amanda zaphr is a former board member for greece at the imf. this is the omnibus bill voting in on wednesday. presumably because they want to tackle reducing jobs in the public sector, something which i understand they haven't had much success with. >> actually that is the most contentious part of the omnibus bill. it's part of a long delayed plan to reduce the size of the bloated greek public sector to target redundancies. so after three years of austerity, which saw the unemployment rate shoot up to 27%, no civil servant had been fired until the closure of the public broadcaster last month. so now as part of the agreement with the troika of creditors, greece has to place more than 4,000 civil servants on a mobility scheme, which means that if they cannot find a job elsewhere in the public sector within eight months, they will be fired. >> yeah. it's only really the start of a program. public -- we got one thing we need to slim down clearly the civil service and get a privatization program going as well. so where does this sit within the broad

greece escapes default again. and violence continues in egypt as parties start work towards an interim government. and still to come, the cme group is the largest publicly traded exchange in the world. does it need to get that bigger? the company's terry duffy will be with us on set in a few moments. and that means jobs, lots of people, making lots and lots of things. let's get your business rolling now, everybody sing. ♪ norfolk southern what's your function? ♪ ♪ helping this big country move ahead as one ♪ ♪ norfolk southern how's that function? ♪ time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. it's time. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the wor

similar story as greece. but ultimately implementation most definitely going forward. >> for now, thanks very much for that. >>> recap of the headlines today. troika says yesterday to greece's next aid payment. strings are attached. new details suggest human error for the crash of a south korean jetliner this weekend in san francisco. at least 42 people confirmed dead as violence erupts in egypt. >>> other stories we're following. lloyds banking shares moving higher in trade. media reports looking into whether temasek may buy a major stake in lloyds banking group from the british government. sunday times reported temasek approached britain about taking a 10% stake worth $6.7 billion according to unnamed sources. reuters industry contacts say no such approach was made. temasek and lloyds have declined to comment. >>> the mexican billionaire carlos slim has set his sights on smartphone app maker shazam. he'll be investing $40 million in the british based firm. apparently slim's first investment in the uk compan

in fact, greece had very good growth. europe in the aggregate is still not robust. you know that and i know that. so i'd like to see europe in double digit growth territory as opposed to single. but here's a nice benchmark for s.a.p. germany grew 9%. >> right. >> the most mature market we have in the world. and southern europe is starting to come back. and the middle east and north africa has huge growth potential. i think we're in a cycle in the macroeconomic environment that will right itself, and the key is as long as companies lead and innovate and drive customer value, they'll be fine. >> the takeaway i'm having is don't think there's anything structurally wrong. it is a cyclical bump and you expect next year at this time, go back to the way s.a.p. usually is. >> s.a.p. grew in double digits as a corporation, this quarter. >> the stock prices. >> yeah, of course. yes. our ambition -- here's some unlocked value. nobody knows value better than you, right? that's why i come on your show. >> thank you. >> there's three things in this stock that i think are very, ve

in fact, greece had very good growth. europe in the aggregate is still not robust. you know that and i know that. so i'd like to see europe in double digit growth territory as opposed to single. but here's a nice benchmark for s.a.p. germany grew 9%. >> right. >> the most mature market we have in the world. and southern europe is starting to come back. and the middle east and north africa has huge growth potential. i think we're in a cycle in the macroeconomic environment that will right itself, and the key is as long as companies lead and innovate and drive customer value, they'll be fine. >> the takeaway i'm having is don't think there's anything structurally wrong. it is a cyclical bump and you expect next year at this time, go back to the way s.a.p. usually is. >> s.a.p. group in double digits as a corporation. >> the stock prices. >> yeah, of course. yes. our ambition -- here's some unlocked value. nobody knows value better than you, right? that's why i come on your show. >> thank you. >> there's three things in this stock that i think are very, very undervalue

and, of course, greece. there's questions how they'll get their next debt payment. all kinds of things going on here. >> and things have quieted down in brazil, but that's another extraordinary story, one you would not expect. we'll also be getting you exclusive reaction to what's happening in egypt from the prince al waleed, and we'll discuss his holdings in 20th century fox, all ahead. >> and then, something completely different, disney in with the folks today, because of lone ranger, with johnny depp, had a budget about $250 million. it opens tonight. it's getting some of the worst reviews ever. ever! this has bomb written all over it. but if it does bomb at the box office, what happens to disney stock? it is, after all, a dow component. we'll look at that. >> who told you i'm dying to see that? >> you did. >> oh, i did? >> no, i just made that up. >> yeah. let's check the markets for you, as we approach the final stretch, the holiday-shortened week. the dow is down 72 point, about .5%, 14,902. check the nasdaq. a similar chart pattern, you will notice, as we see

new questions arise in europe and problems popping up again in portugal and yes, greece. with all those factors out of america's control, how fast, how far can our economy grow? it's all ahead this hour of "power." first though to sue at the new york stock exchange. >> the markets off the best levels of the day. we have seema mody over at the nasdaq and josh lipton will join me in a second, but we want to focus on the ten-year note yield at 2.71%. that is a dramatic move in yields, and that's really bench kind of spooking the stock market off and on about this trading day. right now we're off about 90 points. josh lipton, basically stocks turning lower after a very strong opening, and then basically trying to claw their way back. it's not a bad report. >> keeping us busy today. let's quickly go through some of the leaders and laggards. hpg, axp, some of the banks, jpm back and utx, look at benchmark winners, the regional banks in the green and what's not working, miners and builders. lennar, dhi. sue, back to you. >> seema, how does it look from your vantage point? >> sig

their exposure to greece is trivial. it will trade badly but it won't affect them in the long term. >> what do they want to be when they grow up? are they a retail bank, the wealth management which i think is lower return business or do they want to be an institutional house? how do you see them getting improvement in roe when it's been suspect over the years in terms of their execution? >> great question. the answer is they want to be less of a trading firm. they want to be an elite investments bank in industries like technology. they are still a leading m and a house and now with smith barney they want to be a brokerage firm to the upper middle market, not the lower end, not the super high end but they have one of the best brokerage business and that is much less capital intensive. they're going to focus on investment banking. >> you said jp is far and away the leader. what is the biggest weakness for these guys and where is the time when you start to watch something? >> it's jamie diamond's mortality, that he's not go

we had 90% default of greece's debt through haircuts. but still 90%. >> you know we have to have haircuts. we know greece needs another default. they need more money. just can't tell anybody we're going to give it to them. let's move away from europe to egypt where things are even more serious. egypt's army denied a political road map will come into effect after its imposed deadline which expires later today. according to a reuters report, the next step is to call political, social and economic figures to talks on the country's future. the military warned there will be more bloodshed if president morsi refuses to step down in what they are calling the final hours of his rule. yousef is in cairo, been following this story. yousef, we heard from the president last night. you said earlier he soiunded agitated. what is he saying and what are the military now saying at this moment? >> reporter: well, ross, the president made it clear that his government had the legitimacy of free and fair elections and then he will continue and seek out his t

as greece signs off on fresh public sector cuts to meet austerity demand, we'll hear from a german mvp of greek originalen who says the troika should apologize to the great people. he joins us at 10:30 cet. and spain looks to sell up to 3 billion euros in bonds. will investors keep their cool? we'll have the latest from madrid where stephane pedrazzi has been this week. and tokyo, where shares of softbank are higher. we'll tell you more live from the nikkei in about 30 minutes time. and morgan stanley is reporting second quarter earnings on the back of a strong quarter for u.s. banks. will the good news keep on coming? we'll discuss with u.s. bank analyst at 11:45 cet. plenty coming up on the show. feel free to get in contact with us, worldwide@cnbc.com is our e-mail address. we're looking forward to your correspondence today. ben bernanke did not rock markets as many had feared. he soothed tapering concerns saying any winddown of asset purchases depends on the economy. not a preset timeline. speaking on capitol hill, he said the central bank would be keeping policy flexible. >> indeed

this as egypt's foreign minister resigns. >>> greece wants to get its house in order. the finance minister quits as he admits he lost public support for his austerity plan. >>> in italy, mario monti threatens to withdraw from the coalition amidst the slow pace of reforms. >>> the world's biggest pension plan in japan posted highest annual profit ever, $112 billion. this as the government pushes for a reform overall in search of higher returns. >>> and seeking a safe haven. wikileaks says edward snowden filed for asylum in more than a dozen countries as he blasts the obama administration and threatens more security leaks. >>> all right. just joined us, welcome to the global trading day here on cnbc. you can see european equities weighted to the down side, about 72 advances being outpaced by decliners on the dow jones stock 600. european equities did get a bounce back as far as u.s. futures are concerned now. dow after finishing up 65 points yesterday, here we go, is still above fair value, not by much, 25 points. the nasdaq is currently about 9 points above fair value.

. >>> no protests in greece today. that's a rarity lately. police kept the streets clean as germany's finance minister rolled in to speak. >> i would like to ask all of you not to continue in this time the discussion on a new haircut. it is not in your interest. we have agreed on the program for greece, and it was difficult to get it, i tell you. >> that speech took place at a germany greek chamber of commerce meeting, and mr. schaumberg's remarks caused a ripple this morning. ty? >> let's go to the power rundown and go through this quickly with sue and bob pezani. banks, brokerages taking part in quantum dunn, a marked hack attack. how vulnerable is wall street to a cyberattack in real life? >> i think it's a real issue. we have seen attacks on exchanges already. nasdaq had one on their website just the other day. i think this is very interesting. participants will receive blasts of confusing information today. that's amazing, sue. we can send them the mlc minutes. >> that's really true, but i think in this age of hacking, we've seen so many

>> so, michelle, how will concerns about greece and europe in particular impact investing in the second half, pegs legsly whether it comes to the wealthy investor? we welcome back the global head of citi's private bank which oversees more than $270 billion in assets. good to see you again, david. >> good to see you, sue. >> how do your wealthy investors view the situation in europe? are they still concerned about it, or do they view it as an opportunity? >> well, i think that they are less concerned about it today than they were about six months ago. certainly since the statements by draghi and by the coordinated activities of the central banks around the globe, people are feeling there's more an underpinning of stability. that said, huge tail risks in europe still and you saw some of them in greece, you know, but you're not really seeing activities that would leave us fear balance for the european markets to be a contagious. >> we've heard that they are looking forward to desed assets sales in particular and that provide them a little bit of a year into your portfolio. are you seeing t

see the bond yields approach or exceed 8% briefly with the turmoil there, and not the mention that greece is back again. and again, these things come and go and the crisis in europe over to a larger extent and we have seen the markets down in spain sharply today. and we are revisiting them as the commodities are down. gold down. oil has been up, and it is a difficult period in which to make the long term investing decisions. >> the oil piece is interesting, because the dollar has been rallying and gotten a bid here, and yet the oil prices are climbing and not just on the bren, but the uti, and it is starting to tighten now. >> yes, tighten as a result. we are getting stuff from curbing to the east coast in terms of refining it, and don't forget, you see the pictures from egypt and that is unsettling people. you hear conversiations about te suez canal and you expect it to go on. >> it is a coupe? we don't know. the military is not specific, but the deadline is in the next couple of hours, and we will keep an eye on cairo and see if there is a large scale change in the political structure t

greece will allow it to receive its next batch of bailout funds. they say they have fallen behind, but the growing authorities have implemented steps to put the program back on track. we talked about this last weekend. finally, proxy firm iss now recommending dell shareholders approve the company's proposed dole to take itself private. michael dell of course leading that. it's a big setback for carl icon who has been seek support for an alternative report. some advisory firms were going to come out in favor of him. >>> more violence in egypt today. at least 40 people are dead, hundreds are wounded after they say egyptian president morsi attacked people in cairo in a sit-in since last week. questions about whether they will be able to put together a coalition government. this is the most violent single occurrence since the entire outbursts started last woke. we have a live report in a few minutes chts also the investigation of asiana flight 216. phil has more on this developing story. >> and becky, it's early in the investigation. as andrew mentione

we have seen what is happening in greece, which is a bit of a setback within the last month. having said that, i think the only question you have for portugal and for ireland is what is the exit strategy they have from the packages, is it going to be a fully fledged bailout on top of current bailout or more flexible type of contingency credit line that could protect them from market anxiety. that's where the debate is. we don't think there is much chance of a psi around that. we think this is all about whether they get an eccl credit line attached to it with a sort of access to ont. and that's something that we have to be debated in the coming weeks and months. not a medium term discussion, coming soon. >> jacques, we just got jeff on the ground in frankfurt today. there is tensions in portugal as the ecb meets for the monthly policy decision. it felt like the ecb had so many different policy tools discussing, but none of it was going to happen anytime soon. what is the tone going to be today and do you think there will be any progress toward some of the mechanisms? >> i thin

but falling well short of what we've seen in greece. more about extending maturities and trying to write down the debt. >> miles, good to see you today. thanks very much for joining us. just a reminder what's on the agenda stateside, pending home sales for june. the report also kicks off a busy data week. second quarter gdp and the policy decision out on wednesday all wrapped up by july non-farm payrolls. >>> still to come, the president is expected to nominate a successor for ben bernanke in september according to his administration. that has calls. we'll discuss the various candidates, plus lots of other things in the second hour of "worldwide exchange" right after this. e? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ >>> you're watching "worldwide exchange." here are you

european shares are lower as well hurt by political unrest in portugal and uncertainty whether greece will get aid from its lenders. spain's ibeck slipping, portuguese stocks down over 6%. the port yu the port yguese stocks down. the index are lower down more than 1.5% in about every case of the major indexes. the only place you see green arrows are in the oil market. crude oil rising above $100 to high the highest in 14 months, coming as all of the political unrest in egypt seems to be boiling over. that's what is pushing the prices there. investors are going to watch for inventory numbers they get later this morning from the department of energy. along with the runup recently in crude oil prices. traders will watch a batch of jobs-related data as we get ready for the government jobs number friday. we'll hear from john challenger on the job cuts at the bottom of this hour. later it's the private payroll data and jobless claims, adp, the jobless claims, we have a half day of trading today and the markets will be closed tomorrow for the fourth of july holiday so a lot to cram in. >> co

and better news from greece and portugal. draghi speaking at length and reiterating his commitment to low interest rates. >> following its july meeting, the council stressed the monetary policy stance is geared towards maintaining the degree of monetary accommodation warrantied by the outlook for price stability and promoting stable money market conditions. it reiterated its monetary policy stance would remain accommodating for as long as needed. >> so not surprisingly that bolster shares across europe but in green european commission officials say they have reached an agreement with authorities on the economic and financial policies the country needs to instigate to receive the next tranche of international loans. over in portugal making moves to end its political tur poil. portuguese stocks gains more than 2% on that news, carl. >> problem solved, right? not exactly. bob is back of course at work after a couple weeks off. you were missed, sir. >> it was wonderful to sit in europe and watch yields rise. i left at the lows tw

investors also keeping a close eye on greece. that country hoping to reach a deal with its lenders to free up more aid by monday. ali rend, vice president of the european commission says greece's last tranche of aid could be made in installments which would continue to keep the pressure on greece. once you're involved in one of these programs, it's quarterly, now it could be monthly you have to report back. simon really should have been here. so much happening. we've got the ecb, mark carney at the bank of england coming out with a statement and then the forward guidance. >> it always works that way. we hope to have him back next week. let's bring in josh lipton. >> we have given up a lot of green right here. you had that jobs report, you saw a beat. the upward rerevisions, but the dow is now up just 15. traders i'm talking to pointing to a few different factors. one will say the technicals. the failure of the s&p to break and hold above its 50-day moving average or short-term trend line. also rising rates. yields across the curv

so going back to whether this is america's quote, unquote greece moment, a precedent in the case of the detroit is going to be so important, because what happens with the treatment of voter approved general obligation bonds that are supposed to go specifically towards some of these areas that then, in other words, the zen senie seniority bond markets is going to be important of the way that people treat municipal debt across the country. probably more knee-jerk selling and space, and here is what jim vogel said, look, if this means more differentiation across the muni space, and places to pick up a 5% or 7% or 9% yield in some places, what a perfect place for bank loans, and who knows more or should know more about a local market and local conditions and local fundamentals than the bank at least if this were the case 50 or 75 years ago and maybe an opportunity for them to actually improve their own earnings power by coming into this space. >> yes. >> you have done your homework. >> nicely done. >> and somebody has the do the homework and a lot of the guys can't at home, because you have

what concerns me about greece was the airports were closed down for four hours as a result of this general strike. and i read in today's daily news that foe see ya vergara was on the streets so i'm slightly concerned one of the national treasures here might not be able to get back and may be stranded on that greek island. we'll see whether they're able to chartary flight. >> i don't know if we can show that but we have pictures of the lovely sofia vergara sizzling in greece. >> i was there ten days ago. i recommend it. it is the jewel. >> doing their part to boost the economy, carl? >> sofia is there, simon was there. curious. very curious. let's get a check on energy and commodities. bertha coombs is at the nymex. >> sofia vergara has not been spotted here. but what is hot is the weather. we're seeing some mixed trade as far as the energy benchmarks. nat gas up with this heat wave gripping much of the country. we've also got gasoline higher, a little bit of resistance when it comes to brent and wti with those bad figures out of europe. if you look at what's been going on the last couple w

the top gainer over the last year is, in fact, greece, with a gain of 48%. then ireland, then spain with gains of about 30%. in addition to that, of course, the euro was able to move substantially higher, and we have now an 8% move for that year against the dollar. in the meantime, guys, as far as the next couple trading weeks are concerned, i can tell that you angela merkel has gone on holiday despite the fact she's got an election in september which kind of indicates that everything is going to be okay for now. >> or it won't if you know murphy's law. simon hobbs, thank you very much, sir. both sides of the atlantic by the way are keeping an eye on the trial of fab tourre. the testimony he's given is just finished in the case against him. mary thompson has the latest. >> of course, tourre stepping down after what was essentially 2 1/2 days on the witness stand. the s.e.c. alleging that mr. tourre deliberately withheld information to investors about john paulson, the hedge fund titan's role in a synthetic cbo called abacus which netted paulson a billion dol

it follows a conference call when greece fulfilled the requirement. a preliminary investigation shows that southwest jet that landed at la guardia nose first time. it actually did happen. it broke the nose wheel. that's where they come in like birds almost. it resulted in a hard landing and ntsb investigators are still trying to determine if pilot error was determined. they land back and slowly you can feel it come down. >> yep. it didn't happen this time around. >> our next guest is making the case for small caps. he says based on his research, the timing couldn't be better, dan barrow is with palisade capital management. he joins us with more. dan, you have interesting statistics i didn't realize, you say the number of companies currently listed 4, 916. there were more than twice that in 1983. what happened? >> you had this continuing shrinking of the equity markets. the title of my essay to the shrinking market. this has been an ongoing phenomenon. a great cocktail party chatter is to ask somebody how many stocks are in the wilshire 500 index. it's

. >>> greece is expecting to receive the next batch of bailout cash. there is a monday meeting to decide whether greece shut get that money. >>> samsung reporting record quarterly profit of $8.3 billion up 47% from a year ago. this is becoming apple like. increase was driven by strong sales of smartphones including the new galaxy s4. shares did tumble overseas falling sort of analysts estimates. let's get a check of crude higher this morning that a state of emergency has been declared. you can see crude up marginally. 101.74. joe? >> we'll get to our trading block now for more on volatility in gold and currency joining us now, tom is a partner and we'll see if we'll be joined by other guests in a seconds. let me start with you, tom. we had dennis saying he's going long of gold the way he likes to say it but in japanese yen terms. does that make sense to you? >> well, i think if you're trading the yen, you should trade the yen versus the dollar. i understand what he's saying but if you follow what the yen started to do in november, gold has followed it.

. >> on portugal, greece, you have unemployment rising to 26.9%. that is a record at a time when municipal workers are still in the streets of greece protesting in advance of next week's key votes. i come back to portugal, a bigger loss down there on the bottom left tlt moment. let's talk about the scale of the rally and wa is going on today. it is the miners that have led today under owned. a lot of those big miners that a lot of people were shorting have made gains during the session. and those appreciatus metals, much smaller generally. day two of less as you can see. let's talk about portugal and the reason why we're down there. the risk in portugal is rising. the president of portugal, rather than staying to the center right, yes, you can keep your coalition together is suggesting there can be some order of deal across the political spectrum for austerity so that they can exit their bailout next year and have a general election. that is seen as really stirring the pot, if you like, and you can see that these big banks in portugal are lower as

but yeah, facism i think has had its day and i don't think that's except in places like greece, that's not really a significant force and i hope it remains that way. >> last word, zach. >> europe is going test this presumption. if you have a shrinking population with sufficient affluence, why should you have growth, right? and the whole model that we live in, the whole political model, the whole economic is predicated on growth is normative, growth is good. europe has huge issues and we've talked about all of them. but it's a stable, affluent society by any spectrum of human existence over history. so what exactly should the model be going forward. >> does europe want to be a giant behemoth? i think it has more ambition than that. >> very nice place to visit, one of the world's greatest. >>> thank you, all. lots more ahead on "gps." would you be okay if your kids had to double their way to play a sport that would then destroy their brains? malcolm gladwell says we're doing that to other people's kids by supporting college football. >>> but up next, what in the world. a world leader who

but yeah, facism i think has had its day and i don't think that's except in places like greece, that's not really a significant force and i hope it remain that say way. >> last word, zach. >> europe is going test this presumption. if you have a shrinking population with sufficient affluence, why should you have growth, right? and the whole model that we live in, the whole political model, the whole economic is pred dated on growth is normative, growth is good. europe has huge issues and we've talked about all of them. but it's a stable, affluent society by any spectrum of hum existence over history. so what exactly should the model be going forward. >> does europe want to be a giant venith? i think it has more ambition than that. >> very nice place to visit, one of the world's greatest. >>> thank you, all. lots more ahead on "gps." would you be okay if your kids had to double their way to play a sport that would then destroy their brains? malcolm gladwell says we're doing that to other people's kids by supporting college football. >>> but up next, what in the world. a world leader that

and greece did agree to deep government cuts. the first round of cuts was watered down after violent protests across the country. no sign of that happening with this round however. egypt meanwhile trying to rebuild its government, get its economy back on track, but the killing has not stopped in the capital. according to government-run media, the latest skirmishes between police and supporters of the deposed president mohamed morsi have left at least seven people dead, more than 260 injured. morsi supporters fighting mad about his removal of course in the military coup that swept the country's first democratically elected leader out of power two weeks ago. our reza sayah is in cairo. reza, obviously the fears is is that this will continue to grow. but i guess when the protesters block off a major artery in a place like cairo, the authorities aren't going to standby. >> reporter: no, they're not. but they have to play a delicate balance here. if they get too aggressive with the muslim brotherhood, things could go downhill. but the

they're not as bad as greece. that's what they're going to run as - not quite as bad greece. that's not what it's about. [ laughter ] about?t are we talking >> god knows the former speaker f the house, i of all people shouldn't have to say, politics the art of impossible, policy is impossible.the we're not going to turn the united states to cuba. do, hopefully what whatn do is something like actually president obama suggest in the last several budgets hich was closing more of a loophole for the rich to take advantage of. i want to say the two great sins 2003 cent history are the bush tax cuts, which gave special treatment to dividend the e, and that cut in capital gains tax rate in the '90s that was under somebody's in the house, i can't quite remember who. a few extra se income from the top 1%. that we'll do. it will solve all of our problems. it's a start for reducing the excessive power. of the matter is that in the past, we had more progrelszive taxation. the 1930s with a much more progressive tax system than we had before, we came out with the -- the society that as 't q

that's what i was fighting in greece. we were vooge having growing capitalism. we had to change. i had to bring in electronic prescriptions to cut out about 30% of the waste, which i did. i would add one more thing. business needs a functioning estate. and a functioning state that provides for basic needs, such as good education. many -- in many of these countries in europe you have businesses which are able to fire people very easily, but the welfare state comes and says, i am going to retrain you. i am going to get you back on the job market, and you will be even better then. you snow what that does? for business. for business. so i don't want to punish business, i want to make sure the moans are used in the right way. if we want to create the capacity of our citizens to be free and capable people. >> this is all off the point. >> the best form of welfare, as john kennedy said, is a good, high-paying job. people don't become prosperous from programs. they become prosperous with jobs. but i agree with you on making everything more efficient and everything better. no one wants to

they're not as bad as greece. that's what they're going to run on -- not quite as bad as greece. that's not what it's about. [ laughter ] >> what are we talking about? >> god knows the former speaker of the house, i of all people shouldn't have to say, politics the art of impossible, policy is the art of the impossible. we're not going to turn the united states to cuba. what we might do, hopefully what we can do is something like what actually president obama suggest in the last several budgets which was closing more of a loophole for the rich to take advantage of. i want to say the two great sins of recent history are the 2003 bush tax cuts, which gave special treatment to dividend income, and that cut in the capital gains tax rate in the '90s that was under somebody's leadership in the house, i can't quite remember who. i want to raise a few extra income from the top 1%. that we'll do. i don't think it will solve all of our problems. it's a start for reducing the excessive power. the fact of the matter is that in the past, we had more progrelszive taxation. in the 1930s with a

, without lemay, but i don't think -- you take away themistocles burn down athens and two-thirds of greece occupied, the greeks would have even fought. without belisarius the emperor justinian would not have recovered much of the western part of the byzantine empire. i don't think there was a union general alive who could have taken atlanta at the cost that we took it, very small cost compared to what was going on in virginia. i know anyone in could have done what matthew ridgway -- i wish i could say there were american generals, but not very many it could have done. looking at unique individuals draft history chronologically. trying to remind us that even a therapeutic sociological era of high-tech, these human qualities remain constant across time and space. >> host: to few historians, the people that you select were in the saviors of their countries. i think themistocles is a great example. undoubtedly he saves the greeks. but they might argue with some of your other choices, such as bridgeway because the original strategic outcome in three of, not actually achieved. so how do you resp

he committed suicide later with the enemy that tried to destroy greece. bill was arnesen that the popular traditional bigger on the streets in constantinople humiliated by his emperor. sherman was called crazy. he was called a terrorist who spent most of his career trying to defend what he did. very effective but he wasn't popular like grant. matthew ridgway wasn't made the chairman of the trend chiefs. eisenhower wrote a memoir where he lacked the said that ridgely didn't take from them. even though he wasn't even in the theater. he lived to be 97 but he got involved in the controversy under ronald reagan. the manuscript some of the editors and people but read that and i finished it right after the election and said david petraeus just in the of happy and everything went well. and of course he had some problems. and so there does seem to be a profile these people are controversy. after the signature achievement it is hard to sustain that committee and the society is ambiguous about them. >> host: the signature the chief that is obviously extremely intere

lehman brothers and all those things from 200 2008 by spread into eu, it spread into sovereign debt, greece, ireland, spain but it spread into different -- the european banking system, the world trade system. this was not a one a story of crisis response. it's all a. so that's what i do in the book is tell the global store and always interrelate apart. warren buffett has a line from you don't find out who is naked until the tide goes out. the greek government was a naked one in this case. the crisis expose some long simmering problems in their excessive borrowing and bad governance that a think we just didn't understand or didn't say when things were going better. and it was his receding tide great by this crisis, the meccas crisis -- the mega crisis. so let's talk about how that came to be. the european crisis is a hard thing to get your head around it i spent a couple years covering it. i would open a good bit and i still feel like it's something that is not easy to get a good grasp of. so i start that story in october 2009. what happened is a new government came to power, the socialist p

when everyone says athens is lost and they go rest is missing give up greece themistocles is distrustful with consensus. when they tell sherman that lincoln is not going to win the election and whether you like it or not mcclellan is going to feed president and you had better adjust to it or when people tell ridgway it's time to go back to pusan and settled things down and get everybody out. they're at the 30th parallel and take them back to pusan but when petraeus went to iraq, it was hopeless basically but they had this have this idea that i don't trust what most people say and b i guess they do their homework. they are very meticulous student so they are strategists of not just saving the particular war but a vision. petraeus had a vision of something called counterinsurgency. you know better than i do, that even transcended iraq. we would be in time time and space in the 21st century where we had to have a different tactic in the middle east. ridgway was an author of this radical doctrine. it's not radical now but believe me after 1946 people said we don't need a marine corps and we

i think circumstances are changing, attitudes are changing not just within cyprus, but also in greece and in turkey, and we have to capitalize on that. we also have natural gas off the coast of turkey which is -- off the coast of cyprus which is a powerful motivator for getting to the solution that we all want which is a bizonal, bicommunal federation that can share the benefits. and it's absolutely vital to europe that turkey -- that cyprus begin to prosper again, and i think that working on this could be a positive in that direction as well. >> thank you. my time is up, but let me just say in closing i hope that we will continue to support very positive progress that's been made between serbia and kosovo onsetting their disagreements -- on settling their disagreements there and anything we can do to support that, i think, is very helpful. thank you. >> senator barrasso. >> thank you, mr. chairman. on may 10th the republican members of this committee sent a letter to chairman menendez respectfully requesting additional committee hearings to review the open questions surrounding the s

this riot was in greece. greece had the most riots, there have been big fights in sin effort gal, portugalleportugal and england. >> there has just been cuts, cult john: many say europe's troubles prove that the free market argument is wrong. the europe troubles gave he pause. could it be true? cato economist dan mitchell. why haven't the budget cuts worked? >> because there have not been any that woman from england. the cut, cut, government spendi has gone up in the united kingdom every single year. for at least a couple decades, and even since their so-called conservative government took over, and it is rising faster than inflation, you look at france, governmenttspending going up. >> we have a graph. france, italy, united kingdom, spain. >> they are increasing government spending at a rapid rate. all of a sudden, fisl financial crisis hit, we have to do austerity, was not prune back the se, they said let's raise taxes, they are raising taxes, dving private sectors into the dirt, that dii not work, now fina

out. >> greece is waiting for the 10 billion, the tranche of the loan. and greece on the brink of collapse, they were suppose today do government benefit reform, notably redundancies. the problem is that the imf is at the risk of breaking its own rules if they allow to delay reform. >> they've broken all the rules. and the ratios that everyone promised. almost all of that was thrown out the window and none have credibility. and argument from the left and austerity for the most part to spend higher taxes and it's a gut wrenching thing to go through. and greece has been on the back burner and things seem to be moving along and the headline it's still the same and it's in spring again and meeting the seasons of revolts and protests and problems with what's going on. >> the revolt-- >> europe as a whole. >> i wonder, have they coded themselves in such a welfare mentality that they're too easy to vote? you look at youth unemployment in italy, spain, portugal. this has driven the egyptian kids out into the streets. and these guys are at home chilling out. >> e

morgan, commerzbank, and they have all said that essentially what is happening in portugal and greece and cyprus, those countries of the leading edge of the problem in the eurozone. what they're worried about is a spillover effect. a lot of talk about whether or not spain and italy will basically re-enter crisis stage. now, here is what the bottom line is. the imf is warning that there are risks ahead for portugal, but all of these banks are saying, this is the problem, this is the issue. whether or not there is austerity fatigue in these countries. in other words, will these countries be able to dial back on their spending and dial back on their tax hike? they're saying no because they you, imf, and the ecb, the troika as it is called, the three of them are hanging tough, essentially saying to cyprus and greece, you have to continue with your reforms or you will not get bailout money. that can be expected to also happen in portugal. portugal is trading at junk status with junk bond status. what is striking here is that it started out this month that just under six and a half%. you sa

situation there, remember about two years ago when they had riots in greece, it affected the markets tremendously but now, chris, again we seem to be beyond that. let me ask specifically about size of companies because there has been, today, we saw the russell 2000 do very well. much better than regular markets, that being small and mid-size caps. do you choose any size company particularly in this environment? >> we like small caps now. we think they're less exposed internationally to emerging market companies. their balance sheets are incredibly bert than they were four or five years ago. with a rising rate environment which is what we've been seeing, if they do continue, we think the small cap companies will be benefiting. liz: what is your side window trade, chris? i like to use that term sometimes because i think, if l, money you could afford to lose where would you put it? is there a cookie sector where you think it may not do well but i'm willing to take a shot at it? >> ahead of semiconn west next week, semicap equipment back end of this year. liz: semiconductor capital equip

liz: don't count greece out. n europe, greece got a nearly 9 billion-dollar lifeline from the eurozone today. they must keep their promises to cut government jobs, waste and spending to get rid of all the cash. "after the bell" starts right now. ashley: let's get to today's action. we have patrick, brandywine global manager. his last stock pick, up by the way, 30% since he told you to buy. i hope you did. lincoln ellis is in the pits of the cme. let's start with lincoln. i was looking at some of your notes. alcoa earnings a terrible barometer for the stock market. you believe that huh? >> terrible barometer for the economy t really doesn't tell us too much other than what we've seen over the last course of the two years. alcoa has been dead money. commodity sector has been beaten up last couple years. it has been a couple years. we wonder if the turn is starting to happen? we'll see on the back side of what china reports next sunday night. we have some interesting economic data coming out midweek. three, 10 and 3

greece is in the 6th year, 20% j jobless rate and greece is trying to tax their way out. charles: and that's amazing. and by the way we're not left out. america, we're 72 hours away from the june jobs report. the first since fed chairman ben bernanke hinted that he could slow down on the printing presses. what about that one, liz? >> whether or not we remain in qe infinity. we don't know. we're looking for 170,000, weaker than 175,000. charles: the goldilocks number, 175,000, a great america. this is a shortened trading week, but your money is making big time moves, make no mistake about it, and we'll have big news and major impacts on the market friday. the jobs day, right now this is the calm before the storm. the opening bell is next. the boys used double miles from their capital one venture card to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with double miles you

if i'm greece that gives me a little bit of leverage. ashley: croats will not be happy with that comment. >> i know they won't be but golly. talk about coinstar. how do you guys feel about kiosks. lori: i love them? coinstar is so fun. >> do you really? kiosks -- lori: see all the movies? @> redbox, it is fantastic. people writing off the whole dvd business. lori: no way. cars -- >> all the -- lori: taking over your hit, sorry. >> look at best buy over the last year, look at that stock. you can't write this stuff off this soon. netflix made 113 million off dv. dids. dvds. only 31 off the streaming video. they have rubies, they will distributing seattle's best coffee out of this one. what do you think? lori: you know in new york city we, they're not really kiosks but we eat off stand in the street. ashley: you might. i don't risk it. >> hot dog stand that have questionable whatever. lori: i love my dirty water dog. >> you trading used cell phone for cash. lori: beautiful. >> you like that one? ashley: that is a good one. >> bert than some

it is news about the numbers in the rescue package for greece. eurozone finance ministers approved a staggered payment method. those payments will start with a 2.5 billion euro installment this month. a second installment, 500 million euro coming coming n october according to reuters. central banks and euro system will contribute 1.5 billion euros in july and 500 million euros in october. the officials say the international monetary fund will give 1.8 billion euro come this august. lori: let's get an update on the stock market here in the u.s. as we do every 15, back to the new york stock exchange with nicole petallides. you have one name up and one name down for us. >> that's right, a winner and a loser worth talking about. intel in particular has been a big laggard on the dow jones industrials have a couple analysts cut intel obviously for similar reasons. citigroup and ever core partners are pulling back on intel and their outlook, concerns about pcs, the pc market forecast overall. citigroup did lower their numbers they expect obviously them

is like european countries, greece, portugal, greece, half of the people have never been on the internet. i could bail you out but if you don't have the intellectual tools or the schooling to take the money you will need a bailout later. you can keep giving a man a fish but unless he learns how to fish 47% functional adults, 47% functional illiterates, 47%. getting them money no matter how nice you think is or how humanitarian you think it is only prolongs the problem like the building jeff was talking about, to really fix it the mindset must change. when i say dramatically, dramatically. stuart: the news we broke this morning is a republican has said he is open to the possibility. charles: what is going to say? don't bail us out. won't get reelected. stuart: he is not from the detroit area. he is open to it. charles: if you cause of your leg the rest of your body -- >> there have to be consequences to choosing bad governance. charles: going to the consequences there has to the stipulation for this money, that is not economic stipulations that personal responsibility stipulations. this i

greece is trading long term ratio of three. that is a generational low so a lot of the countries, greece, ireland, russia, we think there's a huge opportunity in the next five and ten years. maybe not in the next quarter, but the next five years, there's a big, big opportunity. >> you have to know the investor. that's the thing, long term investor, and in the etf, tactical, you move around, great, a professional can do that, but the average investor is gun shy. they took a long time to get in, buy low, sell high, never learn. cheryl: you have a different approach, doing different things as jobs outside of the studio. you manage private money, you're in the etf groups, selling to institutional investors. from your perspective, kathy, do you have plans coming into the office saying i don't trust the markets, i want out, at terntive investments. >> absolutely. another show, i got a $5 million client called saying, help, i have to preserve now. we see a lot of people that really want to protect it. they are worried. business owners

if greece -- when greece went bankrupt it didn't threaten the european ewanown anymore than detroit going bankrupt threatens michigan, or if california goes bankrupt, that doesn't threaten the entire united states. the analogy instead is that if you have a mismatch of people who produce compared to people who try to live off the government, sooner or later that's going to catch up with you, and all of our cities, states, nations, however you want to measure it, with aging populations, you can't have these unfunded schemes, whether it's for entitlements or -- >> how do you fix it. >> benefits for government workers. i you're detroit or the state of michigan or any other city or state government, you switch to a system of defined contribution retirement, which means basically personal savings accounts, like you have in countries around the world, and if you're a country, whether you're greece or whether you're the u.s. or france or japan, you have to reform your entitlements. you need to move toward something called prefunding. that means instead of an unfunded tax and transfer entitlement

was fine until greece went into the tank and now we all have problems. >> greece didn't sink the world. i will not take responsibility for my ancestors. however, i will say this, what about the person that's want the golfer that has to pay that much in taxes? what about the people in european countries or new york city -- even you, bob, have come around. phil mickelson has how many endorsement deals? >> listen, they are not living bad eye mean, eric is one of the richest people i know -- >> will you stop saying that? that's ridiculous. >> he offered to pay the kids in the white house for a year -- >> no, a week. >> so he's a pauper. and he's cheap. what are we -- >> i think he's gone. >> anyone else you want to insult? you haven't gotten dana or greg. >> how about -- >> the scottsman. >> how about you wh you said that i would be a married to. >> well, you would. i love you friend. i couldn't imagine the stares. >> you would be a dream -- >> no! that's i didn't gotsten, you doo move y around. it drives me crazy. why peter is you could get a camera on him. he looks like he just came out

was doing fine until greece decided to go into the tank. now we've all had problems. >> greece did not sink the world and i will not take responsibility for my ancestors. what about the person that's not the golfer has to pay that in taxes, what about folks in european countries or big cities like new york city, even you, bob, have come around. phil mickelson has how many endorsement deals? what about the people that don't have endorsement deals. >> they're not living bad. eric is one of the richest people i know. >> stop saying that. >> you offered to paint the white house for a year. >> a week. he is a pauper. he is cheap, too. am i supposed to -- >> keep going. >> anyone else to insult? you haven't gotten dana or greg. the greeks, eric is too rich. >> how about the other day when you said i would be a bad person to be married to. >> you would. i love you as a friend, i mean, i couldn't imagine the stares. first of all -- >> and you would be a dream. >> that's why i got divorced after a few years. you don't want to move the stuff around.