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: i just want to reassure

the situation with footer. you can see the stock behind me. -- with twitter. this was on a fake news report that twitter was working closely with bankers after receiving a $31 billion buyout offer. again, a fake news story that was on a website that was mocked up to look like a bloomberg website. says thatspokesperson this is a fake news item. you can see the movement that we saw in the stock. in the news story, the former ceo of the company, dick costolo's name was spelled wrong, and there were some other issues with it, aside from being fake. we did want to point out the movement we saw in the stock. highlights this spate of recent situations where there have been fake news stories out there. many of them having to do with

mna which has caused the reaction in stocks. m&a which has caused the reaction in stocks. questions about what regulators can do to stem this type of activity when we see incidents like this. pimm: thank you. our top stories on the bloomberg terminal. in vienna, negotiators made history today. united states and other global powers have reached a deal on it clear program. the agreement is designed to prevent the iranians from building a nuclear weapon. here is president obama earlier from the white house. today, because america negotiated from a position of strength in principle, we have stop the spread of nuclear weapons in this region. because of this deal, the international community will be able to verify that the islamic

republic of iran will not develop a nuclear weapon. pimm: economic sanctions on iran will be gradually lifted in return for compliance. meanwhile, the u.s. congress 60 days to review the agreement. israel says it will use every means possible to get the congress to reject it. more on this later in the hour. in greece, the prime minister has until tomorrow to round up the votes for a package of pension cuts and tax increases. talks onepherded the any bailout. tsipras will try to get opposition lawmakers to back the proposal. crisis to another, government officials in puerto rico are getting little support from investors for plans to restructure $72 billion in debt. investors say the government is offering few specifics and puerto rico says it will come up with a restructuring plan by

august 30. no word on whether the government will repay bonds maturing in three weeks from now. betty: americans cut back on their spending last one, a sign that they are still cautious despite job growth in the past year. the commerce department said research -- retail sales were -- .3% in june. may's numbers were revised down percent. last expenses and watched profit grow in the second quarter. the banks earnings were of more than 5%, beating wall street estimates. firms have turned to cost-cutting as trading has fallen in the last four of five years. cutrgan said it would thousands of jobs. meanwhile, jamie dimon said they are preparing for a difficult thing to in china. >> we are building for the long run.

as a risk management tool, we have always said the way that we will treat it, we will be prepared for tough times. it is a mistake not to grow because of tough times. revenue dropped in two of its biggest businesses, fixed income trading and investment banking. rising interest rates for the nation's biggest home lenders .el netflix shares opened at an all-time high heading for its seven for one stock split. the video streaming leaders tops 20 --ket cap $42 billion. the new horizons spacecraft is getting the first ever closer look at pluto. for nasa, it was count down to the celebration.

the unmanned probe will get within 7800 miles of pluto. the journey began more than nine years ago. it has traveled 3 billion miles since then. it turns out all of that spilled ice was not for nothing. funds from the als association raised $115 million last summer. money is going to drugs in late stage trials. the viral fundraising effort gathered millions of views on social media and featured high-profile supporters such as mark zuckerberg and bill gates. betty: did you do it?

pimm: i did not. betty: i did not either but several of our colleagues did. good for them. let's return to this morning's historic iranian nuclear deal. the obama administration is now tasked with selling it to a skeptical congress and the american public. pimm: phil mattingly is at the white house right now. did the administration get what they want out of these negotiations? >> according to them, yes. one it official i spoke with today said they got more than they initially thought they would to start with. there is some spin there, obviously. you look at the key components, and they are important factors in with the ministers was looking for. uraniumns of 98% of stockpiles, up to two thirds of the centrifuges will be shut down. most of all, the inspections. access to allhave

sites as well as military sites. the biggest thing the administration was looking to officialy wise -- one told me, to get this would be game changing. the fact that they got the deal, they are looking forward 20 years down the line, and see this as a crucial legacy component of this white house. republicans, including one that we will have, mike turner from ohio, and vehemently opposed the deal. they say the enforcement will be a very big issue. how is the president going to sell this to skeptics? >> ignore the republicans. the key component from the white house is, they only need to convince 14 senate democrats and 44 house democrats come with them on the deal. there is a resolution that will likely go through congress to approve or disapprove. it is likely they will disapprove of the deal, but the

president pledged to this morning that he will be towed that resolution. congress will amend the two thirds of beach chamber to override that. as long as the president can keep that core group of democrats with him, nothing else really matters. i think the focus will be less on republicans and their leadership and more on those democrats and making sure that they are comfortable with what the administration was able to negotiate. pimm: thank you, phil mattingly. betty: joining us on the phone is mohamed el-erian, our chief at aly outs.sor before we get to economic news, let's stay on iran. how will this impact oil prices? you saw an interesting move where prices initially dropped but then they came back up, knowing that this is a long haul for iran to normalize their operations. market hasnd the oil

been setting up for this deal. prices have come back down to the low 50's on wti in anticipation of the deal. what you see is a normal, orderly market reaction. pimm: talk about gunboat diplomacy. what does that mean in the context of world economies such as greece? that debtorsnotion are forced to accept conditions by gunboats standing outside their waters. it has happened many times and has often failed because the ownership of the reforms are not with those that have to implement it. i'm afraid that is what is happening to greece now. what they agree to over the weekend faces enormous challenges when it comes to implementation. not only on economic and financial issues, but situational aspects, and of

course, political and social ones. it is a hard slog when a certain adjustment is imposed on you and you do not own the implementation. was with uskrugman yesterday outlining these concerns, the implementation, what it means for greece down the road. let me play part of that conversation and what he says about the debt problems for greece. >> as long as the debt has not been written down in some way that is -- takes it off the table, then any progress they make is just a reason now to tighten the screws further. they need to see some kind of ast number that goes down the economy makes headway. that is not happening, and it will not happen, because they are too deep in the hole. makes a really good point, which is that any progress they make is actually going to be held against them. debt relief is necessary, if

greece is to restore normal functioning. it is not efficient but necessary. the numbers are horrific. debt is in excess of 170% of gdp. when all this started, it was below 110%. what people forget is, sustainability is a ratio. you need growth. without growth, no matter what you do, your debt will get worse. that is the big problem that greece is in now. it cannot generate enough economic growth. pimm: i want to turn your attention to the u.s. dollar. bloomberg has looked at the chief executives of the top companies in the s&p 500, the issues related to their current earnings performance. they cite the strength of the u.s. dollar. >> it is an issue, the dollar has moved a lot. in centralivergence

bank policies, it is likely that it will strengthen further. what i find a little ironic about the survey is that that is actually something that companies can do something about her day cannot offset the impact of a stronger dollar in terms of competitiveness, but they can hedge some of the impact on their profits. pimm: on the currency risk. >> correct. one is that you lose competitiveness, which israel, but the translation fx can be hedged. that is something that companies have not been doing enough of. in fact, you hear often times, in earnings releases they use it as a crutch. linking back to what is happening in europe and even in might another hot spot, the dollar strengthening go even further because you now have a resolution -- possible resolution in europe -- and

threats of a recession in china? might we see the dollar continued to rise? >> it is a multi-sphere it economy in which the u.s. economy does better. in terms of central bank the fed is likely to continue to take its foot off of the stimulus accelerator. i expect the ecb to do more. it will certainly do more if the greek deal unravels. qethat happens, expect more out of the ecb, which will weaken the euro versus the dollar. betty: tomorrow, janet yellen will be testifying to congress. what are you listening for from janet yellen? the economy, in particular, how she sees wage growth. that is a key element. fed officials will not be comfortable about hiking rates

until they see better prospects for wage growth. that is the first issue. second, how she sees the path for interest rate hikes. i think she will confirm the notion that this will be the loosest tightening in the history of the fed. finally, she has to battle a lot of political issues. this is a congress that is much more intrusive, or seeking to be much more intrusive, in fed affairs, than previous congresses. she will be playing defense on the political front. sharmaesterday, ruchir said that china could tip the world into recession. what is your reaction? >> it could, but it won't. intocenario for tipping recession if china controls -- loses control of it stock market and shadow banking system, and that causes a major setback to the economy, which venture as

lights a major setback to the global economy. it is a possibility but i do not think it is a probability. china has a lot of tools to avert that. neat, in thet very sense that they are retarding their marks toward global equalization, but they can limit the spillover effects to the rest of the world. side ruchir sharma, one side mohamed el-erian. betty: coming up, it's an historic day in space exploration as nasa's new horizons aircraft flies past pluto. it is a trip that took 9.5 years, spanned three billion miles. quite the road trip. pimm: in greece, can the government really raise $55 billion by selling assets, such as this old athens airport?

♪

pimm: welcome back to the bloomberg market day. on thelet's get a check markets. in particular, semiconductor stocks are flying on the back of this report about micron. julie: people familiar say a chinese company, associated with a chinese university, is planning a bid for micron of about $23 billion. $21 a share. .hares are rising 11% the formal date has not come yet. people familiar say it could happen as soon as today. i wanted to get some perspective on the semiconductor landscape, the landscape for deals.

one analyst who covers this for us gave us this chart, chip deals of at least a billion dollars over the last five years quarter by quarter. , thelue lines are the size amount of the deal by dollar value. this orange line is the average premium. last quarter we saw a record quarter for semiconductor deals capped off by intel's acquisition of all terra, which , which is notra close yet. if the man is about 19%, which is not out of line over the past several years. however, if you look at the multiple on this, the price versus ebitda on this proposal, about 3.9. looking at the same metric, the semiconductor deals of at least a billion dollars over the past five years, 71% were at more than 10 times ebitda.

many analysts today are saying that the price looks too low on this proposed deal, but again, it is theoretical at this point. there could also be antitrust or congressional resistance to this deal happening since it is a chinese company coming in to buy a u.s. one and because the deal is of such size. while other semiconductor stocks are rising today, especially those that have been talked about as potential targets in atmel,t, sandisk, amd, all rallying today. we will see if the formal offer comes, and then what the outcome will be. more than just price. political, regulatory issues, and others. thank you, julie hyman. pimm: still ahead, and epic tale of an incredible shrinking planet. betty: we will discuss nassau's

3 billion-mile journey to pluto. ♪

betty: this is the bloomberg market day. a mission accomplished. earlier this morning, scientists at nasa celebrated the culmination of an epic journey and spanned 3 billion miles took nearly 10 years. around 7:49 a.m. eastern, the new horizons spacecraft reform the first ever flyby of pluto. it is the closest we have ever come to the solar system's last unexplored planet. pimm: i just wanted to make sure, the name pluto, was

suggested by an 11 euro girl. it took place in march 1930, she was having breakfast with her grandparents. they were reading newspaper about the discovery of the planet and she was studying greek mythology and said pluto. her grandfather talk to a friend of his who was an astronomy professor at oxford university, onfab in london. foraid, i will suggest this the people in flagstaff, arizona, where the observatory is. there you go. it has been in the hearts and minds of the american public. there was a puppy cartoon character named pluto. degrasse tyson, among the group of scientists who demoted

pluto says -- he has been tweeting up a storm about this trip. he is excited about this. it is still a dwarf planet, technically speaking, but it is also clearly an incredible feat. pimm: a source of inspiration, well done. don't miss our interview coming up with the director of nasa's .lanetary science e.at does it for m betty: much more on the bloomberg market day. ♪

welcome back to the bloomberg "market day." i'm betty liu. here is a look at some of the

stories crossing the bloomberg terminal. to then with reaction deal between the u.s. and iran. president rouhani calls that a new chapter in his country's history. benjamin netanyahu calls it a stunning, historic mistake. >> by not dismantling iran's nuclear program, in a decade, this deal will give an unreformed con unrepentant terrorist regime the capacity to produce many nuclear bombs. in fact, an entire nuclear arsenal. what a his stunning --what a stunning, historical mistake. betty: he said that israel will not be bound by the deal and the

country will always defend itself. yemenvilian death toll in now stands at 1670 after three months of fighting. airstrikes and ground fighting have endured despite a you when-brokered -- un-brokered truce. johnson & johnson first-quarter profits beat estimates. it was four cents above the analysts compiled by bloomberg. revenue dropped to $17.8 billion. a deal would lead to higher prices for generic drugs -- an is beingut of myl

protested. that is a look at some of the top stories at this hour. coming up in the next half hour, baseball's all-star game this tonight in cincinnati. while the sport may be having trouble pulling in younger fans, baseball superstars are getting younger and younger. retail sales may be down, but amazon is creating its own holiday to try to entice consumers to spend. does that sound familiar? we will take a look at amazon tomorrow. which is greece reached a last-minute deal with creditors. the plan requires greece to sell $55 billion in government assets. that one ofndent is the places that could be sold and it is the courts in athens. david, tell us about this plan to possibly sell the ports. david: i am here at the port that is a huge passenger and

cargo terminal. 17 million passengers come through here every day. it is run through public-private partnership. there are definitely physical properties that could change chance. like the old airport where we were this morning. properties and commercial properties. i am talking about the hellenic .ost, hellenic petroleum these are things that could conceivably be privatized in the coming years if the plan does go through. the firsts that in bailout plan, a similar proposal was pushed through. nothing has come of that. industry hasos of been privatized. still a lot more that could be. betty: absolutely. what else is on the block? there is a fascinating story that pimm and i talked about about greece's islands that

could be auctioned off. david: i have heard that. there is an outfit of the government that is responsible for finding buyers. islands as a whole are not listed. matt miller joked, is the acropolis up for sale? no, it is not yet. the government would like to offload large swaths of land. this government has said that it wants to put that on hold. this is a real bad face for him. he ran on a platform of not privatizing any government property. this is a real about-face. betty: thank you very much. david gura in athens for us. now, a look at the european market flows. here is mark barton from london. investors in europe were in wait and see mode ahead of that greek parliamentary vote on wednesday. stocks arising for the fifth

consecutive day, the longest winning stretch in three months ahead of that big boat, which is a vote on reform in exchange for a new aid package. 6100 is an interesting one. mark carney spoke to u.k. lawmakers and he warned that rate increases are moving closer. we had an earlier inflation report that showed stagnated can to races, which played in to the members of the bank of england who don't want interest rates to increase. one of the more interesting fixes on the tuesday session was the oil sector. it finished higher after the iran nuclear records. when iranian oil starts coming onto the market, it will be a gradual process. oil companies in europe like the thought of that. sky, u.k. satellite broadcaster, deutsche bank raising its recommendation.

online video will help boost gross. bmw falling. its chinese partner forecasted net income to fall about 40% in the slowing demand for premium cars in the world's biggest auto market. lender showingh that lending income has been eroded more than estimated. i will finish off with the stoxx 600. this is the biggest five-day rally since december 2011. that is it from me. back to you in new york. betty: mark barton in london. shares of micron technology soaring in the u.s. bloomberg's david engels has more on the story. david: the group is essentially the investment arm of china's university. it is the country's premier university. thanks to state sponsorship, it

has announced $4.5 billion worth of deals over the last two years. the broader forces at work, china seas some i conductors, chip storage as important to national security. get to bloomberg's julie hyman for the big stories of the market day, including more on micron. let's start with the markets. anothere are seeing rally today. the fourth straight day we have seen an increase or the s&p 500. it is coming off its best three-day rally since december. not huge gains, but gains nonetheless. 0.64%.daq is up nearly we have seen the vicks come down pretty dramatically.

not surprising that we see stocks rallying and we see the vix go down. we have seen the markets cap more volatility. the volatility index is also gotten more volatile. let's take a look at the various sectors in the s&p 500. there is not much red. utilities are down, media stocks are down, food retailers are down. energy stocks are the best-performing groups. interesting, given that we have this deal on iran. as well. look at oil thereght want to think would be changes thanks to the releasevienna, but the and iran would be relatively gradual and should not exacerbate the glut.

i wanted to mention the economic data that we got this morning. retail sales in the u.s. coming in below estimates, falling 0.3%. down sharply as a revised 1% gain in the month of may. now a 2.14%.s a quick check once again on those shares of twitter. there was a spike in the shares after 8% after a fake news item was mocked up to look like a bloomberg story about a buyout option. it was, indeed, not a bloomberg story. it was a fake story. we have seen this happen most recently with avon. betty: avon, right.

julie: exactly. usually, these things have to do with mergers and acquisitions. betty: it underscores are jittery the market is. thank you so much, julie. julie hyman, our senior markets correspondent. still ahead, baseball's all-stars are getting younger and younger, but can the league translate its phenoms into a bigger audience? we will be back. ♪

betty: welcome back to the bloomberg "market day." here is a look at some of the top stories. in new york, the family of a black man who died after being plates -- placed in a chokehold has settled with the city. $5.9amily will receive million. themedical examiner found chokehold contributed to eric garner's death. new york police are barred from using chokehold. it is a victory for uber in new york. drivers are freelance workers and not employees. that is a decision that supports business model. in california, the labor commission ruled the opposite. author harper lee's "go set a watchman" is on sale today.

it is the novel she wrote before her classic "to kill a mockingbird." the manuscript was discovered a "to kill aury after mockingbird" was published. that is a look at the top stories. get your copy today. coming up, many of us were too busy enjoying some summer fun to shop last month. fell inee tale sales june after a strong showing in may. amazon will try to tempt us into some retail therapy tomorrow. we will to you more about that move in a moment. ♪

betty: welcome back to the bloomberg "market day." i'm betty liu. the baseball all-star game is tonight in cincinnati. while baseball may have trouble

pulling in younger fans, baseball superstars are getting younger and younger. 20 members of the all-star team are under the age of 25. makes you feel old? that includes mike trout, bryce harper, and madison bumgarner of the giants. this chart shows how important young players have become. it uses a metric called wins above replacement. it shows that players that are 25 have just overtaken players that are over 30. why are young players rising so quickly? mark is here to solve the mystery. mark: they have good agents. [laughter] they are getting paid a ton of money. you mentioned mike trout. betty: better training. mark: bryce harper. they have become the faces of major league baseball. we are talking about young people, who, if you really want to look at it this way, for a five years ago they were

teenagers and now they are millionaires, they have accountants, they invest their money. there is bryce harper. they are doing their best not just to become athletes, star athletes, but they are doing athletes did not do a generation ago. they are building their brands. betty: mark, my sports knowledge is limited. however, i do know that baseball careers last much longer than football careers. mark: yes, they do. betty: the fact that they are starting younger only means that , as long as they hold up, they will have a lengthy career in , ofball and make more money course. however, this is coming at a time when, as they age, the fans age as well. mark: absolutely. betty: baseball has a golf problem. [laughter] mark: one of the problems that major league baseball has had, they have been trying to make the games faster.

they don't let batters step out of the batter's box. they are trying to speed it up. fans want pace, they want nba, they want nhl, they want football. betty: they want action. mark: baseball has a generational problem where it is -- seen as what the old guy watches. slows your life pace down. with these young superstars coming up, it is making baseball fun again. these guys look like they are having fun, they are out there, when they hit a game-winning home run, it used to be water. now they squirt chocolate on you. you have a thing of hershey's chocolate. they are making the game fun again. whether baseball can parlay that into younger fans is a different story. betty: that is. on an entirely different story, we are going to be talking about this iranian nuclear deal. mark: apparently everybody is

talking about the iranian nuclear deal. israel is making its voice heard. prime minister benjamin netanyahu has been against this since before day one. he says this is a bad deal and it has made the world a more dangerous place. we will be talking to republican congressman mike turner on the house intelligence committee and he will have some interesting things to say about this. betty, this has to pass muster with congress. and president of the united states has said clearly and definitively that if this does not pass congress, he will veto it. about an election year showdown between the white house and the majority republican congress. this is going to translate into presidential politics because none of the republicans support this deal. betty: none at all, including mike turner, who we are going to be speaking with. -- a checkhecklist off the president possibly list of things to do before i need to leave office. but unfortunately, a lot

of what people say he is fattening his legacy as opposed to looking at things in black and white and they are saying that this is just a bad deal because iran will still have the nuclear capacity, but the united not one where they can make a nuclear weapon. this debate will continue long after this conversation is over. betty: indeed. let's take a look at how stocks are reacting, not just in reaction to the nuclear deal, but also to greece and the economic data we had today. still at they are their highs of the session. the s&p is up by 0.3%. the dow is up by about 0.28%. in the bond market, you have seen yields come down. felll sales unexpectedly last month, dashing optimism for the second quarter. change thatping to

tomorrow through its first amazon prime day. the company is rolling out for tens ofrs millions of prime subscribers, hoping to goose membership and sales. what is amazon really trying to accomplish by manufacturing a retail holiday? rick watson is the head of merchant tree, who has managed retail operations for barnes & noble, amazon. and reminds me of alibaba single state. a made-up holiday that hits it out of the ballpark for jack ma and company. will this be the same thing? rick: that is certainly the model they are trying to follow. betty: this is their 20th year. how do you think amazon prime is going to go? rick: this is like jeff bezos's retail legacy.

how can i look at the next 10 years and so your children know, i don't know what this day is about, but i know every day this year i buy on amazon and not on any other site. betty: do you consider this a clever move? rick: in retail, you have brand and you have time. this is about creating time for amazon. this is a prime day. unlike black friday, unlike cyber monday, which is another completely made-up holiday, this is now another holiday done by a retailer. this is an interesting play by jeff and it is a pretty clever one. betty: it is a clever one. it has been done before by other retailers. it is also a direct kind of move against some of the other big, aggressive retailers. physical, but online. they have introduced this $50 discount of free shipping.

that is huge, too. walmart and there is a new competitor rather, jets.com, and ebay is still kicking around. they are planning to split apart and rejoin. for them, prime is the crown jewel within amazon. anything that could damage or tarnish prime long-term is a huge risk for the company. prime trials new and increase engagement on prime will boost the stock long-term. betty: do you think it will result in longer-term engagement with amazon? rick: i think it will. it gives consumers another reason to think about amazon. consumers are on vacation in the summer. until back to school, there is not much going on. it is a time for them to say, think about us, starting new amazon trial. the number one goal for amazon

prime day is new amazon prime trial subscribers. jet.com, you mentioned them. they are based in new jersey, they have raised a ton of money. have on their website a countdown. six days until launch. it is an online cost go. how scary is this to jeff bezos? of thehis is round two fight. the chance won the last round. -- the champ won the last round. not really about competing with all of amazon. it is really about competing with prime. for them, i don't think they are necessarily scary now, but it is like anything else. betty: you never know. rick: you never know what they are going to become.

$500 million raised is not chump change. betty: just finally, rick, what will be success in your view? rick: i don't think amazon has a number. i think amazon will do this every year, you can mark it down for the next 10 years. it will grow year-over-year and consumers will think about this day. betty: nice to be able to afford that. rick, thank you so much. the ceo of merchant tree. much more ahead. congressman mike turner on the republican opposition to the landmark iran nuclear deal. we will be back. ♪ . .

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quickly over iran past nuclear program. the speaker of the house of representatives, john boehner, is already calling it unacceptable. we will speak to another republican congress and, mark turner of ohio. betty: the quarterly report card is out for two of the nation's against banks. cost cutting boosted jpmorgan. mark: china eyes it's largest takeover ever of a foreign company -- that company may be micron technology, a chipmaker based in idaho. we will have details on the deal which could hit 23 billion dollars. hit $23 billion. good afternoon. mark: thank you so much for staying with us. let's begin with a look at the markets on this tuesday. u.s. stocks on the rise despite that unexpected drop