt another day, another billionaire emerges as Goldman Sachs reported earnings yesterday. Our bloomberg billionaires index crunch the numbers of Lloyd Blankfein and found his net worth to be 1. 1 billion. Lloyd blankfein, newly minted billionaire because of his work at goldman. Yes he has been an executive there, has been there for over 30 years. The shares have quadrupled since the ipo. So he has written that to the top. Erik this puts him more or less that can now with jamie dimon, slightly over 1 billion this puts him more or less that and neck with jamie dimon. How much of that billion dollars has come in the form of direct convert how much of that billion dollars has come in the form of direct compensation . Michael he has benefited doubly from being awarded the shares and those shares depreciating. All of his wealth comes from Goldman Sachs, whether it is through cash bonuses stocks or investing in private equity. Matt his salary is only a tiny amount of that. This are there any other wall street ceos, or bank ceos up here besides jamie dimon . Michael not that we have identified at this point. Jamie and lloyd have stuck around the longest. Being in a Successful Company where this is like the opposite of the ceo of Lehman Brothers who had a ton of equity. Matt outside of this bloomberg wall street bubble that we live in, a lot of people see this as a negative headline. Another banker gets uber rich. Have us sacks react to that . Michael i think they view this as if you work here for a long time and you work very hard and you tie yourself to the company they really value that part they value that partnership feel. They call the top people partners. Matt this is about the size of the loan that the imf is looking at in cyprus. I remember you interviewed Lloyd Blankfein about this back when people really hated wall street bankers. He defended himself. Michael of course, hes going to defend himself. Erik my issue has more to do with the idea that somebody can become a billionaire working for shareholders. Michael it brings up the idea of the balance of rewards between ceos and shareholders. Erik how much risk is really being taken by the guy at the top on a personal level yakima it is a longer debate. On a personal level . It is a longer debate. Folks, if you are melting from the heat, youre not alone. 2014 was the hottest year on record on this planet anyway. Global warming is an issue. We will talk about a company that wants to be part of the solution next. Erik june 2015 was the second warmest on record in america, and the First Six Months or the hottest start to the year since we started keeping records. With that in mind we have a series calling changing climate, changing business. With us now is our guest who runs projects that increased energy efficiency. Lets give you more lets give everyone more background about your company. You do three kinds of investments, solar, wind and efficiency. People do not know what efficiency is all about. Thanks for the question. Efficiency is one of the most interesting and impactful ways to reduce Greenhouse Gas emissions in the mobile environment. We have been financing efficiency since the 1980s even before Climate Change was a topic and it is a terrific set of technologies normal stuff lighting, a heating, cooling. This room has leds in it, and it is not warm. The technology is so good, but it is high first cost, low operating cost. The real challenge is to, for the rapid adoption of clean energy projects, is to get them installed erik it uses investment effectively, right . Jeff thats right. It is the kind of capital we are providing. Matt isnt that an easy sell on the highend . It makes perfect sense to put in more money at the front if you are paying less throughout the life of the investment. Jeff it makes perfect sense. It is often not a priority, so our clients some of the Largest Industrial Companies in the world worked very hard on selling those technologies and services. We embed capital in our Service Offering to increase the uptake of these technologies. Erik you talked about financing. From what i understand, you are a Debt Financing company. You buy cash flow streams . Jeff it is all flights of the Capital Stack debt, equity, mezzanine. What is required as the Technology Changes is flexible capital. It is not often able to be provided by banks. A lot of it comes in relatively small chunks, so Insurance Companies are not a good source of capital. We are filling a niche that is really rather in normas that is really rather enormous, and creating the kind of capital that gets projects done. Erik but you are not operators. If you invest in a wind farm or a utility grade solar project, youre not actually running the business. Jeff no. Think johnson can call think johnson control, some power, siemens. Matt what are you most excited about now, jeff . If we are making the world a better place for real, what has the best potential for slowing down the effect of Climate Change . Jeff it is undoubtedly efficiency. Every kilowatt hour can be used more efficiently, and more work can be derived out of that with better technology. The technology we need to make a serious and in the increase in emissions exists today. What needs to happen we look at it as a massive finance problem. It needs to get adopted more quickly than it is, and that is why we are embedding our Financing Solutions into these engineered solutions. Erik one of the things i was wondering is why you are not more levered. If you were investing in predicable cash flow streams in the form of utility great soul are and utility grade solar and wind farm projects, why not amplify your spread by borrowing more . Jeff theres always a plan to increase leverage. Right now im dividend yield at 5 with a 15 guidance on the share price gives us 20 total return. We will have more leverage over time. It is a 35yearold business. We have been public for only two years. Erik last i looked, your debtequity ratio you are little more than two times leveraged right . Jeff thats right. Our current target is 2. 5 to one in the next year and a half. Erik thank you very much. A really interesting business and i hope we can speak again. Jeffrey eckel is ceo of a Company Investing in wind farms and solar and efficiency. Matt move over shake shack, there is a new burger joint in town. Now it is making its next move overseas. We will talk to the ceo next. Vonnie we want to point out that the Canadian Dollar has weakened past u. S. 1. 30. We got news out of canada that cpi inflation pictures cpi inflation pressures are being kept pretty new. These inflation pressures are being kept pretty muted. Two rate cuts in six months in the bank of canada. Matt . Matt thanks for that breaking news. Americans craving meat obviously. According to npd group, 9 billion burgers were ordered in the u. S. Last year. One of those burger joints getting a piece of the action is shake shack. Shares have soared since january. But there is a new burger in town burgerfi. It started four years ago and boasts 71 restaurants in the u. S. Today it announced expansion into london. The ceo joins us from boynton beach. Thank you for joining us on Market Makers. What makes the Better Burger. There are so many burger joints. What differentiates yours from the other Better Burger places . Well, there really are three ways in which burgerfi is different from the competition and the Better Burger segment. First, it is our ingredients. We use 100 natural angus certified by the u. S. Department of agriculture. There are no antibiotics, growth hormones, or steroids. Secondly, it is our preparation. We prepare many of our products from scratch in the back of our house. We were started by seasoned chefs who believed there was less burger joint and more gourmet restaurant in our kitchen. We make things like burgerfi sauce using 12 fresh and Natural Ingredients every day. Lastly, it is about sustainability. We up cycle a lot of our products. That means that, for example, many of our chairs are up cycle from 111, 20 ounce plastic cola bottles. Consumers are going to restaurants that have values similar to theirs. That is where burgerfi is different from the rest of the pack. Erik why london . Corey we were very fortunate to align ourselves with two very successful Hospitality Business entrepreneurs jamie wood, who is the son of Rolling Stones guitarist ron wood. And constantine. These are two young, very aggressive businessman who were introduced to us and visited our restaurants in the united states. They explained to us that citizens of the u. K. Are similarly interested, as americans are, in dining where you can get food that is natural, fresh, and clean. Erik pardon me for interrupting. I am familiar with a burger chain in london that is quite upscale, called byron. Is that who you see yourself competing with . Corey matt we are a fast casual experience, meaning we do not have waiters and waitresses. We see ourselves in this unique segment where we have this experience where you can get highquality food that you will find in fullservice restaurants, but in that fast category experience with cool lighting, fun music, wifi, family seating. That is where we set ourselves apart, and that is where we ourselves that is where we are setting ourselves apart in london. We will go into Central London as well as the Wembley Stadium district. Matt a lot of burger joints there is one here called five guys that started in new jersey. They are great but they have trouble breaking out of the area. Is it difficult to break out of the more regional market into the National Scene . Corey we have proven that we have been successful in doing so. Internationally, we struck deals with mexico and panama. Our first mexico city restaurant is under construction. Burgerfi, while we are concentrated in the southeastern united states, has expanded naturally. We have a store in anchorage alaska, that is one of the most popular fast casual restaurants in that part of the united states. Matt i am looking forward to trying one myself. Thanks, corey. Erik we are taking a short break on bloomberg television. Matt but dont worry, we will be back. Julie you are watching Market Makers. Lets start with best buy. The stock is being downgraded at bank of America Merrill lynch to underperforming. It is above 32 right now. Analysts are looking at possible downside in the second half of the year due to what it called a mixed product cycle. Also, best buy keeps reinvesting in its business. That would offset strong costcutting efforts. National oilwell varco down. The Drilling Market will remain in a state of overcapacity over the next three to four years. We will have much more Market Makers after this break. Announcer live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Erik this is Market Makers on bloomberg television. It is friday. Im Erik Schatzker. Matt we needed this. This friday we needed a little bit. I am matt miller, in for stephanie ruhle. Because it is friday, we have the yearbook game grid stay tuned for that. Erik first lets have a look at headlines. German lawmakers have given overwhelming approval to opening detailed negotiations with greece on the new bailout package. Lawmakers voted 439119 in favor. The proposal carries a threeyear aid package for greece at 94 billion. Angela spoke in favor of the bailout before the vote. Angela merkel i know that many have doubts and worries about whether this will be successful, whether greece has the strength to permanently go down this road. No one can white beside those worries, but i am convinced of one thing no one can wipe beside those worries but im convinced of one thing. We would be irresponsible not to try this road. Erik greek banks will reopen monday, thanks to the new injection of liquidity from the ecb. Those banks were closed 20 days ago. Greek Prime MinisterAlexis Tsipras is expected to reshuffle the cabinet as early as today. His party is splintered after this weeks vote on severe cutback creditors demanded. 38 members of his own party dissented, and several have offered resignations. Matt federal authorities are not yet pinpointing in motive in the attacks that killed four marines in tennessee. Investigators are checking social media and questioning friends of the suspected shooter, mohamed used a fabulous year the 24yearold suspect was born in kuwait, but was a naturalized citizen. Two women were led away in handcuffs. The suspects name was not listed on any federal watchlist. The attacks also left a Police Officer and another u. S. Military member wounded. The suspect had no criminal history. A somber anniversary today in eastern ukraine. It has been one year since a Malaysian Airlines passenger plane was shot down, killing all 298 people on board. Ukrainian president Petro Poroshenko is pointing the finger at russian resident vladimir putin, calling it a ruthless terrorist attack by prorussian separatists. He says it could not have occurred without a direct order from russian top military and political leadership. Russia denies involvement. Erik ebay and paypal are splitting up into two separate companies, and they will face different challenges than the one they faced together. Ebay is facing stiff competition from amazon and other online retailers and dealing with the lingering effects of the daily of a data breach. Paypal ebay said in late 2014 it would split off paypal. It was under pressure from activists, including carl icahn. Google is indicating one of its self driving prototypes was involved in an accident for the first time. An suv outfitted with cameras and sensors was rearended. Three google employees complained of minor whiplash. One note about the self driving car it does not do anything about other peoples bad habits. Matt so you could run into one. That is true about all cars. You have to be careful for other peoples driving. I want to return to our top story. One hour ago, german lawmakers voted to approve a third reef bailout with 439 a third greek bailout. Hans nichols is in berlin. Let me pose a question. It seems to me that Angela Merkel used her Political Capital to push this through. German parliamentary members are not at all optimistic about the future prospects of greece. Hans german parliamentary members would say they have the realistic view that the debt burden in greece is too high and the easy way to do this is to have a temporary exit from the eurozone and write down their debt and maybe come back. Merkel had 60 defections from her party. The 119 abstention or no votes came from the left. They came from the austerity crowd of testing behind me at the gate. There were four defections from the the basic argument from the right, you are throwing good money after bad, stop doing it now. From the left, give them a lot more money and write down what you have previously given them. The negotiations are going to be difficult. Do not think this is a done deal. I wish i could say it was a done deal and take august off. That is not going to happen. Matt so are she and schauble on the same page . She is pushing it through with all her might, and schauble seems to be almost questioning of this attempt, even still today floating balloons that there should be an exit. Hans he was pretty clear about that yesterday as well as today that he thinks the easier way to do this is to have a debt writedown that makes it more sustainable to have a temporary exit. Angela merkel was not quite that far. Three months ago there was a lot written into maybe a split between the chancellor merkel and minister schauble. That is less true today. They seem to be on the same page. If anything, the split will be between merkel and madame lagarde. Erik the Vice President of the European Commission says there is now an agreement on a bridge loan for greece, and the disbursement will reach greece on monday. It looks like things are coming together quickly for the 7 billion euro the greeks so badly need. Hans it just gets them moving forward. They still need to figure out what the terms are and what the 86 billion loan will be and crucially, will the imf take part. Erik the Vice President at the European Commission says it may take a few weeks to get that bailout agreement that we know is going to be matt i hope that the ecb can give them that money before the ecb takes that money back on july 20. Because taking with one hand and giving with the other erik even on a friday everybody, full throated cynicism. Matt it is not cynicism. You have to pay your debt or at least you should consider paying your debts. Erik i want to continue on greece. For that we will go to athens because mark you scale mark our friend, is in athens. He is talking with some of the heads of greeces biggest banks. Great to have you on the program. What are you doing in athens . Why are you there . Mark actually, i am headed out for a little relaxation next week on a cruise. But we came in one day early, and i thought you cannot be in athens for a next today and not do some business. So i was very fortunate. A couple of our great manager friends and setups and meetings. I met with the ceo of caress bank of corea bank. Serik what have they told you . Are they confident . Opening the bank does not tell the whole story. Mark not at all. It is a very good point. The key is that the bank holiday was clearly necessary given that you needed to maintain stability and confidence and avoid the run on the banks. Everybody talks about the big lines at the atm. We saw a few people standing in line today. There is no panic in the streets. The ceo, the ceo and the cfo that i met today, were quite positive and constructive on the future. The liquidity crisis is solved. There is really a commitment that so long as the vote is passed on the 22nd, things will stabilize and we can move forward. There is a lot of work to do and there is going to be some pain but surprisingly, a lot of positive energy this morning. Matt do you think when banks open again on monday, capital controls will be lifted . Mark sorry, matt. I should have let you finish your question. No, the capital controls will stay around for a file. For a while. Capital controls were the screwball, shall we say, that was thrown at Prime Minister at the Prime Minister, and it is unfortunate. It did not have to happen. The eu forced that on things here as a hammer. That was a mistake. But we have them, and it is real. They will have to stay in place for a while. The last thing you can have is a run on the banks. Capital control all allows us stability and allow them to get back in order. Matt in your meetings with Bank Executives, we are about to talk to John Cochrane from stanford university, hoover institution. He said the greek people are less likely to have been repaying their own loans to those banks because they are shuttered and they expect those banks to maybe even close eventually. The you get any inclination as to how those Bank Deposits are holding up . Mark with the capital controls in place, the deposit flight has stopped. The npl issue is real. The thing that has to get fixed is that the limits on individual withdrawals is one thing. But the real problem is allowing transactions of the s p that small that support the industry. I want to have food on that ship and services and the like. Unlocking those transmission mechanisms is very important, and that will happen next week. That will get things a little more back to normal. It is going to be a painful few months, but there is light at the end of the tunnel, and it is not an oncoming train, despite the political rhetoric and grandstanding in germany and other places. Erik two quick questions before we go. What did the Bank Executive save what do the Bank Executives say that once the banks are open that people would just suck all their deposits out of the bank. That is a risk. Second, that the ecb will start buying greek sovereign debt from the bank. Mark the answer to the first part is that is why capital controls will be here for a while, to prevent that loss of more deposits. The good news on the deposit front is about 50 billion of deposits that have come out of the Banking System since january are still here in greece, under the mattress and in peoples homes. Some of that might come back, so you could see us confidence is restored, and people see that the ecb has their back and that is good. Your second point is absolutely the critical point. If the ecb were to step up and start buying greek fonts, that would be fantastic and would really do a lot for confidence. Mario draghi hinted that he is willing to consider that. I think he is a smart guy and they will move in that direction, and i think this will slowly and carefully turn into a fantastic investment opportunity. Erik thank you for checking in with us. Morgan creek capital ceo mark yusko. Matt after two days of testimony, janet yellen is relatively optimistic about the u. S. Economy, but should she be . Joining us is hoover senior fellow John Cochrane. Thanks for joining us. Hope you are not grumpy as today is friday. What you take from yellens two days of testimony . John co. John we are paying too much attention to every utterance. I did not see any great news. We might get slightly highest inch we might get slightly higher Interest Rates later in the year unless something bad happens. Erik there was a lot of back and forth between fed chair yellen and members of the House Financial Services committee and on the second day members of thettee particularly republicans, when it concerns rulesbased Monetary Policy. You are formally you are now with the hoover institution, you are with the cato institute. You are definitely not paul krugman. How do you feel about the position republicans are taken about rulesbased Monetary Policy . John saying that we are not we are in a position where everybody is hanging on every word that mrs. Yellen utters and it is producing extra volatility. We are paying too much attention to Monetary Policy. Inflation is low and things are good as far as what monopole what Monetary Policy can do. The other things it does buying assets, regulating banks, all that stuff. Erik why isnt the message getting through to the politicians, who in some respects carry water for economists like yourself when it comes to these debates with janet yellen . They are talking about Monetary Policy, not about these other issues, which are very real. John it is hard for me to explain why the whole world is not always listen to me. Matt what do you think about asset prices. Janet yellen has been trying to fight that doubles in some way. People think she may have overstepped her bounds. Is it fair for the fed to stay to say that you might want to stay away from biotech stocks even though that might cause fallout . John it is a great example of things that Congress Might want to think about. Do we want the Federal Reserve to start worrying about asset prices . By chinas centralbank, that starts inflating the bubble. Or do we want them to start picking bubbles . Do we want the fed to worry about all different asset prices or stick to worrying about inflation and shortterm Interest Rate and not try to jigger Everything Else around. The latter is a better course and the sense that is the sense of the kind of discussions going on. Lets not have the fed do everything for everything, clean up your crabgrass stop asset prices from doing everything. Matt asset prices is your wheelhouse. We were trying to think of a different word for what to call the market in china. Since it is not a market, youre not allowed to sell the stocks 1200 1700 suspended. What is going on there . John we see all the things that governments do by accident, they are doing on purpose to try to inflate asset prices. They are lending money to people to buy stocks and forcing companies to buy stocks. They are banning short sales of stocks. These sorts of things end badly. I do not know how to put it more politely. Matt do you expect this to end badly . This is your gig. Erik how good can it be for china in the long run p review putting your money and you can never take it out . John we will see if you can never take it out. Keeping stock prices up forever is difficult for a government. The problem is they put their capital up. They said we are going to make sure stocks do not fall, rather than the way stock markets are supposed to work. They go up down, no one can tell what they are going to do. And they let you bear risk. When prices go down, prices go down and you do not have also to financial failures. Matt maybe you can get a residency in beijing. John cochrane. Coming up, ebay and paypal are vowing to split up. Will paypal remain independent company after the breakup . We will take a look. Erik how about a look at top headlines . A letter reveals criticism by german banks regulators. That they feel to address or stop the attempted rigging of key Interest Rate. At deutsche Bank Executives. Goldman sachs made hundreds of partners rich when it made public in 1990 nine, and its performances than has made Lloyd Blankfein, the ceo, a billionaire. He has seen his net worth surge to about 1. 1 billion. He is the largest individual owner of goldman stock with a state of 500 million. Right now it is friday. What does that mean . Matt it is time for the yearbook game. He is in the entertainment business. It is all our producers are telling us. Who is this person . Tweet us your guesses. You can also find him our show twitter handle, Market Makers. Matt do not tweet them. Tweet us. Something else, a little extra. Matt look at that. Central park. Is that from bloomberg headquarters . That is fantastic. That is from the 29th floor. You can head over there and take a look, if you know one of us well enough. We are a few moments away from the opening bell. Tracy is so worth tracy is here with three things moving markets. Welcome to the program. Thanks for joining us. Tracy, kick it off. Lets talk about gold. If you know a goldbug, if someone you know is a goldbug, the extra go and give them a hug, right . The gold price has been ugly lately. Lets take a look at the chart. Matt goldbugs seem to email a lot more than anyone else. On proportion of than anyone else. You have to send letters into media outlets. We are close to a fiveyear low for gold to read have news out today about china increasing its gold market reserves. That was the first time they have released public data since 2009, that even those figures, which were disappointing they were not enough to move the gold price up. It is still down. 2 and is just in an ugly ride. Why should it go to precrisis levels, i do not understand interesting gold at these levels. There is no need for an inflation hedge. There is no need for a safe haven, and you do not need an antidollar. Tracy go tracy no one is worried about that . They are all contained. Greece had a very european solution. Come back, we will forgive you. Dont worry about it, dont pay me. Greece is done and dusted, and the bonds are where they are supposed to be. They are not percolating through the system. China, big issue, but you have a lot of liquidity in the system the stock market bubbled up. You have the pboc stepping in. I do not think these require safe havens. Erik did you ever understand the appeal of gold . Bob you needed an inflation hedge, a safe haven, or an antidollar. Erik as a financial instrument yes, but underpinning as a financial instrument, the understanding that most people have of supply and demand in the gold market maybe it should be graphed longterm against inflation. It is all the other things that create volatility around its path. Lets talk about the fed. Does the feds willingness to buy that to engage in quantitative easing, permanently impair cold appeal as a safe haven . Knowing if we ever get into that situation it might be there . I think temporarily. If money is rising, then Commodity Prices must go up area you have an increase in Commodity Prices. Maybe you had a europe look like it will fall apart got caught up in that. It became overextended. I think things i think of things precrisis and precrisis and post crisis. Lets talk about china. You cant i chinese stocks maybe you want to use your money if you cant buy chinese stocks maybe want to use your money online with a complete stranger. Many are pitching as a safe alternative to chinese stocks. One offers a sedate shelter from stock market volatility saying that stocks are insane at the moment. Obviously this is a risky trade. It is crowdfunding without any regulatory oversight. It is fascinating. Maybe i will wager give them bit on black 21. The Chinese Government has strangely has a strained relationship with the spirit here lenders. The peertopeer lenders are going gangbusters. When is the Growth Market going to be about repo men . Speaking of china, when you see the headline we reported here on bloomberg earlier today, that the chinese have created a 483 billion Stabilization Fund equity market, what do you think . I think it was necessary. I think for a long time china play his role for when post crisis to develop markets for retrenching. China led growth in the manufactured a lot of growth. That required an extension of credit through the shadow Banking System. They are trying to find their feet at 6 , 7 gdp. I give them credit for stepping up. Number three is shadow lending slightly closer to home. A bunch of shadow lenders making investments in commercial real estate going where the banks fear to tread. The reason is because of that delinquency rate. That commercial real estate delinquency peaked in 2009. They have all this extra regulation to worry about, so we have alternative shadow lenders getting into that space. Private funds raising a record working . 2 billion last year. A record 14. 2 billion last year. When you go back to the original mortgage it was 400 billion. Everyone talked about that inevitable wall of refinancing that would have to occur. They are mostly 10 year loans you 10 year loans. The banks have different regulatory controls, different capital charges, Different Levels of reserves. It is going to have to be intermediated somehow. There is a lot of demand for it. There is a lot of demand from Insurance Companies and a lot of investors that are looking to put it to work. Thank you very much. We want to go over to julie hyman, our senior markets editor, and check in what was check in what is going on. What do we see . Julie we are seeing a mixed picture. Yesterday the nasdaq closed at a record. Today it is at a record again. As the two ever as the two averages google shares are surging. They are up 13 . This is a record as well for google shares. In particular investors seem to be zeroing in on the willingness to keep costs contained. She talked about expense management not being inconsistent with Revenue Growth. There was Revenue Growth and a quarter revenue was up 13 . General electric is the other big Earnings Report to watch. Shares changed only half of a percent. The company did have the lower end of its broadcast for the year. As it continues to wind down its exposure to ge capital, it is relying more on industrials. Aviation units drive the drop in the quarter. A big surge in shares of hurts. The Company Finished restating more than two years of financial results. It expects to reach any cost savings of 300 million. That is 100 million more than its initial goal the company said it expects to complete the separation of Equipment Leasing unit by march of last year. Finally it will move forward on that. Importantly it will consider it did for that unit. The shares getting another unit. Not only is it at a record by far today, but this is the biggest moving google stock since october 13, 2008. Thank you very much on the update. Julie hyman. Meantime, ebay is on track to split with paypal this coming monday and paypal is expected to price its ipo later today. Paypal will operate under a fiveyear agreement guaranteeing a Revenue Source after the separation is completed. Emily chang sat down with the man behind the split. Were talking about john donohoe, the current ceo of ebay. I love this question, where did the split come from . The idea. Different people may claim to the idea. Emily they have been talking about this for longer than you may think. We sat down with john donahoe for an exclusive interview. Todays the last day that paypal and ebay will be trading together as one. This is an issue that the company has been debating for a very long time. It wasnt carl icahn that first put the idea out there. Take a listen to what donohoe had to say. John this is a question that i first introduced with our board for staying became ceo. 10 years ago. Im said i said we need to look at how we can position our vests our business is to be best successful. We spent most a year looking at that in came to the termination that ebay and paypal still have synergy, skype did not. We invested skype back at that time. There are a few people who think paypal will be takeover bait. What it donohoe have to say . Emily what he said to me is that he thinks that it is more likely that this company is going to stay independent. If you talked to a lot of people out there, there a few companies that can make a by. It would be closer to more than 50 companies, like alibaba. Alibaba would love to buy paypal. A lot of regulatory issues. It is unclear if u. S. Regulators would allow a deal like that. Maybe google, google has been trying to get payment. Take a listen to how donohoe thinks this will play out. John it is important paypal does whatever it needs to to build a successful future. I think paypal will continue to be an independent company. Who knows how the markets will turn out. Emily very important to hear from him on that point. He is going to remain on the paypal board. A lot of people im talking to today, it is unlikely it will get bought. It is a fun thing to talk about that the deal would have to be so big. Dont miss bloombergs special coverage inside paypal all day long. Boat maker mastercraft helps make waves as it goes public. We will look at what the companys ipo says about the state of the u. S. Economy. Matt mastercraft is going public. Making its trading day debut on the nasdaq. The ceo joins us now. The first thing i thought when i heard about this ipo was the u. S. Economy must be doing great because mastercraft is seeing this kind of growth. What kind of growth are you seeing and what you think that says about your customers . We are seeing rabbit organic growth over the last three years. We are seeing great sales, doubledigit sales, growth on the top line and nearly triple digit growth to the last three years. It has been a great story. Matt you are going to raise up 100 million of this ipo, where does mastercraft need to grow . Terry we have always created new and Innovative Products for our core markets, recreational day boating, skiing, wake boarding, and wake surfing. We are penetrating the entrylevel of the performance for category. We will continue to penetrate the international markets. We have several platforms and highly visible avenues for continued growth. Erik i know boats have a tendency to suck a lot of gasoline. How much of a boost is in demand as a result of low gas prices . Ask cant be cheap forever. Are you thinking about electric technology for your boats . Demo we have a robust and effective r d process. We look out into the future for five years. We work on our designs, we work on a Major University in the united states. Our product relative to the other boats and competition is 30 more fuel efficient. We are focused on the economy for the consumer, going green, as well as future r d. Erik how long may it be before we see the tesla equivalent on the water . Terry we have models overseas and austria we produce today that are fully electric. They have great work. Were just trying to make it costeffective in trying to explain trying to expand it throughout our portfolio. Matt were looking at prices now. I have been salivating over the products. It seems like it is possible to get in for 60,000, but anyone knows it gets expensive want to take them out of the showroom. What do you do to try to bring costs down so more people can afford this exciting experience . Terry we started penetrating the entrylevel markets this year without an xt 20 and an xt 22. Very affordable, targeted the millenial. We have affordable products. I would suggest we are best in class and working capital. We do it through innovation and ring innovation and options and consumers values. Keeps costs low and sources more efficient product. As consumers we are very cognizant of operating costs. We are desiring to buy products for the family and for our lifestyle. We do understand the economics. Matt for car and motorcycle makers, how are you making sure your deal or Network Grows . You can manufacture the best products and you dont have an effective dealer or network. It is an equation. They are very highly trained and certified. We keep costs down with them and they are very effective at turning boats around and servicing our customers so they can enjoy more time on the water and less time on the shops. Erik thank you so much. Mastercraft ceo from the Nasdaq Market site. They are starting trading. Matt i may have to put together a kickstart a campaign. Julie we are coming up to the top of the hour and the end of the week. It is etf friday. Today we are focusing on dividend etfs, have they jumped the shark . Here to discuss is etf guru. Perhaps we should add the word tank after that. Kevin oleary has launched his owned his own dividend etf. Eric you look anytime a big name launches an etf, in this case the bad news for him is there is 100 dividend etfs. Julie literally 100. Eric it is hard to get any asset these days. As you know with low rates, this is the first year we are seeing outflows. We are not sure if it is a move toward international or if it is a sign that feds are going to raise, dividend etfs are going to lose a little bit. Talk about how important it is to have a name in a crowded field. This etf has a thoughtful design. They dont want to have companies that borrow to pay dividends. It also screens for low College Visit for low volatility. Maybe protect your principal and dont go down as much in the selloff. After that, kiddo process is applied, you are really left with a plainvanilla set of stocks that your grandmother could have invested. That is a lot for a new launch. I think with all of the hoopla around it, it could be successful. The timing is rough for anything dividend related. Julie his famous oleary, it is called the oshares. Eric he is the trump bush he is the trump of canada. There is one thing about dividend etfs that is important to note, this will include apple. Apple is one of those stocks that is not in the larger dividend etfs because they look for stocks that have learned raising the defense for 10 years. If you are looking for that apple hit, this one has it. It is definitely something to look for when choosing an etf. They want to see 10 years of straight Dividend Growth before adding those companies. Julie we are going to leave it there. Thank you very much for this interesting discussion of dividend. Im going to send it to Erik Schatzker. Erik here is our candidate he is a man in the entertainment business, graduated from Fishburne Military School in 1964. Matt is it not a sport . It is Vincent Mcmahon the chairman of World Wrestling entertainment. Matt we do have a winner. Erik no chance in hell it is Vincent Mcmahon. Even on network. Matt is that the end of this program . Erik i think we have brought it to a graceful conclusion. Matt we will be separated for monday. Erik stephanie will be back. I will be back after this break. Erik youre watching bloombergs market day. Predictable chaos is what is going to happen today and what Angela Merkel said will have been if germany does not back the greece deal. Will happen if germany does not back the greece deal. And make a run for the border. Taco bell is joining a new initiative to get americas youth off the street and into jobs. Brian nickel joins us live. Goldman sachs ceo is worth 1. 1 billion. That is a dramatic number for the new York City Post man