the reactions are coming in 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 in retail

sales. investors taking note of geopolitical developments in iran and greece. let's start with the s&p 500 -- the broader market, nine of 10 sectors higher on this tuesday. the dow jones industrial average and the nasdaq composite also showing gains. we should mention gold is down atay, trading right now $1154 and $.20. down about .1%. nymex crude is on the rise, up point 5%. oil little changed after falling as much as 2.5% earlier. cool? isn't it you call up something and it appears right away. let's check on the bond markets. yields are coming down, partly aced on the retail sales numbers that came in. an unexpected fall from last that may be leading to

some of the concerns about the fed and raising interest rates. are they doing it too soon? finally, in the currency markets, those retail sales numbers putting in a bid on the u.s. dollar, but you can see it is pre-much changed against the yen and weakening against the euro. what's get a look at the top stories this hour -- after two years of tough diplomacy, there is a deal on iran's nuclear program. negotiation is announced the is aimedy -- the deal at keeping iran from building a nuclear weapon. in return, the u.s. and other global powers will lift economic sanctions. president obama says the accord makes the world safer. president obama: i have no doubt that 10 or 15 years from now, the person who holds this office will be in a stronger position with iran further away from a nuclear weapon and transparency

that allow us to monitor the iranian program. reason, i believe it would be irresponsible to walk away from this deal. days: congress will get 60 to review the agreement and israel says it will do everything possible to get lawmakers to reject it. by not dismantling iran past nuclear program, and a decade, this will give an unreformed, unrepentant and far richer terrorist regime the capacity to produce many nuclear bombs. in fact, an entire nuclear arsenal with the means to deliver it. what a stunning, historic mistake. -- speaking in a nationwide address, the iranian president had this to say about the nuclear pact. last 12 year timeframe covered by illusions in the

world powers has completely turned in a new chapter has begun. his new chapter opens on the basis that the solution to problems in the world can have a shorter and less costly path as well. betty: he dismissed claims that the islamic republic sought to make atomic weapons under its nuclear program. mark: there was a surprise drop in retail sales last month. than was smaller originally reported. auto dealers, restaurants and clothing stores were among retailers whose sales fell. u.s. businesses added to their stockpiles and made while sales rose. business stockpiles edged up .3%. the result may indicate his misses are optimistic about future sales. expensesofits rose and dropped at jpmorgan. second quarter earnings beat estimates, rising more than 5%. wall street turned to cost cutting since trading revenue lastropped four of the

five years. in may, jpmorgan said it would cut thousands of jobs and send back office workers to cheaper cities. jamie dimon said the firm is prepared for tough times in china. jamie: we are building for the long run. as a management tool, we have always said that we treat debt, we will be prepared for tough times. i have never seen an economy that didn't have tough times. a look ate is jpmorgan shares at this hour -- up near their highs of the session, up about 1%. rising interest rates hurt the nation's biggest home lender, wells fargo. net income was little changed from a year ago. johnson & johnson is reporting first-quarter profits that beat wall street estimates. sales of the company's pharmaceutical unit expanded and 171, 4 cents in at

above the average of analyst estimates compiled by bloomberg. revenue dropped to $17.8 billion. let's go straight to julie hyman with a look at some of the biggest movers of the session. we are starting with orbitz. processrbitz is in the of being acquired by expedia, a one $.5 billion deal agreed upon in february. but today, an analyst is saying not so fast. there might be antitrust resistance to this. so they are being downgraded from a cell to neutral. expedia shares also falling by 3.3%. talk about another pending acquisition -- a couple of interesting calls here on intel and all terra. anel downgraded to underperform ahead of intel pasta earnings report after the

close of trading tomorrow. in particular, the analyst highlighted weakness, potential weakness in the data center business. those shares down a little bit. citigroup raising its rice target on the stock saying the antitrust outlook for this deal looks good. home to what is going on with chips, this is a chart from bloomberg intelligence. it tracks computer shipments and this is computer pc shipment growth, commercial growth. inrall, you have the growth white and they are looking at an 11.8% drop potential he in pc in the second quarter. that would have an effect on many of the big chipmakers, especially those reliant on chips for personal computers. --ally, another analyst call urban outfitters bucking their

overall retail trend. they came in weaker than expected. urban outfitters up by 4% and raised to a by at jefferies. when analyst there saying it has high-quality, differentiated brands and concerns over slowness at anthropology is overblown. urban outfitters in its last sales report said things were still declining, but at a slower rate than they had been. mark: julie, thank you. betty: mark is an urban outfitters shopper. coming up, congressman mike turner on the republican opposition to the landmark iranian deal. we will be right back. ♪

mark: well before the deal was signed in vienna, president obama was gearing up here at home. at thephil mattingly is white house. did the white house really get what they wanted out of these tough negotiations? elements af the key say they were looking for, they say they got, including cutting back on iran's enriched uranium and centrifuges. the president said this has nothing to do with trust, it's all about verifying. why the administration is so pleased is they say the iaea inspectors will have access

24/seven to any potential nuclear facility as well as any military facility. a key sticking point for iranians up to this point. but there are a lot of questions about what is in the weeds of the details of this detail. it is 100 plus pages and i think people will need to see more about the verifiability aspect. mark: is there any way the president can sell this deal on capitol hill? yes, but it is who they are selling it to that matters most. republicans have been opposed to the direction the administration has been taking four months. they don't like where this is going. likenlike u.s. allies saudi arabia and israel, they think they're giving away too much in this deal. their focus is on their own party and has every thing to do with the mechanism congress can use to throw a wrench into this deal going forward. congress has the ability to keep demonstration from reducing

certain sanctions if they vote to disapprove of this deal, but the president said he would veto any vote of disapproval and congress would need two thirds of each chamber to override the veto. so long as the president keeps a core group of democrats close to in everyhould be ok element of this deal. , thanks.l mattingly republican lawmakers from senator marco rubio of florida to scott walker of wisconsin, both republican presidential contenders, have rushed to condemn the iranian nuclear deal. house speaker john boehner says the deal is, in his words, unacceptable. speaker boehner: this is not about him a kratz or republicans, it's not a partisan issue at all. it's about right versus wrong. we are going to do everything we can to get to the details and if in fact it is as bad a deal as i think it is at this moment, we will do everything we can to

stop it. joining us from capitol hill is mike turner from ohio who sits on the armed services and intelligence committee. good to have you back on the program. are you going to do everything you can to block this deal and what does that mean? absolutely. let's start with the fact that the president is bypassing the constitution. if this is binding, it should be a treaty and put before the senate for ratification, which the president is not doing because he knows this as a treaty would never be ratified. with --we are doing dealing with a nation whose leadership is not friends with america. the president says this is based on verification, but it is not. i've met with head inspector of the international atomic agency charged with verifying this. he said he's going to be even a ledger and asked to certify

what's in control of the ledger but he's not being asked to do inspections to ensure there is not other centrifuges or other programs or other sites. he's only going to be asked to verify what has been declared. that is problematic and that pursue an icbm program which puts the united states at risk. mark: you spoke of binding treaties and moment ago. the nuclear nonproliferation treaty is a binding treaty and iran is one of the original signatories of that, signed back in 1968. since they are one of the original signers of the treaty, what are your concerns? the treaty does say nuclear power is to be used for peaceful purposes. you just don't trust the iranians? rep. turner: absolutely. and certainly by what you have said, they are violating the truly they have signed. that has nogime interest in signing treaties and abiding to them.

bothcontinue to pursue their support of terrorist organizations, the destabilization of the middle east. they are a threat to the united states of america and certainly a threat to israel. just pointingare out about being able to verify what their nuclear assets are and that being an unsatisfactory part of the deal, what can the of a military offensive on this question mark what can they do to verify properly? the administration has conceded far too early on a number of issues that are far too important. think about icbms. iran will be permitted to pursue icbm technology which only has one purpose -- to reach the united states. this is an effort on their part to reach weapons of mass destruction to the u.s. homeland . if they are going to abandon their nuclear ambitions, they

should abandon enrichment and make sure all their sites are available and they are not owing to be. the iaea is not going to be will to certify a ron does not have other sites that are part of a weapons program. mark: is it your contention -- i was talking about this earlier and one thing i remember was the camp david accords between israel and the palestinians. ira member the late israeli prime minister, it's acrid the, he got a lot of flack when he went home, he was asked why he was willing to sit down with the palestinians. because you don't make peace with your friends. is it your contention we should not talk to people we should not -- we disagree with question mark is diplomacy not the way to go when you are dealing with a regime like iran? rep. turner: there's a difference between what your negotiations are and what you are trying to achieve. the administration went into these negotiations ignoring the

fact that this is a nation that andt death to america practices taking down aircraft carriers and has a military configuration that the threat to its neighbors and supports terrorist organizations. no major required change in the shift of policy or pursuit of military action on the part of the run other -- on the part of it ran -- the part of iran. the country opening itself up to the iaea, who are the experts, that would be worthy of pursuing. this deal is dangerous for america, dangers for the middle east and will result in an arms race threat the middle east. betty: the national security advisor on twitter -- i want to read what she said about this deal -- she said it is what american leadership is all about . as the president of the united states of the united states has said, we have brought about real and eating full change for the

better. republicans have consistently criticized the president for failing to demonstrate leadership throughout his two terms. isn't this him finally demonstrating that with the iranians? leadership is not having your staff tweet that you are a leader. leadership is delivering a subsidence of deal. this deal does not make our nation safer, does make than the -- doesn't make the middle east safer and certainly rewards iran for its support of terrorist organizations and gives it a pass to continue to threaten the united states. israeliu mentioned the component to this. do you believe israel will act unilaterally? rep. turner: israel should continue to -- to protect itself. certainly the united states congress will take action to protect this nation. we certainly hope the president who is taking an action outside

the constitutional process doesn't continue to bind this process to a deal that is not good for national security and certainly is not good for our future. mark: mike turner, a member of both the house services and intelligence committee in congress. thank you for your time. wants still ahead, china a bigger piece of the semi conductor market and it is targeting micron technology. mark: we will look at what a buyout could mean for the chip industry when we continue in just a moment. ♪

back to thee bloomberg market day. i'm mark crumpton here with that he lived. betty: a chinese company is planning a bid for micron technology according to a person

familiar with the matter. it would be the largest takeover of a foreign company by chinese firm. company's state-controlled and is the investment arm of the university. would such a deal everclear u.s. regulars? johnson joins us in the studio. how high is the burden? : a lot of people would say this is dead on arrival. they are never going to allow an organization with ties to the university to acquire an important technology company that it's important for the future of technology. i think this deal isn't necessarily dead on arrival because of the type of technology. this is the sort of top of the line of made by a company like intel. this is the dumbest memory out there that is a commoditized product that is made all over the world.

samsung is the market leader. as a result, the deal will get a reasonable review if such a deal might come through. it has somepens, kind of chance and a nonzero possibility. great pointake a because it's more manufacturing. it's requiring a manufacturer of high-tech chips. they are the most basic ones. this is not a networking or telecom company. micron does a good job doing what they do, but what they do best is yield management as opposed to creating new technology. they would disagree and point they talk about the technological advancements, but they are selling a commoditized on it. as a result, this deal has some kind of prayer.

however, there is a reasonable concern that a company controlled by the government of china that has chips in every pc and every phone might have some kind of malware or spyware and that's one of the reasons while way cannot sell routers in the u.s.. also part of the consideration, what are the ripple effects industrywide? cory: i don't know what they would be. the valuation of micron is quite low. they are doing a better job than i have in the past but the industry is so much worse. the pc business is falling on its face. we got news this week that during last quarter, as bad as a pc sales were, they got a lot worse. reportingve intel tomorrow and find out even more of what is happening both in databases and pcs. but valuation is super low, on the food chain of semi conductors, they are swimming in

the shallow end of the pool. betty: do we know with the university wants to do with this company? cory: we don't know. own it is the answer. betty: let the conspiracy theories began. i'm signing off on that note. up next half hour, earnings season has officially begun. we have quarterly results from two major banks this morning. we will have those details when the bloomberg market day continues in just a moment. ♪

mark: welcome back to the bloomberg market day. thank you for staying with us.

what do you straight to the top headlines we are following at this hour. the greek finance ministry says the austerity bill needed for a lot talks has been submitted to parliament. a vote is set for wednesday. the moves come as a greek prime minister looks beyond his own coalition to approve the pension cuts and tax hikes. nobel economist paul krugman said europe wanted to let greece know who is in charge. professor krugman: this is not how much greece will we -- greece will repay, which is great little. it's all about sending a message -- there's no escape, you don't get away with anything. greece was not willing to contemplate leaving the euro, so they had no bargaining power. ataxia very sad day. it was a humiliation, kind of a ritual humiliation for greece. mark: that showdown with his own party may lead the prime minister to reshuffle his own

cabinet. his energy secretary is calling on him to repudiate the deal. as her krugman talked about his thoughts on the donald trump presidential candidacy and did not pull any punches. professor krugman: he's a belligerent, loudmouth, racist without an ounce of compassion for less fortunate people. in other words, he's exactly the kind of person the republican base consists of and identifies with. governor scott walker says voters need someone who will stand up with america. governor a walk -- governor walker announced he's running for the residential nomination and says he plans on bringing his combative style to the white house. governor walker: my record shows i know how to fight and win, now more than ever, america needs a president who will fight and win for america. mark: governor walker may be best known for taking on

government employee unions in wisconsin. is the 15th republican to enter the 2016 presidential race. the problem of exploding airbags could be widening beyond the japanese manufacturer. u.s. regulators are investigating insulators made by a rc automotive that went into about 420,000 older fiat chrysler town and country minivans and midsize bands. this comes just weeks after the japanese company recalled 33.8 million insulators in the u.s.. that's the largest automotive recall in american history. atex is in talks to buy least 26 boeing 767 cargo jets. the list value would be about $5 billion before the expected discount are applied. fedex is the only current commercial customer for the 767 cargo plane. it turns out all the spilled ice wasn't for nothing. the als association effort

raised $115 million last month. of course bill gates was in slow motto. now the money is going to a drug and late stage trial for the first time. the viral fundraising effort gathered millions of views on social media and featured high profile supporters like ill gates and mark zuckerberg. those are your top stories at this hour. coming up in the next half hour of the bloomberg market day, oberg it's a major victory in new york. the city says over drivers are freelancers, not employees. we will look at the implications . harper lee's new book could be a boon to struggling bookstore chain, barnes & noble. we will tell you how much it

could add to the company's top line. bankwe got a fresh read on earnings with quarterly results from wells fargo and jpmorgan. wells fargo profits matched expectations but reflected weaker mortgage revenue, not surprising as interest rates rose. profits at jpmorgan rose more than 5% despite weak trading and asset management revenue as the bank that costs. jpmorgan.overs what are we to make of these efforts? guest: there's a reason jpmorgan likes to go first. they tend to beat estimates. jamie morton josh jamie dimon is a smart guy. is story right now [indiscernible] believe we have some sound from jamie dimon. he spoke on a conference call

today. jamie: we are building for the long run. we have always said the way we treat that is we will be paired for very tough times and i think it's a mistake not to grow because you have tough times. i've never seen an economy that didn't have tough times. steelhow did jpmorgan itself for the tough times? is a time forow banks were they are waiting for higher interest rates so they can make more off the base and they are cutting costs anywhere they can fight them. people been laying off in moving people to cheaper locations. what about profit and asset management? it did slide over 20%. guest: i asked that very question and they cited extra litigation costs. costs went down

everywhere except asset management. essentially they have a big settlement in the works which is basically over conflict of interest and the sec probe. also a decline in commercial banking. guest: not anything to conclusive on that. an overallme position of where jpmorgan is positioning itself right now. jpmorgan, bank of america and a bunch of other banks want to tighten their belt until higher interest rates increase profitability by a lot. , youme you see macro news see the bank stocks go up. and in reverse for the opposite, their rationale is to tighten their belts. speaking of tightening

belts, in may, the bank board said it is going to weigh changes to executive pay. how does that play into all of this? nobody said jamie dimon is overpaid. he made $20 million. that is like lebron money. what people want to see is greater linkage between performance and pay. right now, pay is a little bit of a black box. these guys get huge paychecks and the goals are low. what we are seeing overall not just a jpmorgan but the other banks, the cost-cutting measures, are they having an effect? guest: yes, and somewhat argue they're having a bad effect because revenue is falling faster than some of the other firms. that was the knock on bank of

america last quarter. costs,re going to cut yet to make sure you don't throw the baby out with the bathwater. you are going to see some differentiations. we will see how they do. these banks, particularly jpmorgan, what do they want to hear from janet yellen this week? want to hear rates are going up and we are sticking to that plan and there's no deviation from that. if that happens, it will be good for them. mark: good to see you. ask for coming by. forext, markets are higher a fourth straight day, but there may be a warning sign in the broader market. that's next when it bloomberg market day continues in just a moment. ♪

mark: welcome back to the bloomberg market day. let's get straight to a check on the markets with julie hyman. rise: we are seeing stocks across the board. the three major averages have been higher for most of the day after a lackluster start. the s&p coming off its best three-day performance since december, so up for the fourth straight day. an interesting chart i want to bring to you -- this was attached to a story today that this is the price to sales ratio of the s&p 500. about 1.84ng it near

times sales right now. cap is perhaps going to put on the s&p 500 returns this year. one of theresent most serious headwinds investors face. analysts estimate sales dropped 4.3% in the second quarter as profits fell 6.4%. an interesting chart to keep in mind. i will tweet a link to that story. look in the treasury markets today. snapped a losing streak in terms of price that was a three-day losing streak as we saw stocks rise. falling on a 10 year after we got the retail sales data this morning that missed estimates. similar movement in the

dollar as we saw in the treasury market. a drop in the dollar after we got the retail sales data -- it has recovered to some degree by about point when he 5%. a check on oil after negotiations in vienna team to a close with the nuclear agreement with iran. because more supply is expected to come online from iran. as you can see, it reversed earlier in the session and traders are saying this is on the you that we will see a more gradual release from iran. we are anticipating that it's not going to be a surprise -- we know the supply is coming. number is retail disappointing but it seems as though a consensus is building that consumers will come back to

the back-to-school shopping season? julie: indeed. things could improve and when you get economic data like this and see yields fall, you tend to see a pretty good performance as well. thank you so much. a look at the european market close. we have the details from london. >> investors in europe are in wait and see mode head of the greek parliamentary vote on wednesday. stocks rising for the fifth consecutive day, the longest winning spread in three months ahead of that vote. the ftse 100 is interesting because stocks fell off with mark carney who spoke to u.k. lawmakers and warned now is the time for increases to move closer.

earlier, we had a report that showed stagnated in consumer into thoseh played from the bank of england who do not want interest rates to increase. one of the more interesting sectors was the oil sector. initially it fell and finished at a higher after the nuclear accord. when iranian oil starts coming onto the market, it will be a gradual process. these are the three big movers. raising,eutsche bank saying online video will boost growth. bmw falling. at the mid slowing demand from premium cars in the oil market. i will finish off with the stoxx

600 which rose for the fifth consecutive day. this is the biggest five-day rally since december 2011. back to you in new york. mark: let's take a look at the top stories crossing the bloomberg terminal. the new horizons base craft is getting the first close-up look of pluto ever right now. for nasa, it was a countdown to a celebration. >> 4, 3, 2, 1. [applause] mark: the unmanned probe will get within 7800 miles of pseudo-. the journey began 9.5 years ago and traveled 3.4 billion miles since then. this is the third major tournament of the year for jordan -- he is a full head of

steam after winning the john deere classic. the turn and begins on thursday. -- one the home run derby in the red stadium last night, out slugging jock pettersen of the dodgers. all-star game is tonight. the winner gets home field advantage. that's a look at the top stories we're following at this hour. now to uber -- a victory for the company here in new york city. the chairwoman for the taxi and limousine commission spoke to my colleague, matt laura, about whether over drivers should be considered freelance workers. guest: we have wholeheartedly supported drivers flexibility as independent contractors, to the consternation of the industry. it seems like there's a

counter argument not too long ago in california. that's right. the courts in california disagree with what she said, but you can see it from either way and the way she tells it, she's defending the driver's rights. is anyone who takes over or any other app-based car service those, drivers oftentimes work for multiple services. you will get a driver who works were a black car company who also works for uber, who also .orks for lyft they are trying to defend these freelance drivers rights to work for as many companies as they like. bloomberg.comy on said she's speaking of the drivers -- they don't have the security of employment or the security of guaranteed income. matt: this is the exact problem and this is what drivers in california were fighting for. while she says she is defending the rights of drivers here, a lot of drivers may not want the kinds of rights she is pushing for. they want health insurance,

full-time employment benefits, as long as drivers are put forth as freelance workers, they cannot hit that sort of thing. and there's a bit of a disagreement with part of that california ruling as relates to uber reimbursing a driver. there are a lot of details your to be worked out by the new york court and it will probably come to that -- come to that eventually. california tends to lead a little bit to the left and that's definitely the case here. the question is what happens in new york? we are more of a fight yourself kind of city. it was a fascinating conversation. we spoke about the traffic problem and over the past few years, traffic has only grown worse and worse. be part ofs it may

these at based car services. maybe that is why we have so much traffic. i contend the problem is people are allowed to double park willy-nilly and yellow cab drivers slowly cruise up avenues that cut across lanes without milling. there needs to be more ticketing of double parked cars. on the latter point, a congestion charge should be put in place. mark: what is coming up? alix steel is going to talk to me about the commodities situation as it relates to the ran -- to iran. and thelook at that reason is a lot more oil is coming on line. mark: he's from ohio and he said willy-nilly. stay with us.

bloomberg market day continues in a moment. ♪

mark: 55 years after "to kill a mockingbird" harper lee releases a sequel to the book she wrote around the same time. barnes & noble is catching and. the company says sequels like this may parties sales, marking the company's best gain in nearly a decade. we have more now on this story. there were crowds lined up in her hometown to get this book. this is an event. guest: there were 7000 books hometown ofhat monroeville, alabama. they said they needed to cart in trucks enough to get these all in there. but that's just one super

relative around this whole story. there are 2 million books out there for the first run. it is the most preorder the book in harpercollins history and most preorder book on amazon.com since the last harry potter book came out, which was in 2007. so for a perspective, this is twice the run of the last "game of thrones" book and two thirds bigger than the last "hunger games is quote book. ark: we are talking about sequel, but sales of "to kill a mockingbird" is still impressive as well. years on, there are 40 million copies out there in the world. the initial run was only 5000 copies back in 1960 compared to the 2 million today. it has had 55 years to accumulate all of those sales and that has been a boon to harper lee, who is still alive.

89 years old and retired. she's eating royalties every single day. every day, $9,000 goes back to her in royalties. -- the first half of 2000 9 1.7 million dollars. about $3.2 million every year and she's sitting pretty. mark: this is interesting because the story i have read goes her attorney looked in a safe deposit box and found this sequel underneath a whole bunch of pages of other stuff. if the person had not looked in the safe deposit box, the world would not have this sequel. story goes, the attorney actually saw this a few years ago, didn't realize what it was and thought it was part of the original manuscript. then went back into the safe deposit box several months ago .nd we have the sequel a lot of people are saying they

are surprised about the sequel because -- mark: we won't tell them. there are some spoilers and i saw some of it, but some people might not be happy with the way this turns out. guest: it is floating out there if you want to know. author'selieve it is prerogative. coming up in the next half hour, sandy berger, former u.s. national security advisor and cochairman of the albright stonebridge group will join us. topic is the iranian nuclear deal. stay with us. bloomberg market day continues in just a moment. ♪

mark: it is 11 a.m. and san francisco and 2 p.m. in new york. matt: this is bloomberg market day. mark: how the deal to rescue

greece depends on a plan to spend 55 billion in government assets. iran an historic deal with capping two years of tough diplomacy, but not everyone is applauding. mission accomplished -- an epic tale of a journey to the end of the solar system. nasa 3 billion mile trip to pluto. we will talk to the nasa director of planetary science. mark: good afternoon from bloomberg world headquarters in new york. i'm mark crumpton here with matt miller. matt: let's get straight to the market and look at how it is trading this afternoon. s&p 500 putting up a gain of about 8.5 points. the dow jones industrial