them i am mark crumpton and this is bottom line, the intersection of business and economics with a main street perspective. of new york district attorney discusses the settlement. also twitter names former goldman sachs banker anthony noto as cfo. and general motors surprises investors with a june sales gain. to our viewers in the united states and those of you joining us from around the world, welcome. he have full coverage of the stocks and stories making headlines today.

headlines the debt crisis negotiations in argentina. megan hughes has an obamacare report card. and jon erlichman has details on twitter's new chief financial officer. those stories are coming up. in a moment, the fallout of the -- ofra boston a month the bmp settlement. joining me in studio is manhattan district attorney cyrus vance junior. welcome back to bottom line. bnp posted its biggest advance in a year. the bank also said the 9 billion dollar fine won't force it to reduce its dividend or derail growth plans. if the size of the fine wasn't enough to punish them, what was the point? >> the size of the fine was enormous.

to what they are sending out to shareholders in the markets. the $9 billion fine was directly related to the amounts of money that were moved through the new york city banking system through countries like sudan and iran and others. you have to have a fine that is proportionate. on top of that you have to have a plea of guilty. it is an acknowledgment by the company they intentionally deceived the american government by falsifying information coming into our financial system in order to make sure we did not know the transactions were related to countries like sudan and iraq. >> was the guilty plea even more important than the fine that they publicly acknowledge they had done the wrongdoing. >> the point is not to put a company out of business. we had extensive conversations not just with french regulators

but also american regulators, the department of financial services and the federal reserve. to size of the fine needed be significant but proportionate to the amount of dollars that were moved through our system. guilty itpany please eliminates any doubt about what transpired the statement the company made at the time acknowledges that this was prolonged intentional deceit by the french company toward the united states markets. >> prosecutors say these questionable transactions were processed through bnp's new york least 2004 22012. were new york banking officials at the sleep at the switch? >> i don't think new york and king officials were asleep at the switch. bnpof the methods by which was able to clear dollars through the united states was to

disguise the us transactions as they came in, first by stripping away and identifying information along with the electronic payments, which would have triggered filters letting us know these dollars came from other countries. >> so you are saying no red flares. there not suggesting wasn't a possible way to find out but i don't think the thinking department was asleep at the switch. this was intentional misconduct designed to deceive the regulators. frenchtalk about the government. the french officials told the obama administration may have some concerns. large panel could send shockwaves through the european economy and undermine efforts to reach a transatlantic free-trade agreement. do you care? >> of course we care. significantly about whether there is going to be a catastrophic market consequence as a result of a criminal plea. as i said it was a carefully calibrated decision.

i think the stock is up today, which is a reflection of certainty that the markets now have about this being behind them. and we have changed compliance procedures worldwide most importantly, a plea like this let's all financial institutions no that we are going to enforce sanctions. if we are going to have sections that are designed to protect money from flowing to terrorists, to protect humanitarian violations in countries around the world, sanctions have to be enforced. see significant and continuing investigations going forward. >> we are discussing the bmp settlement. no individual executives were charged. why not and do you think the ceo should resign? >> two reasons why not. first, one of the factors that cut against them was the time it took in order to get certain information to us or you under

federal law a number of statue limitations may have expired against individuals. under new york law are statue of limitations is longer. i can tell you the investigation continues. as to the consequences of who think thatho goes, i is a question for shareholders and management. the justicee about department. and have they done enough and been aggressive enough to go after big banks who are accused of wrongdoing? >> this is the seventh case in which our office has us --igated involving involving sanctions violations. the success of these cases is between state prosecutors and state regulators. to be honest the town is set from the top and both myself and attorney general holder have

made it clear that these are investigations where we have to work together. we accomplished this work with the kind of competence and partnership that the public would expect. as youve to ask you, know there are always going to be bad actors. the think they're going to the irritant in of to get away with this. they're going to opt you skate truths in the middle of the investigation. is a final matter how high a deterrent? >> i think a find of this magnitude is absolutely a deterrent in my opinion. >> why do things like this continue? >> that is a complicated question with a complicated answer. it depends on part on human on the corporate attitudes and corporate governance in every institution. the steps we have taken with the department of justice i think will be recognized clearly in

the banking community that criminal please may well result if you tank -- if you engage sanctions violations come investigations into culpability will continue. the consequences for intentionally violating these laws will is significant. >> with the size of this magnitude, are you confident and comfortable wall street got the message? >> i am confident and comfortable we achieved the right result. i hope the message is read by people in wall street and elsewhere as a sign of our interest and the significance in which we place these investigations and or fortitude in taking them forward. >> the manhattan district attorney joining us in studio. good to see you. coming up assail surprise from general motors. we will take a look at how the automaker was able to pose

numbers despite massive safety recalls. we continue in just a moment.

>> twitter is shuffling its management team. they're naming former goldman sachs banker anthony noto to replace mike gupta. coasterg senior west correspondent jon erlichman in los angeles with the details. hello. >> a lot of people are looking at this announcement as part of a management shuffle we have been seeing at twitter. recently we saw the chief operating officer leave the company. with twitter's wall street story, there have been concerns about two things with users. number one user growth and number two user engagement. all of that obviously affects twitter's ability to generate more revenue in advertising and make wall street investors happy.

anthony noto is a guy who not only got to know the twitter team on the road to the initial public offering but has served in his past life as a wall street analyst. clearly inody who is this role to help better communicate the story of twitter to wall street, who is also somebody who has worked as a cfo, albeit briefly at the nfl. >> mike gupta has been serving as cfo. what is the plan? >> i thought this was pretty interesting. this is basically an area that twitter did not have before. they created this role essentially for him. likelot of ways this is google ventures, where they make some strategic investments but it is different than saying going out and buying a company. even some of the partnerships they had through their business development group -- with the twitter situation this was very similar. what we do know is by going

public twitter was in a pretty good position by having a lot of money. they afford the opportunity to not just go out and make acquisitions as they just made one this past week but also to go out and make sums to tg investments, which could potentially help them branch out into some new areas. the challenges twitter has arguably faced in the past couple of months in selling a story to wall street, this is a company that has been relatively focused on selling a very simple service with advertising revenue business growing. maybe this is their way of branching out in little bit. they might jon erlichman in los angeles. general motors surprised wall street with a 1% gain in u.s. sales for june. analysts had projected a 6.3% decline. an auto analyst at standard and poor, he joins me at his firm. it is good to see you again.

were you surprised given the reputational hit gm suffered because of this crisis? >> i was surprised they had numbers for fundamental reasons. month.tually did ok last recall -- recalls are part of the business. motors can handle news. you don't want this to be the headline all the time. it is not like they are a one trick pony. they actually had to leave the states. gm had a brand that keeps them coming. >> how did they look to you for gm? >> the fundamentals look good. i felt it would be a payback for this month because of the timing that madeleet sales comparisons more difficult.

a goodk you have economy, you had several months in a row of 200,000 new jobs of the stock market and record high's. old vehiclesot of that need to be put into place and a lot of new technology that brings people into the dealership. >> was this more about gm and perhaps its new models or is it more about improving a market over all? >> i think they get a benefit from both. i think generally the industry will do well because of favorable economic environments. we expect 16.1 million vehicles. that is up 3.4%. there are costs dinging them in the profit zone. it is good news for them. saleschrysler u.s. auto jumped. why was the pace so strong last month?

>> unfortunately chrysler is a company that is not publicly traded. historically they have been doing very well and all companies would like to see that type of growth. begins the mark fields era at four -- at fort. what are his biggest challenges? >> he really has to continue with his predecessor did. that is really his plan. in terms of areas that are challenges, it is the same one that alan mulally would face, that is fixing europe and challenges in south america, where there has been weakness, and making sure they see the growth plans in china, which they seem to be doing. >> ford was down 6% last month. the cutbacks for the pickup, how much did that hurt? >> i think part of the issue is they are coming in with new vehicles. some people are nervous about

the fabrication. i think ford is prepared for that but that could impact the sales earlier this year for the f series. >> toyota and nissan saw sales increase over last june. where are they positioned relative to automakers? >> they're not as well positioned in terms of trucks. the toyota company is very strong with its previous. no one competes with them in that economical arena. if you're going to buy a hybrid that is the one you're going to choose. eight -- kind of a cars versus trucks dichotomy. >> u.s. auto sales, are they on track to equip that 16.51 vehicles that were sold back in 20 -- in 2007? looking at 6.1am

million vehicles. i think they're all-time high was closer to 17 million. them at least where the automakers are in terms of the summer months in fourth of july sales and trying to get people into stores, are they positioned to see a good july? >> i think they are positioned to do a good sales number for july except you just have to remember some seasonal issues. i think that is a positive and it will get a lot of people to buy cars. >> an auto analyst at standards and poor is running us. always a pleasure to have you on. coming up argentina makes a move that could prevent the default. of we will have the latest decision that moved the argentine bomb markets when bottom line continues in just a moment.

>> this is bottom line on bloomberg television and streaming on your tablet, your phone, and bloomberg.com. argentina remains defiant even on the edge of a fault that could send it economy crashing. there is no real sign the they mays will be -- be willing to talk about it. economics editor michael mckee has the real deal on exactly where we are now. >> let's start with where we have been. the story is as complicated as it is fascinating. argentina defaulted on $90 billion in bonds. for free toolders take significant losses in a restructuring. the other 7% held out. he has demanded to be paid the

full amount, about $1.6 billion. that means argentina cannot pay one set of bondholders and not those that are holding out for full payment. argentina's appeal should in theory mean this is all over. the u.s. judge in turn our check -- in charge of the case couldn't pay them. judge told the nyt send it back or i will hold you in contempt of court. that is where we are today. could not make the payment so it is technically in

default. >> what you mean technically? >> they have a 30 day grace. to make these payments. the judge says the country should use the time to make out a settlement with creditors. they are willing to settle. argentina says now they might be willing to talk. ofy will send a delegation monday to meet with the court appointed mediator. >> what happens next? >> a lot of people think they might work something out. bonds have gone down in price, selling for $.85 on the dollar, they were worth $.30 when they were issued. know it is noto in the best interest of the country with rising unemployment rate and soaring interest rate. yesterday argentina did take out that at accusing the judge of trying to bring down us to our .eeds the credit default swaps were indicating a 61% chance of

default. , wend some breaking news have learned puerto rico has been cut by moody's. the outlook is negative. what you make of this news? >> there has been some concern with the power authority on whether or not it would be able to make some payment it is used to make. they have had cash flow pro -- cash flow problems. assuming the extra debt is a bridge too far for s&p at this point. >> thank you. we will have more on that coming up. bloomberg is on the markets. at 17,000not quite but we are very close to that level as the dow rises 1/10 of 1% today. the s&p is at a record. of a couple of capitalists. chinese manufacturing data coming in better than estimated. of u.s. manufacturing pretty much holding steady. it seems like that is enough to

form a bit of a catalyst today. of the correction a lot of people have been calling for is not happening today. more bottom line is next.

>> welcome back, thank you for staying with us. president obama is making remarks this hour, speaking about the economy at the georgetown water fort park. he is at the key bridge, where he is calling on congress to invest in america's infrastructure. you can watch the president on our live event channel. peter cook is standing by at the white house with more on the president's remarks. good afternoon. on monday as the president

challenging republicans to pass comprehensive immigration legislation. he is challenging republicans to try and tackle another thorny issue. that is infrastructure funding. more specifically the highway funding facing the country later on. anthony foxx warning that the to fundtrust fund used how it projects across the country could run dry by the end of august unless congress does something to bolster its finances. the president is pushing his own solutions today. he is pushing for $302 billion transportation bill paid for in part by an overhaul to the corporate tax code and no increase in the federal gas tax print that proposal has run into roadblocks on capitol hill. lawmakers are dealing with a temporary pass. inre is no final resolution sight and certainly no for your bigger term funding plan the president would like to see enacted. bill,ides the highway

what else is on their to do list? >> they are on recess right now. of the really is not a lot of time to get anything done. calendar basically 28 days in the congressional session to get anything passed. of they will have to confront some of the major ideas. they are going to have to deal with spending bills. still have to set funding for individual agencies who could be looking at the possibility of a shutdown down threat in the fall. conservative republicans would like to see it done away with. business groups would like to see it maintained, as would a number of lawmakers. lawmakers are having to deal with a defense authorization bill, very critical to military contractors. that is also on the floor. not a lot of time to get

anything else done. >> the president making some time. it looks like he will be like the rest of the country and catch the world cup game this afternoon. did share on team usa this morning in his cabinet meeting. he will be busy with a national security meeting with some of his top advisers. he will not be of a catch the whole game but it's pretty clear the white house will be watching part of its during their workday. we saw the president in one of those viewing areas where they seem to be sprouting up everywhere across the united states where folks can cheer on team usa. the united states supreme court is now adjourned until october but not before handing over a big victory yesterday to private closely held companies like hobby lobby and its pro-life supporters. the decision dealt yet another blow to obama care.

what does it mean for the president's health care law? megan hughes joins me with more you know what is the status update? over.s fight isn't a legislative fix may actually be on the table. patty murray is really championing that cause. she is exploring options. josh earnest indicated the white house would also be interested in backing something like that. are still assessing the decision of legal implications. as we gather more information, we may be in a position to better consider the range of options that are available to the president. that congress needs to take action to solve this problem that has been created and the administration stands ready to work with them to do so. talking about is the requirement that obamacare provides a minimum level of coverage, and that includes

providing contraception. it is a relatively small part of the big picture of obama care. >> how does this fit into the bigger picture on the affordable care law? >> obviously the biggest one is when it comes to medicaid, the court getting the states the option to opt out from expanding their medicaid program. in the mandate that employers provide coverage for was pushed until 2015 for big companies 2016 for smaller companies. both of those notable after the midterm elections. when it comes to exchanges we are waiting on the small business and sharon's exchange. of that causes more delays and more setbacks. you canike your plan keep controversy, those noncompliant plans that meet minimum standards under this law

and became legal for two extra years. even when we are talking about contraceptive coverage this is in the first time the white house has had to weaken its provision on that. we saw it -- we saw exemptions made for religious it -- for religious institutions and nonprofits. some of them arguably for more flexibility. >> this has been going on since the law was signed by the president back in 2010. there is still that tried it comes from the president's opponents. they want to see the affordable care law repealed. what are the chances that is going to happen? >> the chances you're going to be hearing more of those cries is certainly very likely. a lot of the campaign trail. when it comes down to it, all the criticism we have had, people still did sign up for you and 8 million americans are on private plans because of it. of once people have coverage

they are using this new system. it becomes very difficult to take that away. we may see more changes. >> megan hughes. thank you. coming up, are you too lazy to send your friends whole messages and just prefer to say, jo? there is an app for that. we will look at that next.

>> a map created in tel aviv that allows you to message your friends the word yo is one of the new top 10 apps. we spoke with one of the cofounders on how the company can sustain growth.

>> we are playing with certain moveres to see if we can traffic from one place for different place. at the same time to keep it very broad. it can mean everything. . it needs to be very broad. it needs to allow people to say whatever they want to say without saying it. 1.2 $.5 million, has that materialized? >> they got money before the big festival started in today we have much more interest in the company. we could raise much more money but we do not need it. when you raise money you have to be responsible.

either of those north or south, you don't want to be diluted. you want the us less polluted as you can. you don't want to lose too much money. it is super simple. you don't need to much money to see where it goes. be very responsible and take the lessons we can to give it a real chance. roundgoing to finish this with a lot of people trying to get in. >> one guy quoted if you have a pulse right now you can raise money. you sense that we are in some kind of bubble right now? wasnlike in 2000 when there

just aberrations coming out of is a valid business with real dollars behind it and real monetization dollars. i don't think there is any bubble. the you talk about bubble, important thing is not how much money can be raised, it is the valuation. i can tell the valuation is very modest. it could be something that is extreme. we try to make it right and be responsible. is time for today's latin america report. he took office as mexico's 57th president in 2012.

the president told charlie the economic indicators of his country are encouraged. >> we are starting to see very encouraging figures. month after month until right showing bettere performance for our economy. henrique is the guest tonight on charlie rose on bloomberg at 10 p.m. new york time. argentina has defeated switzerland to advance to the quarterfinals. the u.s. team is back in action. and asa will face belgium second round match with the loser eliminated. the winner will then go on to play argentina. that is your report for this tuesday. coming up, women angels. of the talk to one largest angel investors in the

country and why investing in companies pays. stay with us.

>> the latest data shows only 13% of female onto printers who ask for funding from angel investors receive the money. that is much less than the overall rate of 18%. one of the largest firms in the country wants to change that. firmare an investment focused on funding startups led by women. one of the founding members joins me in studio. it is good to see you again. you would think this would be a no-brainer. when you hear the numbers i just mentioned, what do you think? . the numbers are much worse than when we started. women were receiving zero to 3% in venture money. largehas been a very improvement in these numbers, which we think will continue.

one of the things going on was there were very few women investors. be hard towould point out a percent of the angel investors. contribute towill some of the change. him >> what changes that dynamic? how to more women get interested? , we believe the cold and -- the golden seat was a big factor. when people start hearing these numbers, how little capital is going into these companies, it starts to create a wake up. they identified the program and found that part of the solution was to have men and women investing together in gender diverse companies. him gender diversity will provide greater returns to investors. we could not recruit women angels, we had to become angels because there really were none of us. a filter ofthrough

education. we want our members to be informed and i think that is creating part of the shift. him >> how does someone become successful? >> there are a lot of elements. we think belonging to a group is something that many potential angel investors want to consider because then you are part of a has flow,that bringing and expertise to the investment process. >> you have said the word team a lot. how critical is that? , when you are doing the investing you are packing people. him as one of the things i love about it. have a team approach on the investing side because we are often investing in ideas that are so new themselves, so disruptive that it takes a lot of original thinking and research, even to figure out if there is a market. >> which sectors do you concentrate on? >> we are focused on the sectors where we saw women building businesses.

we are focused on women who want to build high-growth businesses. they simply were not getting funded. of ourave gotten -- some categories, which are life sciences, technologies, and consumer products, to reflect what women are building but also reflecting the academic degrees they're getting. women still have a very small percentage of computer science degrees what they get a very large percentage of life science, biology, hard science. we have a very strong hard science practice because that is where therefore made the company. halo report rates them as one of the top 10 investment groups. you have been around for 10 years. him what have you learned during that decade that has led to your success? >> than reason it has ranked number one on how active we were, meaning how many investments we do -- that is one of the things that has set us apart. him we need to be a group that invests for number of reasons.

locationstate is location location. in our asset class he need to have diversification, diversification, diversification. we focus on educating our investors. angels orbecome venture capitalists. we had to train ourselves in this skill set. we are nationwide in multi-sectors. many groups may be focused on one sector or one geographic location. him we are very strong on process and how it allows us to do a lot of activity into companies because we are very organized and we are known for that. we are known to leave guilds, which is a skill set in itself. >> one of the founding members of golden seeds, focused on a startup led by women. it is good to see you again. stay with us, market movers is on the other side of the break. bottom line continues in just a moment.

>> thank you for joining us. on the markets is next. >> it is 56 minutes past the hour, that does mean bloomberg

television is on the market. we have a big rally for this holiday weekend. all three major bridges are gaining. the nasdaq is up better than 1%. the dow flirted with 17,000. at a&p 500 is trading record. we had chinese manufacturing data coming in better than estimates, helping to provide a little bit of a catalyst. i am joined by the money manager of chad morton landrigan he's joining me right here in the -- in the studio. everybody is pulling back and calling for corrections. >> it is courtesy of the federal reserve. it is dovish. the economy is getting better. you are probably going to three that's going to see 3.5% gdp growth. moving higher. perhaps 6% from the 14.

maybe a little bit of multiple expansion here into the second half, maybe in other 5% upside. >> you think a risk on ahead. >> i am not exceedingly bullish. hit all-timeng to highs, excluding the 2000 big huge run there. you really need to start seeing topline revenue growth, as well as bottom-line earnings growth. it has been somewhat lackluster. we think valuation's are compressed. you can potentially get good old over thee by the ecb course of the three months. him >> while you think this is another good opportunity for my you think you should be diverse a fine elsewhere. you are coming back to the emerging markets. >> we are going to take a

neutral weight there. we took off our trade from small caps, where we are overweight. we just believed the united states market is getting a little bit -- you can get another 5% out of it. when we get over to the fixed income sides we do believe the second half of the year will start to see into the yield curve, which could bode well for sectors like financials. >> to me that would still be an area where bnp is a huge example of that today. although it is not a u.s. bank, obviously. are those enough to give you some pause? is that going to be a criteria? >> i think it is fully reflected into the valuations. the yield curve steepening. janet yellen will keep rates down, perhaps going into 2015. expectations, if you

listen to the announcement two weeks ago, the 2% inflation threshold is not a ceiling. it looks as if the unemployment labor is just plenty there. a lot of runway to go. i think the financials could be a good opportunity in the united states. you may want to look at the emerging markets as well as the european market for evaluation. >> thank you very much. we will have more on the markets a bit later. we will see if we can get to 17,000 by the close. "street" is next. . .

>> stocks starting off the second half of the year with a bang. the dow and s&p hitting record highs, reporting her best day in over a month. are the bulls going to push to 17,000 by the close of trading? "street smart" starts now. >> welcome to the most important hour of the session. we have 59 minutes to go until the closing bell. founder ofousted american apparel is fighting to regain control of his company and he is putting his money where his mouth is. plus, gm may have taken