pimm: retail sales unexpectedly slid in june. janet yellen is still on track to raise interest rates this fall. nuclear accord with iran means another million barrels of oil hitting the markets. how quickly the islamic republic can get back online once sanctions end. texas governor greg abbott is here. businesses like toyota are moving their headquarters to the lone star state. brendan: good morning, i am brendan greeley. pimm: i am pimm fox. we are 90 minutes into the trading day. stocks, a little bit of buying today compared to yesterday. the s&p 500 gained about .3%.

maybe people are digesting all of the details of what is going on in iran and china. brendan: who knows what the story is? have a lot of conflicting bits of information. brendan: you can say that these things have been much wilder on iran and grace, where it means more for the economy. the u.s., everyone looking at interest rates. let's take a look at some of our top headlines at this hour. after true years of difficult diplomacy, there is a deal on iran's nuclear program. negotiators into the end announced an agreement this morning. the deal is designed to prevent iran from building a nuclear weapon, and in return comparable powers will lift economic sanctions. but president obama and republicans in congress are already at october the deal. >> i have no doubt, 10 or 15 years from now, the person who

holds this office will be in a stronger position with iran further away from a weapon and with the inspections and transparency that allow us to monitor the iranian program. , i believe itn would be responsible to walk away from this deal. >> the deal that we have out there, in my view, from what i know thus far, is an acceptable. it will hand a dangerous regime billions of dollars in sanctions relief while paving the way for a nuclear iran. the congress will have 60 days to review the agreement. they will do everything possible to get lawmakers to reject it. in greece, the prime minister has until tomorrow to roundup support for their economic package. coalition probably will not give him enough boats, so

tsipras will work to get opposition lawmakers to back the new proposals. and thenan cut costs watch the profits grow in the second quarter. the banks earnings rose more than 5%, beating analyst estimates. wall street has been turning to cost-cutting since trading revenue has fallen in four of the last five years. in may, j.p. morgan said it would cut thousands of jobs, and jamie dimon says that they are prepared for the difficult period in china. >> we are building for the long run. as a risk management tool, we have always said that we would be prepared for tough times. it is a mistake not to grow because of tough times. theirrevenue fell into of biggest businesses, fixed income trading and in the investment bank. a surpriseere was drop in retail sales last month, dropping .3% last june, the worst performance since

february. auto dealers, restaurants, and clothing retailers were among those that fell. the new horizons spacecraft is getting a first look at pluto. that is happening right now. for nasa, it was a countdown to a celebration. the unmanned probe will get within 7800 miles of pluto. the journey began nine and a half years ago and has traveled 3 billion miles since then. pluto is a planet, i don't care what you think. you know that pluto was actually suggested by an 11-year-old girl, the name? more details about that later. brendan: 50 times bigger than i thought it was. it is a planet. pimm: ok. coming up, what is stored nuclear deal with iran means for its own oil industry and what it

means for the global crude markets. talk about crude oil, immigration, and presidential politics with texas governor greg abbott. christmas in july, the phrase is a reality for tour makers who must decide now which toys will be the hottest sellers of the season. u.s. retail sales unexpectedly fell in june. tomorrow, we get janet yellen's semiannual testimony to congress . she will talk about her outlook for the economy and interest rates. pimm: last week, she told a cleveland audience that an interest rate increase is likely to happen this year. >> i expect it will be appropriate sometime later this year to take the first step to raise the federal funds rate and begin normalizing monetary policy. on the current economic climate, we have the ubs chief u.s. economist maury harris.

thank you for being with us. tell us, first of all, about the retail sales report. is one step over, one step back. if you recall, we had pretty good numbers in both march and may, but then we had setbacks in april and june. our sense of history is that you are not yet able to string together two powerful months. if you average of the last four months, you are doing ok. brendan: your note looking back at the fed minutes describe what you call a nervous fed. what are they nervous about? >> these people manage to be nervous about a lot of different things. the latest thing that we alluded to about which they were nervous was the situation in greece and the potential for financial contagion. i suspect today they are not

nearly as nervous as they were a week ago on that. tell us about manufacturing in the united states. that was supposed to be a bright spot. weit was a bright spot until had this strength in the dollar and now it is treading water. your ism numbers look pretty good but still disappointing impaired to where they had been prior to the run up in the dollar a year ago. the industrial production numbers, which will be out tomorrow, probably looks but the better. manufacturing is treading water or going up slightly. to boost the economy, what we need is the service sector and construction sector because manufacturing has this had went from the dollar. found a flooras for the last quarter or so. then he said that we know what the price will be, any effect on

consumer sentiment? typically when gasoline prices go down, that's been good for consumer sentiment. we think oil prices are pretty near a bottom right now, that the iranian supply will come .ack on the market gradually as discussed in your previous thatstory, it is not sure the united states will approve the agreement. absent more visibility and certainty about what is happening with iranian supplies, prices stay close to where they are now. pimm: yesterday we reported about blackstone selling some of their homes that they had purchased in atlanta. tell us about housing. >> it is doing well. the builders have limited how much new supply they are putting out on the market. you have that upward pressure on prices.

this is one reason why somebody like blackstone, who owns all these residential properties, is starting to take some profits your end there, but they are holding on to the great bulk of their holdings, but in some case, it makes heads to take some profits. brendan: last week, j.p. morgan said that millenial's will not save us as they form new households, that they will not indent themselves further on top of student loans. will we see new housing starts with new housing formations? >> they will go up but it will be different than in the past, in the sense that more of the building will be in apartments, rather than single-family. millenial's certainly have the space demands, starting to get jobs, starting to get wage increases, but there is the student debt issue. that does not mean that housing starts cannot go up. and these millenials will be renting and you will be building

rental properties instead of single-family homes. pimm: what do you expect from the federal reserve and janet yellen? >> i think they will go at the september meeting. she should be able to express tomorrow somewhat less uncertainty and worry about contagion surrounding the greek financial problems. i think with jobs performing as year, theey are this fed is on track for the first rate increase. pimm: thank you very much, maury harris. a programming note for tomorrow, we will carry janet yellen's congressional testimony live tomorrow and thursday. brendan: still ahead in the bloomberg market day. world powers reach an historic nuclear deal. the impact it could have on the oil market.

tankers offshore waiting to enter markets.

brendan: welcome back to the bloomberg market day. pimm: let's go straight to julie hyman with a look at some of the biggest movers in the market. julie: i am focusing on movers that are gaining. is the best performer of the day so i thought we would focus on those companies that are more tech focused. go pro is higher today.

these are all rising because of analyst calls. raise tos weighted because of new products coming out including a drone. these shares are trading higher by 7% today. i want to highlight the disconnect we are seeing potentially between analysts on the sell side and short-sellers. representationic of the analyst ratings on go pro. green are by ratings, red is seller ratings, beige is neutral. 61% of analysts have it at a by buy right now. you also have the target price, the yellow line, ahead of where

the stock is actually trading. the target price is about $69. on the other hand you have the short interest as a percentage of overall floats. it has come down but still at 16%, which is still poorly -- pretty elevated. you are not seeing as much optimism perhaps reflected in where go pro is going. also take a look at amazon. upgraded to buy at ubs. they call amazon prime a flywheel, a lot of momentum for users to spend money on the go towhich should third party sites. thank you. very interesting about the go pro shares.

we are going to take a look at some of the stories crossing the terminal. added to heres stockpiles in may, sales rose for a third straight month. business inventory rose .3%. it may indicate businesses are optimistic about future sales. in puerto rico, government officials got little support to restructure their debt. puerto rico has said it will come up with a debt restructuring plan. in mexico, the interior minister says the country's most notorious drug lord could not have escaped without inside help. guzman used an elaborate tunnel to escape from imax and security prison. his fortune has been estimated at $1 billion. the mexican government has already questioned about 50 people's.

pimm: did you see pictures of the tunnel? brendan: this was not digging with a spoon. this was done with a backhoe and lined with concrete. pimm: there is somebody who knows how to build involved. after two years of tough to's, a deal has been reached to limit iran's nuclear program. john kerry spoke about the logistics of the deal. return for the dramatic changes that it has accepted for its nuclear program, the international community will be lifting the nuclear related sanctions on iran's economy. the really from sanctions will only start when tehran has met its key initial nuclear commitments. fell onude oil prices the news, on concerns that iran could flood the already oversupplied market. sincee price has

recovered, $52.14. for more, we are joined by amrita sen. great to have you with us. i wonder if you could describe how much oil from iran will reach world markets. of a lot s speculation about how quickly iran could bring oil to the markets, but the sanctions lifting will take time. none of this will be done before the end of the year, and most likely in 2016. we are not expecting any new iranian oil. whether it would be from floating storage or actually itself,s in the field to come to the market, at the 2016, butaround q1 most likely the second half of 2016. brendan: what is their full capacity? let's say for the argument the

market is why open and they are doing everything they can. what can they produce? >> if you look at what they were producing before the sanctions were on before compared to current sanctions, about a million barrels lower. in theory, they should be able to increase by about a million barrels a day. , the declines rates at their fields are extremely high. a medium to smaller size fields have double-digit decline rates. remember the off stream sanctions have been there for ages. the last twot years. so there is very little investment that has gone into these fields. iran is going to bring along three smaller fields this year and next year, but to offset the large declines we are seeing in the other fields, we need to see significant amount of investment to occur. and foreign companies will be quite cautious in going back to

iran, given that a lot of the sanctions and the wording of the sanctions still needs to be clarified. brendan: in terms of decisions about capacity, do we have the sense that they will follow opec's lead? there has not been much price discipline to begin with. about 31.7producing million barrels a day and they are supposed to produce 30. what is half a million barrels a day between friends? the key is that the market over here is extremely oversupplied. iran is in no mood to negotiate and bring their volume down. for them, they will argue, like iraq, but they have missed out on market share for the past three or four years, so now it is their turn to get back to what they were producing before sanctions were imposed. that is why the december meeting will be interesting. saudi arabia also raised up the levels to record levels in june.

they have to come to some kind of an agreement at some point. the saudi strategy is to keep prices low by producing more, because that will hurt the other producers and will have to cut production. pimm: you've heard john boehner say that he did not like the not passwould work to it. what are the facts on iran, if the deal is not passed by the united states? think president obama is expecting a flight from congress and i think the wording has allowed for some of these issues . he definitely expects congress to push back on a few of these issues. at the end of the day, presidential waivers can be used, so we think the deal sticks. if you look through the pages of the deal, both sides have to stay with it. after two years of

negotiations, where do we go from here? we still think presidential waivers would mean that the deal sticks. pimm: thank you for spending time with us, amrita sen. brendan: coming up, your , even if it is if i not a planet. we are getting a look at it like we have never seen before and it is awesome. ♪

in nass up as new horizons spacecraft was launched, house prices peaked, george bush was in his second term as president, and there were no iphones. nine years and 3 billion miles

it has gotten them all the way to pluto. these are some of the first images from the spacecraft. it flew by at 7:49 a.m. this is the closest we have ever, to this dwarf planet. not bad. this project was started before the iphone was in your hand. when i still worked in public radio. imagine. i did not even have any children. would itgine what happen with his prior planning and the patience to follow it through. brendan: a lot of things that we are doing now really work in geologic time. when you look at the european orbiter that landed on a comet, the planning in the time it took to get there, these are 10-your projects we are committing to. about twohis is

about -- pimm: this is two thirds the size of the earth's moon. than we 50 times bigger thought. that is huge. particularly for nasa, part of this is science, but part of it is policy. we need to see those things that make us go, that is amazing. maybe this will be in the next edition of the iphone. brendan: i am going to go and obsessively follow coverage of pluto. pimm: we have texas governor greg abbott. he is here in new york looking to persuade more businesses to move to the lone star state. ♪

pimm: welcome back to the bloomberg market day. negotiators made history today in vienna.

the united states and other global powers reached a deal designed to keep iran from building nuclear weapons. in return, economic sanctions will be gradually lifted. not long after the deal was announced, iran's president spoke to his country. >> the page of the past 12-your , spreading illusions in society and public opinion, has completely turned, and a new chapter has begun. this chapter opens on the basis that solutions to the problems in the world can have a shorter and less costly path as well. pimm: meanwhile, the u.s. congress will have 60 days to review the agreement. john boehner calls it unacceptable. it's a victory for huber in new york city. the head of the taxi commission drivers areer freelance workers rather than employees. last month, the labor commission decided the opposite u. uber must pay

drivers thousands. and france celebrates with jets during a national holiday, bastille day. bastille marks the day that the state prison in paris was stormed during the french revolution. at the moment, markets are closing in europe. for the latest, let's go to mark barton in london. >> investors in europe are in wait and see mode ahead of that greek parliamentary vote on wednesday. stocks rising for the fifth consecutive day, which is the longest winning stretch in three months ahead of that big vote, which is a vote on reform in exchange for a new aid package. the ftse 100 is interesting. off after stocks fell comment from mark carney,

warning that a time for u.k. rate increases is moving closer. earlier we had an inflation report that showed a stagnation in consumer prices, which played ,nto the minds of those banks who does not want rates to increase. one of the more interesting sectors was the oil sector. initially it fell but finished higher after the iran nuclear accord. when iranianhat oil starts coming onto the market, it will be a gradual process. oil companies in europe like the thought of that. these are the three big movers. sky, deutsche bank raising its rating on the company, saying on-demand video will help. bmw is falling. there was slowing demand among premium cars in china. seb is a swedish lender,

revealing negative interest rate in the country have eroded lending income. a stockinish off with 600, which rose for the fifth consecutive day, the biggest five-day rally since december 2011. pimm: thank you, mark barton. coming up on the bloomberg market day. it is christmas in july. we get an early look at the toys expected to be the best selling of the holiday season. and would you like to own your own island? you could buy one of dozens of greek island that will be up for sale. one could be yours for as little as $3.5 million. weighs inmed el-erian on everything from greece to iran to the federal reserve as we await and janet yellen's testimony on capitol hill tomorrow. what is the best state in the union in which new business? according to one magazine it is the lone star state.

the state gdp is growing faster than the rest of the country. it's on a planet rate is lower, about 4.3%. companies like the low taxes in the state. this week, governor greg abbott is in the area to share his state story. thank you for being with us. you are in new york looking for business. >> we are. texas has been ranked by ceo magazine as the best day for doing business for 11 years in a row. the amazing thing is, we just got better, because after my first term as governor, we lowered taxes by $4 billion. we have no personal income tax, no corporate income tax, we have had a business franchise tax that we just slashed by 25%, we cut property taxes, we invested in roads and schools, making texas and even better destination. pimm: that is the elevator pitch

for businesses to come to texas. >> if you look at the cost of doing business, it is lower in the state of texas. if you look at the regulatory environment, we sped up the permitting process. thatve litigation reforms makes it more accommodating for companies that do not like to be sued and put out of business. pimm: as the former attorney general of texas, you would be in a good position to do all of this. tell me what the state is doing now in terms of immigration. about $800 million of the budget is being focused on dealing with the issues related to mexico. immigration is an issue that is governed solely by the federal government, as said by the u.s. supreme court. what the state of texas can do is appropriate $800 million to secure the border, to make sure we keep the people of the state of texas safe, understanding,

going back a year ago, you saw those women and children coming across. they were coming across because they were brought largely by members of drug cartels. we want to make sure that we have no infringement of the state of texas by these cartels. let's talk about the oil industry in texas. i mentioned the unemployment rate, 4.3%. are you reliant on the oil industry, as you were a decade ago? all.t at the price of oil has been cut in half over the past year. yet, our unemployment rate is still 4.3. last month, texas had the third highest job growth in the nation . the reason for that is because our economy is far more diverse than it has ever been. didn't toyota say that they were moving from california? >> exactly. we are seeing that left and

right. for your listeners and viewers, what state do you think leads the nation in technology exports? most people would think california but it is the state of texas. we have a diversified economy and we are doing an even better job to attract more businesses outside of the oil and gas sector. diversified groups of businesses. how about populations and the legal ramifications from things such as same-sex marriage, obamacare, which i believe you work hard to keep away from the state of texas. on the diversified population, you could hardly find a state more diversified than texas. andou look at our hispanic african-american population and growing asian population, you will see texas is a cross-section of the entire united states. here is what we focus on.

we focus on the education component. texas has a higher graduation rate among hispanics and african-americans than any other state in the country. pimm: having said that, why not come out and support these things? some businesses, whether it is the open gun carry law -- some restaurants say they do not want that. why would you not support these things if it will help to create that kind of diversity for businesses? >> on open carry, texas is not in the vanguard here. texas is the 44th state in the u.s. to allow open carry. problem in 43n a other states, it will not be a problem in the state of texas either. the commentsthink from donald trump are a problem for the republican party? i know rick perry, ted cruz -- both running -- one has come out

and said he salutes trunk for saying these things. perry says no way. they would not even be talking about this issue if the federal government was doing its job to create an effective immigration system and secure the border. pimm: but is what he is saying helping or hurting the conversation? would you support the things that he said? >> he is raising an issue that is important -- pimm: you can do it politely. >> it is a tenor different from what i would use, but it's important to inject the issue into the campaign so that we have a president who is going to step up and finally secure the border -- pimm: i understand that, but if he was more polite and more -- do youe, perhaps, disassociate yourself from the comments that he made? how can it help the republicans?

>> the tenor he used is not the one that i would've used. every candidate has their own words.to use their again, i think it is essential for the republican party and the democrat party to address the issue. this is a can that has been kicked out the road for decades. we can no longer kick it down the road anymore. pimm: one thing that was kick down the road for decades was the confederate flag which was just lowered at the capitol in south carolina. as the attorney, you are good for the 10 commandments in front of the state capital in austin. i not connecting, but what do you think about the reaction to the confederate flag? >> arguing for the 10 commitments to be displayed, i argue -- the state of texas did -- to eliminate confederate

license plates, and we won. we have been in the vanguard on this. making sure we do not have the --imagest -- premature that would be hostile to people. pimm: would texas be in the vanguard of doing the open carry stuff? >> texas caught up with the other states with regard to open carry. 44 other states in the nation that already allowed open carry without any problem whatsoever. pimm: thank you for your time. very interesting. texas governor greg abbott. is not a game. toy company deciding now what they will be selling this holiday season. what will be under your tree? ♪

pimm: welcome back to the bloomberg market day. let's begin with our top stories. consumer groups are mourning the united states government not to tevw tva pharmaceuticals -- lan.armaceuticals to buy my teva has already asked for antitrust clearance. the taiwanese company that gets half of its revenue from apple has started making smart phones in india. foxconn has started production at a factory in southwest india and hopes to create a million jobs by the end of 2020. a seaworld employee is being accused of posing as an animal

rights activist for years. the accusation comes from peta. they say the man joined protests against seaworld's treatment of killer whales. seaworld will not comment specifically. the toy industry is not playing around. toy sale generated more than $18 billion in 2014, a 14% increase. while christmas is still five months away, retailers are already getting ready. companies. dozens of look at what is flying off the shelves this coming winter. lori, great to have you with us. >> the conference is on thursday. over 80 manufacturers that are showing off the toys on this

holiday season. this is something that we have a year inlanning for in a ye advance. i started looking at these last october. pimm: i notice that you brought a stuffed snoopy. >> one of the trends that we always see our toys coming from entertainment. it could be movies, the small screen, or even the computer. showy junior, a newer called miles in tomorrowland. that is a great product that kids already love. then you have something like charlie brown. we have all grown up with charlie brown. this year, kids will be introduced to snoopy and charlie brown on the big screen. so we have disney junior and snoopy, peanuts. and then you brought something from the girl scouts.

the first time girls get to be an entrepreneur is when they are filling those guilt scout -- girl scout cookies. or the first time, people will be able to make girl scout cookies for themselves. this is part of the do-it-yourself trend. kids love to make and share things. we have to show all of these things to the buyers. why can't you just use the regular oven? >> because this is perfect for little kids and little hands. you can use your regular oven. mix,can actually use this use the small pots and pans that come with it. parents can spend money on it as well. called s.t.e.m.

was huge last year. we are going to see it this year. kids are learning from their toys. this is called kids first. basically, engineering sets for kids as young as three. this is a little piece of it. they learn how to build aircraft, amusement parks, but it gives them some great skills. as they get older, they will move into smaller building sets, technology. pimm: is this an updated version of the erect a set? one similarhere is to that where kids are building and programming robots. pimm: what was the most expensive toy you have seen since october? >> i have not seen anything

crazy yet. maybe $89 for the high-end. except for some of the big ride-ons, that is where you will see the big prices. thank you very much. ahead, debt and battled greece needs 50 billion euros. the solution may be to sell some of those beautiful greek islands. details ahead. ♪

pimm: welcome back to the bloomberg market day. pimm fox. when we talk about greece, it means lots of money. the government needs to raise 50 billion euros to appease its current creditors and there is a

possible solution. selling things. some of those things are thousands of islands that belong to the country all over greece. joins me. you have been looking into some -- i know it is not just land -- but buildings, betty: this reminds me of the story were they talked about how detroit needed to raise money and maybe they would sell some of the artwork in their museums. in greece, and they clearly have a huge problem. they have to raise money, so there are something like 1600 islands, many unoccupied, that are up for sale. there is a website called private islands online.com . hold on to all of that for

just a moment. i want to bring in julie hyman who has some breaking news having to do with twitter. spike in the a shares moments ago and it looked like it was due to a report on potential m&a interest in the company. it looked like it was linked to a bloomberg news story, however, that twitter story is fake and is not a bloomberg story come despite --, despite the link. we are looking into this to see how it may have mimicked a bloomberg website. we saw the stock spike sharply at one point rising 8.5%. isis now around 2.5%, which where it was before this big news story came out. we will continue to investigate this and give you more details. we did want to give you a heads

up that we had seen this spike in the shares due to that. from that, i want to segue into our options insight. stocks have been muddling along higher, fairly lackluster volume. kevin kelly is the chief investment officer at recon capital. before we get to that, i want to bring up this issue of fake news stories. this is something that we have seen happen relatively often over the past six months. course, you see options activity just like you see stock activity when this happens. participant, in your investment decisions, how do you guard against something like this? >> one of the things that happens is you are starting to see, when the situations arise, they are going into the options y are doing the

it short term you're the money. when you see these kinds of spikes, that is a tipoff to the regulators. the banks will also step off and question it. they do not want to lose out here they are the ones putting on their capital to make the markets. we don't have much time left, but i know you are looking ahead to ebay earnings. interesting because we have this pending spinoff of paypal. after thee reporting close this thursday. if you are looking to capture the next or premium, you can begin selling calls and generating that. what is important to note, yesterday, we saw 4.5 times the normal amount of calls being 50 out toound $62. october on ebay. this is a great spinoff.

management has done very well talking about how this will look. the trade here is to actually and sell the call against it in september, bring in that options premium, about 1.8%. that will go against ebay, and then you can have the run-up from paypal when it spins off. it will go live on a nasdaq on the 20th. julie: so this is more of a spinoff bet than an earnings bet. thank you, kevin. don't go anywhere. more on the bloomberg market day. ♪

9:00 in san francisco, noon in new york, and midnight in hong kong. betty: iran reaches an historic

on its nuclear program in return for lifting sanctions. applauding thee accord, particularly republicans in congress. pimm: and a deal to rescue greece. it depends on a plan of $55 billion worth of government assets including the old athens airport. at u.s. retailers dropped in june. how amazon is creating its own holiday tomorrow to try to entice consumers to shop. let's go straight to julie hyman who has some breaking news. julie: