Much power. Yeah. Black rock was beat. Later this morning we do have more delivering alpha stars stopping by our set this morning including your Capital Management founder. This conference could start at 8 30 eastern time and the preshow starts right now. Dont miss them. They will be on stage together later this morning so a very busy day ahead but first up to speed on the top deadlines. Three big Global Market stories developing at this hour. Parliament is in session. The government must vote on reforms that have creditors insisting on a bailout. Then overnight in asia chinese gdp data coming in stronger than expected. 7 year over year in the Second Quarter. In other reports retail sales also topping forecasts and the main index is down about 3 . The boj leaving Monetary Policy unchanged today. That comes as expected. It continues to expect the economy to continue with a modest recovery. Chair janet yellen will begin two days of semiannual congressional testimony. Shell appear before the House Financial Services committee and her prepared remarks are expected to be made public at 8 30 eastern. The june Producer Price index. Ppi. I wanted you to say. Its july Empire State Survey are also due and later today Industrial Production and the book. Lets check out u. S. Equity futures. So some extent in a wait and see mode the conjecture on greece is is that his own party might not be on board. It doesnt matter though do they . I dont know. Well talk to michelle in a moment. Last time they went outside what they were allowed to do. Everyone wants to be heard and all you did was this and at least now youre more a minimal. Is that all it was . Thats all it was. I wouldnt be surprised im sorry. A few different things. Yall have the Parliament Passing it. Im not sure well see tsipras surviving the next 48 hours. Theres a lot of speculation that he cant survive this. Theyll call for another government. Hes doing his job by getting his parliament to pass it. The big issue is after Greece Parliament passes it youll shine everything on to berlin because you have to have the germans pass this. So well have this tension and the most important issue is the bridge loans. It will take time to approve the new package. Greece needs money next week and if theres no bridge loan we have another crisis next week. Lets get to greece. Michelle is in athens and has the latest this morning. Good morning. Ill run through five things you need to know about greece today. Its going to be quick. The building you see behind me proceedings have already begun. We expect to vote after midnight. It will pass with the help of the opposition no doubt about that. Second thing Alexis Tsipras went on National Television last night ain an interview and he brought back a far worst deal. He said yell we went to the mattresses. This is the best i can could do or else we have to leave the euro. I dont like it but then he played on a particular angle of greek psychologiment he said our creditors would like nothing for than for me to fail and us to fail and leave the euro. Lets prove them wrong. We are expecting some kind of announcement today about how theyre going to do with the bridge financing but this deal will take a month to negotiate. Rumors out of brussels. They figured something out. Maybe we get an announcement midday. The interests have the knives out. Today the pharmacists are going on strike and protesting. Theyre one of the protecting class in in greece. You can only one pharmacy and your size will be sided by the government and your margins will be decided by the government. If all the legislation happens, all of those rules will go away. They hope for liberalization. Thats why youll see a lot of protests and finally the bigger issue, the imf, the documents suggesting they dont want to go along with the deal unless theres a real debt hair cut. They have given up on a hair cut for their debt but the imf has not. Get a deal through. It will not go loong with with the write down on the debt. Thats the latest from here. Back to you. Michelle thank you very much and well get back to her later this morning. Our guest host is larry but before we do lets finish up with with michelle was talking about. Youre stuck between a rock an a place. We knew this debt wouldnt get paid back but we had to say we wontd get a hair cut. This is what is going to happen. Thats going to prove a very difficult political point over the next week. I think what the europeans did was what was necessary. The contract and prior funding was a contract to the state. Not to a Political Party. New Political Party came in and said were going to renegotiate. As a creditor you cant go to your bank and say i want you to just renesh gauche yat. It doesnt work that way. What europe is looking for was for greece to continue with their prior commitments. You see the implementations to make greece more competitive. I do believe europe will find a way to recalibrate the loans but i dont believe you do that before you see a full firm commitment. Do you believe this plan will make them more competitive . Weve had a debail about who is responsible. Whether its the credit or the state. Remember who we had the discussion with . Peter fisher. He says creditors beware. If youre dumb enough to lend someone to someone you shouldnt expect to get paid back. You just said 180 degrees of what peter said. But my mouth was open for the whole interview. If youre asking for another 90 billion youll have to leave with the terms. If you lend money to anybody be aware but if you need more support live with our terms. He wanted to write down a hair cut, there should have been mortgage relief for anyone that couldnt pay their mortgage and i was like okay his argument was that creditors need to take as much responsibility effectively for the loan as the bowerer. I think it was really important. You could not allow that same type of behavior to move to spain and portugal and i think a firm europe was necessary. Once Parliament Passes it and they move ahead i do believe a negotiation is probably in order to try to find a way to resolve it. The hidden secret is post people know theyll never be able to pay it back. What the imf did is they made it public. This little secret and a lot of this is theyre just trying to carrie this on as long as they can. The austerity has been crushing. The greeks have not made reforms michelle was talking about and how corruption is cut down and taxes are corrupted. Since the crisis most of the wealthy have left. The people in greece are the poor and middle class. Theyre left with this arn their neck. This is a social catastrophe because money is so portable. What you saw was interesting. When you had the same crisis in cyprus a lot of money came back so one would expect after this is all stabilize money will come back to greece. My Company Operating in greece needed to take their money out because they couldnt afford to have a deval you wags. All the major companies, food companies. Movie went offshore so once it all stabilizes we saw a lot of that money kept coming back to help the situation. I think thats just a reflection of the guy that you are. Thank you, joe. Earnings just came out, 4. 96 at a beat of 16 cents by what the street was expecting. Revenue came in better than expecting and net inflows of 11 billion. We actually had outflows from the quarter. We had 21 billion 24 billion of active shares inflows. We had about 31 billion of index out flows. 1over or 2 bases. Low fee trucks. But some of the clients went from index to active. So we actually had a very good quarter in active management. What do you think thats about . A our performance and the biggest change are equity performance 78 of our equity performance is above the index. This is a big turn around over the last few years were hoping wont occur. But probably the biggest story is we saw quite a few of what i would call the official institutions who were building rainy day sundays rainy day funds. And theyre using it for cash needs. That sounds like everything from governments to Central Banks and we can see ourself there too. Right. Where the money has been needed. So theyre doing the same thing that everybody else is. Cashing in. Cashing out but some of them are not just putting the money into other products but some are using it for operations and social programs in different companies. When you look at the delaine in oil and the proves you can figure out where some of these have gone. We had a very good quarter. It was the testimony of our Business Model. We have been building our active products and we saw this 5 revenue in greece operating at income increase. Can you deliver alpha . Absolutely joe and we are delivering alpha. Youre hear helping. Im glad you brought that up. That is like music to your ears. Out of 2 to 3 basis points stuff. The higher feed enough. You may be out performing the indexes but more broadly speaking someone like warren buffet has historically said go buy the index. Is that wrong adadvice . Historically theres been great investors, like warren buffet, you can make somebody put money in their savings over a long cycle. Its hard to pick the right manager at the right time over a 30 or 40 period of time. Were one of the largest players were number one in etf and one of the largest players in index funds but the Second Square was our suck suszcess and other products. He will be sticking around for awhile. In the meantime, disney making a huge bet on china. The expectations for a soon to open shanghai theme p next. And jamie dimon is going to join us and first as we head to a break heres a look back at this date in history. A new season brings a new look. A chance to try something different. This summer, challenge your preconceptions and experience a cadillac for yourself. The 2015 cadillac srx. Lease this from around 339 per month, or purchase with 0 apr financing. Kids are expensive. So im always looking to get more for my money. Thats why i switched from uverse to xfinity. They have the most free on demand tv shows and movies on all my devices. Its perfect for me because my kids are costing me a fortune. Im going to cabo [ music plays ] dont settle for uverse. Xfinity is perfect for people who want more entertainment for their money. She caught up with the companys ceo bob aiger and has an exclusive interview. Good morning eunice. This was one of the most important projects we were involved with as a company. China represents great opportunity for the walt disney company. Its a huge priority for us and our primary approach is this park so obviously its extremely important and very exciting. Hey, guys. Well, he is in shanghai and here to lift the curtain on the shanghai theme park. He said that the 5. 5 billion facility is going to be authentically disney while being distinctly chinese. Many many first. One land will be all about pirates and theyll get the largest castle and all the disney princesses will be in the same place and for the first time there will be no main street at this theme park. Ripped out a lot of the americana and are incorporating chinese elements such as the 12 animals of the zodiac. Even though the economy is slowing down hes very optimistic about the chuyinese consumer. Disney land was built 60 years ago and has been through the ups and downs of the u. S. Economy for six decades. So were not concerned with chinese economy and were bullish about the longterm prospects of it. There have been a lot of delays with this park. Its taken many many years before were seeing something come together and there is a date set, spring 2016. The company is going to have its grand opening here. All right eunice. Thank you for that. Looks cool. I like her shot from shanghai. We need him on. We havent talked to him in awhile. Maybe well go to the opening. Or do a show in burbank. There you go. The time is good. Our guest host this hour he called for reform of chinas Capital Market saying its needed to avoid boom and burst cycles. Dont hold your breath. How did you like that we knew that there was a problem when the market didnt go up on the president s birthday . And the other thing that got me was when the manipulation finally worked markets around the world rallied like yes they were able to do it. Lets all buy stocks here as well. Do you think eventually this wont work . I was not happy with the restrictions that the chinese govern lt placed. I was more of a free market investor. Whether you call it manipulated or natural course was up 158 . They were down 30 and everybody got all concerned. Last nights numbers of the chinese economy stabilize the psychology of china. It was one of the lowest quarters since 1990 because of growth. Growth is coming down. The chinese leadership is on the process of doing a ten year plan. Theyre trying to transport the economy to a domestic and Service Oriented economy. When you think about things like disney land disney land in china is part of the service economy. So it creates more jobs that produces less gdp. This is all part of the plan and you have to commend the leadership as he navigates the economy. It look our country and europe 50 years ago from an export driven manufacturing economy to more of a surface oriented economy and this is very critical. Probably the most important number released in china was consumption was up tremendously. So youre actually seeing the consumers beginning to spend. One of the fundamental drags of china has been the consumer saving 40 to 50 of disposable income. Now were going to a 6 and our economy is slow. If we went from a 5 to 10 wed be in a deep recession is. China has been able to avoid this but they need to find a way to unlock this. Did they put the 40 to 50 in the stock market . Some of them did. Well the problem, a lot of it was done with leverage. Thats the fundamental problem. I hope ill be back in china in august. You were tiptoeing around whether they manipulate the market. The pboc prints money to give it to the agency that buys the stock. Can we not bank of japan or bank of england. Hearing stories about Chinese Companies buying stock in the market. My point was china needs to create reforms to allow greater participation in the market more foreign capital. Right now chinas market is a very small market. Thats the fundamental problem. Thats been my message. If theyre going to move it higher black rock wants in. Those are are your words. When you look at chinese stocks theyre valued at 18 to 20 times erpingsarnings. Youre also talking about a market slowing in terms of gdp growth. But chinas number one job is to create jobs. Its not gdp growth. As they transform into a Service Oriented economy theyll create jobs with lower gdp. The biggest thing is why the state owned companies of china are not as competitive as western companies and theyre being heavily supported by the chinese. Thats one of the great needs to allow these companies to freely compete. So i believe as china evolves theyll allow more foreign capital and be judged by foreign capitalistic ways in terms of whether its cheaper or expensive. Unquestionably a year ago china was cheap. I would have said today china is border line expensive but if you do believe that it could grow 6 plus for the next five years ten germanys right. Its probably cheep. But theyre on a path for an economy to continue to evolve and slow down. Unless we have more Global Demand or more Competitive Companies or the consumer starts to consume more well see a slower china which is not frightening to me. Its a path theyll go down and maybe valuations are a little high but well see. Well have much more and you have to do the panels and other stuff. Busy day. Cant they call next week or something . Well i dont know. Do you do your Earnings Call yourself every year. . I do. 8 30. Jay mon dimie dimon said he isnt doing anything. Were glad to have you and much more from our guest host. But new advice from a real thought leader in that arena. Arthur brooks. Writer for the new york times. One of the greats. Might recall paid andrew by the page to read one of his previous books and did no good at all and then tried to charge me but then the addendum in the back and i didnt stipulate in the contract. And then delivering alpha officially kicks off. Dont miss the start to the big conference here on squawk box. Together on stage at 8 40 eastern. Stay tuned. Squawk box will be right back. Tmobile now extends your coverage beyond the borders at no extra charge. Get 4g lte data in mexico and canada just like in the u. S. And call and text as much as you want to and from the United States, mexico and canada. You heard right unlimited calls to any phone even mobile. In mexico and canada. Only tmobile gives you coverage and calling in three countries for the price of one. Switch to the uncarrier today. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Welcome back. Were at the delivering alpha conference and he is spending the hour with us. We have a couple of other topics to touch on. Joe is going to think this is my favorite topic and it is. Five years after the creation of dodd frank and i want your state of play of how you think things have gone and where theyre going . I dont know where theyre going. But this whole debate about liquidity is a good example of what dodd frank has done. So we have made banks safer and society more protected and banks have more capital now. It would be a success if thats what society wanted. It has a lot of side effects and they should be respected like the liquidity issues and the bond market. I get angry when they traumatic about this liquidity problem and how disasterous this should be. They created it and you should expect it. I dont know if you read it and he took the size of government and regulation. Were not as fearful of it. We wrote a whole piece last friday on liquidity we have reduced the power of the bank to play the role as the buffer. Because of higher capital standards theyre not lending as much so were more reliant on the Capital Market