The first person tried on charges of rigging the libor interest rate. Former ubss a trader. The panel deliberated a week and concluded he schemed with other traders to fix the libor, the london interbank offered rate. We will have more on this story coming up later in the hour. And for the first time in five ks, the greeks talk market the Greek Stock Market is open for business and prices quickly collapsed. Banks fellwo major 30 , that is the maximum allowed daily loss. June. Trading halted late meanwhile, the commission there isson says serious deterioration in the greek economy. Hundreds are dead because of usled airstrikes against islamic state. That is the conclusion of a Group Monitoring the iraq the attacks in iraq and syria. The airstrikes started a year ago, and the coalition is not commenting, though it has previews acknowledged causing to the civilian deaths. Two civilian deaths. Matt trying to provide assurances that the u. S. Isnt wavering after landmark agreements with iran. Secretary kerley secretary we agree that the partnership is indispensable to the security of this region. Att he is in qatar after trip to egypt. American households cap spending in june, capping ace drawn performance a strong performance. Of 1 forimbed 4 10 the third month in a row. Cooled last month, down from the highest level in five months. That is a sign of fiscal progress in the industry. The index fell to 52. 7. It was 52. 3 in june. Order backlogs slumped. 18 an 18yearold american is making a splash in the slum world and could become an olympic star of next year. Record at aher own meet in russia. 800also holds the 400 and meter world record. Those are some of your many top stories. Coming up on the bloomberg market day, the future of bitcoin. Sincevalued more than 50 last year, and the head of g has been arrested in japan. Gox has been arrested in japan. And Jerome Kohlberg has died. He started the powerhouse kohlberg, kravis, roberts. We will take a look at these stories and more coming up. Matt it is the biggest step ever to cut Carbon Emissions in the u. S. President obama will announce huge changes in regulations that will put coal power plants out of business and provide big boost to renewables. Pimm and to perhaps natural gas. Provides half the pollutants of coal, but more than renewables. Frank macquarie all of joint that. Frank our reaction to the president s plan is following, with or without this rule, natural gas is wellpositioned to be the baseload of choice for future energy generation. Pimm will you support this effort by the president . Want to make sure that when this is implemented at the state level, that the we want to make sure that the state understand the cost compliance. We provide the opportunity to reduce emissions immediately because we have an abundant, lowcost fuel. Pimm i know that is what you will be saying to the people who want to look at alternatives. But what is your take on supporting or not supporting the president s initiative . Will you lobby for this . Frank first things first, we have to see the rule. All we have is an announcement that the administration will go forward. Our position has been neutral. With without the rule, we think we are wellpositioned to increase not just increased fuel diversity in the u. S. , but also increase the use of gas in Power Generation. Matt if we take a look at the breakdown of Power Generation in america, natural gas is already pretty high up as far as market share is concerned. 35 comes from coal. Place, comes from natural gas. And then you got nuclear. Beyond coalchanging . You could see a lot of those plants go out of business. Are you seeing nuclear growing . Are you taking market share from them, or from renewables . Youk in the last two years have seen a dramatic increase in the use of gas, no question. Youve also seen an increase in renewable energy. But this year, you will have the weve evere fuel mix had, and here, you will have the next 20erse out to the years. The inclusion of natural gas into the fuel supply has increased our diversity. About the price in btus, is anyone making money . Frank it is a challenge right now, but also an opportunity, because you see natural gas not only penetrating electricity markets, but also bringing in manufacturing jobs act to the u. S. Natural gas is being used in transportation. The price environment is a challenge. The story is a positive one for natural gas. And the opportunity is brighter than ever. Matt i can see that is a challenge for producers. But obviously, that is no challenge for consumers. The price higher . Why isnt it growing faster . And cleanercheap than coal, is it a production issue that is stopping you from getting to the end user . Frank markets take time to adjust. We have seen a tremendous increase in production, 40 in the past decade. Markets take time to adjust to this new fuel of choice. What i would say is, over time, i would say, number one, its abundant. It is costeffective. It is right here in the u. S. And you will see markets adjust and greater utilization of gas. Pimm thank you very much for Americas Natural Gas Alliance executive Vice President of government affairs, chiarola and we will. And we will carry president obamas announcement today. That is at 2 15 p. M. Matt welcome back. Im matt miller. Pimm and im pimm fox. Matt we want to go straight to julie hyman julie hyman. Make a wish. Julie i wish we were seeing better investment. That is kind of a lane which. Twitter is down by 3 . Just as longer downtrend weve seen from twitter a person thinking that with its earnings, and in particular it outlook it outlook that disappointed investors. Shares are down 3 today, and that means at least on a closing basis that it is trading a record low. Take a look at the longterm. Hart the ipo was at 26. We have seen a pretty volatile stock price in the past couple of years. The right, 30. 15. Another stock that we are watching today in technology is apple. We are not seeing it fall by very much today. There is not a lot of fundamental news, just the idea that apple has not been performing as well as investors were used to, perhaps. For the year to date, it is pretty much intersecting with its 200 day average. We will see if it can climb above it. Is the best performer in the S P Information Technology index today. To thesuisse added this focus list, saying it will drive growth. Right now it is driving the stock up by 4 . Pimm thank you very much, julie hyman. An interesting move on autodesk. We will get aig earnings as well. Exciting asot as autodesk. Pimm some 1200 residents in california have been forced from their homes by a huge wildfire near san francisco. It has already scorched more than 90 square miles and is one of nearly two dozen fires now burning in the eight. Hot and dry conditions in the state. Hot and recognitions are making it difficult for firefighters. Another sign of trouble in the coal industry, how fun Natural Resources is filing for bankruptcy. The companys or by plunging gold prices and the everincreasing use of it the company is hurt by plunging coal prices and the everincreasing use of natural gas. And another sales plunge for sears in the second quarter. The retailer headed by eddie lampert, saying sales fell by 10. 6 , the second consecutive time frame of doubledigit declines. The company enjoyed a an 11 drop in the first quarter. Some good news, sears expects an earnings improvement for the fourth consecutive quarter. Last year, bitcoin was 80 investment for Silicon Valley. Bitcoin prices are down was a big investment for Silicon Valley. Bitcoin down over 6 prices are down over 6 . Wasfounder of mt. Gox arrested in japan. You could look at it possibly as a blow to bitcoin. , dont really follow the logic. Ow that is a blow to bitcoin since he was already a despised figure in the bitcoin universe, and mt. Gox collapsed a here and a half ago, but go ahead and explain that to me. Cory i think this is a point it was in theay early stages of bitcoin. Came out with this amazing statement that it had somehow lost 850,000 bitcoin, about half 1 billion and value of the time, and then months later saying, you know, we found about 100 million worth laying around in an unused wallet. I think it shows the hobbyist nature of this poorly written software and this poorly done exchange, and in the arrest of a man who had pocketed from unknown Services Sources under his control, i think we will say those are the early cowboy days of bitcoin. Years ofe biggest Venture Capital investment ever, the biggest chunk of that in Silicon Valley was on block chain and bitcoin technology. , lets nott. Gox forget, that was magic, the gathering exchange. They traded these playing cards that nerds, kind of d d people would use. From ark ellis took that playing Card Exchange two make a bitcoin exchange. I dont think a lot who used it were big fans, but there was not another exchange of that size and volume. Power of thes the marketplace volume. If you have enough buyers, you will get a seller. Inserted to lose market share before his big problems were started to mt. Gox lose market share before it big problems were announced, and byn the safed the theft that company. Again, the fantasy Trading Cards that led to real money, that led to some real problems. But investment in Silicon Valley was in real businesses, and that possibility that it could eclipse trading. We might not someday put up that chart to show the changing value of bitcoin. But we might talk about the way we record transactions or memorize what has happened in that involve in finance and trading, and we are talking about things like the collapse of the greek market or getting fair trading in china, that bitcoin might be the solution to all of those things, those are the hopes of some in Silicon Valley right now. A swiftll it ever be transaction medium for banks . Be. it might very well it might not be something that uses the block chain technology. Within every dollar, if you will, there is a record of all the transactions that proceeded it. Thingsges the notion of like title transactions that go along with artwork or homes or so on. There are a lot of businesses that get tossed out the window with this block chain technology. Bust fromm to which is the way you change the headline by adding the question mark at the end. Cory johnson, our editor at large on the west coast. We will take a quick break. The alleged ringmaster of the libor rigging scandal found guilty of eight counts of conspiracy to manipulate that rate. 14 years in prison is his sentence. Matt the first trader tried in the libor rigging scandal was found guilty today. Tom hayes was convicted in the u. K. Of eight counts of benchmark to rig the rate and sentenced to 14 years of prison. Susie joins us from london. Today, onege day that weve been waiting for about six or seven years now. The libor scandal was one of the big scandals of the crisis. The library was really the start of all of this. And tom hayes has become synonymous with the wrongdoing that emerged. He was found guilty today and to get 14 years in prison was a real indication for the regulators and prosecutors who have been pursuing this case. Pimm are there any others that will stand trial . Are others. It cannot say much about them because of restrictions. That the a to say prosecutors will go forward with the charge. Matt for this kind of crime, you go to a federal prison that may have a golf course, even. Is it the same in the u. K. . Not the same. He will serve about half the time, which will be about seven years. We have a lot of prisons linked to the court where he was sentenced where he could be in his cell of 223 hours a day for the first couple of weeks. Toer that in his cell up 23 hours a day for the first couple of weeks. After that, he will be moved. There are others involved in this libor rigging scandal. He worked at citigroup and at ubs. What other institutes are being targeted . Suzi in the last three years, prosecutors have already fined a dozen brokers. There have been a number of nonprosecution agreements entered into with those institutions as well. Hes already seen a lot of the fallout from the institutions we have already seen a lot of the fallout from the institutions themselves, and we will see more from those coming to trial in the coming years. Communications that he had, the emails, you do not rig the rate yourself. You need help. He did, he had a stepbrother. Suzi he was at the center of thatcandal and was the one relies cap easy it was to rig the rate. A number of individuals have been charged. We cannot reference them now because their trials are coming up. But yes, he was at the center of about 25 traders and brokers. Matt have we learned how much money he made from doing this . as a salary, he had more than 2 million a year and was offered with an tree Million Dollars a year from other institutions. In terms of other prophets, we dont know, really. Matt thank you. Pimm that is it for me. More of the bloomberg market day coming up. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. To theelcome back bloomberg market day. Im pimm fox. Onejor reinsurer turns down takeover bid and access another. Partnerre is partnering with Companies Looking to diversify outside manufacturing. At t is bundling phone and wireless services. The offer will be available nationwide a week from today and include High Definition television and mobile phone service with unlimited talk and of dataand 10 gigabytes for four lines. And automobile sales are on a roll in the u. S. Demand is strong mostly driven by the sale of suv and luxury vehicles. Posted their best combined figures in nearly eight years. And for sales in july rose nearly 5 , the best performance for the Company Since july, 26 july, 2006. Jumpedres of suzuki today in tokyo on word that third point is taking a stake in the company. It is run by the billionaire daniel low. Brighten aent could long dispute with volkswagen. Otherach have accused the of lack of cooperation. President Vice President joe bidens son has joined a local Action Committee that is urging him to run. A few few democrats have come forward to challenge hillary clinton, the partys presumptive favorite. One senator does not think biden would bring anything new to the table. I have known joe biden for years and im very fond of joe. Seeinghink americans are disappearing income and equality, and the Citizens UnitedDisastrous Supreme Court decision, they want to go beyond conventional politics. Pimm the death of the Vice President s son prompted an outpouring of sympathy for him. He died of brain cancer in may. Closing in europe. Lets go to hans nichols in athens. Hans markets are closed here in europe, and also here in athens after the first day that the exchange was open in 25 trading days. That is five weeks. What we saw was an overall decline of about six 16. 2 . Its not that bad when you compared to earlier lows of 23 stop of 23 . Banks led the decline. Most are down about 30 . But the stoxx 600 across europe was not that affected. We saw it was up mostly on the and hsbcing the gains can which of course is the biggest bank in europe. They were up ever so slightly. And heineken had a strong report that said heineken up 5 . See the ruble really getting hammered, down almost 2 against the dollar. And looking at the story in government debt, germany trading mostly flat. The yield was down ever so slightly. It looks like the cost of borrowing from their German Government will continue to remain low. Hans nichols reporting from athens. Coming up, president obama will lay out his plans to combat climate change. That is at 2 00 p. M. Eastern. We will hear from one of his supporters, Robert F Kennedy junior. All fore is a voter for the top 14 republican candidates tonight. A gop strategist tells us what the candidates have to prove in this crowded field. Endcalifornia has a plan to the Automobile Industry as we know it. Could the golden state mandate mean that everyone will drive electric cars . Puerto rico is on the verge of default. It missed a 58 million payments over the weekend, and the government says it just doesnt have the money. It also needs to renegotiate its 72 billion credit with debt with creditors and that could lead to the biggest restructuring ever in the market will stop in the market. Trader thisa bond morning on market makers. It doesnt mean a thing. They defaulted on that one bond. The moral obligation bond. Prepa, thatook at is a standalone corporation. At what point does the rubber meet the road for prepa . Are having this discussions now. They talk a lot about it. Its not really a company in distress. If they were ever to get chapter nine, in our view, they would not even go to prove they were insolvent. Erik puerto rico does not have a chapter nine, unlike detroit or jefferson county. There is no way to restructure under Court Supervision right now. Correct. Erik and you are saying that even if they were to get chapter nine, which is something you clinton and jeb bush has said they should have, prepa would not qualify . If you look at the raids were they were last august, about . 28 per kilowatt hour. . 22. Are today, 22 downe rates are coming substantially, it means they could actually, if you will, raise rates to meet their debt obligations, which is what the documents say they are supposed to do. If all they did was raised by two by two cents to four cents, they could be a completely solvent company. 70 why did they take the bondholder plan . It had some issues. They need to take their power plant and fix them. They need to go out for an rfp and seek new opportunities to build these plans. All that can be done within their business plan. They didnt take th