Look like . Tom ok. That will be the end of the laughter for the friday show. Lets begin with our top headlines. Here is the wounded Olivia Sterns. Greek lawmakers are backing a bailout. It is up to their european neighbors to get on board. The parliament approved a threeyear plan. Must make a big payment to the European Central bank six days from now. Ministersrea finance are meeting today in brussels to diss to study the latest terms. New figures out this morning revealing a slowdown in euro area growth. Rose by. 3 . The economist expected a slightly stronger showing. The weakness was clear in france. Consumers stagnant and spending is flat. It is the first time in a year the French Economy has failed to grow. Germanys economy grew by. 4 . Clinton may yet faced serious democratic challengers in the president ial race. Associates of al gore says he will not says he will not run. Buzzfeed report over the weekend said his supporters are talking about the idea. While the former Vice President is not running, the current one still might. Biden is still talking with democratic insiders. Candidates from both parties are converging on iowa to campaign at the state fair. Key clinton picked up a endorsement heading into this weekend. From former iowa center tom harkin. At theircutives looked new smart watches and decided it is not the time to launch their tv service. The company is delaying its Live Television plans until next year. Apple was aiming to unveil it next month but sources say apple does not have enough content or Computer Network capacity yet. Tom maybe not the drama. Mr. Mcelroy, his ankle is fine. His putting, next. One under par after the first round of the pga. He is in 25th. Well behind dustin johnson. It was his first round in two months after hurting his ankle playing soccer. It is a different game without tiger. We are getting beyond the tiger fixation. Hans he showed a little like there. Is that cranberry red, nantucket red on the golf course . Tom lets move on, because none of us know about golf. Data check. Bonds, currencies, and commodities. An interesting bloomberg terminal this morning. What do you need to know . Futures negative four. Oil with a 41. 98, does that get your attention . Speechless. Oil well speak with Gary Shilling later. Brent crude. The spread is why between bre nt. It was 6. 00. Does brent come in to catch up with west texas intermediate. 65 russian ruble challenges once more. Lets go to hans nichols. One calculation of nominal animal spirit in greece. This is real gdp. Not bad but with horrific deflation. Gdp on a four year moving average. Down we go. Delly go again. We stay lower than japan. This is ugly. Down we go again. Hans no doubt about that. The deflators are only going to get worse. On dropping. If you look at upward pressure on wages, i am not sure where we see them. Tom i want you to jump in and the discussion we are going to have on europe caret im focus on the lack the lesser countries, not germany or france. Hans on the periphery, the growth is stronger. Be worried about germany because it had its bad number with a cheap euro. An export deflator. Front and center. We will bring you uptodate on china. Gary shilling on oil. But there is greece and this new thing, the stagnation in your. We have been speaking to hans ni chols. Quincy crosby joining us as well. Good morning. Do you care about europe or can i look at the u. S. As a bunde . Quincy we can look at the u. S. But that would be a mistake. We saw money go into europe. And i suspect that when mario draghi comes back, he will try to talk down the year appeared even more to get the euro tom you nailed it. Right where i wanted to go. Can a central bank or talk down the currency . The game theory of europe. Hans mario draghi has been successful to this point. What else does he have . Increase the size of asset purchases . Tom as that a currency war between europe and china but if we have a weaker euro . Olivia, can you talk or is the rib killing you . Olivia we look at eurozone growth of. 3 . Did q. E. Work . Hans no. The more depressing thing is this quarter is going to be worse. All of the great uncertainty that greece brought. Its going to be much worse in q 3. History does not disclose its alternatives. What would have been had mario draghi not pull the trigger . Tom what does Lagarde Draghi need to do . I think this is a currency war. Quincy he has got to get the euro lower. It now needs to be pulled back. A major exporter in the eurozone itself. So, you need to have strength in the eurozone. But also to china. Of lombard Street Research and the focus on the netherlands. Whether it is finland or the netherlands, these countries matter. Olivia of course. Im thinking about deflation. That is the difference between nominalowth versus the level. What has changed . Deflation. Deflation is not unique to this quarter. What else happened in greece that was unique . Was there a boost in tourism. Was it a period of stability . Jonathan there was a lot of tourism. Incraseased spending. People anticipating capital controls. Tom give is the update on greece. Im like our audience, greece exhausted. Make me care. Hans brussels will modify the agreement passed in athens late last night. 96 billion is the headline number. You may be can get germany voting on tuesday before Angela Merkel goes to brazil. If there is any sort of fly in the ointment on friday night, youre talking about a bridge loan, which is something they do not want. Tom quickly, nestles reported greater earnings early in the week. Can you say that europe is booming even if the politics and International Economics hans i do not look at nestle closely. Wasnt swiss franc related . So they got to benefit. That is a currency play. Always the thinking was that mario draghi was buying the National Economy to reform the italian economy. Hans the italian economy, is heading in the right direction. Is yourtural reform mentor. Same with portugal. Yourwe get you ready for weekend reading. Quincy crosby with us. We will dive into the Federal Reserve from prudential financial. Time for our twitter question of the day. Can Olivia Sterns play hurt . No. What is your signal that oil has hit bottom . I will be honest. It is cathartic. And we are not there yet. What is your signal that oil has hit bottom. That is our twitter question. New york city. A beautiful friday. Bloomberg surveillance. Tom good morning. Lets get to write top headlines with Olivia Sterns. Are smoldering two days after two years at a warehouse. The disaster killed 50 people and injured 700. Hazardous materials sparked the blast. Equalrce of one explosion 21 tons of dynamite. Shipping is crippled in the city of tianjin. Things are going sour for the maker of candy crush saga. Falling by 28 . The Swedish Company says revenues are still declining, but despite the slippage, king digital will keep investing in candy crush. Hbo knows how to get to sesame street. The children show is now in a fiveyear partnership with the Cable Network best known for more adult programming. The next five seasons of the show will be available exclusively on hobo and hbo now. The program will still air on pbs nine months later. Tom i am honored to say that on bloomberg on the economy i interviewed oscar the grouch. Olivia how did it go . Tom they could not tell who was grouch or. I interviewed oscar. All he is short on the yen the time. He is so down on the yen. Tom he did not wear a bow tied. Olivia i also interviewed a puppet. They make for good tv. Tom lets move on to apple. Olivia customers waiting for toer for apple revolutionize Live Television will have to keep waiting until next year. Tv networks are stolen. John butler joins us. We have been waiting for apple tv several years. What is going wrong . John i think what is gone on here is apple probably underestimated how long it takes to really forge these content contra content providers hold allc the cards. Content is king. Ts. Th apple has no power. It was exactly the opposite when it came to the record industry years ago. And try to negotiate great terms to get music for itunes. The record industry was on its back and really having a hard time with free music from napster and others. So, i think apple has a bit of a wakeup call in terms of and they have got to preserve the margin. Olivia apple is used to making a 40 margin. Will they get that out of cbs . John i dont know. Time will tell. Apple has the eyeballs. Tom many of our viewers and listeners are enjoying the capital losses in apple over the two. Week or what i notice is if you look at the fiveyear trend of apple and you rollover, your back on trent. Was back on trend. Was apple out over its skis . Or is this the beginning of a bear market . John what blew peoples expectations away was the iphone 6. I cannot believe the level of demand for the large screen iphones. I do not think apple expected it either. Exactly. Thator years they kept smaller screen. It was something steve jobs really wanted and pushed. Ultimately, tim cook gave in to what consumers really wanted. Tom on the longer scale, is apple of value . I know is apple a value . Is apple a steal or richly priced . Look at where it is trading. This is interesting to me. It has always traded in line with large cap tech. So, it trades in line with oracle, ibm, hp. Theyre all in that same band on forward p. E. And you know, for apple i think it will move around within that range as visibility gets better or worse depending on what is going on in the business. Right now, you know, they have launched the iphone 6. It was a huge hit. That is behind us, and people are asking what is next . Tom stay with us because we want you to comment on this. Breaking news from tesla. We spoke yesterday of their secondary offering with mr. Musk putting in money. They pony up an additional amount of shares this morning. When we see this, this is about enthusiasm for a secondary offering. Lets review. Tesla is at a price. Quincy, help me. For thecounted 3 secondary. And that signals there is a lot of demand. Quincy yeah. There is a lot of demand. It is slow. It is the summer. On the markets down. So they have got to push enthusiasm and get the syndicate to go out there and really push it. Million. Proceeds 642 and tesla, how is there entrepreneurial vision related to apple . I do not think tesla makes money. Do they . Olivia i do not think they make money quite yet. Tom compare and contrast apple john they are both really unique, special companies when you think about it. Apple was able to tap into what, how people really interact with electronics. They got it right. They pulled off a miracle in tech. They had a tripleheader. They had the ipod, then the iphone tom within bloomberg industries, what is the take, with bloomberg intelligence, what is the take on tesla . Will giveense is i my opinion on tesla and what i see there is they are in the right market. They are on the right trend. They are early. It is not bad to be early, but they are early. Im not sure the world is ready for mass production of electric cars. Olivia they are still going to spend 1. 5 billion in 2015 on capex up, 15 of what General Motors invest. Yes, tom, tesla continues to rack up losses. You said earlier you think that increasing the size of the Share Offering suggest investor appetite. I dont know. Elon musk needs to spend a whole lot more money. Lot more expensive than you would of thought. Tom what is tesla, a growth stock, a blue chip . Quincy no. It is a unique gem. I have to say with oil prices coming down and the expectation it could come down to 30, you have got to ask yourself come is it that exceptional that ill buy tesla . John it is a concept stock. [talking over each other] tom outside the hospital waiting for olivia to get out, a blue tesla went by. And i said, so what . John butler. Thank you on apple. Well. La as coming back in our next hour, we will take a 65,000 feet view with ken feinberg. We will talk about his job on oil. We will talk about executive compensation. And i want to speak with ken feinberg about Edward Kennedy of massachusetts. Stay with us on this friday. Worldwide, this is bloomberg surveillance tom good morning, everyone. Bloomberg surveillance on china. Our morning must read. Lee hardman, bank of tokyo. Up to the festivities of the week. Stabilizes. It does not ease downward pressure on other asian currencies. At one point during trading, the ringgit had recorded its largest intraday decline against the dollar since the Asian Financial crisis in 1998. In hongice president kong. We welcome enda c enda curran. Enda, the knock on effects here. How will it affect beijings relationships with taiwan, with singapore, with jakarta, with malaysia . Enda good morning. I think malaysia is a good example of the Collateral Damage from chinas devaluation. E, malaysia does have domestic problems. Downward pressure directly into chinas decision. Look at vietnam. They widened this trading ban. They pinned the reason for doing so on chinas move. We have not seen the currency war has not started but tensions are there. Are more fragile, politicaleconomic experiments. We cannot say that about korea of japan. And with the history of what abe said about world war ii. The effect of your evaluation going north to south korea and japan. South koreasa is biggest export partner. A lot of this will depend on just how much china lets the yuan depreciate. They really stabilize things today which speaks to the january market reform. The suspicion is still there, the debate is still there. An oldfashioned evaluation to stir growth and stir exports. We will not know for a few more weeks. Tom what did beijing and the authorities learn about the markets in the last three days . Did the twitter vigilantes defeat them . To fear theere told market, respect the market, trust the market. The central bank yesterday. But what they did do, however, was sent out a clear message, sure theyre willing to let it depreciate to some extent but it is not going to be an openended depreciation. They will not let the market have their full way with the managed flow. The trading ban in place. Even though the market will have some say you soda curran, thank much for your work this week. What a week at has been. What is your observation about the currency war . Olivia the worst week for asian currencies, including the ringgit, the rupiah since 2011. Because of chinas yuan devaluation. We are heading into a rate hike in september. You have to wonder how much more downward pressure there is. Tom i would suggest it for the into a developed nation like the bank of england and the fed. We will do that with Quincy Crosby of prudential in a moment. How about a twitter question . Lets switch over whato oil. What is your signal that oil has hit bottom . Tom good morning. Bloomberg surveillance futures negative six but the news is oil. Gary shilling joining us later. On friday, we continue the discussion. Top headlines. Olivia crude oil is heading for the longest run of weekly decline since january. Crude has dropped 4. 3 in seven days. And dropped prices to their lowest levels in six years. The International Energy agency says the market surplus will last through next year. Intle direction to be seen asia stock market but chinas currency appears to have stabilized. Chinas unexpected evaluation earlier rattled World Markets and raise doubts about the countrys economy, but the currency is steady for a second straight day. Easing some of those uncertainties. The yuans reference rate rose for the First Time Since the devaluation on tuesday. In havana, history in the making. For the first time in more than half a century, the u. S. Flag will fly in cubas capital. State john kerry will lead ceremonies as the stars and stripes are raised over the u. S. Embassy. Kerry will meet with cubas foreign minister and the catholic archbishop and a group of dissidents. The latest moves from Goldman Sachs show they want to go for what they know. Financing. The bank is washing his hand of the coal business. Energy is paying 10 million for the asset. Goldman is buying Online Banking units from general electric. Deposited 16 billion. No terms disclose. Regulators still have to sign off on it. Tom over to the National Football league. I guess it has to do with tom brady. Strange site. Mr. Brady in uniform instead of a threepiece suit. The illustrations of the game were supposedly more of a likeness of him. The quarterback was a surprise starter in new englands preseason loss. The green bay packer who cared. I guess it has to do with tom brady. Strange site. Brady has been in and out of courtrooms. Brady made an appearance for the crowd roared. As you can expect, is deflategate olivia four game suspension still in effect . Tom dealt know. I refuse to follow the details. The first two paragraphs of the boston globe had three adverts in the first paragraph. That is how squishy this whole thing is. Hans we wont litigate. Olivia deflated. Tom like your rib. It is a hopeful friday. Mark carney is hopeful inflation will materialize. William dudley of the new york fed. Janet yellen is hopeful she will miss nothing at the jackson hole meetings. We are thrilled to have Quincy Crosby with us. Shes hopeful. She can get to the week looking at more fed speak and getting into september and december. Did you change your call this week because of stanley fischer, bill dudley or any of the other cast of characters . Quincy no. We have been talking about september. Talking about distemper, december even october. Yellen wants to list off assuri ng everyone, do not worry about this. I am patient. Im gradual. Do not look to the past. We do think she wants a press conference. However, it was interesting that bill dudley, after hearing about china and by the way, my view is this is a very closeknit group. Central bankers talk to each other. The imf. That is the reason. Knew about this. I think the central bankers do about this. That they were going to do this. The timing is probably august wh