makers" on bloomberg television. i am eric schatzker. matt: i am matt miller in for stephanie ruhle. we will get wells fargo earning numbers as soon as they cross, we will break that. erik: the president got his deal on restricting nuclear's -- iran's nuclear program. low congress sign on the dotted line? we will sort all of that out this morning. matt: we will. bonnie -- vonnie quinn has the breaking numbers. vonnie: 103 in terms of earnings per share. that is right on range. doing pretty well. $5.7 billion in net income. we are just beating estimates by a little amount. 103 the estimate was 102. 2.97% margin, slightly better

there. retirement night -- $602 million , the headlines coming out fast and we will bring you some of the figures as soon as we get them. erik: wells fargo is one of the more consistent performers on wall street, beating earnings per share would be the seventh time in the seventh quarter. they are managing analyst expectations. the big issue for wells fargo is about the net interest margin. the net interest margin is almost 3%. wells fargo among the biggest banks with the very best net interest margin. the difference affects the interest rates between the interest rate at which you lend and borrow. and it was of the vacation but more or less what it works out to. and the second bank of the day

jpmorgan being the first where we see an increase in the interest margin. you're heading toward that fed rate hike whenever that happens and that will be good for banks but this gives us an indication that it seems that the banks of a slight bit more pricing power as we head toward the rate hike. matt: i'm not sure if wells mark -- wells fargo is in the same basket and they are meeting -- beating analyst expeditions by cutting expenses. erik: on that note, let's bring in mike. i'm looking at these wells fargo numbers, they are more or less in line with expectations. i am looking for an expense line and don't have one yet but jpmorgan reported one hour ago and trumpeted the fact that they had cut expenses on a quarter over quarter basis by five percentage points. matt: six even. erik: there is a bit of a

mystery. help us sort it out. how is jpmorgan able to reduce expenses by that much and that quickly? mike: part of it is legal, that is down almost 300 million every year. a lot of the expense production came in the other expense line. what we are waiting is to get some clarity. about what those are and how sustainable that is. erik: it is like a $400 million question mark, right? they don't explain what the rest of the other line -- the other line being the line you find when you go through supplemental earnings statement and you go through noninterest expenses and you go through technology and marketing cost and real estate and you get to other which is a gigantic line. mike: technology was up a little bit and professional services was down a little bit. those are the things people are

investing in, technology and trying to cut back on compliance and legal expenses but the other line is where we try to get clarity on what that is. matt: bonnie, you've got other headlines. vonnie: taking a look at the ak and seeing some comments from ceo and chairman. he says compared to the eurozone, the problem -- our violence sheets remain strong. you can see that they were up about 8%. we saw that earlier at jpmorgan and chase as well. $1.2 trillion and when it jpmorgan, they said that they were up 9% so we are seeing that for both cases. net income, five point -- $1.03 a share for wells fargo and up 1% you can see how it is doing in the premarket. it is higher. matt: thank you very much. we are seeing these banks come

out beating estimates. the interesting thing will be to see how they are able to leverage their scale now that they have got billions and billions of dollars of legal bills behind him. now they've have really got regulatory cost that have to be pretty high. going forward, they will continue to fire thousands of people and move to cheaper locations and make money. mike: there has been a lot of cost cutting but it will be interesting to see how they leverage growth in the economy. wells fargo and the net interest rate was up and we will see that -- and we will see if that was an increase from loans. you saw a 12% increase in loans. are these things getting back to real business of lending money? we will see how much of that in wells fargo's case but most analysts expected the net interest margin to drop. or it to be up, it will be interesting to see how much will

trigger that longer. erik: kelly dwell on this for a moment. i was doing back of the envelope math before jpmorgan reported to try and figure out just how helpful could a fed hike or several successive fed rate hikes be? this is what i came up with an michael is much better at mac so i want to throw it at you. 50 basis point increase in the net interest margin from 2% were jpmorgan is to 2.5% admittedly, you have to go back more than 10 years to find a time when jpmorgan had a net interest margin of 2.5%. all the same, it would translate into more than $10 billion a year of additional pretax income because it is a effectively free money, right? again, you have subtracted the cost, so it is all free. right down to pretax income. it turns the pretax margin to

44% from 34% roughly where they are now, and you could make it similar tax rate may change but it would have been incredibly powerful impact on net income, wouldn't it? mike: right, and the question is, how sticky are the deposits? as rates go up are you able to increase the rate you are charging in loans while slowly taking out the deposit rate? or do deposits go to whichever bank is offering the best rate like ally for example? if jpmorgan can hold onto those deposits at a very low rate, they can scale up that net rate interest margin pretty quickly as rates go up. hence the marketing expense hands trying to get wells fargo and jpmorgan big on this getting you into multiple products. so if you have three credit partners with them, you will not change your check and balance over a five basis point difference, right?

erik: we will be looking for to that conference call and we would love your thoughts so we can share them with everybody. send them to us by e-mail. michael moore covers wall street for bloomberg. matt: all right, the top five things you need to know about this morning. obvious the, a lot of news. number one would be iran. that country and six other world powers have reached an nuclear deal. president obama just made a statement on what the agreement means to global security. president obama: today, because america negotiated from a position of strength and principal, we have stopped the spread of nuclear weapons in this region. because of this deal, the international community be able to verify that the islamic republic of iran will not develop a nuclear weapon. matt: the deal will open iran's economy to the world and led a push more oil onto the global market that is already pushing down the price of crude this

morning. nymex crude not exactly reflective. brent was down about $.50 a barrel. it was $52 a barrel. erik: number two, everybody let's take you back to athens. olivia's is standing by with the latest. there has been talk of unique with the prime minister alexis tsipras, how much support can he count on from the opposition and is it enough to get these reforms demanded by the europeans to pass in the great parliament? olivia: essentially, alexis tsipras has 33 hours at the pass the series of reforms and spending cuts that are covered and what the greek government could not pass and two bailouts. everybody i have spoken to think he will find enough support in parliament to actually get these reforms passed but it will cost

him politically. the coalition is splintering and there been one resignation from his own party. we spoke to the head of his minority party coalition and he said he is not going to support tsipras. clearly, it is going to cost them politically. the other issue is when are the banks owing to reopen? i was speaking to the economy minister and he told me not until monday. a key thing is we have to hear from mario draghi who has to extend the lifeline of the ela and he said that will not happen until the germans of vote. that was news. he also said there would be no bail and. he categorically denied that in order for the rates to be capitalized, they will have to take a haircut and he said capital controls could remain in place for several months. erik: thank you very much. if i were greek, i would want to believe the economy minister that there would not be this bail and but i can think of a number of promises the greek government has made that it was

not able to follow through on. fingers crossed and olivia will bring us more with the greek finance minister in the next hour. matt: julie hyman has number three. jolie: a potential deal news, up 10% in premarket trading and that is people family with the plan say it is going to offer $23 billion for the company and we are talking about $21 a share, 19% higher than microns close yesterday. micron said they have not received a formal offer as of yet but we have already seen some consolidation in the semiconductor industry. apparently, china has said that it is going to provide $1 trillion to funnel toward these kinds of deals over the next several years, so we could see more of this after we see this formal offer. it could come as early as today. matt: i'm going to hit everybody

with number four. erik: china. the possibility that china may tip the global economy into recession, a prediction for head of emergent markets at morgan and stanley. he talked about the fact that a slowdown in chinese growth may be enough to drag the world economy with it. matt, one of the things that is hard is to know is how fast does -- is the chinese economy growing. that is one of the problems. matt: it is hard to know anything because you have to rely on the government for numbers and it is hard enough to rely on a government with numbers, so why would we trust them? erik: you sound like jack welch. matt: number five, we are watching barnes & noble set -- shares. today is the release of harper lee's second book "go get the watchmen -- erik: "go set the watchmen." matt: sorry, "go set the

watchmen." in any case i do not know the title but a lot of other people do. the company is printing more than 2 million of those, waiting for some big orders and obvious the, "to kill a mockingbird" is probably a book all of us read in school. unless you are in canada. erik: we read it up in canada as well. matt: absolutely. erik: coming up, and iran deal. deal or no deal? still faces challenges in washington. we will take you to the white house to find out what the president has to do to get a pass. ♪

matt: take a look at the u.s. capitol building. i think it looks so cool, like washington under construction. we will get you to the capital in just a little bit. the top stories from the bloomberg this morning, the prime minister of greece has two days to lobby for that package

of pension cuts and tax hikes. it is threatening to tear his coalition government apart. today, alexis tsipras isn't submitting the measurement of parliament and they will vote tomorrow. dozens from the coalition say they will oppose the cut opposite, the radical left. tsipras already has opposition from his. >> this deal, which introduced many new issues and guarantees public property which speaks of changes in law like those that will lead to the confiscation of homes which were first to the complete destruction of constitutional value. we cannot agree with it. matt: that should not matter anyway because tsipras camelot on opposition parties to approve that legislation. lawmakers must ratify the austerity measure before talks can start on a new bailout. second earnings are out from two of the nation's biggest banks. rising interest rates and the biggest home lender wells fargo with little change of the

income. higher cost of home mortgages and profit rose and expenses fell a lot at jpmorgan. the nation's biggest bank by assets earning estimates that rose more than 5%. jpm said they would cut thousands of jobs in may and send back office workers to cheaper locations. cincinnati's todd frazier juan the home run derby in the red stadium. frazier beat peterson of the chargers, 15-14 in the final round. baseball's all-star game is tonight. the winner gets home field advantage in the world series and we will talk about this later with the builder of the stadium. erik: actually, one of the egg's builders of stadiums in the whole world. -- one of the biggest builders of stadiums in the whole world. after months of talks, a deal on iran's nuclear program. just one hour ago, president obama spoke about it and

margaret was in there for president obama's announcement. margaret, this has been a long time coming. how confident is the president feel about getting this deal through congress? margaret: he understands and he was explicit that he has a fight in congress. we are seeing republicans coming out of the woodwork's to either be skeptical or panned the deal out. i think the president also seemed to signal that he is confident that he could make the case to try and block this deal and it would be wars in the long run for national security. to some extent, he is playing a game of political there with republicans and beginning to lay out a strong case or how this will protect the u.s. in the long run. the fight begins now. erik: we have already heard from benjamin netanyahu, who no surprise, thanks this is a historic mistake. then the yahoo! counts on a lot of support from congressional republicans. we should we be looking at to

know whether president obama is swing enough people to his side? margaret: bob corker will be key, as he has been from the start, to brokering a deal. it is important to look at the democrat themselves. to me, it seems important that president obama asked vice president why didn't to come right there to the edge -- asked vice president biden to come right there to the edge and standby side. it sends a message to congress where it he has been personally involved in trying to get people on board and secondly, with israel where he has had a historically much better relationship the president obama. matt: i wonder saudi arabia is almost or imported on the hill. august the, they cannot be too thrilled with this, neither are many of their neighbors in the gulf. what kind of influence do they have on congress? margaret: we will begin to see this play out now. we already heard senator lindsay

graham in television interviews talking about how he thinks this will set out and era of arms race. and the geopolitics, so we will be looking to see how regional partners of the u.s. and other regional players in the arab world are reacting to this as well as israel. erik: any key states behind the obvious? margaret: stakes? erik: states, like nations. margaret: it will be interesting to watch out israel reacts, russia reacts, and have that p5+ 1 partners react. but in this initial rollout president obama this is a domestic calculations and 2016 will be a factor in this. and how hillary clinton is brought into this by the republicans is under the microscope right now. matt: thank you very much. erik: we will be back in a

couple short minutes. stick around.

♪ matt: we are expecting retail sales for the month of june. here to help us digest and evaluate the current landscape is michael gold, the former ceo and chairman of bloomingdale's. right next door to is a bloomberg, so we are all over their fairly often. what are you expecting? michael: i think it is kind of soft. i think costco reported june and that got international sales and took up gasoline, it was 6%. i think it was softer and l

brent was softer than expected. that is the word you hear on the street, soft. it does not mean they are not spending but they are not spending in the stores the way they had been spending. erik: one of the things i like to ask you is, who is doing it right? who do you see doing things have really and leading the retail industry, in particularly, apparel? michael: that wind is cap that i will have the same answer i have given the last three or four times i have been here. it is interesting that the retail business is soft, no question, and apparel has been difficult for a number of years. we are just talking about the department stores in general. yes, h&m comes in, and that is taking a bite out of the business. there is not enough newness and what i would call experience going on in the stores to create that excitement. i will give you the same answer i gave a couple months ago isn't it interesting that retail

sales in new york city a la tourism is hurting the business particularly bloomingdale's, macy's, and the gateway city? broadway has the biggest year in attendance and volume. it says people want that experience. go to disney, record profits, record attendance. it is all about experience and i keep talking about that. it is about experience. erik: how can that experience be changed? matt: i was in h&m and unico yesterday and i'm obviously no fashionista but it was super boring. not just the clothing but the experience. i was just texting and waiting to leave. michael: -- matt: i love bloomingdale's! michael: i appreciate it. it is still in my heart. i do not believe you are there call customer. they may be right -- i do not

believe you are there goal customer. there is a constant flow of newness and that is important. there is very little brisk in the business, particularly in the apparel side of department stores. erik: can men's fashion week -- we are in the middle and just started yesterday -- help? michael: i think it helps in a way and it brings the spotlight on new york city and that is terrific. i think any kind of attendance -- attention, exceeds me on any kind of a business that is positive and terrific. erik: who is it appealing to? how many people are going to walk into a bloomingdale's or macy's for that matter or a sax or a barney's off the street -- matt: look at this, i get how could to for women but guys are not going to do this, right? michael: this show is not for

the street. this is for retailers, not for people buying the merchandise. i think what it is and even when you look at the shows in paris -- listen, when you look at what comes down the runway, the vast majority is not going to make it into the store. it is for the press. i think what it does is create awareness around a segment of the business. around a family of business and in this case menswear. erik: it feels so outdated. go back to your point about sarah, sarah is not playing this game. they are playing the fashion game and renovating and renewing itself every quarter. michael: this is more than once a year, but i think it is that challenge but also directional. matt: in what sense? michael: in what is coming down the runway, whether it is long, short, prince, stripes. erik: why don't more retailers behave like zara? i know it is difficult because they're not vertically integrated but why can't they

shorten the turnaround cycle on designs to racks in the stores? michael: you said it yourself, they are not article. even though macy's has a big private-label business, sachs does not, in humans does not bloomingdale's is not. the nordstrom's doesn't, so that is the real challenge. and you only factories and you can go whatever it is from three to four weeks on a new group that is mind-boggling, so i think that goes back to one of the of the conversations we had previously about the whole concession business where the manufacturers who owned the business and the stores. erik: i need to interrupt you because retail sales are out and vonnie quinn will give us details. from what i can see, huge disappointment. vonnie: down .3% and we were looking for a gain of .2%. a much better made than forecast but again, the main numbers are being revised and down by a little bit. down 1.2% and retail sales over

me have been revised down to 1%. let's look at other data. we are looking for weakness there and that is much bigger of a disappointment for autos. we saw drop of .1% and gas drop by .2% and the control group this is the data that features and plugs to gdp was also a negative down .1%. we were looking for a positive gain of point 3%, so a bit disappointing. not seeing a huge move in futures, the dollar index found -- the dollar index down. erik: given what you are telling us when we started the conversation i cannot imagine this surprises you? michael: it is down slightly and you take a look at what is doing well. the car business -- automotive business seems to be doing well. airlines are doing spectacular and if you leave out lower gas

prices there are paying for, their earnings and volumes are terrific. the hotel business is good. so what is happening? anything related to experience is doing well. i think the great challenge is to have the stock appealing to people who need merchandise and to appeal to people who want merchandise. there is a difference. by once -- by watnnt yeah, the necktie looks good and i had that conversation with stephanie last my, how many dresses do you need? where is the experience that is going on and how is the service related to that? i'm sorry for interrupting, but that is the last thing -- what is the service component? there is a project component and service component. they have to go hand-in-hand. matt: with apparel i think it may be more about experience. you mentioned stephanie with dresses, she probably only wants

to wear a dress once at an occasion so she can -- you know men have these retailers they can order from and get a box of shoes and ties and it is more of an experience. hsn has sales going by 14% or 50% in the quarter because it is kind of an interactive thing, so i wonder if apparel -- the border and brick stores are getting business taken by these online and experiential? michael: i think there is a great argument to be made for the whole point of click and pickup, business online and going into the store. how do we make that easier but i think the experience of shopping. to go to hsn, i can say that but when you go to front gate catalog, there is no experience. it is a catalog, you are going to order. the fact of the matter is that the stores have smell, hear, side, mouth. people want relationships.

i have said this thousands of times, we have been shopping since the times of the greeks. we have been going to stores and marketplaces since the greeks because i don't see that stopping because it is a social experience. everyone talks about millenials but what do they want? they want a connection and you will only get a certain connection online and the real connection is in stores. erik: thank you very much. the man who used to run bloomingdale's knows more than a bunch of things about apparel and retail. matt: coming up, art cooper and lift clogging city streets? we are talking to -- are uber and lyft clogging city streets? ♪

erik: would you look at that? new york city traffic? who has heard of that stuff? matt: and this is a light day. erik: getting around the big

apple has not been easy but it has become more difficult. according to the department of transportation, and i percent decline in average manhattan streets and a 5% decline in rush hour speeds. 25,000 -- tuesday, the majority of cars are due to uber and lyft. the ceo is here and she advocates growth of vehicles temporarily and she is here to explain why. thank you for joining us. why curb the growth of the vehicles? matt: the for hire vehicles. >> they have two bills in city council, one is to study the effects of the growth in the for higher industry and increased congestion in the business

district. that stems from the fact that there are 25,000 new cars and to that. there will be continued and probably even more growth of at least 2000. matt: do you study that growth while you are capping the growth? meera: the second bill is the pause or limit growth during the dependency of the study and let the outcome determined with the appropriate regulatory framework is for for higher vehicles. that could be like congestion pricing which creates a cap in a sense and it could be a cap or it could be some sort of review process that allows for growth only after review. so i think it is really open-ended what the actual answer is ultimately, but it is a time to sort of take a much harder look at the issue when we see less traffic coming into manhattan but the speeds within manhattan going down markedly. erik: if i'm a follow-up, why

not start the study now and establish a baseline and then see how growth in for-hire vehicles affects traffic speeds over time? if you stop the growth today, you cannot actually analyze how the growth is affecting traffic speeds. meera: two reasons, one, to start the study -- i mean, the study is not just a day, studies take some considerable amount of time and the time allotted in the proposed bill is one year but we would hopefully be able to do it in connection with transportation a lot sooner. knowing that studies are not a snapshot in time, it is difficult to study a moving target when you are bringing on so many new vehicles. you do not want to study something and find that your conclusions are already outdated. matt: but you want to study the growth, right? if you want to study the growth coming have to let it grow naturally, right? meera: it has grown already.

matt: you want to study its status. then you can take a snapshot. if you want it static, you have to look over a year. mmeera: studying traffic takes a few different factors, some of it is counting intersections people going out and observing. some of it is gps data from that and averaging over time. to the extent to where we can get cooperation -- matt: listen, i drive around new york city, as i'm sure many viewers do. you don't really need a study to realize that double parking is a huge problem for traffic on the city streets. odyssey, construction is an issue as well but double parking does something and no one has attempted that, why do we continue to let so many tracks double park without serious consequence? meera: that i would have to

defer to nypd and department of transportation but a valid point. the study cannot just be a growth in fh see, it has to be about construction in the city parking, delivery -- matt: what about the second -- the second issue would be yellow cabs and black car services. block our services park outside buildings waiting for people to come down, sometimes for hours and yellow cabs obviously, our slowing down, crossing over to sides of the street to pick people up randomly and sometimes surprisingly. if you reduce the growth in that work or turned it around in that demographic, it would be a lot better for traffic. for example, if you let uber cars take people places or any cap based services. meera: you want to provide people with choices, so sometimes they choose uber and lyft but they choose to stick the handout and hail a cab. matt: slowing down entire

traffic. erik: commissioner, what do you say to people who listen to this debate over traffic speeds and the need to study and say, it is all just a red herring. what is really at issue is the effort to respect the tax industry and economics. meera: some people find this ironic. i have not been in the general counsel for the tlc, we are actually -- there is one discussion about capping and slowing down but there is a whole another discussion going on here as well as in london and the courts about what is a hail and u.s. the right to the hail. there are two separate groups medallion finance and medallion owners and black are delivery groups that are challenging the fact that we allow brand lyf -- that we allow uber and lyft to operate that should be reserved for yellow taxis and we are actively defending those lawsuits because we think it is

-- erik: it's not the same. meera: exactly. it is permissible under law because it is prearrangement and i think the passenger loyalty you are seeing is proof, but it is something new york needs and should have. erik: before we let you write and unfortunately we have two, i think a lot of people would like us -- meera: i have happy to give back. erik: where do you and the commission stand on the debate over whether drivers for these car dealing services such as uber of lyft are or not independent contractors? meera: we wholeheartedly have supported driver flexibility as independent contractors when we allow them much to the conservation of the industry, to work for several races, so a driver is not an uber driver, a driver is a driver that can work with uber and other companies

and we think that its buck's ability to driver is entitled to. they do not have the security of employment, or guaranteed income. erik: what if there were a court decision in this state like the one that came down in san francisco or call-up on your ruling that in fact they are in not independent contracts. meera: our position would have to change because it complicit week congress we need to protect drivers. they are not a very vocal group and if the decision is they are employees, then they are entitled to rights they are entitled to, then we would be vigilant about making sure they get those. erik: thank you very much. we would love to have you back. meera is the commissioner for the new york city taxi in the missing commission. matt: fascinating stuff. i spent a couple hours a day thinking about this issue. coming up, we will talk about sports. taking outside the park. stay with us. ♪

erik: still ahead, what to know what will happen to puerto rico reconstructing it that? -- reconstructing its debt? peter hazell be here at the opening bell, 9:30 eastern time. matt: if you design it, they will come. populous has been the force behind the design of stadiums worldwide from yankee stadium in new york, obviously, to the o2 arena in london. if you are tuning into the nba all-star game tonight in cincinnati in ohio -- erik: nba? matt: mlb, sorry. i obviously realized that the reds is one of the latest baseball teams in the country. they had a hand in not just the stadium design but in organizing the event. for more on the business of sports stadium, i am joined by populous founder. thank you for coming to the program.

all right, a lot of interesting questions to ask about stadium design. i wonder, how much you do because yours is a name i hear whenever we talk about stadium design. whenever i think about stadium i look at up and populous had a hand in it, the how much business you actually do inside and outside the u.s.? joe: we have been pretty fortunate. i think we have got 12 of the last 13 major league baseball parks that were our projects. we do a lot of arena projects, a lot of nfl projects, convention centers, so it has been good. matt: i was thinking about the incredible projects that need to be undertaken in order to air-conditioned the stadiums and it turns out you guys had handed that as well. how do you do that if it is 100 20 degrees in the middle of the day and you have an open air stadium, how do you keep it cool? joe: i am not working on that

project, so i will not be able to comment on that. erik: there are always trends underway in stadium design and everyone remembers how revolutionary camden yards was in baltimore, for example. another stadium that your company was involved with. lately, we have seen a trend towards smaller stadiums particularly for ballparks, but i want to know where things are going in the future? what are your clients asking you to do now that is different from what we have seen over the past 25 years? joe: you hit it right on the head. smaller is better in some markets. it used to be that when we started, people with astral 50,000 seats for a baseball park and we would say, you need to tailor this -- the capacity to your market so a 50,000 seat ballpark in new york is one thing. in pittsburgh, it is something else. what we are also seeing now is people are asking for neighborhoods. in fact, this park they're going

to play the game in this evening, the client said it to me this way -- he said, we do not want 10,000 of anything. he was talking about his upper deck because at riverfront, it was 10,000 seats that were all the same. it was boring. they wanted neighborhood, they wanted the customers to have a variety of choices, a variety of experiences, so that is what we are doing these days. erik: speaking of neighborhoods, i think of something that was once called back -- the park in san francisco and how successfully the city was able to build a neighborhood around a new downtown baseball stadium. you have a favorite? apart that you develop that turned it -- i'm mean, not just the park itself but the success story is about grew up around it. joe: i think there are a lot of success stories, our projects. i tell people, i do not have a favorite. they like -- they are like my children.

i have favorite parts of different ballparks that i have worked on. the port walk in san francisco is one of those. it is a place where the fans for free, can watch games throughout field fence to the port walk and that is the only place a major league baseball that has that, so that is really cool. matt: i wonder how you are able to design scale -- stadiums that can scale up or down depending on the event. august, a baseball city will not fill as many seats as a football game or as many as a grateful dead concert, so you have to be able to add and remove seeds and you guys have done a great job of that. is that one of your focuses? joe: that, our event group in denver are kind of specialists in helping make the modifications necessary to host the all-star game for the super bowl. they can pick up the phone and call a vendor and say, we need 10,000 new seats here in six

months and it happens, so in designing the flexibility into the baseball park to be able to accommodate that, you have to type that in also. matt: thank you so much for your time. populous founder there. they did design the stadium in cincinnati for the all-star game tonight and they helped put up the event as well. very cool. erik: matt, i need to jump to mexico because after el chapo, shorty, escaped by a makeshift tunnel this weekend, many questions are being raised on why he was not exit guided to the united states. the two michelle is in mexico city. he has covered the drug war and the nation's problematic prison system. victor, what explanation does the president have to offer to the fact that el chap escaped

and the decision not to have exit guided has proven to be a mistake? victor: this is an embarrassing development for the president. he came to office three years ago with a promise that his government would implement very secure strategies and the more intelligent weight to fight the war on cartels and now we have this situation. a year ago, the attorney general said he would badly extradite el chapo to the united states after he served that prison sentence and mexico. obvious you, that was not going to happen. one of the main theories going around in mexico is that the mexican government did not want to extradite el chapo because you would give a lot of embarrassing information to the american officials about mexican officials, mexican government figures that have been brought up in the past years. erik: so, 18 people and perhaps more have been taken and took questioning, prison employees.

do you have any word on what they have been saying? are any of them talking? victor kwon at this point, they are being questioned why u.s. interrogators -- victor: at this point, they are being questioned by u.s. interrogators for the next couple of days. though information has been given out what they are saying but we have confirmation at this point that several high-ranking officials have been fired and are being questioned because there is a presumption that there was corporation -- cooperation from inside the prison. erik: there is no way that el chapo could up tunnel about himself or had a motorcycle track waiting upon his arrival. victor, we thank you very much on the update and on what the mexican government is doing about it. matt: we are going to take a quick break. we are back in a few and just a

half hour until the start of trading. stay with us. ♪

>> live from bloomberg headquarters in new york. this is "market makers," with erik schatzker and stephanie ruhle. erik:. it is the second hour of "market makers." i am erik schatzker. matt: i matt miller in for stephanie ruhle. lots of stories -- iran deal, jpmorgan and wells fargo's earnings, creditors want answers and probably want their money back. erik: looking at top stories at this hour. after two years of tough diplomacy, there is a deal on the iranian nuclear program. negotiators announced that agreement this morning.

it would keep iran from building a nuclear weapon. in return the u.s. and global powers will eventually lift economic sections on iran. president obama says this deal makes america a safer place. >> i've no doubt that 10 or 15 years from now that the person who holds this office will be in it a far stronger position with iran without a nuclear weapon and strong ways to monitor the nuclear program. for this reason, i will believe it would be irresponsible to walk away from this deal. erik: congress has 60 days to review the agreement. israel says it will do everything possible to get u.s. lawmakers to reject it. the prime minister has until tomorrow to get the votes he needs for tensions and tax cuts. alexis to the tsipras and his coalition probably won't

get enough votes. he is trying to get opposition lawmakers to back the proposals. matt: there was a surprise drop in retail sales last month. sales fell 3/10 of a percent in june and may have games smaller than reported. restaurants and clothing stores were among retailers whose sales fell. second-quarter earnings are out for two of the nation's biggest bank. profits rose and expenses fail at j.p. morgan, the nation's biggest rank by acids. -- by acids. j.p. morgan cut cost to make up for falling revenue in two of its biggest businesses. the nation's biggest home lender wells fargo, had income change from a year ago. the higher cost of homer gige is as kurt hit -- home mortgages has curtailed falling finances. erik: it is a compelling question we are compelled to ask. can iran be trusted to a baby nuclear armed -- to obey the

nuclear arms agreement? we're going to chalk talk with secretary cohen on the phone. secretary cohen details are scant at the moment, but can you give details on the agreement reached in vienna? sec. cohen: the details and the devil are linked and we will have to see what the wording of the document is. negotiators deal in and the economic ambiguity. getting the deals worked out and saying what is clear and transparent and remains either sacred or not publicly disclosed will be important. the second thing is that the president is going to have to persuade the congress and the american people that the provisions for enforcement of the deal are really serious and

will accomplish the effort. finally, congress is going to have suckered -- 60 days to review this. i cannot guarantee a couple but it looks to me like the republicans are against it saying here is the president who lost iraq, losing afghanistan, did not get involved to help the syrian rebels didn't help in ukraine, and now is doing a deal with iran to really discouragement and frustration of her allies in the arab region , uae, saudi arabia, and israel. i think that is what the republican line will be. democrats are very strong supporters of israel. it is going to be a hard sell for the president but i think it's going to be equally hard for the congress to reject it. because if it is rejected by the

congress all we can do at that point is keep our sanctions in place while other countries want to lift the sanctions. it will be the united states sanctioning itself while our friends are trying to enter the marketplace and build it to their economic benefit. this is going to be a tough one for congress to ultimately prevail on, even though a majority will be strongly opposed to it. matt: ever since we started these talks, we sort of locked ourselves in. there was no way of backing out and it sounds like we are pursuing a strategy of appeasement because the alternative is worse. unthinkable even. secretary cohen: once we decided that iran would be allowed to go forward with an enrichment program on it's on soil -- own soil i think we were negotiating behind the

curve at that point. russia at one point early in the game, said we will do the enrichment of the uranium on russian and soil and then transfer to you so you can have enriched uranium for the right level for commercial purposes. iran said no. we do not come out strong i don't think, at that time. once we said you had a right to enrich, the question is -- how much do you need? what percentage you need? they went up to 25%, which is closer to the purposes of make making a nuclear weapon as opposed to building a pharmaceutical plant. we got the kind the curve on that one -- behind the curve on that one. from that, i do not think we have been negotiating from a position of strength, but one of weakness. it now that you have a deal, you have a country on the line

saying you ok'd this. we'll have to see what other countries and their parliaments say to this. but the other countries that signed on on this will insist that it go forward. it puts the united states in a position fall the congress because the president is already on it, but i think the votes to override a veto would be hard to get i. erik: many have been saying better to have no deal then to have a bad deal. how will you know that it is a good deal and achieve what is needed? secretary cohen: no deal is not an ideal place to be. having no deal means that the iranians will continue to do what they have been doing for the past 15 years or more. and that is building a covert capability that was finally

discovered, but a covert stability -- capability to build weapons. no deal means x who it's who is seen as leaving the deal. it's about optics fit if it's the united states congress blocking this, other countries can say, look we think iran is trying to make a good deal here. where going to join with them and with our sanctions. -- we are going to join with them and with our sections. with our sanctions. if we say no deal, we would've been worst of all on the losing end. if iranians were so stringent on key issues that other countries felt vital to have an enforceable agreement to reduce the capacity to move forward with a nuclear weapon, i think the sanctions would have stayed

in place. they would have intensified. iran would have continued to suffer economic detriment. so no deal would not have been a great outcome here. it would be the fault of the u.s. and not the fault of the iranians. if you look at the optics, six countries believe that this is a great deal at least at the presidential and secretary of state level. whether the other countries agreed remains to be seen. congress is unlikely to support this in terms of having a two thirds overwhelmingly negative vote. this is a deal that we have got. unless there are major holes that we can point to saying this is not verifiable they are not moving this type of equipment, they are going to reconstituted

unless you can show that, i think the deal is going to remain enforced and we will have to hope that 10 years from now or 15 years from now that when the restrictions run out that iran would have become so embedded into the international system as a welcome partner that they will forgo trying to build a nuclear weapon. i remain skeptical about that but that is the hope at this point. erik: thank you so much. that is william cowan, now chairman of the cowen group. matt: you will hope altogether. coming up, the world may have dodged for full-blown panic from china and greece for now. our next guest says we may not be out of the woods just yet. stay with us. ♪

matt: let us take a look at the

top stories on the bloomberg terminal. leaders of the naacp will hear from president obama today. he's going to speak about his plans for criminal justice reforms at the group's convention in philadelphia. the president commuted the sentences of nearly four dozen drug offenders yesterday. on thursday, he will become the first sitting president to visit a federal prison. netflix shares are at an all-time high after the seven to one stock split. they closed at nearly $800 a share. the video streaming service top $42 billion. netflix report second-quarter earnings tomorrow. today, we're getting a first close-up look at a distant world. nasa's new probe is zooming within a thousand miles of pluto -- a thousand miles of pluto. pictures are being beamed back and pluto is a lot bigger than previously thought. astronomers say it will not be promoted back to being a

full-fledged planet. those are some of your top headlines. imagine pluto when viewed up close is much bigger. erik: it's like objects in the rearview mere may be closer than they appear. the world may have dodged a full-blown meltdown thanks to china or greece perhaps, but what kind of damage has been done to the stocks in the system? james sweeney explores that question in his most recent book. a faint whiff of panic? james: it doesn't smell very nice, but the smell has rapidly diminished in recent days. erik: over the weekend. james: and with the stabilization of chinese equities. authorities are clearly helpful that it has stopped and it has seemed to stop for now.

it looks like manufacturing globally picked up a little bit the last couple of months. we think it's as likely to go on. erik: you pay closer attention to industrial measurement. why? james: it is measurable in real-time. it showed that this year that the fed even overreacted to the news. if you are on a desert island the iasm index is actually the best thing to predict what the fed will do next in terms of interest rates since the early 1990's. erik: if i'm a on a desert island, i would want to take sticky fingers and a bottle of scotch. matt: i would take cornell 77. [laughter] let me get back to china. how much does it matter that the government there has put in artificial floor on its prices

on an incredibly overvalued market in a country where growth is so hard to measure? james: i think the chinese equity market is not particularly easy to measure. it does not have a great free flow, meaning shares are not very publicly available. the short-term thing is that you cannot have the equity market falling i huge percentages week after week. if stocks are going to go lower over the next year or two years, fine. but you do not want full-fledged panic in the near term. i think authorities have helped to prevent that. then that is a good thing. matt: by allowing you to sell and suspending all the companies. james: if that is the prevention of a panic -- matt: it seems that it would cause a panic to me. james: it's better than being forced to sell your house. matt: he would not sell your house because you can sell your equities. erik: here is the longer-term

question about china's government and their actions in the stock market. it is clearly not a free market. i guess my question to you is this -- how important is the development of the chinese equity capital market to the domestic demand story that china is trying to create? james: statistically, it is almost completely uncorrelated. short-term moves in china's stock market has had very low correlation with chinese growth and global growth. erik: in the medium to long term, in other words china meets to create a place where capital looking for a home can find companies that need capital. james: longer-term, i think they are trying to have more of a price mechanism for allocating capital and i think they're moving in that direction. last year was a signal about. whenever you have those kinds of changes, you will have boom or bust potentially in the near-term. the interesting thing about this bubble, if it is a bubble, is

that it only began last year. it was very brief. and away, a collapsing market might not hurt them as much if the market only has a few months to go up in the first place. erik: james, thank you. james sweeney of credit squeeze. his most recent note -- "a faint whiff of panic." we need to move on from china to greece, that other country would mention. -- we mentioned. last night's bailout requires them to sell $59 billion of assets. olivia sterns joins us. you spoke with the greek economy minister. let us talk about this privatization fund that the europeans are demanding. does he even think it is realistic? olivia: very surprisingly no. he said it was not very realistic. it is hard to get your head around. the economy minister is a personal friend of alexis tsipras. it is curious that he is saying

that he does not think this idea is going to hold up. if you think about what this 50 billion euro fund is supposed to our college they have been trying to do this in greece since 2001. the have been telling to sell out sea ports and airports and real state assets and raise money. so far since 2011, they all live raised -- have only raised 3.5 billion euros. he is not convinced. take a listen to his words. >> there is no guarantee to fund and that we will go on with such huge privatization. but i think that the new loan which grace would receive -- greece would receive put require some form of guarantee. olivia: you acknowledge that you're not going to be able to come up with 50 billion euros? >> some assets may, but it's no guarantee. i cannot think they can proceed with real privatization with

that asset. olivia: he does not think they will proceed with real privatization. obviously we are seeing the party a tsipras starting to fracture. he has lost the head of the coalition party of independent greeks. erik: olivia, one question i have for you about that -- did he give you any other sense as to how these assets might find their way into this privatization fund? we know that people like him are totally opposed to selling off the greek patrimony. what is the possibility raised by the europeans that they could depart temporarily in the funds to generate revenue? did he give any to sense as to how that might work? olivia: he gave me the sense that he thinks that assets will be part in place and will not actually be sold off. this is a guy who has a

reputation for being frankly hostile to foreign investment. i asked him a status update on the el dorado development and he was clearly skeptical. he does not want to sell off greek assets. he sees this as once again a bit of a band-aid solution. overall, he is optimistic on the bailout and he is supportive of tsipras. matt: olivia, they give a much. maybe they will lease out the part on. two down, three to go. jpmorgan and wells fargo announces earnings. allison williams joins us now with big bank data. how are you impressed? let's start with jpmorgan. >> they are delivering on cost targets and their plan to cut their risk buffer to reducing non-operating profits. erik: where they really delivering on this promise to cut cost? that number is a reduction, but

a lot had to do with legal expenses in this mysterious other category. alison: the cost cuts exclude the benefits that were coming. to your point, with higher reported earnings if you look across the businesses, we saw high regulatory costs, but reductions in some other areas. i think two quick things for other banks -- one, the market is showing signs of stabilization. we saw increases at jpmorgan and wells fargo's. / . number two -- we saw negative in trading. matt: thank you very much. erik: we will be back momentarily. ♪

erik: moments or minutes away from the opening bell here in new york city. tracy alloway is here. she brings us moving market.

peter is here to, too. he has had a blackrock. thing number one. tracy: we are in the early innings of the second-quarter earnings season for what you think the number one thing is that s&p 500 companies have reported so far and say is weighing on their earnings? matt:matt: the number one thing waiting on s&p company earnings -- executive salaries? tracy: if only. the number one thing is the strength of the u.s. dollar. 17 of the 23 s&p 500 companies that have reported as of yesterday's close. i know we have more today. the dollar is weighing on earnings. there's only one mention of greece and china each, which is pretty amazing. matt: that is only one mention of china. that is shocking.

we do have a lot of companies who count on china for a huge percentage of the image -- earnings. general motors, for example, has 20% of its sales in china. tracy: i would be shocked at jpmorgan did not say something about china in greece for that matter. erik: we only heard from 5% of the s&p 500. peter, this is not your area of expertise, but i'm curious to know since we touched on the u.s. dollar, is there a meeting that does seem foreign currency debt? peter: unlikely. erik: does the dollar factor in to anything -- i'm thinking of california, for example. the plantings in long beach have this impact? peter: absolutely.

it's one of the biggest ports in the u.s. so it does. we have seen a number of years a better revenue collections in various states like california like texas etc. when the dollar goes the other way and becomes a head when and less revenues from corporations, it impacts budgets and effects ratings. matt: as long as there's no default, your clients are happy campers. number 2 -- tracy: cash is king as a result of the latest survey. matt: they need a survey to find that out? i could have told him that. tracy: in a survey, cash levels were their highest since september 2008. that is surprising because in the summer of 2008, we were in the mist of a global financial crisis. lehman brothers had just collapsed. even if it was not market

volatility like last week like we have been discussing below these headlines, and a lot of big investors were potentially nervous. they were sitting on cash and they were waiting to write out that store. erik: peter, does it surprise you to see big investors nervous? peter: when was the last time we saw 10% correction in the yield market. ? i think all that is creating a tremendous amount of uncertainty and the opportunity cost of sitting on cash can be great. last year, a lot of bond investors sat on cash and what did yields do? they fell. returns were robust and i think a lot of people lost out by sitting on cash. you can say the same for equity funds. it is not surprising did all the volatility with china and greece in the dollar, that means more people are uncertain. matt: you worried about massive outflows. peter: i think that is able to

bit of a head when for the markets in general because yields are low and everybody is wearing about rates rising. it seems like it will, but not to a great degree. it has forced a lot of cash to the sidelines. people have the worry about outflows. how do you defend against that? terry more cash. -- carry more cash. matt: that is is my favorite rallying cry. what is number three? tracy: iron ore. we talked about the collapse in iron ore prices. right after we talked about an interesting announcement from the brazilian mining company they said they were going to cut iron ore production. this is the thing that the iron ore industry has been waiting to see, whether or not it will happen, whether the big three companies here is going to cut production to offset lower prices. the big question is whether the

other two follow suit. vale shares are up 6.6% on the news. markets are welcoming that production. matt: nothing like waiting on the edge of the seat to say they cutting iron ore production. it is interesting. erik: nothing to make investors happier than cutting production, right? whose marginal cost is higher than the market spot? matt: i guess the market thinks the other two will follow. tracy: i think they are hoping. it is an interesting prisoner dilemma. who goes first? who suffers the first cut? who takes the high road for the global good of the market? matt: good thing they didn't do it at once because someone would suspect solution. tracy: that would be shocking. in the mining industry? , know

corruption no way. erik: tracey holloway, thank you so much. matt: julie hyman is going to take off with a pretty cool m&a story. julie: micron, people familiar with its plans say that a chinese company, which is the investment arm of a university based in china is plain survey can offer for micron at $24 a share. shares are rising by 10 percent in a lot of analyst have been weighing in on this this morning. some of them are saying that this offer looks like it might be too low. was it the price -- look at the price versus the measure of class of task flow and it is lower than we have seen for the big chip deals. the shares are up by 10%. we have seen a lot of movement in the rest of the chip industry as well. intel this morning had a note

downgrading the company i had of earnings, saying the datacenter chips and some of the industry checks have not been positive. it is reporting numbers after the close tomorrow. it is in the process of buying altera. lastly, analysts were raising questions about antitrust approval of the day. they are optimistic and deal will happen. the shares show little change. elsewhere, we are seeing more movement and semi conductors with this micron deal perhaps coming. we have been seeing sandisk on the rise this morning. china is planning to spend age billion dollars in the next five to 10 years on it semi conductor industry. perhaps speculation that there will be more deals coming. of course, there are a lot of earnings to talk about. bank earnings among them. jpmorgan has little changed. i have to give credit to erik schatzker. he stood up this morning and said that these numbers beat

estimates, but i do not know if shares are going to hang on to gains. it looks like you are right about that. erik: it is a low-quality beat. julie: revenue fell and revenue profit fell. the company lines of business had revenue down 5.8%. they cut trading revenue down 10%. even though earnings per share is beat estimates, it is because of cost cutting. wells fargo also out with their numbers. they are showing little change. it matched estimates as we have seen mortgage rates go up. the refi business at wells fargo has shrunk and has a smaller share of the home mortgage market and united states. though shares down 3/10 of 1%. not moving much on the earnings at least right now. matt: thank you very much. right now, i want to get back to peter hayes.

he is the head of municipal bonds at blackrock. he has $160 billion in assets and municipal debt. let me start by asking about puerto rico. are you holding puerto rican assets? did you go to this meeting yesterday with puerto rican officials and you have any clarity or visibility as to what is going on? peter: we do have minimal exposure in puerto rico, but we do have names that are not subject to call back from the commonwealth that there is some type of restructuring like puerto rico housing and tobacco, but very minimal exposure. we did have representatives at the meeting. the third part of your question was around details. very little again. more details will emerge on the results of the working group are finished at the end of august. i think that will be the first look at the proposal around restructuring. you will probably have to wait another month or so before we get a lot of details and prices in bonds react. erik: it is tough to predict at

this early in the stage of discussions, but can you ballpark for us what the recovery rates would be for investors on this restriction -- restructuring of the greek and tha -- where to wreak andpuerto rican debt? peter: there are two parts to this answer. the first part is the complexity of that. you have electrics on down. 16 different issues. which ones take a bigger haircut versus the ones that take a smaller haircut? matt: that is what you wanted clarity on yesterday, but people didn't get. peter: that's right. there was some frustration at the end of the meeting on the

part of some investors because we do not have exposure. we really do not expect a lot of details. i think others were. we are probably going to have the wait another month. is going to be interesting. they have a strongly on the sales tax, but will the commonwealth attempt to call those back in restructuring? what is when to happen is that you are going to get lawsuits in litigation and may string out for a long time. erik: going back to that question -- at the other the day, let us say you have a slice of every variety of puerto rican debt. would your blended haircut be about 40%? peter: i think that's about right. erik: $.60 on the dollar could be what puerto ricans end up paying? peter: roughly. matt: that's an ideal world for puerto rico basically. peter: that is the bottom line. they have all this debt that you cannot afford. how do you get out of debt? you either grow your way out or you were structure.

from the point of view of citizens, it is the best route. erik: is there a opportunity here? in other words, what is the incentive for creditors to negotiate with the commonwealth as opposed to just being a hold up? peter: that is the interesting question and that is why i think it will be protected. there is no mechanism for puerto rico. they cannot utilize chapter nine. that's what you saw in detroit. they cannot force it down. can they really get creditors to the table and a very diverse set of creditors to the table to negotiate what everybody expects to get? erik: what do you think? peter: i think it will take a lot of time but if you look back at new york in the 1970's, i don't know if it's the analog but if you look at the federal oversight board being appointed, many things happen. a.b. that is the impetus behind

some type of cramdown that may ultimately occur. they cannot afford to pay debt. at the end of the day, they may say we are not going to pay debt service. you better come to the table and negotiate. that is probably be forcing element here. erik: they going to hold out. they're going to hold out on their own creditors. peter: they have no choice. matt: it is much cleaner and much better than what is going on in greece. mario draghi told jack lew i will trade you puerto rico for greece. that was in a jug. -- was not a joke. peter: considering all the eurozone participants and what is going on in greece, i suppose it is a little bit less complex but not a lot from our standpoint. matt: a lot cheaper. i thought it was interesting that there were protests outside of the building yesterday, which said basically that the banks always win. puerto ricans have to pay the

banks and the and the banks get away. don't you realize that when you borrow money that you're going to have to pay it back or there will be trouble? peter: that's a great question. that may be the thesis of this decade or century. all the leverage was created in the 1990's. that may be a consequence of the leveraging. now the public sector is doing it. we are faced with all this debt. that is what puerto rico essentially did. they borrowed. and yet people were looking at the demographics in a declining population and a slowing economy, you have to see the writing on the wall. we called for this restructuring since 2011. it was somewhat obvious, but that may be the consequence here. you can look at detroit as a president. they said initially yes, state contracts can be impaired in the federal bankruptcy. what did they do? they treated pensioners better than bondholders. matt: it is the lenders at fault

in this decade. peter, thanks for joining us. peter hayes from blackrock. erik: the follow-up to our police 55-year-old classic "to kill a mockingbird" is out today. there are big numbers around "go set a watchmen" and we will bring them to you next. ♪

matt: let us take a look at the top stories. the is a lot of news, but i will kick it off here in new york city. it is going to pay $5.9 million to settle the erik garner case. he was the black suspect who died after being put in a chokehold by a police officer. his family is accepting the money to settle their lawsuit. the grand jury decided not to indict the officer. i will rid the that.

-- repeat that. the grand jury will not indict officer. a major deal in the air for boeing. two dozen 767 cargo jets. the planes will be priced at $5 billion. fedex is likely to get discounts. they are good customer. facebook set a record. the social network rose two point 7% yesterday and hit the 2 billion -- $250 billion market cap the fastest. it is trading almost five times the s&p 500 average. remember when it dropped below $25 and people do not want to back the truck? i said back of the truck. those are the top stories is morning. erik: today, readers across the world are getting their first real look at harper lee's " go set a watchmen." chapter was published in a newspaper a few days ago.

this is the follow-up to the classic "to kill a mockingbird." this is a surprise sequel that hopes -- barnes & noble will hope improve sales. ramy has been looking at the astounding numbers around this. "to kill mockingbird" and its follow-up. ramy: the first one has so many superlatives. let us talk about the numbers. an initial print run of 2 million books. to put that in perspective it's first print run is actually two thirds larger than the final "hunger games" but which is already very well received and more than twice of the last "game of thrones" installment. we spoke to an analyst and he says that this could translate into $30 million for news corp.,

the parent company of harpercollins. our own bloomberg reporting says that could push as close as $40 million in tickets sold out and it looks like it will. for comparison, the "divergent" series -- i do not know if you watch the movies for that. [laughter] it is similar to "the hunger games." that book help news corp. publishing division by 82% to $53 million in one quarter alone. this could be a big boon for news corp.. matt: obviously "to kill a mockingbird" is still a big seller itself. erik: it is 55 years for "go set a watchmen." ramy: it has given royalties to the author of $9,000 a day. to this day, she is 89 years old.

she is retired and living and in -- in a nursing home. matt: think it she is retired -- think god she is retired. ramy: she raked in 1.7 million -- $1.7 million. she breaks royalties in every year. she happens to be set. if you get a single first edition copy of "to kill a mockingbird," you can get $20,000 for that. so many numbers and so many superlatives. matt: it is fascinating the whole back story. i recommend to viewers that if you did not see it on business week, go back and read that. there are some of the questions about why this came out and should it come out. ramy: an interesting plot twist too. we have advocates -- atticus finch been a lawyer for african-americans, but we will

not spoil it. matt: we'll take a break. we'll be back in two minutes. stay with us. ♪

erik: coming up later today texas governor greg abbott on the business climate in his state. that is 11:30 a.m. eastern time. matt: he just rang the opening bell. erik: did he? he kicked off trading for the day. matt is trying to leave me and i'm not taking the bait. matt: part of greece's bailout deal includes selling 50 billion euros worth of state assets. bloombergs david is that one of them right now, the old athens airport. any luck? any buyers kicking the tires there? david: we've not seen many people at all.

this is an astonishing place. it is three times the size of monaco. 1500 acres. the building behind me in total dilapidation. i went up and peaked in the window. coffee cups are still up. signs and boards are up. a really bizarre place to me. a close in 2001. when the olympics were here in 2004, the building was still on site. this is fall into dilapidation. one of many sites over privatization is the deal goes through. erik: i drove by the airport a couple weeks ago when i was in athens and i cannot believe the degree to which the previous governments have treated it. matt: la guardia is not much better, let's be honest. erik: if the economy minister is right, he spoke to olivia earlier today and he said, we do not feel like we want to

privatize these assets. what good would an old airport like that the if it does not get sold to somebody for redevelopment purposes? if it just sits idle if you will on a temporary basis for bailout funds? david: it has been sitting idle as you said. just across the street from here is a really beautiful stretch of beach. it is easy to imagine how this could be developed. it could be housing or retail. you can see it continuing to set idle. i do not think much would change. it really is totally vacant. we have seen a handful of people come through. oddly, the city bus continues to come through every 15 minutes or so picking up passengers that have come over from the beach. otherwise, it really goes down. matt: any ideas about the acropolis or the parthenon? are those up for sale? david: that has been bandied about kind of facetiously. what is up is the hellenic post

service. that is 90% state-owned. the company has a huge government state. that is big for passengers and cargo. things that could be privatized if the government goes through with it. matt: even if they sold all those things which i've this officially joking -- i have a seasonally -- facetiously joke they still wouldn't get 50 billion euros. erik: thank you, david. folks, that is going to do it for "market makers" to make it tomorrow, the former transportation secretary lahood i will be back in a moment. ♪

brendan: is 6:30 p.m. in tehran. erik: you are watching "bloomberg market datay is the

deal." brendan: in iran. in return, the u.s. will relieve economic sections. erik: the jp morgan bank is cutting cost but not revenue. wells fargo is preparing for a world of higher interest rates. brendan: micron technology may be in place. chinese companies are running a $22 billion business as a semiconductor. we're looking at potential national security and regulatory roadblocks. ♪ brendan: good morning. i am brendan greeley. erik: i'm erik schatzker. brendan: we are looking at what is making news on the bloomberg terminal. we start with iran. that deal