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 average

came back up into positive territory for the year and is up 70 points. and what take a look at treasuries. buying going on there, pushing down the yield on the 10 year. the 30 year bond yielding 3.20. do you want to look at the euro? the greece story is the gift that keeps on giving for the media. we make light, but it's a tragedy for the people living in that country. the euro has been incredibly resilient and continues to trade around $1.10. when we were worried about getting no agreement and in a from the euro, we did not get a big drop. gets chancegreece to stay in the eurozone, we do not see a big drop or vice versa. mark: let's look at some of the top stories crossing the

bloomberg terminal. we begin in vienna, austria where negotiators made history, reaching a deal with iran on its nuclear program. the deal is aimed at preventing the iranians from continuing its nuclear program. because america negotiated from a position of strength in principle, it -- we have stop the spread of nuclear weapons in this region. because of this deal, the international community will be able to verify the islam it republic of iran will not develop a nuclear weapon. economic sanctions on iran will be gradually lifted in return. to u.s. congress has 60 days review the agreement. israel says it will use every means possible to get congress to reject the deal. we will have more on the story later in the hour. matt: in greece, the prima stir has to round up votes for the

pension cuts and tax hikes. the trimester has to shepherd this through parliament for talks to begin i knew they'll out package which the company -- which the country desperately needs. his own coalition will probably not give him enough votes, so he will try to get opposition lawmakers to back the proposal. 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. if the no word yet government will repay bonds maturing less than three weeks from now. matt: americans cut back their spending at stores and restaurants last month. signs are still cautious despite job growth. retail sales were down .3% in june, the weakest showing since february's harsh winter weather kept shoppers endorse. the may numbers were revised

downward. cut expenses and watched profits grow. the banks earnings rose more than 5%, beating estimates. wall street firms have turned to cost cutting as trading revenues have fell in the last four out of five years. in may, jpmorgan said they would cut thousands of jobs. jamie dimon said on a conference call that the bank is prepared for a difficult time in china. up forwe are building the long run. as a risk management tool come we have always said the way we treat debt is that we will be prepared for tough times. it's a mistake not to grow because you have tough times. i've never seen an economy that doesn't have tough times. mark: revenue dropped in fixed income trading and investment banking. the problem of exploding airbags could be widening beyond the japanese manufacturer. u.s. investigators are looking at inflated are's the made by a

rc automotive. -- a rc insulators. japanese company agreed to recall over 3 million inflated. the u.k. biker attack on the five and a half mile climb and left behind group of a dozen writers in the tour de france. his lead over second-place is two minutes and 52 seconds. they tend stage features and out of category climb ranking some of the most challenging. coming up in the next half hour, capital controls will be in place for months according to the greek economy minister. he weighs in on just how many assets they plan to privatize. one bright spot expected

for u.s. retailers -- back to school. parents say they plan to increase spending to the most in four years. most talented's players share a common theme -- they are all very, very young. the byproduct of recruitment that starts as young as age nine. all that and much more coming up on the bloomberg market day. to one of our top story today -- greece strikes a lesson a deal with creditors, avoiding a potential financial disaster. selllan requires greece to 55 billion dollars of government assets, but is that a realistic goal? let's go live to athens for more. david: there's an asset development fund in greece that has been around for a while. hopes tonment privatize actual pieces of land over the last couple of years. it has been around for a while

and we decided to check out some of those properties. we are at the biggest port in athens, the biggest marshall port that gets about 17 million visitors a year for its a public-private partnership. we are in a surreal place. it's three times the size of monaco, 1500 acres. it looks post-apocalyptic. it and d. if you look to the windows, easy cups of coffee and signs when airplanes are supposed to take off. this place closed in 2001. i saw your report earlier and i know they hold eggs in banks. can they actually raise $55 billion if they sell everything

that's not nailed down? david: i think it is doubtful. it's part of the plan to raise 50 billion euros through a plan like this. they have tried to offload some of these properties. just looking at historical precedents, it seems very unlikely they would be able to come up with this in such a short time. talk to us about the state of play at this point. thed: i just walked past main square in front of parliament were all the action is. no formal protest. theirne will be glued to tvs tonight. the prime minister will have an interview with the state network and we understand this package hasas grieved to -- he agreed to is something that can be debated for molly. thank you so much.

earlier today, our colleague, olivia sterns, spoke with the greek economy minister and asked him about the fund that will be set up to liquidate a book assets and generate the $55 billion worth of assets. new fund will work as a guarantee fund rather [indiscernible] but i think the new loan greece will receive, which is 82 billion, it is a lot of money, requires some form of guarantee and that's the only way. you acknowledge your not going to be overcome up with 50 billion euros. assets may be -- i don't think we will proceed with real privatization. olivia: when are the banks going to open? soon as the financing from the ecb is back in the picture, which will take place

just after parliaments in greece and germany vote for the new agreement. olivia: the german parliament does not vote until friday, so the banks will open this week? guest: it will open when it is back in the picture. olivia: when will capital controls lift? guest: probably next month. complex issue.e olivia: our depositors in greece going to have to have a haircut? guest: no way. there's a lot of money, 25 billion euros for capitalization of the banks, so it is a direct bailout system. there is no way it would ever take place. olivia: the gold deal comes to mind. what's the status on those investments? guest: those investments come as

you know, face strong opposition and heavy environmental concerns. our idea is every private investment is welcome. we have to take care of it. olivia: an energy deal with the russians, a good idea? good ideahink it's a and getting access through central europe is a good idea. matt: that was olivia sterns with the greek commerce miniature -- commerce minister. mark: coming up, an agreement with iran tops two years of tough diplomacy, but not everyone is applauding the deal. that is next. ♪

mark: welcome back to bloomberg market day. matt: let's go straight to julie hyman with a look at the markets . you're going to start with what is pushing the dow higher today. julie: i want to look at the leaders and laggards. we have to start with j.p. morgan chase, which is moving on its earnings report, moving higher by 1%. incomen coming ellis net at or than expected by nine cents a share, but a lot of that was arrived upon by cost-cutting . the company's revenue actually fell and two important lines of investment down 5.8%. fixed income trading down 10%. nonetheless, it looks like people are buying the stock for the moment. coke is another one of the leaders we are watching. the stock upgraded to buy. it reports earnings on july 22. shares up by 1.4%. said analyst upgraded and

the company will see earnings per share in volume benefiting if we see the u.s. dollar ,trengthening or a deceleration if that eases to some extent, he says that could help numbers. this is a longer-term call. continuing to talk about earnings -- johnson & johnson was out with its numbers but not faring as well. 1%, butalling by about the company came out ahead of analyst estimates. johnson, even as he still think of them as a consumer brand, is little more heavily weighted toward pharmaceuticals and prescription pharmaceuticals. about 40% of its business from drugs and company drug sales

were down its .6%. julie, thank you so much. let's take a look at some of the top stories on the bloomberg terminal this morning. netflix shares opened at an all-time high today, cutting into the company's stocks, closing at nearly $708 a share. the current market cap has topped $42 million. netflix reports second-quarter earnings tomorrow. mark: a victory for uber in new york city. uber drivers are freelance workers and not employees -- that's the decision that supports uber's business model. in california, the labor commission determined the opposite and ruled uber must pay a driver thousand and expenses. authoruthor plus harp --

went onee positive book sale today. the lost manuscript was discovered half a century after the publication of "to kill a mockingbird." it tells the story of scout finch and her aging father, atticus. let's turn to this morning's historic it ran nuclear deal. the obama administration now deal.- iran nuclear the obama administration now tasked with selling it to the american people. president: it is important to the american people and the american congress get a full opportunity to review the details. the details matter and we have had some of the finest nuclear scientists in the world working through those details. and we are dealing with a a swornthat has been adversary of the united states for more than 35 years, so i welcome a robust bait in congress on this issue and i welcome scrutiny of the details of this agreement.

at thehil mattingly is white house. can you give us more details about the deal? is where it all lies. it's been referred to as a rubik's cube. more than 20 months of trying to figure it out and in the last 20 hours, everything really clicked into place. key was the uranium enrichment stockpile. they have agreed to reduce it by 98% and cut down two thirds of their operating centrifuges. at the biggest outlier as they have gone through this process has been inspections, whether or not you and iaea inspectors would have access to sites and military sites. that was an issue that was resolved favorably for the u.s. side. the president stated investigators would have 24/7 access. there's some dispute over whether that is the case and is

were congress will come in as they try to nail down how much access those investigators do have. word thatre getting the president is speaking by phone to the israeli prime minister. as the white house released any details? phil: it was very much what the president said this morning -- trying to make a point that this deal blocked pathways for a ran to get a nuclear weapon and the u.s. is not going to discount efforts across the region to make the region unstable, including sponsored terrorism that is prevalent. everyone here acknowledges that. you have to grasp the fact that for israel and for the prime minister willing to come to capitol hill and speak against these negotiations that has publicly stated he and his team will be lobbying the united states congress to vote against this deal, it probably was not the warmest of phone calls. thelieve you will see defense secretary had to tel

aviv and brief even further on this issue and underscore the defense cooperation that does exist between the countries. matt looking at the bloomberg terminal getting headlines that john mccain, chairman of the armed services committee says his committee will hold hearings on this deal. matt: they have 60 days to do so. coming up on the bloomberg market day, broader retail spending shows signs of slipping. coming up is the back-to-school budget. we will explain. ♪

june's unexpected slump in retail sales, back-to-school shopping is expected to rise this fall according to the international council of shopping centers. about 67% of parents plan to

boost purchases this year compared to last. that would be the biggest gain in the past four years. to discuss itus is our retail reporter, lindy ruff. the numbers were not so good. back to school is one of those times when parents will have to spend some money. guest: they are hoping this is must spend any. i had to get my kids a genes, they outgrew their shoes, they need their books. whether that plays out, we will see. seet of people back-to-school being a harbinger for a holiday. it's the second-biggest spending season and some people think if it doesn't go well, the holiday might not go well. mark: do we have any indication of why the retail number was so flat? ey: every retailer does a

memorial day sale, so with that sale being early, it just sucked the wind out of june and maybe it was little stronger than expected. it has not been a great first half for retail in general. matt: i spoke with the four head of looming dales and he said he doesn't think apparel vendors are bringing in customers with the right kind of promotions. it's not exciting to go in. what do they need to do to sell back-to-school items? having the all about right product. every store you walk by, it seems it's 40% off, gap right now is 75% off. there are some discount fatigue for consumers, so you need something in style that every kid has to have. matt: minions it is. thank you very much. the major league baseball tonight in cincinnati. while baseball may have trouble pulling and younger fans, baseball's superstars are

getting younger and younger. 20 members of the all-star team are under 25. let's pull of a chart that will show you how important young players have become. this quantifies the hitting and fielding pitching value each player has above their minor-league replacement. it shows that players under 25 have overtaken players under 30, so why are young players rising so quickly? matt: because they are better trained and better equipped for the up -- they are better trained and better equipped for the long haul. relative to other jobs out there, and athlete career is short by comparison. they are paring themselves for a career that maybe 10 years or less. matt: i'm going to take the cynical road and say with a

relatively stronger ban of steroids, athletes careers cannot last as long as they have in the past. you are not going to see these super sluggers that are ready five or 40 years old because .hey can't juice up you know how widespread it was and how rampant it was and it no longer is. mark: wow. tell me what you really think. matt: do you not agree? mark: somewhat. matt: that's the greatest thing. we will see each other back here tomorrow. we have more ahead, including the texas governor whose state deposit economy outpacing that of the rest of the country and sometimes called up his militia when he's worried about the fed. ♪

matt: welcome back to the bloomberg market day. i'm matt miller. now to some of the top stories crossing the bloomberg terminal

at this hour -- kicking off with reaction to the historic nuclear accord between the united states and it ran. the iranian president calls the country.hapter for his in a nationwide address, he dismissed claims the islamic republic sought to make atomic weapons under its nuclear program. benjamin netanyahu says the deal is a stunning, historic mistake. here is the israeli prime minister's speech at a news conference earlier today. prime minister netanyahu: by not must nuclearran program, this will give an unreformed, under pendant 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. he also said that israel will not be bound by the deal and his country will always defend itself. staying in the middle east, the

united nations has at least 142 civilians died from fighting in yemen over the past 10 days. the agency says the civilian death toll stands at 1670 after more than three months of fighting. airstrikes and ground fighting have endured despite a truce between shiite rebels backed by internationally backed exiled government of yemen and its allies. earnings news -- johnson & johnson is reporting first-quarter profit that beat analyst estimates. sales in the pharmaceutical unit expanded, including the effects of currency fluctuations. one dollar 70 one cents, four cents above average. revenue fell almost 9%. france celebrated a steel day with a display of fighter jets. antiterroristere

horses. the national holiday comes after the country was hit a terror attack in january that killed 20 people. commemorates the prison in paris that was stormed and destroyed during the french revolution. those were some of the top stories we are following at this hour. coming up on the bloomberg market day, that historic agreement between world powers and iran could make oil a little cheaper, but how low could it go ? and boomer has a new problem on its hands, being blamed for adding to too much traffic in new york. the taxi limo commissioner explains why. and from one island to another, after traveling more than 3 billion miles, a spacecraft will get a close-up shot of pluto today. find out how this nine-year journey to place. very interesting stuff and apparently pluto is a lot bigger than some scientist expected. what is the best state in the union to do business?

according to ceo magazine, it is the lone star state. state gdp is growing faster than the rest of the country and its unemployment rate is lower. companies like it's low tax rate . the texas governor joined pimm fox earlier. >> if you look at the cost of doing business, it's lower in the state of texas. we sped up the permitting process, we have litigation reforms in the state of texas that makes it more accommodating for companies that don't like to be sued and put out of business. aboutsomeone who knows that is the former attorney general of the state of texas. tell me what the state of texas is doing in terms of immigration . some of the money in the budget, about 800 early and dollars, is focused on dealing with issues related to mexico. that is an issue governed

solely by the federal government's -- federal government. what the state of texas can do is appropriate $800 million to secure the border and make sure we keep the people of texas safe . if you go back in time one year ago, you saw the women and children coming across the border because they were brought their largely by members of drug cartels. we want to make sure we have no infringement of the state of texas by these drug cartels. do you think the comments from donald trump a problem for the republican party? rick perry and ted cruz are both running. one says they salute him for saying these things and the other says no way. would not even be talking about these issues if the federal government was doing its job to create an effective immigration system and secure

the border. pimm: but is he helping me conversation or hurting it? guest: what he is saying is raising an issue that's important to be raise. pimm: he could have raised it politely. guest: it is different than i would have used, but it is important to inject the issue and the campaign process we have a president that's going to step up and secure the border. i understand, but if he do more polite in doing it, you distance yourself from those comments? can it help the republicans? guest: the tender he used is not the tenor i would use. every presidential candidate has their own choice to use, but it is essential for the republican party and the democrat party to address this issue.

picked -- this is a can that has been kicked down the road for decades. pimm: one thing that was kicked down the road for decades was the confederate flag. it was just lowered in south carolina. the 10ued for commandments in front of the state capital of austan. i'm not connecting them, but what do you think about the reaction to the state lag? guest: in addition to arguing for the 10 commandments to be displayed, i argued -- i did not make the personal argument, but there was the argument for the supreme court to eliminate the confederate license plate and we won. we have been in the vanguard on this to ensure we don't have the government embracing images that would be hostile. do you think texas is in

the vanguard for the open carry texas caught up with the other states in regard to open carry. there were other states in the nation that allowed open carry without any problem whatsoever. matt: that was the texas governor with pimm fox. car servicese clogging city streets? we will hear from a taxi and limousine commission about his controversial plan coming up. ♪

matt: welcome back to the bloomberg market day. i matt miller. let's see how commodity prices have settled in new york. for that, i want to bring in our resident commodities expert, maven alix steel. i will no longer use the word geek -- you know a lot about this subject. you study it and live it and sleep it and eat it and breathe it. about the mostk exciting thing that happened in the oil market -- the iran nuclear deal. we saw oil prices close higher on the day. energy aspects was saying we could see oil fall five dollars because of this only if other factors come into play. if something happens on greece and there is setback, if there's a fall in the chinese stock market because markets are still oversupplied. you have to have a perfect storm of events that would happen. there are two concerns when it comes to this deal. matt: we see brent up. west texas and immediate doesn't

have a lot to do with what is going on, but brent should react to more supply coming online. alix: how much supply are we really going to see? can president obama get international assurance for companies that they can invest in those sanctions and they will be lifted no matter who takes the white house in 2016? will these companies invest billion's of dollars on continuing six-month residential waivers, which is what it will have to be of congress does not -- does not appeal investment sanctions. back halfoking at the of 2016, maybe the front half and i have seen estimates all over the place, as low as 240,000 barrels a day and as high as 800,000 barrels a day. matt: you do have some of it

floating, ready to go in tankers. alix: there is literally oil sitting in tankers off the coast of iran, but the question is how much? energy aspects put it between 20 million and 25 million barrels. refineds super lightly oil, so are people going to want to use it? other estimates are much higher at 40 million barrels. how much actual oil is there and who is going to buy it? we have seen russia selling to asia, so that not an issue. matt: what are we going to talk about? we're going to talk about what you did on what you miss. alix: but we are going to talk about something else first. we are talking about how oil prices had an impact on the industry. we have had two m&a deals today buyingsaw w px energy our k.i.a..

the reason i want to bring this up as we have been waiting for m&a deals to happen for months and we are now starting to see companiest as we see roll off their hedges, as we see liquidity issues come into play. ups says they are looking at a default rate of 10% by 2016. you need a cash, you have to sell some assets, or you have to team up with a partner for m&a. if you look at the high-yield energy index, it has fallen. we have seen investor skittishness due to the fall in oil prices and that is freezing companies funding needs and that's why these m&a deals are something to pay attention to. we are going to get to paul krugman and his comment about donald trump. alix: we will talk about krugman and donald trump in the next hour. matt: i will continue on was

some of the top stories on the bloomberg terminal. honda' unit has agre to settle a loan bias case for $25 million. the justice department accused the company of overcharging minority are worse. be remaining amount will used for consumer education programs. consumer groups are urging the u.s. government to allow temp of pharmaceuticals to buy marlon. the offerrejected saying regulatory approval would be difficult. out all of that spilled ice was for nothing -- funds from the als association blockbuster charity event raised $115 million last summer. some of that money is going to a

drug in trials for the first time. the effort rather to millions of views and featured heil -- high-profile people like mark zuckerberg and bill gates all doing it and i'm sure you did as well. are your top stories for now. there's a lot going on today. we are going to talk about getting around new york city -- it's never been easy but bill de blasio another city council members are blaming rideshare services like uber for making it difficult, saying they are clogging up manhattan street. erik schatzker and i spoke with the taxi and limousine commission chair and ceo about what the city is doing to curb car service growth. guest: there's a proposal within city council. of is to study the effect the growth in the for higher industries.

is primarily stemming from the fact that there are 25,000 new cars and is to that. there will be continued and even more growth. do you want to study that growth after you cap the growth? guest: the second bill is to cause or limit growth and what the outcome of the study determine what the appropriate regulatory framework is for for hire vehicles. that could be like congestion cap.ng, which creates a it could be a cap or some sort of review process that allows for growth only after review. i think it is open-ended what the actual answer is. but it's time to take a much harder look at the issue when we see less traffic coming into manhattan, but speeds in

manhattan going down markedly. erik: what do you say to people who listen to this debate over traffic and the need to study and say it's just a red herring? what is really at issue is an effort to protect legacy economics of the taxi industry? it's an interesting point because some people find it ironic. there is one discussion about capping and slowing down and there's a whole thing here about what is a hail and who has the right to it. there is 37 -- three separate incumbent like car and livery groups challenging the fact that we allow uber and operate in something that should be reserved for yellow taxis. we are defending those lawsuits because we think --

it is not the same. guest: it is perfectly permissible under law and proves its something that new york needs and should have. erik: where do you and the commission stand over dealing with these services are or are not independent contractors? we wholeheartedly have flexibility asers' independent contractors. a driver is not an uber driver, a driver is a driver that can otheror l,yft and companies. that is one thing the driver's entitled to. they don't have the security of employment are guaranteed income. there's a if

guarantee in this state like there is in california ruling that they are not independent contractors? guest: and they are employees. in our position would have to change because we are cognizant that we need to protect drivers. a are not a very vocal group and the decision is their employees and they are entitled to those rights, we would be vigilant about making sure they get those. city that was the new york --i and limousine chief pure bureau chief. coming up, we will discuss nasa's 3 billion mile trip to pluto. still not plan it. planet. not a ♪

matt: earlier this morning, scientists at nasa celebrated the, nation of an historic

journey that spanned 3 billion miles and almost 10 years. at around 7:50 a.m., the new horizons spacecraft from the first ever flyby of pseudo-. it the closest we've ever come to the solar system's most unexplored body which still is not a planet. joining me now is the director of nasa's planetary science division. had to said planet and i correct myself because even though it is bigger than we expected, we don't consider it a planet, do we? a nasa perspective, we don't care what the classification is and the reason system, withs a the five movies that are there, which is well worthy of expiration by nasa. matt: what do we gain from this other than it being so cool and exciting and reminding us all of interstellar? what do we get from this as far as scientific data we can use in

the real world here? matter oft from the the last 20 years, we have discovered this region called the kuiper belt through which pluto is the archetype and there might be tens of thousands of objects like this scattered out well beyond pluto, whole brand-new region of our solar system. we are encountering these things only because we look, only because we explore. what we understand is this region is leftover material from our collapsing cloud that created the planets both terrestrial ones and gas giants. where does that fit in? matt: where does it fit in? does it give you an idea of when the final entropy is going to bring us all to death? byst: not exactly, but understanding our solar system, which we absolutely have to do, asunderstand how we survive

a human species. we are constantly bombarded by a variety of objects and perhaps at one time well in the past, we believe the solar system had a major shakeup, bringing many of ,hese kuiper belt object inward perhaps all the way into the inner part of our solar system and bringing lots of water and other things we now take for a half produced life. who knows? this is one of the reasons scientists so important to continue on this track, so that we can figure out where we come from and where we are going. the: we have a graphic of satellite and its thing -- it says things like pepsi, alice and ralph. what are these things? names ofose aren't experiment and we have seven onboard new horizon. ralph makes color images and alf

scientificicated spectra that allows us to tell the composition. resolutionthe high black and white or panoramic image or we have used so often and that everyone has seen the data from. these are fabulous sets of instrument doing a wonderful job of really investigating this environment. because the movie piqued our interest, are we going to get to pluto faster? 10 years is pretty fast for 3 billion miles, but can we get there in a shorter amount of time? the fact we have created a spacecraft and put on a check tree and then these things is it due to the fact we are developing the technologies to make these happen. are enabling technologies we are doing now in various other parts of our program that we want to leverage to be evil to go out to the outer part of

our solar system on a more regular basis. one of these systems is the space watch system. this is a huge rocket being developed by human exploration and is even more powerful than the saturn five. it will literally open up the outer part of our solar system to us because we will be able to get out there so much more faster. matt: you are all doing a great job there. the director of the nasa planetary science vision. if you need anyone to hibernate on your next exposition -- expedition, i volunteer. much more ahead on the bloomberg market day. just one hour to the close. ♪

: retail sales and the u.s. unexpectedly fell.

is that jerry janet yellen still on track to raise interest rat es? alix: not everyone is applauding the accord. matt: what to listen for when cfx report second-quarter earnings after the battle. matt: good afternoon. alix: happy tuesday. we want to get a look at the markets at this hour. we have the around deal, but there was a no news is good news feeling to the market. nothing preventing us from rallying.