>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line." the intersection of business and economics with a mainstream perspective. to our viewers in the united states, and from those of you joining us around the world, welcome. we have full coverage of the stocks in stories making headlines on this tuesday. julie hyman looks at the ceo comings and goings in retail. alix steel examines exxon's expansion into russia. and peter cook will have the details of israeli prime minister benjamin netanyahu

's controversial speech. let's get you to the top stories we're following at this hour. republicans say the house of representatives will vote as early as today on a bill to fully fund the homeland security department through the end of the budget year. that bill would not include immigration restrictions. facing twin options, speaker john boehner outline the situation or rank-and-file gop members during a closed-door caucus meeting this morning. the democrats say they will support this clean homeland security bill. new questions are being raised about hillary clinton's correspondence as u.s. secretary of state. the state department says she conducted government business with her personal e-mail account. that would break federal rules. secretary clinton's aides did not save her e-mails, federal requirements. she has turned over thousands of pages to authorities. the state department emphasized mrs. clinton did not use personal e-mail for classified

data. that is a look at the top stories we are following at this hour. as we mentioned, the israeli prime minister benjamin netanyahu at a joint meeting of u.s. congress -- warned the u.s. congress that a nuclear agreement with the run was a bad deal that would threaten his country. the threat was a direct challenge to the obama decision policy, peter cook is live on capitol hill with more on the fallout. >> i want to take you to the white house for some reaction from president obama. >> once again, pursuing its nuclear program accelerate its nuclear program, without us having any insight as to what they are doing. and without constraint. it -- his essential argument is if we double down on sanctions, iran will want to do that. we have evidence from the past

decade that sanctions alone are not sufficient to prevent iran from pursuing its nuclear ambitions. if it in fact does not have some sense that sanctions will be removed, it will not have an interest in avoiding the path is currently on. the bottom line is this -- we don't yet have a deal. it may be that iran cannot say yes to a good deal. i have repeatedly said that i would rather have no deal then a bad deal. but if we are successful in negotiating, then in fact, this will be the best deal possible to prevent iran from obtaining a nuclear weapon. nothing else comes close. sanctions won't do it, even military action would not be as successful as the deal that we have put forward. i think it is very important not

to be distracted by the nature of the iranian regime's ambitions when it comes to territory or terrorism. all issues which we share a concern with israel about. and are working consistently with israel on. we know that if in fact they obtain a nuclear weapon, all those problems would be worse. we are staying focused on the central issue -- how we prevent iran from getting a nuclear weapon? the path that we are proposed if successful, why far is the best way to do that. -- by far is the best way to do that. that is demonstrable. prime minister netanyahu has not offered any kind of viable alternatives that would achieve the same verifiable mechanism to prevent iran from getting a

nuclear weapon. so, i would urge the members of congress who were there to continue to express their strong support for israel's security to give new -- to continue to express their strong opinions about providing the offense -- the defense israel needs to repel attacks. it's important fermenters of congress to unified in pushing back against terrorism in the region. and the destabilizing efforts that iran may have engaged in with our partners. those are all things in which this administration and israel agree. when it comes to this nuclear deal, let's wait until there is actually a deal on the table that iran has agreed to. at which point everyone can evaluate it. we don't have to speculate. and what i can guarantee is if

it's a deal i have signed off on, i will be able to prove that it is the best way for us to prevent iran from getting a nuclear warhead. and for us to pass up on that potential opportunity would be a great mistake. it's not one that i intend to make, and i will take that case to every member of congress once we actually have a deal. hold on. i will take one question. >> you had a chance to read the remarks, do you feel like the speak -- the speech he made was appropriate given the upcoming election and deadline? did iran come up at all when you spoke to other leaders about ukraine? >> all the focus -- all the folks on the call today share my position that we should see if we can get this deal done.

it was not, -- a topic of conversation. with respect to the decision of the speaker to offer up the house chamber two weeks performance or none yahoo! -- mr. netanyahu 's election, that question should be directed to mr. boehner. it's very important for us not to politicize the relationship between israel and the united states. it is very important for all of us americans to realize that we have a system of government in which foreign policy runs through the executive branch. and the president. not through the channels. and i think it's important for us to stay focused on the problem at hand, and the specific problem that is being debated right now is not whether we trust the iranian regime are not because we don't trust

them. it's not whether iran engages in destabilizing activities, everyone agrees with that. the central question is how can we stop them from getting a nuclear weapon? and what we know is that if we are able to get a deal, not only do we cut off all of the various pathways for ron getting a nuclear weapon, but we also know that we will have a verification mechanism and an inspection mechanism where if they cheat and engage in a covert program, we are far more likely to see it in time to do some thing about it. but i also know is that if we don't have a deal, as prime minister none yahoo! suggested -- prime minister netanyahu suggested we will be less aware of it until it is potentially too late. what i also know is that he made the same argument before this

current interim deal, and even as officials in his own government have had to knowledge that iran has in fact maintained there in the bargain. what i am focused on right now is solving this problem. i'm not focused on the politics of it, i'm not focused on the theater of it. my strong suggestion would be that members of congress, as they evaluated, stay similarly focus. thank you, i appreciate it. >> that was president obama firing back at israeli prime minister benjamin netanyahu who came to capitol hill to deliver his third speech to a joint session of congress arguably the most controversial speech of his career and maybe the most high-profile speech of a foreign leader here in washington in quite some time. through the course of his own

comments, the prime minister praised the united states for its support of israel, praised president obama for his support of israel specifically, and then went on to trash the obama administration's plan to negotiate with iran over its nuclear program. he said the talks underway right now would pave the way for a nuclear armed iran that would threaten israel and potentially threaten the world as well. >> my friends, for over a year we have been told that no deal is better than a bad deal. well this is a bad deal. it's a very bad deal. we are better off without it. >> netanyahu said a better deal could be achieved through tougher sections. he got several standing ovations during the course of his comments, but not every u.s. lawmaker was cheering, some

democrats were boycotting the speech saying they felt was inappropriate given the upcoming israeli elections. they also saw the premise or was taking a shot at the obama administration. here's a democrat from kentucky. >> the speech was straight out of the dick cheney playbook. it was fear mongering and its ultimate. israel perceives its threat differently than we might. but i don't think there's any question that the administration and all of us understand that threat, and are trying our best to thwart it. >> house minority leader nancy pelosi even tougher, accusing none yahoo! in her comments -- netanyahu in her comments saying she was said and by the condescending tone of the prime minister. tough words from the top democrat in congress. we will see if netanyahu achieved his goal of undermining this deal. >> peter cook, thank you.

when "bottom line," continues we have more on the netanyahu speech, and his book "the age of sustainable development." ♪

>> welcome back. in his address before a joint meeting of the u.s. congress prime minister netanyahu warned lawmakers about the fallout from lifting sanctions on iran. joining me is jeffrey sachs director of the earth institute. he is also author of "the age of sustainable development." welcome back to "bottom line." is this, as prime minister netanyahu characterizes it, and this understated -- a misunderstanding among family or is this a great? >> prime minister netanyahu is

just wrong on these issues. president obama is right. the idea that the israeli prime minister came here to derail these negotiations, which are just u.s. iran negotiations, but this is u.s., u.k., france russia, china, germany. it's not a naïve group. to come do this i think was absolutely inappropriate. the idea that you just hold sanchez to try and undercut any chance of success -- sanctions to try and undercut any chance of success negotiations has been shown to be wrong time again. the prime minister was out of place in with the express today. >> mr. netanyahu opposes any deal that leaves the iranian nuclear program intact. is that realistic, given that any compromise will require give maximal laws sides -- give back on all sides? >> president obama said to stop

iran or make it impossible for them to make a nuclear weapon that's the direction they are taking right now. the idea that any enrichment capacity at all dooms this which is what prime minister netanyahu's position is is faulty analytically and its faulty by the standards of international law of the nonproliferation treaty as well. it's not going to happen that way. i think it will need to hope for is a sound agreement, is not yet they are as president obama said. but to try and scuttle an agreement and think that's going to make the world safe is really a reckless position. >> yesterday my colleague gave us an outline of the toll that international stations have taken on the iranian economy. if sanctions relief is one of the key components to iran's economic recovery, where is that relief needed most? >> anytime you try to close down the economy financially and by

preventing trade, you do a lot of damage. i believe the right now as has been mentioned by many, iran and the united states actually have common interests in fighting isis, which is a really serious threat right now. we are on the same side of that. we have a chance to find some meaningful common ground just to say there is no chance of any common ground has been shown time and again in history actually to be the prelude of much worse. if you say there is nothing we can agree on, you just open up vastly greater dangers. that is what prime minister netanyahu did say, i was disappointed. >> what sectors of iran's economy could help change the countries fiscal direction? >> the whole economy has been suffering for years these sanctions really bites. the whole economy has suffered

high inflation, a lot of financial is ability, -- instability stagnation, unemployment. they are looking for a way out, and why they have reached out to say we can find some compromise with you, some compromise that could be verified and secured. that is the direction it seems that the treaty is going, if it's not undercut by those that want to scuttle the whole business. >> we were a little bit delayed because the president's remarks. we would like to take a commercial break and continue this after the break. jeffrey sachs, director of the earth institute. we will talk about sustainable development when "bottom line," on bloomberg television continues in a moment. ♪

>> we are back with jeffrey sachs, professor at columbia university. let's switch gears, sustainable development. on the website project syndicate, you were a piece -- wrote a piece which reads in part glowing -- growing threats are coming, whether developers like it or not. what is recent research tell us? >> we are seeing droughts like the serious drought in california. the very serious drought in são paulo, brazil. the very serious droughts in serious, iraq, iran afghanistan, yemen that are destabilizing those countries. we are seeing massive floods like we saw in the balkans last year, with a massive floods that we saw in japan. we are seeing the upheaval of our own winter weather system in new york, with this unbelievable amount of snow and the polar

front dipping so far south in the united states at the same time, the alaska is experiencing 40 degrees fahrenheit above their normal temperatures. a lot of derangement of the climate system internationally. >> you believe sustainable development will be the central policy issue framework for the next generation. how does that square with lack of jobs, deficits, and such? are they two sides of the same coin? grexit -- >> sustainable growth needs in carmel stable of the. economic growth, which we have by and large is not enough. if it's only for the top 1%, if the income gap is widening, not good enough. if it's destroying the climate or the land, or the ocean chemistry, not good enough. so sustainable developments like you did all right on the first homework assignment. it turns out the course is

harder than you thought, because you have to get three things not just one thing right. that's the way we have to go, because we are on a collision course with nature and are inequality in our economy is rising. we are not doing the job to make the kind of economy we really need. >> let's switch back to geopolitics. you knew the late russian opposition figure buried today, shot to death last week. what are your thoughts on his murder, and what are your thoughts on the title of legacy he leaves behind in russia? >> in the early days, when i was working with the president gorbachev and president yeltsin on that terrible crisis of the economy, hoping to get a market economy started, he was one of the young, wonderful, honest leaders of the country. he stayed that way all along. others became corrupted by what is an awfully lawless system sometimes. but boris was always telling the

truth. he knew in recent weeks that telling the truth could cost him his life as he told people just before his death. he thought that putin might go after him. it's unbelievably tragic and dangerous what we are seeing. >> what is his legacy for the opposition in russia? >> he will be recovered as one of the bravest figures of reform, and the call for democracy and the call for economic freedom as well. he was a wonderful person. >> will reformers be hesitant to speak up, or does this embolden them to do more? >> i don't know if anyone is emboldened. everyone is frightened. the situation is not good, and it's dangerous. it's never going to be put down entirely. russia by itself has put itself in a dangerous position. it's also reeling right now economically, the war in ukraine , obviously, is horrendous for ukraine, but it has been a big mistake for russia's well.

>> jeffrey sachs, director of the earth institute, author of the age of sustainable development, professor, thank you. coming up, the ceo of rockwell collins will join us "bottom line," when "bottom line," continues in a moment. ♪

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mark: welcome back to the second half hour of "bottom line" on bloomberg television. i'm mark crumpton. let's get you to some of the top stories we are following this tuesday. crude is up about 1.5%, trading at 50.38. shares of liquid long debate -- lumbar liquidators of today, raising the company's rating from neutral to buy.

shares plunge yesterday after a 60 minutes report accused the company of selling chinese made flooring with illegal levels of formaldehyde. lumbar liquidators said 60 minutes used an improper test and that all of its laminate floors are safe. in paris, a french journalist fined for flying a drum -- sign a drone overhead. he faces and $85,000 fine. rockwell collins aviation electronics systems and products are installed in the flight deck of nearly every air transport aircraft in the world. the ceo, kelly ortberg will address the conference tomorrow and joins me here in studio. welcome to "bottom line."

kelly: thanks for having me. mark: you said "i believe the market outlook is improving and we have not said that in a long time." is that continued outlook continuing this year? kelly: yes, it really is. we are seeing stabilization, as we predicted one year ago and the large aircraft transport market continues to be a boone for us. mark: how much of rockwell is contracted? kelly: a little more than 50%. mark: the company has made a shift. resources are going from the government business to the commercial side. has that given you an ability to adjust to things that might happen in washington, for just defense or budget cuts? kelly: we like to have a balance between commercial and government business.

we were already at the percent -- at 60% government when we started transitioning into this. we like to have that balance. it gives us the flexibly to sustain the resources that we have, and generally what we are doing is very common in oath markets. mark: how much did the sequester limit your flexibility? kelly: pretty significantly. we saw our defense budget decline quite a bit for several years. in the worst part was the uncertainty. we didn't know, our customers didn't know what would he funded, so they kind of tended to be in a frozen state going forward. mark: your customers did not know and your workers did not know either. you are in the heartland of the country, and they had no idea whether their job was safe because of what was going on in washington. perhaps why are they listening to you and to your people? kelly: we thought the sequester what happened long before anybody else did and we started

moving those resources into the commercial market. the good in years, the commercial business was growing and even those resources at the time stop -- at the time. mark: how much is overseas money having an impact on your business? kelly: some impact, but not overly material for our company. mark: at 2:30 p.m. we showed a picture of what was happening in the oil markets here in new york. how are the markets responding to the cheaper oil you go where is the money being used? kelly: they are not seeing the windfall yet. we think they will. i think it will take a little bit of time before that lows through into the changing my behavior for the airlines. mark: is that change behavior also going to mean maybe lower airline prices? kelly: passengers have not seen that. they are saying, -- lower

airline prices? because the passengers have not seen that. kelly: it could drive additional demand for aircraft, or drive additional upgrades and modifications to the existing aircraft. mark: we know it's been a year since the disappearance of the melissa -- the missing malaysia and airline -- malaysian airline flight 370. now the conversation seems to be not because of necessity but because of cost. it would be very expensive to do this on all the planes around the world, to get this satellite technology. rockwell collins is working on some to this effect. tell us about it. kelly: we don't think it's going to be very expensive to the airlines. we are announcing a new product in the next week that does the airline tracking. and it takes the feed from satellite, from high-frequency

communication, from radar -- today there are multiple sources and we will bring them all together and provide a better solution to the market and the great advantages it doesn't -- the great advantage is it doesn't require any more onboard the aircraft. mark: that seems like a common sense approach. why hasn't been dealt with -- why hasn't it been dealt with before now? kelly: there was not the perceived need for it. we have been encouraged to forward with practical solutions that will not overburden the airline industry. today we can track these aircraft with the systems on board airplanes. mark: what is the difference between satellite tracking and ground tracking? kelly: satellite goes up through the charges and there are data charges associated. radar is on the ground. and there is also high-frequency which is a different frequency of communication.

all three media will be used but we fuse them together and provide a much more accurate picture of where the aircraft have been. mark: rockwell has seen big growth in sales of broadband and software to aircraft and aircraft operators. talk to me about the conductivity. what will that mean for pilots and for passengers? kelly: just like in your own world, the mobility environment is shifting the way you do everything, and that is happening in the airline industry as well. the systems going on the airplanes are now connected, so we have smart devices on the airplane, which will allow us to move a lot more information not just for the passenger, but for the operation of the air act, to let them move those aircraft more efficiently. we see that as a big net -- big market impact. we created new business this past year on the back of an acquisition of the company that is focused on taking advantage of the services that will come from a connected airplane.

mark: how much was are you expecting between now and the end of the year? kelly: is our -- it is our fastest growing segment and we expect a lot of growth between now and the end of the year. mark: kelly ortberg thank you for joining me. up next, an unwelcome surprise for people living in southern chile. ♪

mark: breaking news at this hour, u.s. justice department of investigation has found patterns of racial bias in ferguson missouri department and at the municipal jail and court. investigation found that officers disproportionately used excessive force against lack and too often charged them with petty offenses. the justice department began the civil rights investigation following the august shooting of michael brown, an unarmed black 18-year-old by a white police

officer. that killing set off weeks of protest. it is time now for today's latin america report. one of south america has most active -- one of south america is most active volcanoes erupted in chile. it erupted around 3:00 a.m. local time skewing lava into the air -- spewing lava into the air and down it floats. authorities worried mudslides caused by melting snow could endanger nearby communities. that is your latin america report for this tuesday. still ahead, is the u.s. retail industry playing one big game of physical chairs? we will discuss when "bottom line" continues in a moment. ♪

mark: welcome back. let's get you fill in the stop stories -- some of the top stories we are working on this tuesday. benjamin netanyahu told u.s. lawmakers today an emerging

agreement with the u.s. and iran would backfire and enable them to gain a nuclear arsenal. >> it doesn't block iran's path to a bomb. it paves the path to the bomb. why would anyone make this deal? because they hope that iran will change in the coming years, or they believe the alternative to this deal is worse. well, i disagree. >> the bottom line is this, we don't yet have a deal. it may be that iran cannot say yes to a good deal. i have repeatedly said i would rather have no deal than a bad deal. but if we are successful in negotiating, then, in fact, this will be the best deal possible to prevent iran from obtaining a nuclear weapon. mark: that is a look at the top stories we are following.

shares of alibaba are falling to their lowest since the chinese e-commerce company debuted last fall. scarlet fu, good afternoon. scarlet: this is in sharp contrast to their ipo last september when they jumped 38% on the first day. they rallied as much as 75% of to $119, but then a steady decline and now alibaba is only trading only 19% above its listing price. it has declined the most in 11 days. and yahoo! is also filing -- falling by the most in months. its rival chinese are my site -- chinese are my site is affected. and jd was told to leave the

country in taiwan because of incorrect registering. and finally, a report says that alibaba pays people to pretend to be customers to pad sales figures. that does not help when you already have the chinese government using them of lack of oversight. there are still reasons to be positive in the long-term. if you consider its market position and its strong balance sheet. but i should leave you with one note, and that is there might be more pressure to sell in the next few weeks, because the march 17, company insiders can sell their shares when the lockup ipo expires. mark: thank you. it is time now for the reports. su keenan joins us. su: the latest nuclear talks

adding to support. all of this affecting opening in will trading. you see the big gap in brent crude. the situation in libya is actually getting worse, and that problem with iran, you know, nuclear talks dragging on, it's not reassuring. it just adds to the emphasis of a supply risk across the middle east. meanwhile, at least one commodity firm out there is producing a boom year for oil. we have glencore saying if the price means continue the way they have -- you know, those are at about a six year high -- then they are likely to see volatility through the end of the year and that gives traders a lot of opportunity. mark: su keenan with the commodities report. thank you. right now the u.s. house of representatives voting on

funding for the department of homeland security. this has been another issue of partisan rancor on the health. just last week on friday, what had happened was that the house decided to give, along with the senate, a one-week extension. president obama did sign off on that, but as many lawmakers had had before, what this meant was that they would be back at square one this week and that is where they are. we will continue to monitor the story and bring you the latest developments as soon as we get them. in recent months, retailers seem to be playing the big game of musical chairs with management. many have said goodbye to their old ceo and hello to a new chief , and others are still on the lookout for one. does flesh -- fresh blood mean a turnaround? joining me, market correspondent julie hyman. first, why is there so much musical chairs? julie: a lot of these retailers have been struggling in the past

several years. first, you had a struggling economy and that was reflected in retailers and you've also had a sea change in how people spend. in one case, the millenial's mother standing patterns -- the millenial's, their spending patterns are changing and they are spending less on things like apparel. the fight for those customers has been fierce. and in some cases, we have seen these ceo's be the casualties. that is just a sampling of the ceo turnover we've seen in the past year. another trend retail analysts have talked to me about his sort of merchant prince -- is this sort of merchant princes moving out. throwing out the old look of the clothing in favor of the guys who know how to hire the right people to do that everything like jeffries by the way, out at abercrombie. and there has still been -- outing abercrombie, and there is

still been no replacement for him eight. mark: i like the effort that has been made to bounce back under these management titans. julie: one company pointed to a couple of people. peck was the head of innovation and digital at gap, and he just took over at subway. he has already made some changes to management below him. his job will be to revitalize the namesake brand. in target is another that folks .2. mark: -- is another one that folks are pointing to. mark: julie hyman, vicki so much. we will be back on the innocent -- thank you so much. we will be back on the other side of the break. ♪

mark: get the latest headlines at the top of the hour on bloomberg radio, streaming on your tablet, and at bloomberg.com. thank you for joining us. "on the market's next" and " street smart at the top of the

hour. scarlet: with just over an hour left in trading, the u.s. indexes consolidating gains. the nasdaq was highlighting as it pulled farther away from its all-time high yesterday after getting into -- getting within 72 point of breaking that record. we are seeing selling in treasuries, which is pushing yields to their hiding more than a week. that is as lots of corporate bond sales soak up demand that would otherwise have gone to treasury. and copper falling from a six-month high after concern of income paid in china after leaders their cut interest rates. oil prices are higher today following an attack on libya's biggest oil port but it has been a crude reality in the past year with prices down more than 50%.

bloomberg's correspondent alix steel set down with a manager for market investors. they talked about how will prices have impacted oil related etf. >> the etf's are equity-based, so you are dealing with the companies involved in exploration as well as oil services. there is correlation inherent within the stock but it's also at times removed. there are other factors that go into those commodities. alix: what have you noticed? brandon: the oil prices have been hammered in the past several months. we have seen the correlation to those etf's move in the same direction, so obvious the a lot of those same sectors are currently undervalued.

we see oil services down 30 something percent in the six months to end the year. we have seen some positive performance at of the oil sector, but there is a general value story there at the end. alix: which of all of your etf's do you think is the most undervalued at the moment? brandon: frack has performed relatively well, and so has oih but not to that degree. alix: gpx trade as much as google everyday, which is incredible to me. what is the coloration -- the correlation to the gold price typically? brandon: it has been historically fairly high. there has been a bit of a breakdown in recent years. as recently as 2015 we started to single prices rise and gold miners have started to rise in

tandem. there has been strong performance in actor. -- in that sector. scarlet: that was alix steel with brendan what chesky. we have coverage of the markets as we get ready to close out the trading day on this tuesday. ♪

trish: hello, everyone and welcome. i'm trish regan and this is "street smart." we have stocks market -- stocks dropping from record levels. the ecb said it will add to the details of its upcoming stimulus plan. and president obama and is really prime minister benjamin netanyahu spar over how to deal with iran. "street smart" starts now. but first, here are the top story that we are following for